A company uses various machines in the preparation of ice cream. The firm has been successful until recently when it noticed growing repair expenses for the various machines it uses. Over the past 20 months, the machines have broken down at the rate indicated in the following table: Each time a machine breaksdown, the company estimates that it loses an average of US$300 in production time and service expenses. Should the company opt to purchase a service contract for preventive maintenance by Angeles Machineries Inc., (AMI) there will still be breakdowns, averaging one breakdown per month. The price for this service by AMI is US$150 per month. a. If the company continues as is, what is the expected no. of breakdowns based on past history? b. What will be the cost of breakdowns per month to the company without a preventive maintenance contract? c. What will be the cost of breakdowns per month to the company with a preventive maintenance contract? d. Should they engage the preventive maintenance by Angeles Machineries Inc., (AMI) immediately if based on cost effectivity? e. Assuming they started with 100 all new machines, and all breakdowns in the above table are first time downtimes, what is the computed MTBF of the machines over 20 months? Assume also that if a machine failed during the month N, it will have failed to work during the whole month N until the 20th month.

Elements Of Electromagnetics

7th Edition

ISBN:9780190698614

Author:Sadiku, Matthew N. O.

Publisher:Sadiku, Matthew N. O.

ChapterMA: Math Assessment

Section: Chapter Questions

Problem 1.1MA

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A company uses various machines in the preparation of ice cream. The firm has been successful until recently when it noticed growing repair expenses for the various machines it uses. Over the past 20 months, the machines have broken down at the rate indicated in the following table:

Each time a machine breaksdown, the company estimates that it loses an average of US$300 in production time and service expenses. Should the company opt to purchase a service contract for preventive maintenance by Angeles Machineries Inc., (AMI) there will still be breakdowns, averaging one breakdown per month. The price for this service by AMI is US$150 per month.

a. If the company continues as is, what is the expected no. of breakdowns based on past history?

b. What will be the cost of breakdowns per month to the company without a preventive maintenance contract?

c. What will be the cost of breakdowns per month to the company with a preventive maintenance contract?

d. Should they engage the preventive maintenance by Angeles Machineries Inc., (AMI) immediately if based on cost effectivity?

e. Assuming they started with 100 all new machines, and all breakdowns in the above table are first time downtimes, what is the computed MTBF of the machines over 20 months? Assume also that if a machine failed during the month N, it will have failed to work during the whole month N until the 20th month.

+
No. of
Breakdowns
0
1
2
3
Total
No. of Months
That
Breakdowns
Occurred
2
8
6
4
20
Month ID of
Failure
M1, M2
M3, M4, M5, M6,
M7, M8, M9, M10
M11, M12, M13,
M14, M15, M16
M17, M18, M19,
M20

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