2) A machine in a temporary factory is inspected every 2 years for the first 5 y
ID: 358290 • Letter: 2
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2) A machine in a temporary factory is inspected every 2 years for the first 5 years and every vear after the 5th vear. A m/c can stay upto a max of 8 years in the system. At the time of inspection you decide to either sell (or replace with a new one) or continue to run the same machine. In any given year, you must have only 1 machine working. The first machine is purchased at the beginning of year 1 and at the end of year 8 the factory is closed and the machine has to be sold. a) Draw the network diagram for machine replacement Given cost of maintenance is an additional $100/year for every year that the machine is working, salvage reduces S50/year from the cost for every year that the machine is kept, cost of new machine is $200, revenue generated is $300 per year of working, and discounting factor for value of money is 0.9 per year Solve the network to find the optimal replacement policy that maximizes the revenue. b)Explanation / Answer
General Inspection Procedures. 1. Inspection Scope. Inspections, either programmed or unprogrammed, fall into one of two categories depending on the scope of the inspection: a. Comprehensive. A substantially complete inspection of the potentially high hazard areas of the establishment. An inspection may be deemed comprehensive even though, as a result of the exercise of professional judgment, not all potentially hazardous conditions, operations and practices within those areas are inspected. b. Partial. An inspection whose focus is limited to certain potentially hazardous areas, operations, conditions or practices at the establishment. A partial inspection may be expanded based on information gathered by the CSHO during the inspection process. Consistent with the provisions of Section 8(f)(2) of the Act, and Area Office priorities, the CSHO shall use professional judgment to determine the necessity for expansion of the inspection scope, based on information gathered during records or program review and walkaround inspection. 2. Conduct of the Inspection. a. Time of Inspection. Inspections shall be made during regular working hours of the establishment except when special circumstances indicate otherwise. The Assistant Area Director and CSHO shall confer with regard to entry during other than normal working hours. b. Presenting Credentials. (1) At the beginning of the inspection the CSHO shall locate the owner representative, operator or agent in charge at the workplace and present credentials. On construction sites this will most often be the representative of the general contractor. (2) When neither the person in charge nor a management official is present, contact may be made with the employer to request the presence of the owner, operator or management official. The inspection shall not be delayed unreasonably to await the arrival of the employer representative. This delay should normally not exceed one hour. If the person in charge at the workplace cannot be determined, record the extent of the inquiry in the case file and proceed with the physical inspection. A. 2. c. Refusal to Permit Inspection. Section 8 of the Act "provides that CSHOs may enter without delay and at reasonable times any establishment covered under the Act for the purpose of conducting an inspection". Unless the circumstances constitute a recognized exception to the warrant requirement (i.e., consent, third party consent, plain view, open field, or exigent circumstances) an employer has a right to require that the CSHO seek an inspection warrant prior to entering an establishment and may refuse entry without such a warrant. NOTE: On a military base or other Federal Government facility, the following guidelines do not apply. Instead, a representative of the controlling authority shall be informed of the contractor's refusal and asked to take appropriate action to obtain cooperation. (1) Refusal of Entry or Inspection. When the employer refuses to permit entry upon being presented proper credentials or allows entry but then refuses to permit or hinders the inspection in some way, a tactful attempt shall be made to obtain as much information as possible about the establishment. (See A.2.c.(4), below, for the information the CSHO shall attempt to obtain.) (a) If the employer refuses to allow an inspection of the establishment to proceed, the CSHO shall leave the premises and immediately report the refusal to the Assistant Area Director. The Area Director shall notify the Regional Solicitor. (b) If the employer raises no objection to inspection of certain portions of the workplace but objects to inspection of other portions, this shall be documented. Normally, the CSHO shall continue the inspection, confining it only to those certain portions to which the employer has raised no objections. (c) In either case the CSHO shall advise the employer that the refusal will be reported to the Assistant Area Director and that the agency may take further action, which may include obtaining legal