Cost of unreliability method to estimate loss of revenue based on unreliability data: Case study of Printing Company

Abstract

In the production line process of the printing office, the reliability of the printing machine plays a very important role, if the machine fail it can disrupt production target so that the company will suffer huge financial loss. One method to calculate the financial loss cause by machine failure is use the Cost of Unreliability(COUR) method. COUR method works based on down time machine and costs associated with unreliability data. Based on the calculation of COUR method, so the sum of cost due to unreliability printing machine during active repair time and downtime is $ 1003,747.00.