Q8. A group of 30 machines are repaired by a single repair person when they brea
ID: 333237 • Letter: Q
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Q8. A group of 30 machines are repaired by a single repair person when they break down. Each machine yields a profit of $15 per hour while running. The mechanic costs the firm $150 per hour, including overheads. At the present time no preventative maintenance is used. It is proposed that one technician be employed to perform certain routine maintenance and adjustment tasks. This will cost $60 per hour but will reduce the service factor from 0.1 to 0.04. What is the economic advantage, or disadvantage, of implementing preventative maintenance?Explanation / Answer
We have 30 machines that yield $15 each per hour, so in an hour all the 30 machines produce $450
The cost of the machine is $150 per hour when he needs it, and a mechanic costs$60 per hour even when there is no breakdown reducing service factor from 0.1 to 0.04
Assuming service factor as the probability of the machine to break down we have
Safety factor =0.10=10%
The quantity of machines being repair for an hour is
30x0.10 = 3 = 3 machines
Three machines that will not produce 3x15 = $45
And if the mechanic takes one hour to repair each machine will cost =3x150 = $450
For a total loss of $45+$450=$495
With the mechanic, we leave $45 per hour and the number of machines being repaired in 1,6 machines, so in 2 hours will have 3 machines, then $45 by not producing and $450 for the mechanic which totals to $495 in two hours and $247.5 per hour +$45 for the technician.
In this case of a mechanic, we have $292.5 of losses with the same quantity of benefits.
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