Compressed Air System International (CASI) SB is a company specialising in supply, operations and maintenace works for air compressed systems. The company work scope covers configuration design, install, operations and maintenace service of compressed air systems to users that require a comprehensive compressed air system package covering from system configuration design, install, operations and maintenace services of the system. Company B has requested CASI SB to propose a compressed air system with capacity of 1000 cfm at 7 bar. Company B has similar system installed 5 years ago. The company experiences compressed air disruption when breakdown occurred to the compressors. The historical data on frequencies of compressors breakdown are as per TABLE 1. Each time compressor breaks down, the company loses about RM10,000. If the company implements preventive maintenance, it will be able to reduce the number of breakdowns to two per month. Preventive maintenance contract costs RM 2,000 per month with a guarantee of two breakdowns per month. a. You are to propose an appropriate air compressed system required by Company B. You should include the description of the process of the proposed system and the functions of the subsytems and related components. [15 marks] b. Suggest maintence strategy to be selected based on the data given. [5 marks] c Com Company B has requested CASI SB to propose an option to take over the system in terms of operations and maintenace of the system for 3 years. The system is to be operated for 10 hours daily for 200 days per year. Evaluate feasibilty of the offer if per 100 cfm compressed air is RM 0.2 and electricity rate is RM0.44 per kWh. Related fixed and variable cost as per TABLE 2. [Note: Assume compressor power is 200 kW and already installed by the owner and hence capital cost not required.). [25 marks] d. Evaluate break even volume of cfm of compressed air based on the data from part (b). [10 marks] e. As supplier of the integrated air compressed CASI SB has stocks some of the repalcemnet components for the system. The current stock of the spares of the inventory is as per TABLE 3. Propose an inventory system appropriate for the company. [5 marks] TABLE 1 Number of breakdowns Breakdown frequency (months) Item Fixed Cost | Operation Cost Miscellaneous cost TABLE 2 Year 1 Year 2 RM 15,000 RM 16,000 Electricity Cost Electricity Cost 20% of Fixed 20% of Fixed cost cost Year 3 RM 17,000 Electricity Cost 20% of Fixed cost TABLE 3 Annual Demand 250 Value (RM/Unit) 300 200 50 Item No CA01 CA02 CAO3 CA04 CA05 CA06 CA07 CA08 CA09 CA10 350 300 400 150 150 600 500 30 400 250 10 60 20 500 600 50 Compressed Air System International (CASI) SB is a company specialising in supply, operations and maintenace works for air compressed systems. The company work scope covers configuration design, install, operations and maintenace service of compressed air systems to users that require a comprehensive compressed air system package covering from system configuration design, install, operations and maintenace services of the system. Company B has requested CASI SB to propose a compressed air system with capacity of 1000 cfm at 7 bar. Company B has similar system installed 5 years ago. The company experiences compressed air disruption when breakdown occurred to the compressors. The historical data on frequencies of compressors breakdown are as per TABLE 1. Each time compressor breaks down, the company loses about RM10,000. If the company implements preventive maintenance, it will be able to reduce the number of breakdowns to two per month. Preventive maintenance contract costs RM 2,000 per month with a guarantee of two breakdowns per month. a. You are to propose an appropriate air compressed system required by Company B. You should include the description of the process of the proposed system and the functions of the subsytems and related components. [15 marks] b. Suggest maintence strategy to be selected based on the data given. [5 marks] c Com Company B has requested CASI SB to propose an option to take over the system in terms of operations and maintenace of the system for 3 years. The system is to be operated for 10 hours daily for 200 days per year. Evaluate feasibilty of the offer if per 100 cfm compressed air is RM 0.2 and electricity rate is RM0.44 per kWh. Related fixed and variable cost as per TABLE 2. [Note: Assume compressor power is 200 kW and already installed by the owner and hence capital cost not required.). [25 marks] d. Evaluate break even volume of cfm of compressed air based on the data from part (b). [10 marks] e. As supplier of the integrated air compressed CASI SB has stocks some of the repalcemnet components for the system. The current stock of the spares of the inventory is as per TABLE 3. Propose an inventory system appropriate for the company. [5 marks] TABLE 1 Number of breakdowns Breakdown frequency (months) Item Fixed Cost | Operation Cost Miscellaneous cost TABLE 2 Year 1 Year 2 RM 15,000 RM 16,000 Electricity Cost Electricity Cost 20% of Fixed 20% of Fixed cost cost Year 3 RM 17,000 Electricity Cost 20% of Fixed cost TABLE 3 Annual Demand 250 Value (RM/Unit) 300 200 50 Item No CA01 CA02 CAO3 CA04 CA05 CA06 CA07 CA08 CA09 CA10 350 300 400 150 150 600 500 30 400 250 10 60 20 500 600 50
