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DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats
DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines has caused several problems.
Over the past 30 weeks, the machine has broken down as indicated below. Each time the machine breaks down, the firm loses an average of $3,000 in time and repair expenses.
If preventive maintenance were implemented, it is estimated that an average of only one breakdown per week would occur. The cost of preventive maintenance is $1,000 per week.
What is the weekly total maintenance cost of this program?
Number of breakdowns per week
0
1
2
3
4
Frequency (Number of weeks that breakdowns occurred)
8
3
5
9
5
Expert Solution
Computation of weekly total maintenance cost of this program:
If implementing preventive maintenance:
Breakdown per week = 1
Breakdown Cost = $3,000
Cost of preventive maintenance = $1,000 per week
Cost per week = Breakdown cost + Cost of preventive maintenance
= $3,000 + $1,000
Cost per week = $4,000
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