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

Which cost item typically rises as the level of preventive maintenance is increased, while the cost of breakdown losses falls, giving a U-shaped total maintenance cost curve?

Preventive maintenance cost rises as servicing increases, while breakdown costs such as lost output, emergency repairs and idle labour fall. Adding the two gives a U-shaped total cost curve whose lowest point marks the optimal level of maintenance.

  1. APreventive maintenance costCorrect
  2. BCost of lost production due to breakdowns
  3. CCost of emergency repairs
  4. DCost of idle labour during failures

Explanation

Preventive maintenance cost increases with more frequent servicing, whereas breakdown-related costs (lost production, emergency repair, idle labour) fall. Their sum gives a U-shaped curve, with the minimum at the optimal maintenance level.

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