process. (d) On multiemployer worksites, valid consent can be granted by the owner, or another co-occupier of the space, for site entry. (2) Employer Interference. Where entry has been allowed but the employer interferes with or limits any important aspect of the inspection, the CSHO shall determine whether or not to consider this action as a refusal. Examples of interference are refusals to permit the walkaround, the examination of records essential to the inspection, the taking of essential photographs and/or videotapes, the inspection of a particular part of the premises, indispensable employee interviews, or the refusal to allow attachment of sampling devices. A. 2. c. (3) Administrative Subpoena. Whenever there is a reasonable need for records, documents, testimony and/or other supporting evidence necessary for completing an inspection scheduled in accordance with any current and approved inspection scheduling system or an investigation of any matter properly falling within the statutory authority of the agency, the Regional Administrator, or authorized Area Director, may issue an administrative subpoena. (See OSHA Instruction ADM 4.4.) (4) Obtaining Compulsory Process. If it is determined, upon refusal of entry or refusal to produce evidence required by subpoena, that a warrant will be sought, the Area Director shall proceed according to guidelines and procedures established in the Region for warrant applications. (a) With the approval of the Regional Solicitor, the Area Director may initiate the compulsory process. (b) The warrant sought when employer consent has been withheld shall normally be limited to the specific working conditions or practices forming the basis of the unprogrammed inspection. A broad scope warrant, however, may be sought when the information available indicates conditions which are pervasive in nature or if the establishment is on the current list of targeted establishments. (c) If the warrant is to be obtained by the Regional Solicitor, the Area Director shall transmit in writing to the Regional Solicitor, within 48 hours after the determination is made that a warrant is necessary, all information necessary to obtain a warrant, as determined through contact with the Solicitor, which may include the following: 1 Area/District Office, telephone number, and name of Assistant Area Director involved. 2 Name of CSHO attempting inspection and inspection number, if assigned. Identify whether inspection to be conducted included safety items, health items or both. 3 Legal name of establishment and address including City, State and County. Include site location if different from mailing address. A. 2. c. (4) (c) 4 Estimated number of employees at inspection site. 5 SIC Code and high hazard ranking for that specific industry within the State, as obtained from statistics provided by the National Office. 6 Summary of all facts leading to the refusal of entry or limitation of inspection, including the following: a Date and time of entry. b Date and time of denial. c Stage of denial (entry, opening conference, walkaround, etc.). 7 Narrative of all actions taken by the CSHO leading up to during and after refusal, including the following information: a Full name and title of the person to whom CSHO presented credentials. b Full name and title of person(s) who refused entry. c Reasons stated for the denial by person(s) refusing entry. d Response, if any, by CSHO to c, above. e Name and address of witnesses to denial of entry. 8 All previous inspection information, including copies of the previous citations. 9 Previous requests for warrants. Attach details, if applicable. 10 As much of the current inspection report as has been completed. 11 If a construction site involving work under contract from any agency of the Federal Government, the name of the agency, the date of the contract, and the type of work involved. 12 Other pertinent information such as description of the workplace; the work process; machinery, tools and materials used; known hazards and injuries associated with the specific manufacturing process or industry. A. 2. c. (4) (c) 13 Investigative techniques which will be required during the proposed inspection; e.g., personal sampling, photographs, audio/ videotapes, examination of records, access to medical records, etc. 14 The specific reasons for the selection of this establishment for the inspection including proposed scope of the inspection and rationale: a Imminent Danger. o Description of alleged imminent danger situation. o Date received and source of information. o Original allegation and copy of typed report, including basis for reasonable expectation of death or serious physical harm and immediacy of danger. o Whether all current imminent danger processing procedures have been strictly followed. b Fatality/Catastrophe. o The OSHA-36F filled out in as much detail as possible. c Complaint or Referral. o Original complaint or referral and copy of typed complaint or referral. o Reasonable grounds for believing that a violation that threatens physical harm or imminent danger exists, including standards that could be violated if