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TYPES OF FAILURE
Two types of failure
Gradual Failure : Tyres, Break shoes 2. Sudden Failure: Progressive Eg: Automobile Tubes Retrogressive Eg: Human skills and air craft engines Random Eg: Vaccum tubes, Electric Bulbs
1.
life
REPLACEMENT SITUATIONS
Due to failure of machine or expected to fail shortly Availability of new technology.
Why we do Replacement?
To minimize the maintenance cost To maximize the effective money utilization To increase efficiency
Maintenance Cost
Cum. Maintains cost Depreciation Total cost Average Total cost
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3 Running cost
R
Total cost
TC
Y R (CS)
Year
Cost
Running cost
Scrap Value
Total cost
Y 1 2
C 10 10
S 4 3
TC
ATC
Cost-Scrap=Maintainance cost
5 6
3
4 5 6 7 8 9
10
Year
Cost
Total cost
Y 1 2
C 10 10
S 4 3
R 11
(CS) 7
TC
ATC
Cost-Scrap=Maintainance cost
5 6
3
4 5 6 7 8 9
11
Total
cost=[ Rn + (C-S)]
=Maintainance cost+Depreciation
Average
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WHAT IS
Year Cost Y 1 2 C 10 10
Depreciation
Running cost
Scrap Value
Total cost
ATC
Cost-Scrap=Maintainance cost
4 3
5 6
11
18
3
4 5 6 7 8 9
13
Year
Cost
Running cost
Scrap Value
Y 1 2
C 10 10
S 4 3
R 11
(CS) 7
Total cost
TC
5 6
18
3
4 5 6 7 8 9
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The cost of a machine is Rs. 6100/- and its scrap value is Rs. 100/- The maintenance costs found from experience are as follows:
1 100 2 250 3 400 4 600 5 900 6 1200 7 1600 8 2000
When should the machine be replaced? Solution: let it is profitable to replace the machiney after n years. N is determined by average of tc
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Years
Purchase price-scrap value 6000 6000 6000 6000 6000 6000 6000 6000
Annual maint. cost 100 250 400 600 900 1200 1600 2000
Cum. MC
Total Cost 6100 6350 6750 7350 8250 9450 11050 13050
Avg. annual cost 6100 3175 2250 1837.50 1650 1575 1578 1631
1 2 3 4 5 6 7 8
The avg. annual cost is minimum Rs. should be replaced after 6 years of use. (1575/-)
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QUES 2
A machine owner finds from his past records that the costs per year of maintaining a machine whose purchase price is Ks. 6000 are as given below:
Ans. Capital cost C = 6000/-. Let it be profitable to replace the. machine after n years. Then n should be determined by the minimum value of Tav
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SOLUTION
We observe from the table that avg. annual cost is minimum (Rs. 2700/-). Hence the m/c should replace at the end of 5th year.
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Type B. Replacement of items whose maintenance costs increase with time and value of money also changes with time. The machine should be replaced if the next periods cost is greater than weighted average of previous cost. Discount rate [Present worth factor (PWF)
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QUES 3
Purchase price of a machine is Rs. 3000/ and its running cost is given in the table below. If should be replaced. the discount rate is 0.90. Find at what age the machine
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II:
REPLACEMENT OF ITEMS
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II:
COMPLETELY
Types of replacement
1.
Individual replacement- Item is replaced after its failure. Eg: Machine tools, Bus, Planes Group replacement Decision to be taken when the items are to be replaced irrespective of the fact that items have failed or not. Eg: Light bulbs, radio tubes
2.
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Group replacement is concerned with those items that either work or fail completely. It often happens that a system contains a large no. of identical low cost items that are increasingly liable to failure with age When the value of individual items is so small that cost of keeping records of individual ages cannot be justified. It may be advantageous to replace all items at fixed intervals. Such a policy is called Group replacement. Individual replacement: Under this policy an item is replaced immediately after its failure Group replacement: Under this policy, decision is taken as to when all the items must be replaced irrespective of the fact that the item has failed or have not failed, with the provision of that an item fails before optimal time, it may be replaced individually
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THANK YOU
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