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CMA Intermediate · Operations Management and Strategic Management · Economics of Maintenance and Spares Management

Which cost element is generally LOWER under a preventive maintenance policy than under a pure breakdown maintenance policy, other things remaining equal?

The cost of production loss from unplanned stoppages is lower under preventive maintenance. Planned servicing reduces sudden failures, whereas inspection, scheduling and planning staff costs are additional expenses that preventive maintenance introduces.

  1. ACost of scheduled inspections and planned servicing
  2. BCost of production loss from unplanned stoppagesCorrect
  3. CWages of the maintenance planning staff
  4. DCost of maintaining a schedule of inspections

Explanation

Preventive maintenance involves planned inspections, servicing and planning staff, so these costs rise. Its benefit is fewer unplanned stoppages, so the cost of lost production falls. The other options are costs that increase under preventive maintenance.

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