the complaint or referral is true and accurate. o Whether all current complaint or referral processing procedures have been strictly followed. o Additional information gathered pertaining to complaint or referral evaluation. A. 2. c. (4) (c) 14 d Programmed. o Targeted safety--general industry, maritime, construction. o Targeted health. o Special emphasis program--Special Programs, Local Emphasis Program, Migrant Housing Inspection, etc. e Followup. o Date of initial inspection. o Details and reasons followup was to be conducted. o Copies of previous citations on the basis of which the followup was initiated. o Copies of settlement stipulations and final orders, if appropriate. o Previous history of failure to correct, if any. f Monitoring. o Date of original inspection. o Details and reasons monitoring inspection was to be conducted. o Copies of previous citations and/or settlement agreements on the basis of which the monitoring inspection was initiated. o PMA request, if applicable. (5) Compulsory Process. When a court order or warrant is obtained requiring an employer to allow an inspection, the CSHO is authorized to conduct the inspection in accordance with the provisions of the court order or warrant. All questions from the employer concerning reasonableness of any aspect of an inspection conducted pursuant to compulsory process shall be referred to the Area Director. A. 2. c. (6) Action to be Taken Upon Receipt of Compulsory Process. The inspection will normally begin within 24 hours of receipt of a warrant or of the date authorized by the warrant for the initiation of the inspection. (a) The CSHO shall serve a copy of the warrant on the employer and make a separate notation as to the time, place, name and job title of the individual served. (b) The warrant may have a space for a return of service entry by the CSHO in which the exact dates of the inspection made pursuant to the warrant are to be entered. Upon completion of the inspection, the CSHO will complete the return of service on the original warrant, sign and forward it to the Assistant Area Director for appropriate action. (c) Even where the walkaround is limited by a warrant or an employer's consent to specific conditions or practices, a subpoena for production of records shall be normally served, if necessary, in accordance with A.2.c.(3), above. The records specified in the subpeona shall include (as appropriate) injury and illness records, exposure records, the written hazards communication program, the written lockout-tagout program, and records relevant to the employer's safety and health management program, such as safety and health manuals or minutes from safety meetings. (d) The Regional Administrator, or Area Director authorized to do so, may issue, for each inspection, an administrative subpoena which seeks production of the above specified categories of documents. The subpoena may call for immediate production of the records with the exception of the documents relevant to the safety and health management program, for which a period of 5 working days normally shall be allowed. (e) If circumstances make it appropriate, a second warrant may be sought based on the review of records or on "plain view" observations of other potential violations during a limited scope walkaround. (7) Federal Marshal Assistance. A U.S. Marshal may accompany the CSHO when the compulsory process is presented. A. 2. c. (8) Refused Entry or Interference with a Compulsory Process. (a) When an apparent refusal to permit entry or inspection is encountered upon presenting the warrant, the CSHO shall specifically inquire whether the employer is refusing to comply with the warrant. (b) If the employer refuses to comply or if consent is not clearly given, the CSHO shall not attempt to conduct the inspection but shall leave the premises and contact the Assistant Area Director concerning further action. The CSHO shall make notations (including all witnesses to the refusal or interference) and fully report all relevant facts. Under these circumstances the Area Director shall contact the Regional Solicitor and they shall jointly decide what further action shall be taken. d. Forcible Interference with Conduct of Inspection or Other Official Duties. Whenever an OSHA official or employee encounters forcible resistance, opposition, interference, etc., or is assaulted or threatened with assault while engaged in the performance of official duties, all investigative activity shall cease. (1) The Assistant Area Director shall be advised by the most expeditious means. (2) Upon receiving a report of such forcible interference, the Area Director or designee shall immediately notify the Regional Administrator. e. Release for Entry. (1) The CSHO shall not sign any form or release or agree to any waiver. This includes any employer forms concerned with trade secret information. (2) The CSHO may obtain a pass or sign a visitor's register, or any other book or form used by the establishment to control the entry and movement of persons upon its premises. Such signature shall not constitute any form of a release or waiver of prosecution