Question
A printing press is looking at redefining their maintenance criteria on an older machine. The quarterly cost of preventive maintenance comes to $8000. Over the
A printing press is looking at redefining their maintenance criteria on an older machine. The quarterly cost of preventive maintenance comes to $8000. Over the history of the machine and based on information from the manufacturer it has been observed that the frequency of breakdowns is as follows -
0 Breakdowns/month = 0.35
1 Breakdown/month = 0.25
2 Breakdowns/month = 0.3
3 Breakdowns/month = 0.1
When a breakdown does occur, the repair cost for the machine is only $2500.
What is the preventive maintenance saving for the year, if any. If there is no saving enter '0'
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