Project outline1 - Summarize Cost-Volume-Profit Analysis2 - Summarize and reproduce the result of any one of the following - Integration of quality cost to economic service life
b - deteriming the economic value of preventive maintenance.
c - determination of optimum life (economic life)
Report
Part a) Summary of Cost-Volume-Profit AnalysisPart b) Reporoduce and summerize the result of the anyone of the following;-Integration of Quality cost to Economic Service Life-Determination of Optimum Life (Economic Life) for Mf285 Tractor: A case Study in Center Regioun of Iran-Determining the Economic Value of Preventive Maintenanceall other things you need in the attachments
The objective is to find an economic service life (or) that minimize the total annual worth of overall costs (TAW) as shown in Eq. (6). The numerical example presented in the next section would illustrate the use of the model.
U. Nt MERICAL EXAMPLE A machine has an initial investment as $25,000, and its operating and maintenance cost (OC) and trade-in value arc shown in Table 1. The discounted rate is assumed 10 percent per year. In the case of not considering quality cost, Table 2 shows the annual worth of initial investment. trade-in value. operating and maintenance cost, and total overall costs. It can be seen that the total overall costs of year 5 is minimum. That means the economic service life is 5 years. In the case of considering quality cost, it is assumed that the vanance of quality performance is enlarged in each passing year of the machine use. A linear function is utilized to capture the increment of vanance. The interception and coefficient of the linear function are 20 and 3. respectively. The quadratic loss is used to measure the quality cost due to deviation of quality performance. The loss coefficient is 100. Table 3 shows the costs when considering quality cost. It can be seen that the economic service lift turns to be 4 years. Fig. 3 shows the costs of the example both with and without considering quality cost. Table 4 shows the sensitivity analysis of TAW when
changing the coefficient of the variance linear function. It is found that the economic service life is changed from 4 years to 3 years when the coefficient is changed from 5 to 7. Then the economic service life is constant at 3 years. Table S shows the sensitivity analysis of loss coefficient when changing the loss coefficient from 100 to 300. It is shown that the economic service life is changed from 4 years to 3 years when the loss coefficient is changed from 180 to 200.
VI. DISCUSSION Based on the numerical example, it can be seen that by integrating quality cost to the economic service life, it does not show highly affect in the analysis. The reason of that is --T-AW-around etnnvinit. service life-ex.,nw to be insensitive. Fig. I shows that IAA' is almost flat around the economic service life. However, by integrating quality cost, the economic service life is changed from 5 years to 4 years. Further, if the variance coefficient and loss coefficient are increased, the economic service life seems to be shorter.
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REFERENCES C S Park. Contemporary Engincen•g Economic., Addison-Wraley. CA 1997 F) R. Cho and M S Isonard. 71dentdicannn and emensions of quasreonacx quid a) lam functions:1nd Rehatahn Quo: Sa f Eng. vol 4. pp 191204