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Group Replacement vs Individual Replacement Analysis

This document discusses models for replacing items that fail completely over time, including individual and group replacement policies. It provides the equations to calculate: - The expected life of components under individual replacement - The number of failures per unit time under individual replacement - The total cost calculation under group replacement, which considers probability of failure, number of items failing, and costs of group vs. individual replacement It then provides an example comparing the costs of individual vs. group replacement for light bulbs over 7 weeks, finding that group replacement every 4 weeks results in the lowest average cost per week.

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sayiram
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74 views7 pages

Group Replacement vs Individual Replacement Analysis

This document discusses models for replacing items that fail completely over time, including individual and group replacement policies. It provides the equations to calculate: - The expected life of components under individual replacement - The number of failures per unit time under individual replacement - The total cost calculation under group replacement, which considers probability of failure, number of items failing, and costs of group vs. individual replacement It then provides an example comparing the costs of individual vs. group replacement for light bulbs over 7 weeks, finding that group replacement every 4 weeks results in the lowest average cost per week.

Uploaded by

sayiram
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

G.

Sayiram
Assistant Professor
SMBS-Manufacturing Division
VIT University

Model: 1I. Replacement of Items that fail

completely with time

Items that fail completely


Individual replacement
Group Replacement

Individual Replacement

E (i )
Expected life of the components =

E (i ) i p (i )

N
E (i )

If there are N items in the


group then the number of failures
per unit time is

T ave =

Group Replacement
Under group replacement policy, all the items are
collectively replaced after a specific period for time
irrespective of whether they have failed or not. If any
item fails before this time it will also be replaced
immediately. The optimal period of replacement is
determined by calculating the minimum total cost. This
total cost is calculated using
i

Probability of failure at time t

ii

Number of items failing during time t

iii Cost of group replacement


iv

Cost of individual replacement


Ni

Let
denote the total number of replacements
made at the end of the ith week.
No

No

N1
N2
N3

N4
N5
N6
N7

N o p1
N o p2 N1 p1

N o p3

N1 p2 N 2 p1

N o p4 N1 p3 N 2 p2

N 3 p1

N 0 p5 N1 p4 N 2 p3 N 3 p2

N 4 p1

N 0 p6 N1 p5 N 2 p4 N 3 p3 N 4 p2

N 5 p1

N 0 p7 N1 p6 N 2 p5 N 3 p4 N 4 p3 N 5 p2

N 6 p1

Ex: 1The following mortality rates have been observed for a certain type
of light bulbs in an installation with 1000 bulbs.
End of
Week
Probabil
ity of
failure
to date

0.09

0.25

0.49

0.85

0.97

1.00

There ae a large number of such bulb which ae to be kept in working


order. If a bulb fails in service, it costs Rs 3 to replace but if all the
bulbs ae replaced in the same operations, it can be done for only Rs
0.70 a bulb. It is proposed to replace all bulbs at fixed intervals,
whether or not they have burnt our, and to continue eplacing burnt our
bulbs as they fail.
a) What is the best interval between group replacement?
b) Also estibalish if the policy, as determined by you, is superior to
the policy of replacing bulbs as and when they fail? There being
nothing like group replacement.

P1=0.09

P2=0.25-0.09=0.16
P3=0.49-0.25=0.24
P4=0.85-0.49=0.36
P5=0.97-0.85=0.12
P5=1.00-0.97=0.03
Since the sum of all probability is unity, all probabilities higher than
p6 must be zero. Thus all light bulbs are sure to burn out by the 6 th
week.

Averge (expected) life of light bulbs


n

i Pi
i 1

=
=1 x 0.09 + 2 x 0.16 +3 x 0.24 + 4 x 0.36 + 5 x 0.12 + 6 x 0.03 =3.35

N/

i Pi
i 1

Average number of failures per week =


=1000/3.35
= 299 bulbs
Cost of individual replacement per week
= 299 x Rs 3
= Rs 897.

Group Replacement

Ni
i Let

denote the total number of replacements made at the end of the ith week.

No

No
=

N1

N o p1

N2

N o p2 N1 p1

N3

N o p3 N1 p2 N 2 p1
=
+
N 4 N o p4 N1 p3 N 2 p2 N 3 p1
=
+
N 5 N 0 p5 N1 p4 N 2 p3 N 3 p2 N 4 p1
=
+
N 6 N 0 p6 N1 p5 N 2 p4 N 3 p3 N 4 p2 N 5 p1
=
+
N 7 N 0 p7 N1 p6 N 2 p5 N 3 p4 N 4 p3 N 5 p2 N 6 p1
=
+

No

No
=

N1
N2

=1000

N o p1

=
= 1000 x 0.09=90
N o p2 N1 p1

= 1000 x 0.16 + 90 x 0.09=168


N3
N o p3 N1 p2 N 2 p1
=
+

N4

N5
=

N6
=

N7
=

= 1000 x 0.24 + 90 x 0.16 + 168 x 0.09=269


N o p4 N1 p3 N 2 p2 N 3 p1
+
= 1000 x 0.36 + 90 x 0.24 + 168 x 0.16 +269 x 0.09 =432
N 0 p5 N1 p4 N 2 p3 N3 p2 N 4 p1
+
=1000 x 0.12 + 90 x 0.36 + 168 x 0.24 + 269 x 0.16 + 432 x 0.09=274
N 0 p6 N1 p5 N 2 p4 N 3 p3 N 4 p2 N 5 p1
+
= 1000 x 0.03 + 90 x 0.12 + 168 x 0.36 + 269 x 0.24 + 432 x 0.16 + 274 x 0.09=260
N 0 p7 N1 p6 N 2 p5 N 3 p4 N 4 p3 N 5 p2 N 6 p1
+
= 1000 x 0 + 90 x 0.03 + 168 x 0.12 +269 x 0.36 + 432 x 0.24 + 274 x 0.16 + 260 x 0.09=291

We find that the number of bulbs failing each weeks increases till the 4 th week, then decreases
and again inceases from 7th week.
End of Total cost of group replacement
week
1
2
3
4
5
6

1000 x 0.70 + 3 (90) = 970


1000 x 0.70 + 3 (90 + 168) = 1474
1000 x 0.70+ 3 (90 + 168 + 269) = 2281
1000 x 0.70 + 3 (90+168+269+432)=3577
1000 x 0.70 + 3 (90 +168 +269+432+274)=4399
1000 x 0.70 + 3 (90+168+269+432+274+260)=5179

1000x 0.70+ 3(90+168+269+432+274+260+291)=6052

Average
cost per
week
970
737.00
760.33
894.25
879.80
863.16
864.57

Since the cost of group replacements per week is Rs 737 and that of individual replacement is
Rs 897 per week,, it is advisable to adopt the policy of group replacement.

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