Compute the expected number of breakdowns


Assignment Section 1: Problems solving

Problem 1: The number of computers breakdown for the firm ABC can be presented as follow: Based on the last 105 weeks, the number of standby computers at ABC is:

Number of Breakdowns

Number of Months that the breakdowns Occurred

5

15

10

25

15

35

20

30

Total

105

Table 1: Breakdowns data for the firm ABC

Let the average cost of breakdown = AED 200 and the Cost of Service contract, that ensure an expected number of breakdown less than 5 by month, is equal to AED 2000/month.

Question 1: Compute the expected number of breakdowns.

Question 2: Compute the expected breakdown cost per month with no preventive maintenance.

Question 3: Compute the cost of preventive maintenance.

Question 4: Should the firm contract for maintenance on their computers?

Problem 2: A shop has fifty (50) machines which are repaired in the same order in which they fail. A machine fails on average of 0.0250 machine per hour and each repair crew can repair 0.2778 machine per hour. The maintenance policy is to repair the broke down machine and bring back in production within 4 hours.

Q1. How many repair crews are required?

Assignment Section 2: Short Essay

If you think that First In-First Out (FIFO) is not a good tool to define priorities in scheduled maintenance what tool you will choose and how it work?

Note - Need to solve each question separately and add references at the end of all.

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