EBK PRINCIPLES OF OPERATIONS MANAGEMENT
10th Edition
ISBN: 8220102744059
Author: HEIZER
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).
DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their automated machines has caused several problems. Over the past 30 weeks, the machine has broken down as indicated below. Each time the machine breaks down, the firm loses an average of $3,000 in time and repair expenses. If preventive maintenance were implemented, it is estimated that an average of only one breakdown per week would occur. The cost of preventive maintenance is $1,000 per week.
Number of breakdowns per week
0
1
2
3
4
Frequency (Number of weeks that breakdowns occurred)
8
3
5
9
5
What is the weekly total maintenance cost of this program?
Given the following data, find the expected breakdown cost. The cost per breakdown is $200.
Number of breakdowns per week
0
1
2
3
4
Weekly frequency
5
12
10
18
5
13) Great Southern Consultants Group's computer system has been down several times over the…
Chapter 17 Solutions
EBK 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 - What are the expected number of yearly breakdowns...Ch. 17 - Prob. 19PCh. 17 - Prob. 20PCh. 17 - Prob. 21PCh. 17 - Prob. 1CSCh. 17 - Prob. 2CSCh. 17 - Prob. 3CS
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- 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…arrow_forwardThe 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_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_forwardCEO John Spychalski is concerned about a problem that has existed at CBN railroad for almost 20 years now. The continuous problem has been that the locomotives used by the company are not very reliable. Even with prior decisions to resolve the problem, there still has not been a change in the reliability of these locomotives. Between 2015 and 2016, 155 new locomotives were purchased and one of CBN’s repair shops was renovated. The renovated shop has been very inefficient. Spychalski estimated that the shop would complete 300 overhauls on a yearly basis, but instead it has only managed to complete an average of160 overhauls per year.The company has also been doing a poor job servicing customers (that is, providing equipment). CBN has averaged only 87–88 percent equipment availability, compared to other railroads with availability figures greater than 90 percent. Increased business in the rail industry has been a reason for trying to reduce the time used for repairing the locomotives.…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_forward
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