WMP15059 - Vertika Singhal

Without Plan:
Elapsed time between breakdowns f(x) x/8 0<=x<=4 weeks
With Plan:
Elapsed time between breakdowns f(x) x/18 0<=x<=4 weeks

Duration in repairing the machine 1,2 or 3 days

Without Plan With Plan
Machine Repair Machine Repair
Time y P(y) Time y P(y)
1 0.15 1 0.4
2 0.55 2 0.5
3 0.3 3 0.1

Cumulative Probabilities in both the cases:

Without Plan With Plan

Machine
Repair Time Machine Repair
P(y) y Time y P(y)
0 1 0 1
0.15 2 0.4 2
0.7 3 0.9 3

Every time a machine breaksdown the cost to the company

Maintenance cost
No Plan
Repair
Elapsed time Cumulative Repair Cost to the
Breakdown Random no. b/w breakdown Time Random Time Company
No.
1 0.62891383 3.172163511601 3.172163512 0.26280128 2 $ 4,000.00
2 0.63984223 3.199605544981 6.371769057 0.42084061 2 $ 4,000.00
3 0.06222289 0.997780664607 7.369549721 0.18544587 2 $ 4,000.00
4 0.58617104 3.062472300462 10.43202202 0.35759071 2 $ 4,000.00
5 0.32977972 2.297058002431 12.72908002 0.45247939 2 $ 4,000.00
6 0.85325269 3.694867130187 16.42394715 0.677423 2 $ 4,000.00
7 0.2508426 2.003367561174 18.42731472 0.83704005 3 $ 6,000.00
8 0.61241682 3.130282592954 21.55759731 0.48998641 2 $ 4,000.00
9 0.77860898 3.529552908056 25.08715022 0.02927053 1 $ 2,000.00
10 0.40217558 2.5366925899 27.62384281 0.21285836 2 $ 4,000.00
11 0.80010234 3.57793760207 31.20178041 0.8803039 3 $ 6,000.00
12 0.03945084 0.7944894711 31.99626988 0.98609881 3 $ 6,000.00
13 0.68128399 3.301597155874 35.29786704 0.75079878 3 $ 6,000.00
14 0.34537971 2.350760607314 37.64862764 0.10740378 1 $ 2,000.00
15 0.96650524 3.932439940746 41.58106758 0.19401585 2 $ 4,000.00
 16 0.02046544 0.572229866994 42.15329745 0.89043909 3 $ 6,000.00
17 0.15581628 1.578942819212 43.73224027 0.87040076 3 $ 6,000.00
18 0.13425402 1.465627606057 45.19786788 0.10953061 1 $ 2,000.00
19 0.11460932 1.354159917697 46.55202779 0.95116154 3 $ 6,000.00
20 0.85489676 3.698425090992 50.25045288 0.84678215 3 $ 6,000.00
21 0.47412911 2.754281340518 53.00473422 0.66913859 2 $ 4,000.00
22 0.13171444 1.451699363325 54.45643359 0.7096811 3 $ 6,000.00
23 0.16685832 1.633931791789 56.09036538 0.57104561 2 $ 4,000.00
24 0.01791988 0.53546058478 56.62582596 0.01869414 1 $ 2,000.00
25 0.08689192 1.179097426799 57.80492339 0.0426414 1 $ 2,000.00
26 0.8608467 3.71127299375 61.51619639 0.65250949 2 $ 4,000.00
27 0.77360148 3.518184718238 65.0343811 0.83472805 3 $ 6,000.00
28 0.63979993 3.199499780652 68.23388088 0.86568235 3 $ 6,000.00
29 0.9832812 3.966421453095 72.20030234 0.3944955 2 $ 4,000.00
30 0.36075919 2.402529297078 74.60283163 0.34886883 2 $ 4,000.00

Total cost incurred by the firm $ 132,000.00

Cost inurred by the firm in a year $ 92,007.23

Hence, as cost incurred by the firm is lower in case of maintenance plan, so it's preferable
$ 2,000.00 per day
$ 20,000.00 /year
With Maintenance Plan
Time elapsed Repair
Breakdown Random Cumulative Repair Cost to the
No. No. b/w Time Random Time Company
Breakdown No.
1 0.092316 1.823013116 1.82301312 0.180352 1 $ 2,000.00
2 0.022462 0.899234842 2.72224796 0.610216 2 $ 4,000.00
3 0.050313 1.345834372 4.06808233 0.760347 2 $ 4,000.00
4 0.494359 4.218641865 8.28672419 0.468507 2 $ 4,000.00
5 0.710434 5.057236335 13.3439605 0.488561 2 $ 4,000.00
6 0.827219 5.45709578 18.8010563 0.766465 2 $ 4,000.00
7 0.211953 2.762300332 21.5633566 0.215455 1 $ 2,000.00
8 0.241149 2.94641475 24.5097714 0.865937 2 $ 4,000.00
9 0.936332 5.80585446 30.3156259 0.719117 2 $ 4,000.00
10 0.923218 5.765053061 36.0806789 0.933572 3 $ 6,000.00
11 0.627824 4.754120123 40.834799 0.437722 2 $ 4,000.00
12 0.929905 5.785894581 46.6206936 0.938818 3 $ 6,000.00
13 0.386067 3.728056802 50.3487504 0.741766 2 $ 4,000.00
14 0.040558 1.208335662 51.5570861 0.420313 2 $ 4,000.00
15 0.62331 4.73699816 56.2940842 0.032297 1 $ 2,000.00
16 0.463041 4.08282889 60.3769131 0.483143 2 $ 4,000.00
17 0.079604 1.692850111 62.0697632 0.992887 3 $ 6,000.00
18 0.392487 3.758927799 65.828691 0.229942 1 $ 2,000.00
19 0.087903 1.778908033 67.6075991 0.669093 2 $ 4,000.00
20 0.306671 3.322674585 70.9302737 0.476471 2 $ 4,000.00
21 0.45879 4.064044483 74.9943181 0.314764 1 $ 2,000.00
22 0.241306 2.947372225 77.9416904 0.424429 2 $ 4,000.00
23 0.554825 4.469193082 82.4108834 0.785946 2 $ 4,000.00
24 0.392745 3.760162253 86.1710457 0.191725 1 $ 2,000.00
25 0.77583 5.284871689 91.4559174 0.446959 2 $ 4,000.00
26 0.767154 5.255239475 96.7111569 0.595583 2 $ 4,000.00
27 0.416653 3.87292076 100.584078 0.512832 2 $ 4,000.00
28 0.451513 4.031683066 104.615761 0.999288 3 $ 6,000.00
29 0.55769 4.480719144 109.09648 0.029378 1 $ 2,000.00
30 0.681433 4.952938429 114.049418 0.13012 1 $ 2,000.00

Total maintenance cost incurred by the firm $ 112,000.00

Total maintenance cost incurred by the firm in a year $ 51,065.58
plus Cost towards taking the maintenance plan $ 20,000.00

Total Cost incurred by the firm in a year $ 71,065.58