of liability under the Act. f. Bankrupt or Out of Business. If the establishment scheduled for inspection is found to have ceased business and there is no known successor, the CSHO shall report the facts to the Assistant Area Director. If an employer, although adjudicated bankrupt, is continuing to operate on the date of the scheduled inspection, the inspection shall proceed. An employer must comply with the Act until the day the business actually ceases to operate. A. 2. g. Strike or Labor Dispute. Plants or establishments may be inspected regardless of the existence of labor disputes involving work stoppages, strikes or picketing. If the CSHO identifies an unanticipated labor dispute at a proposed inspection site, the Assistant Area Director shall be consulted before any contact is made. (1) Programmed Inspections. Programmed inspections may be deferred during a strike or labor dispute, either between a recognized union and the employer or between two unions competing for bargaining rights in the establishment. (2) Unprogrammed Inspections. Unprogrammed inspections (complaints, fatalities, etc.) will be performed during strikes or labor disputes. However, the seriousness and reliability of any complaint shall be thoroughly investigated by the supervisor prior to scheduling an inspection to ensure as far as possible that the complaint reflects a good faith belief that a true hazard exists. If there is a picket line at the establishment, the CSHO shall inform the appropriate union official of the reason for the inspection prior to initiating the inspection. h. Employee Participation. The CSHO shall advise the employer that Section 8(e) of the Act and 29 CFR 1903.8 require that an employee representative be given an opportunity to participate in the inspection. (1) CSHOs shall determine as soon as possible after arrival whether the employees at the worksite to be inspected are represented and, if so, shall ensure that employee representatives are afforded the opportunity to participate in all phases of the workplace inspection. (2) If an employer resists or interferes with participation by employee representatives in an inspection and this cannot be resolved by the CSHO, the continued resistance shall be construed as a refusal to permit the inspection and the Assistant Area Director shall be contacted in accordance with A.2.c. of this chapter. NOTE: For the purpose of this chapter, the term "employee representative" refers to (1) a representative of the certified or recognized bargaining agent, or, if none, (2) an employee member of a safety and health committee who has been chosen by the employees (employee committee members or employees at large) as their OSHA representative, or (3) an individual employee who has been selected as the walkaround representative by the employees of the establishment. A. 3. Opening Conference. The CSHO shall attempt to inform all effected employers of the purpose of the inspection, provide a copy of the complaint if applicable, and shall include employees unless employer objects. The opening conference shall be kept as brief as possible and may be expedited through use of an opening conference handout. Conditions of the worksite shall be noted upon arrival as well as any changes which may occur during the opening conference. NOTE: The CSHO shall determine if the employer is covered by any of the exemptions or limitations noted in the current Appropriations Act (see OSHA Instruction CPL 2.51H, or the most current version), or deletions in OSHA Instruction CPL 2.45B Chapter II, F.2.b.(1)(b)5 b or superseding directive. a. Attendance at Opening Conference. OSHA encourages employers and employees to meet together in the spirit of open communication. The CSHO shall conduct a joint opening conference with employer and employee representatives unless either party objects. If there is objection to a joint conference, the CSHO shall conduct separate conferences with employer and employee representatives. b. Scope. The CSHO shall outline in general terms the scope of the inspection, including private employee interviews, physical inspection of the workplace and records, possible referrals, discrimination complaints, and the closing conference(s). c. Forms Completion. The CSHO shall obtain available information for the OSHA-1 and other appropriate forms. d. Employees of Other Employers. During the opening conference, the CSHO shall determine whether the employees of any other employers are working at the establishment. If these employers may be affected by the inspection, the scope may be expanded to include others or a referral made at the discretion of the CSHO. At multiemployer sites, copies of complaint(s), if applicable, shall be provided to all employers affected by the alleged hazard(s), and to the general contractor. e. Voluntary Compliance Programs. Employers who participate in selected voluntary compliance programs may be exempted from programmed inspections. The CSHO shall determine whether the employer falls under such an exemption during the opening conference.
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