1.6. Productivity Adjusted Cumulative Downtime Costs

Try these first

1. 1.

   What is the downtime cost per hour if the equipment cost is 900 rupees?

   Hint

   Use the percentage formula.

2. 2.

   Calculate the annual downtime cost for 2000 hours with the hourly downtime cost of 27 rupees.

   Hint

   Multiply the hourly rate by the total hours.

3. 3.

   What is the downtime cost per hour if the equipment cost is 900 rupees?

   • 27 rupees
   • 18 rupees
   • 30 rupees

   Hint

   Remember the percentage calculation.

4. 4.

   Cumulative downtime cost is calculated by adding yearly costs.

   • True
   • False

   Hint

   Think about how accumulating costs work.

5. 5.

   Imagine your machine incurs downtime costs rising annually by 10%. If it starts at 54,000 rupees in Year 1, what will its cumulative cost be by the end of Year 3?

   Hint

   Calculate yearly costs first then sum them.

6. 6.

   If another machine costs 80% the price of the initial machine but has only 1/3 of the downtime, calculate its productivity cost advantage over three years.

   Hint

   Setup equations considering the new machine's advantages in less downtime and lower costs.