information is provided to facilitate the evaluation of the decision 1. System XYZis installed in each of 60 aircraft that are deployed at five operational bases over an 8-year period. System XYZ will be utilized on an average of 4 hours per day, 365 days per year, and the total system operating time is 452,600 2 unit to verify satisfactory operation.The faulty assembly must now be processed in accor dance with the designated 3. Pertinent data associated with Assembly A-1 are noted below b. The estimated failure rate (or corrective maintenance rate) is 0.00045 failure per hour of system operation. the predicted elapsed active repair time). The estimated Mct is 3 hours. The labor rate is S20 per labor-hour for intermediate maintenance and $30 per labor-hour for depot maintenance d. Supply support involves three categories of cost: (1) the cost of spare assemblies in the pipeline, (2) the cost of spare components to enable the repair of faulty assemblies, and (3) the cost of inventory maintenance. Assume that five spare assemblies will be required in the pipeline when maintenance is accomplished at the intermediate level, and that 10 spares will be required when maintenance is accomplished at the depotlevel. For component spares, assume a material cost of $50 per maintenance action. The estimated cost ofmventory maintenance will be 20% ofthem ventory value e. When assembly repair is accomplished, special test and support equipment is required for fault diagnosis and checkout. The cost per set is $12,000, which includes acquisition cost and runortized maintenance cost f. Transportation and handling costis considered to be negligible when maintenance is accompfished at the intermediate level; however, assembly maintenance accomplished at the depot level will involve an extensive runount of transportation. For depot maintenance, assume S150 per 100 pounds per one-way trip (independent of the distance), and that the packaged assembly weighs 20 pounds. g. The allocation for Assembly A-1 relative to maintenance facility cost is categorized in terms of (1) an initial fixed cost, and (2) a sustaining recurring cost proportional to facility use requirements. The initial fixed costis $1000 per installation, and the assumed usage cost allocation is $1.00 per direct maintenance labor-hour at the in termediate level and $1.50 per direct maintenance labor-hour at the depotlevel. h. Technical data requirements will constitute (1) the maintenance instructions to be included in the technical manual to support assembly repair activities and (2) the failure reporting and maintenance data covering each maintenance action in the field. Assume that the cost for preparing and distributing maintenance instructions is $1000 and that the cost for field maintenance data is $25 per maintenance action i. There will be some initial formal training costs associated with maintenance personnel when the assembly repair option is considered. Assume 30 student-days of formal training for intermediate-level maintenance and 6 student-days for depot-level maintenance. The cost of training is $150 per student-day j. As a result of maintenance actions, there will be a requirement for the disposal of either faulty assemblies or faulty components. The assumed disposal cost is $20 per assembly and $2 per component. The object of this exercise is to evaluate Assembly A-1 (based on the information provided previously) and make a recommendation. Should Assembly A-1 be (1) repaired at the intermediate level of maintenance, (2) repaired at the depot level of maintenance, or (3) discarded at failure? Show the cost for each of the costresults for each of the the three strategies as a result of the conditions above. use this work sheet to conduct the evualuation. Select the strategy that yields the lowest cost for assembly A-1 a Repair at Intermediate Cost b. Repair at Depot Cost c Discard at Failure d Best Strategy Option
