Annual outage assumption

Question

Hey Community,

for the annual supply cost analysis regarding standstill costs, the assumption that we have 1 outage per year strikes me as weird. Is that an assumption that I would think out loud and hope for an interviewer to correct me on if wrong or can we read it out somewhere ?

The units in the table do not fit, that is why I am asking. We sum up annual costs for 600 rollers per year from the 3 suppliers and add up the costs generated by one outage. Thats 1 outage of one machine and one roller.

I would assume we need to include expected outages and they would differ between different suppliers, no?

Thanks in advance!

Answer 1

It is explicitly stated on the additional information that you have 20 / 15 / 8 shifts with downtime caused by deffective roller. And then that information is used to calculate downtime cost.

So I don't understand why you are mentioning only 1 downtime per year. I can't find that information. Where is it?

Answer 2

Hi, A day exists of 24 hours and a shift is 8 hours (thanks to the social revolutions) in the European model which is... (read entire answer)

Hi, A day exists of 24 hours and a shift is 8 hours (thanks to the social revolutions) in the European model which is the case for this German based company.