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Cost of equipment breakdown does not include:


A) loss of output.
B) cost of idle workers.
C) damage to other equipment.
D) replacement costs.
E) potential safety hazard.

F) C) and E)
G) All of the above

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The frequency of breakdown of a piece of equipment per month is shown in the following table. The cost of a breakdown is $1,000, and the cost of preventive maintenance is $2,000 per month. Assume that the equipment breakdown can be avoided if preventive maintenance is performed. Should the manager use preventive maintenance, or would it be better to fix the equipment when it breaks down?  Number of breakdowns 012345 Probability 0.100.150.200.300.150.10\begin{array} { l c c c c c c } \text { Number of breakdowns } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { Probability } & 0.10 & 0.15 & 0.20 & 0.30 & 0.15 & 0.10\end{array} [COMP: Delete zeros before decimals in table.]

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Preventive maintena...

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In the broadest sense, preventive maintenance extends back to the installation stage of equipment and facilities.

A) True
B) False

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The major approaches used in plans to deal with breakdowns include all of the following except:


A) standby equipment.
B) inventories of spare parts.
C) operator repair of minor problems.
D) readily available repair personnel.
E) All are major approaches.

F) A) and B)
G) C) and E)

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Suppose that for a particular piece of machinery, the frequency distribution of monthly breakdowns is as follows:  Number of Breakdowns  Prob. 00.5010.2520.1030.1040.05\begin{array} { c l } \text { Number of Breakdowns } & \text { Prob. } \\\hline 0 & 0.50 \\1 & 0.25 \\2 & 0.10 \\3 & 0.10 \\4 & 0.05\end{array} The cost of a breakdown is $2,000, and the cost of a preventive maintenance program is $2,000 per month. If the preventive maintenance program is adopted, the probability of a machine breakdown is negligible. How much better off per month would the firm be if it adopted preventive maintenance?


A) $100 worse off
B) $200 worse off
C) $100 better off
D) $200 better off
E) $2,000 better off

F) All of the above
G) C) and D)

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Degree of technology is a factor affecting the decision of how much preventive maintenance is desirable.

A) True
B) False

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The average time before breakdown of a machine is normally distributed and has a mean of nine weeks and a standard deviation of 1.5 weeks. If breakdown cost averages $1,500 and preventive maintenance costs $500, what is the optimal preventive maintenance interval?


A) 3.8 weeks
B) 8.4 weeks
C) 9.6 weeks
D) 6.9 weeks
E) 7.2 weeks

F) A) and E)
G) D) and E)

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Which of the following is the primary consideration with regard to preventive maintenance?


A) what technology to use
B) how varied the maintenance will be
C) how often the maintenance will occur
D) which products it will be provided to
E) who will do it

F) D) and E)
G) None of the above

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One basis for scheduling preventive maintenance is passage of time.

A) True
B) False

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The goal of maintenance is to maintain the productive system in good working order while minimizing or eliminating the cost of preventive maintenance.

A) True
B) False

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In the area of maintenance, the Pareto phenomenon is reflected in the fact that:


A) all equipment justifies about the same expense.
B) a majority of equipment will justify considerable expense.
C) a few pieces of equipment will justify little expense.
D) a few pieces of equipment will justify considerable expense.
E) no piece of equipment will justify major expense; it's better to replace.

F) C) and D)
G) A) and E)

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___________ is most closely associated with breakdown maintenance.


A) Equipment adjustment
B) Equipment cleaning
C) Equipment inspection
D) Repair of broken parts
E) Replacement of worn parts

F) B) and D)
G) A) and E)

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Factors affecting the decision of how much preventive maintenance is desirable typically include all of the following except:


A) age of equipment.
B) type of product.
C) degree of technology.
D) type of production process.
E) how critical to the production process.

F) B) and C)
G) A) and B)

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Breakdown maintenance is best performed on a regularly scheduled basis.

A) True
B) False

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The total maintenance curve (preventive maintenance cost plus breakdown and repair cost) :


A) slopes up as the number of preventive maintenances increases.
B) slopes down as the number of preventive maintenances increases.
C) starts low, increases rapidly, and then drops back down as the number of preventive maintenances increases.
D) starts high, drops gradually, but then goes back up as the number of preventive maintenances increases.
E) remains relatively flat as the number of preventive maintenances increases.

F) B) and C)
G) B) and E)

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Suppose that the average time before breakdown is normally distributed with a mean of 2.5 weeks and a standard deviation of .4 weeks. If breakdowns cost an average of $1,200 and preventive maintenance costs $800, what is the optimal maintenance interval?


A) Every .67 weeks
B) Every .33 weeks
C) Every 2.67 weeks
D) Every 3.25 weeks
E) Every 3.12 weeks

F) B) and D)
G) B) and E)

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C

In the area of maintenance, the Pareto phenomenon is reflected in the fact that, regardless of problem classification, all equipment will justify about the same expense.

A) True
B) False

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False

Breakdown maintenance includes activities such as equipment inspection and adjustment.

A) True
B) False

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As a piece of equipment begins to break down more often, the manager is often faced with a trade-off in which __________ are weighed against the __________.


A) failure rates; maintenance probabilities
B) maintenance intervals; maintenance programs
C) operating costs; variable costs
D) replacement costs; continued maintenance costs
E) fixed costs; maintenance costs

F) A) and B)
G) B) and D)

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D

Reactive maintenance is _____________ maintenance.


A) planned
B) after the event
C) proactive
D) predictive
E) preventive

F) C) and E)
G) A) and B)

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