Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 17, Problem 21P
a)
Summary Introduction
To determine: The expected number of breakdowns per year.
b)
Summary Introduction
To determine: The cost of current maintenance policy.
c)
Summary Introduction
To determine: The most economical policy.
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The fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $2,200. The current maintenance policy (with station employees performing maintenance) has yielded the following history:
Number of breakdowns
0
1
2
3
4
5
Number of years in which breakdowns occurred
5
3
1
4
6
2
a) The expected number of breakdowns per year with station employees performing maintenance = breakdowns per year (round your response to two decimal places).
A plastic injection molding machine operates 334 days a year. It is the bottleneck workstation in a process that produces plastic housed wall clocks.
Industrial engineers collected data on the probability of machine breakdowns, the costs of preventive maintenance, and the cost of a breakdown.
Number of Molding
Machine Breakdowns
per Day
Probability of a
breakdown
0
0.32
1
0.27
2
0.22
3
0.13
4
0.06
The cost of preventive maintenance is high due to performing it between 1 and 4 a.m. each day by two machine experts. The preventive
maintenance cost is $2,030 per day including replacement parts, cleaning, and software upgrades. The cost of a breakdown of $1,940 is also high
because the downstream workstations can only work until all work-in-progress inventory is completed; then the entire process must stop. What are
the economics of the situation? Do not round intermediate calculations. Round your answers to the nearest cent.
The expected cost of a breakdown per day is $
The manufacturing…
Chapter 17 Solutions
Principles Of Operations Management
Ch. 17 - Prob. 1EDCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - What is the trade-off between operator-performed...Ch. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQ
Ch. 17 - Prob. 10DQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5PCh. 17 - Prob. 6PCh. 17 - Prob. 7PCh. 17 - Prob. 8PCh. 17 - Prob. 9PCh. 17 - What is the reliability of the system shown?Ch. 17 - Prob. 11PCh. 17 - Prob. 12PCh. 17 - Rick Wing, salesperson for Wave Soldering Systems,...Ch. 17 - Prob. 14PCh. 17 - Prob. 15PCh. 17 - Prob. 16PCh. 17 - Prob. 17PCh. 17 - What are the expected number of yearly breakdowns...Ch. 17 - Prob. 19PCh. 17 - Prob. 20PCh. 17 - Prob. 21PCh. 17 - Prob. 22PCh. 17 - Prob. 1VCCh. 17 - Prob. 2VCCh. 17 - Prob. 3VC
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- The annual operating costs of Machine A are $2,000. The machine will perform satisfactorily over the next five years and has an estimated market value (MV) of $3,000 at the end of its useful life. A salesperson for another company is offering a replacement, Machine B, for $14,000, with a MV of $1,400 after five years. Annual operating costs for Machine B will only be $1,500. It is believed that $10,000 could be obtained for the old machine A if it were sold now. If the before-tax MARR is 10% per year, determine whether the old machine A should be replaced by the new machine B.arrow_forwardWill and Jason Najami are going to open a swimming pool service this summer. They will put in pools, repair damaged ones, and provide a pool cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?arrow_forwardMachine A was purchased last year for $20,000 and had an estimated market value of $2,000 at the end of its 6-year useful life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next 5 years. A salesperson for another company is offering a replacement, machine B , for $14,000 with a market value of $1,400 after 5 years. Annual operating costs for machine B will only be $1,400. A trade-in allowance of $10,400 has been offered for machine A. If the MARR is 12% per year, should you buy the new machine? Use RORAI method. Write a breif interpretation of your answer.arrow_forward
- Aurora Electronics has received a large number of customer complaints and returns for a DVD player that it manufactures. When a DVD is inserted into the loading mechanism, it can become stuck and difficult to remove. Consumers will attempt to pull out the DVD drawer with their fingers or pry it open with an object such as a knife, pencil, or screwdriver, frequently damaging the DVD or injuring themselves. What are the various costs of poor quality and quality assurance that may be associated with this quality issue?arrow_forwardThe fire department has a number of failures with its oxygen masks and is evaluating the possibility of outsourcing preventive maintenance to the manufacturer. Because of the risk associated with a failure, the cost of each failure is estimated at $2,200. The current maintenance policy (with station employees performing maintenance) has yielded the following history: Number of breakdowns 0 1 Number of years in which breakdowns occurred 3 3 4 5 3 10 1 b) The cost of the current maintenance policy = 2 3 1 a) The expected number of breakdowns per year with station employees performing maintenance = breakdowns per year (round your response to two decimal places).arrow_forwardDescribe the key components of a Failure Modes and Effects Analysis (FMEA) and how it is used to improve system reliability.arrow_forward
- Discuss the actions companies can implement to minimize the potential negative impact of service variability on the delivery of customer service.arrow_forwardIn a car manufacturing company, an automated painting process has been introduced, and the quality assurance team suspects there might be issues that require investigation. The team decides to conduct a root cause analysis to identify potential problems. Through the root cause analysis and further investigation, it appears that the drying time of the paint in minutes is affecting the overall quality of the finish. The aspect they need to examine is the variation in drying time across different colours of paint. Considering the ongoing concerns in the painting process, the team chooses to collect a sample of six drying time measurements every 20 minutes from various colours of paint. The recorded drying time values for a day's production are presented in Table 1. A total of 10 sets of measurements, each consisting of six drying time values in minutes, have been collected. Each time a set of measurements is taken, the individual drying time values are recorded. Table 1: Drying Time…arrow_forwardThe fire department has a number of failures withits oxygen masks and is evaluating the possibility of outsourcingpreventive maintenance to the manufacturer. Because of the riskassociated with a failure, the cost of each failure is estimated at$2,000. The current maintenance policy (with station employeesperforming maintenance) has yielded the following history:Number of breakdowns 012345Number of years in whichbreakdowns occurred 431550This manufacturer will guarantee repairs on any and all failures aspart of a service contract. The cost of this service is $5,000 per year. a) What is the expected number of breakdowns per year with sta-tion employees performing maintenance? b) What is the cost of the current maintenance policy?c) What is the more economical policy?arrow_forward
- A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.6 million per year. If the city’s MARR is 8% per year, what is the capitalized worth of the system? The study period is 100 years.arrow_forwardDetermine how TCAS have played a role in a flight safety without any support from air traffic controllers in the ground stations by analyzing the function of its componentsarrow_forwardFor the following service dimensions for products indicate the corresponding dimension for services Conformance to specifications Performance Reliability Featuresarrow_forward
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