A manufacturing industry using 50 servicing equipment similar to the equipment presented in figure 1. The servicing equipment is composed of five subsystems. The estimated reliability for each subsystem is:

Subsystem A is 0.99 Subsystem B is 0.81 Subsystem C is 0.75 Subsystem D is 0.98 Subsystem E is 0.90 To estimate the related Annual Maintenance Cost, the servicing equipment have been tested. The record of breakdowns during the testing period is presented in the table below: The average cost of breakdown is estimated to 200KD. The manufacturer target is to improve the Annualized Maintenance Cost by 30%. So, they decide to contract out the preventive maintenance to a service company SERVISCO. The contract will include fixed fees of 50 KD and the cost of: Labor: 30KD Consumables: 5KD Before signing the contract, the manufacturer performed a trial period with SERVISCO company, the new record of breakdowns presented by this company is shown below: 1-Calculate the system reliability 2-Calculate the corrective maintenance cost per month 3-Calculate the new maintenance cost if the plant will contract out the preventive maintenance service 4-Calculate the expected Annualized Maintenance Cost before and after contracting the maintenance service Give the expected annual savings in maintenance cost 6-Will the firm contract out the preventive maintenance service with this company? To answer this question, you have to calculate the targeted budget.