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.
- APreventive maintenance costCorrect
- BCost of lost production due to breakdowns
- CCost of emergency repairs
- 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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