Parameter* I Configuration A Configuration B
System Level (Organizational Maintenance)
MTBM MTBM,, (or MTBF) M	195 hr 267 hr 30 min	249 hr 377 hr 30 min
Unit Level (Intermediate Maintenance)
Unit A MTBM MTBM,, MTBM, Mct Mpt Unit B MTBM MTBM,, MTBM, Mct Mpt Unit C MTBM Mct	382 hr 800 hr 730 hr 5 hr 16 hr 500 hr 500 hr 4 hr 2.000 hr 2hr	800 hr 800 hr - 5hr - 422hr 1.000hr 730hr 5 hr 12 hr 2.500 hr 3hr

*Assume that MTI3M. = MTBF. When there is no scheduled maintenance. MTBM. = MTBM.

The requirements for System "XYZ" dictate the program profile in the figure below. Assume that life-cycle costs are broken down into the three categories represented by the blocks in the program profile (i.e., Design and Development, Production, and Operations and Maintenance).

Design and Development

Year Number

Design and Development Production Operations and Maintenance 1 2	3 4	5	6	7	8	9	I 0

Operation and Maintenance

Production

In an attempt to simplify the problem, the following additional factors are assumed:

1. Design and development costs for System "XYZ" (to include labor and material).

Configuration "A": $ 80,000 ($ 50,000/year 1 and $ 30,000/year 2) Configuration "B": $ 100,000 ($ 70,000/year 1 and $ 30,000/year 2)

2. Design and development costs for special support equipment at the intermediate level of maintenance.

Configuration "A": $ 30,000 ($ 20,000/year 1 and $ 10,000/year 2) Configuration "B": $ 23,000 ($ 17,000/year 1 and $ 6,000/year 2)

3. System "XYZ" models for operational use are produced and delivered in the year prior to the identified need (i.e., 10 models are produced and delivered in year 2, etc.). The production costs for each System "XYZ" (Units "A", "B", and "C") are:

Configuration "A": $ 21,000 Configuration "B": $ 23,000

4. Special support equipment is required at each intermediate maintenance shop (for the corrective maintenance of units) at the start of the year when System "XYZ" operational models are distributed (i.e., Area "A" at the beginning of year 3). In addition, a backup set of special support equipment is required at the supplier location when the first intermediate shop becomes operational. Special support equipment is produced and delivered at a cost of:

Configuration "A" support equipment: $ 13,000 Configuration "B" support equipment: $ 12,000

5. Spare units are required at each intermediate-level maintenance shop at the time of activation. Assume that one (1) Unit "A", one (1) Unit "B", and one (1) Unit "C" constitute a set of spares, and that the cost of a set is equivalent to the cost of a production system (i.e., $ 21,000 for Configuration "A" and $ 23,000 for

Configuration "B"). Also, assume that a set of spares is stocked at the supplier's facility at the time when the first intermediate shop is activated.

Additional spares constitute components (1.e., assemblies, modules, parts, etc.). Assume that the material costs are $ 250 per corrective maintenance actions, and $ 100 per preventive maintenance action. The cost factors include amortized inventory maintenance costs.

6. Maintenance facilities, as defined here, include the supporting resources required for System "XYZ" (i.e., at the intermediate shop), above and beyond spares/inventories, personnel, and data. A burden rate of $1 per direct maintenance manhour associated with the prime equipment is assumed.

(7) Maintenance data include the preparation and distribution of maintenance reports, failure reports, and related data associated with each maintenance action. Maintenance data costs are assumed to be $ 25 per maintenance action.

8. For each maintenance action at the system level, one (1) low-skilled technician at $ 20 per direct maintenance manhour is required on a full-time basis. It is assumed that this is an average value, applied throughout the life cycle, and it includes direct, indirect, and inflationary factors. The M is 30 minutes for each of the two configurations.
9. For each corrective maintenance action involving Unit "A", - or Unit "B", or Unit "C", two (2) technicians are required on a full-time basis (i.e., the duration of the Mct value). One (1) low-skilled technician at $ 20 per hour and one (1) high-skilled technician at $ 30 per hour are required. Direct, indirect, and inflationary factors are considered in these average values.
10. For each preventive maintenance action involving units (Configurations "A" and "B"), one (1) high-skilled technician at $ 30 per hour is required on a full-time basis (i.e., the duration of the Mpt value).
11. For the operation of System "XYZ", the allocated cost for the operator is $ 40 per hour.

In solving this problem, be sure to state all assumptions in a clear and concise manner.