A manufacturing industry using 50 servicingequipment similar to the equipment presented infigure 1. The servicing equipment is composed of fivesubsystems. The estimated reliability for eachsubsystem 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: 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 5-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.