Question

Q8: In our Internet of Tea Maker factory we have a repair person to keep our 10 production machines working properly. The repair person is recommending we instigate a preventative maintenance program. Currently the machines are producing a profit of $12 per hour. The repair person is paid S120 per hour. The preventative maintenance program will cost an additional S30 per hour, mainly through the wages of a technician. It is believed that employing the preventative maintenance program will reduce the service factor from .2 to.05. What is the economic change, if any by employing the technician to implement the preventative maintenance program?

Answer 1

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