Name:
Date:
Please make sure to include all formulas that reference initial cells (do NOT type number inside the formula)
Q1
LVZ Vor factory utilizes a complex manufacturing process. Over the past 30 months, the assembly line has broken down as indicated below. Each time the assembly line breaks down, LVZ Vor loses an average of $4,000 in time and repair expenses. If preventive maintenance were implemented, it is estimated that an average of only one breakdown per month would occur. The cost of preventive maintenance is $750 per month.
Average loss per breakdown
Expected number of breakdowns with maintanance
Preventive cost per month
Number of breakdowns per month	0	1	2	3	4
Frequency (Number of weeks that breakdowns occurred)	12	6	5	9	8
What is the expected number of breakdowns per month?
What is the expected breakdown cost per month?
What is the monthly total maintenance cost of this program?
Q2
Suppose that a three-stage process had reliability ratings of .77, .7, and .96 at each station and that a failure at any station represented a failure for the entire process. If each station is given a redundant check with .87 reliability, what is the increase in system reliability?
	Initial process with no redundancy
	R1
	R2
	R3
	Reliability
	New process with redundancy
	R1-r
	R2-r
	R3-r
	Reliability-new
	Difference