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EVALUATION OF FAILURES COSTS Ex1
EVALUATION OF FAILURES COSTS Ex1
There are the failure modes shown below and the following must be calculated:
a) Determine the annual cost of each failure mode, completing the attached tables.
b) Calculate which are the failure modes that generate 80% of the costs.
c) Consider: Labor cost: €20/hr. Lost production cost: €7,880/hr.
Labour cost 20 €/h
Lost prod. Cost 7,880 €/h
TABLE 1
Labor cost Lost
Failure mode Annual Repair time Spare production
frequency (min) parts cost
# Persons Cost L.C. cost
A 40 120 2 3,200 350 630,400
B 200 60 1 4,000 150 1,576,000
C 40 150 1 2,000 500 788,000
D 12 600 3 7,200 200 945,600
E 23 210 4 6,440 600 634,340
F 1 360 2 240 1,000 47,280
G 40 180 4 9,600 220 945,600
H 20 300 3 6,000 1,500 788,000
TABLE 2 TABLE 2
% Failure
Failure Mode TotalCost % Relative TotalCost
Accumulated Mode
633,950
1,580,150
790,500
953,000
641,380
48,520
955,420
795,500
TABLE 2
% Relative
% 120.00%
% Relative
Accumulated
100.00%
OPERATIONAL
FAILURE RECURRENCE IMPACT
Failure RE IO
SAFETY,
OPERATIONAL MAINTENANCE ENVIRONMENTAL
FLEXIBILITY COST AND HYGIENE
IMPACT
Conseq.
FO CM ISAH Absolute
Value
2 2 8 320
1 1 4 32
1 1 2 16
2 1 8 128
Conseq.
Relative value Criticality Order
to 50
25 Semi-Critical 1
10 Non Critical 2