Other instructions may need item-level results or a removal premise. Valuation therefore starts with system boundaries, use and location—not a mechanical sum. These engagements sit within machinery and equipment valuation.
1Map the system boundary
Create a process map from material input to finished product. Identify processing and conveying equipment, controls, electrical supply, air, steam, water, cooling, quality tools, moulds and spares. Distinguish owned items from leases and property- or supplier-owned infrastructure.
State whether civil works, foundations, services and installation are included or the scope is limited to removable equipment; this affects cost research, comparison and independent relocation or operation.
2Reconcile components to the register
Use a stable ID for each item and link serial number, model and line position. Record present, missing and surplus items and unrecorded replacements or additions. A material gap may require asset inventory and tagging first.
Do not omit supporting components because their individual cost is low, and do not include raw material, finished stock or property unless the scope expressly says so.
3Prepare operating and capacity data
Gather design and actual capacity, product mix, operating hours, utilisation and downtime, line speed and yield, bottlenecks, maintenance, failures and upgrades. Explain the gap between theoretical and actual output; market, inputs, labour and technical constraints have different implications.
Production data does not mean the valuer certifies engineering performance. A separate technical report may be needed for formal efficiency, safety or engineering remaining-life assessment.
4Understand compatibility and obsolescence
A working line may rely on unsupported technology, consume more energy or labour than alternatives, fail current specifications or need investment for new products. Refurbished units may still depend on an old control system, so obsolescence is considered at component and system level, not from the oldest machine alone.
Raw materials, spares, service support, demand, regulation and economic operating capacity also matter. The equipment valuation guide covers condition, market and obsolescence factors.
5Define location and removal premise
Is the line installed at its site, available for removal, or considered as individual components? Provide available installation, foundation, utility and commissioning costs and supportable estimates for dismantling, packing, transport and reinstallation. Some assets lose utility when separated; others have independent markets. One percentage should not be applied to all.
6Agree how results are presented
The client may need an overall conclusion with a component schedule, values by class or item, or separate treatment of spares and tooling. Define valuation date, currency and whether tax, transport or installation are included under the stated basis. Align these premises before comparing lines.
Preparation checklist
- Process map, boundary and component list.
- Manufacturers, models, serial numbers and years.
- Invoices, installation cost and upgrades.
- Design and actual capacity, operation and downtime.
- Maintenance, condition, spares and support.
- Products, specifications and technical constraints.
- Site, inspection access and safe operation.
- Purpose, date and installed or removal premise.
Frequently asked questions
Is line value the sum of machine values?
Not always. Integration may create utility or constraints, and an installed-line premise differs from separate item sales. The unit of account and component treatment must be defined.
Are buildings and utilities included?
Only if the scope clearly includes them with the appropriate competence. Property, civil works, and owned or shared utilities should be separated to avoid double counting.
What if the line is shut down?
The reason and duration of shutdown, condition, restart feasibility, market and available evidence are considered. “Idle” alone does not determine value.
Can part of a line be valued?
It can be considered, but dependency on the rest of the system and the ability to operate or sell independently must be understood and stated in the scope and report.
Start with the process map and component list
Provide capacity, condition and purpose and state whether the premise is installed or available for removal.