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There are many other considerations. You say that it is now available 95% of the time. But is it used? If nobody uses it, a 1% increase in availability is worthless.<br />
How much will the1% availability cost? If it is $10 Million it is worthless.
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Thibault St john Cholmondeley-ffeatherstone<wbr />haugh the 2nd and aburr,<br />
<br />
Thank you guys for working on this..... both of you have great comments about this.<br />
<br />
This Asset has to do with Availability and has to do with a Asset that has to be available as much as possible (i.e. 95%+) in the event IT IS NEEDED. &nbsp;BUT, to aburr's point, it may never have to be used. &nbsp;So the value may be &quot;intangible&quot; but &quot;required&quot;.<br />
<br />
What about the trade off issues around increasing cost and diminishing value? &nbsp;In other words, it may cost more to improve availability as you get closer to 100%, but there may be less value in going up 1% as you also get closer (Law of diminishing returns?)? &nbsp;Thoughts?<br />
<br />
And Thanks!<br />
<br />
B.
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After submitting my post, I just saw aburr's post and your post added, so I did not refer to these posts.
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The importance of the reliability/availability should also influence your decision. If it's a signal on a golf course that players can use to tell following players that they are clear of the hole it may be important, but not as important as an electronic defibrillator in a busy shopping centre or at an airport.<br />
<br />
The 1% is a bit of a distraction. You are really looking at the change from 96 to 97 which is close to 1%, but you seem to be comparing it with a 1% increase all over the scale. An increase of 1% from 1 will double the effectiveness of your item which is vastly different from the slight 1% increase from 95%.<br />
A fixed costing for each state should give you a better idea than trying to calculate a percentage difference
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There is a value to &quot;good will&quot;. In absence of redundant systems, if your customer loses money or information when your system goes down, then your &quot;good will&quot; value probably goes down too (unless you have a very understanding, and tolerant customer). In almost all of my systems, there was a specified requirement as to what the reliability had to be. In one case, it was 5-9's.
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You guys have given me some &quot;great&quot; insight on this issue. &nbsp;Yes.... it's all about maximum &quot;availability&quot; irrigardless of actual &quot;use&quot;. &nbsp; And the consequences of a failure is &quot;catastrophic&quot;. &nbsp;So you can imagine how hard it is to actually determine how much to invest in order to improve reliability.<br />
<br />
Take a look at this worksheet and let me know if this is correct in figuring out seconds of exposure per year.....<br />
<br />
Thank you again,<br />
<br />
B.<br />
<a href="https://filedb.experts-exchange.com/incoming/2016/08_w34/1111487/Quality-Numbers.xls" target="_blank" class="file-inline" title="Quality Calculation (40 KB)"><svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 512 512"><path d="M67.508 468.467c-58.005-58.013-58.016-151.92 0-209.943l225.011-225.04c44.643-44.645 117.279-44.645 161.92 0 44.743 44.749 44.753 117.186 0 161.944l-189.465 189.49c-31.41 31.413-82.518 31.412-113.926.001-31.479-31.482-31.49-82.453 0-113.944L311.51 110.491c4.687-4.687 12.286-4.687 16.972 0l16.967 16.971c4.685 4.686 4.685 12.283 0 16.969L184.983 304.917c-12.724 12.724-12.73 33.328 0 46.058 12.696 12.697 33.356 12.699 46.054-.001l189.465-189.489c25.987-25.989 25.994-68.06.001-94.056-25.931-25.934-68.119-25.932-94.049 0l-225.01 225.039c-39.249 39.252-39.258 102.795-.001 142.057 39.285 39.29 102.885 39.287 142.162-.028A739446.174 739446.174 0 0 1 439.497 238.49c4.686-4.687 12.282-4.684 16.969.004l16.967 16.971c4.685 4.686 4.689 12.279.004 16.965a755654.128 755654.128 0 0 0-195.881 195.996c-58.034 58.092-152.004 58.093-210.048.041z"/></svg>Quality-Numbers.xls</a>
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Quality-Numbers.xls

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If &quot;&nbsp;the consequences of a failure is &quot;catastrophic&quot; by all means stop calculating and get another machine. No matter what the calculation, debt is better than bankruptcy.
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@aburr,<br />
I second the motion, except that we went with triple redundancy to achieve 5-9's.
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Hey guys.... take a quick look at my spreadsheet. &nbsp;Is the math right in looking at a reliability rate in the 95% range and overlaid by what 5/9s will achieve?<br />
<br />
Thanks,<br />
<br />
B.
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I just switched to &quot;free&quot; Windows 10 with 4 hours left, and now they say my &quot;starter&quot; word and excel is not compatible with Windows 10.<br />
<a href="https://www.experts-exchange.com/questions/28960514/Windows-10-free-upgrade-worked-but-issues-running-it.html" rel="ugc">https://www.experts-exchange.com/questions/28960514/Windows-10-free-upgrade-worked-but-issues-running-it.html</a><br />
As soon as I resolve this issue, I will look at your spreadsheet.
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Great work! &nbsp; See my last post for commentary and how it turned out.<br />
<br />
B.
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<div class="content wysiwyg-content">
I have a challenging situation to determine what a 1% improvement would mean from a value perspective and I need help from an EE Pro who is very mathematically oriented.<br />
<br />
Here is the Scenario: &nbsp; We have a piece of complex equipment that is used in remote locations. &nbsp;We have a 95% reliability/availability rating on this Asset. &nbsp;What we are considering is what would be the incremental value in going to a 96% or a 97% reliability level? &nbsp;For purposes of solving this, consider each field asset costs $1M and requires $30K / yr. for maintenance. &nbsp;The intangible value of being &quot;more competitive&quot; in our market is certainly an intangible and hard to measure. &nbsp;But for actual value recognition (and add any assumptions you would like that can explain how to approach this mathematical problem), what formula should be used or explanation of considerations should be put forth.<br />
<br />
Your help and assistance is appreciated. &nbsp;Thank you in advance,<br />
<br />
B.
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I have a challenging situation to determine what a 1% improvement would mean from a value perspective and I need help from an EE Pro who is very mathematically oriented.

Here is the Scenario:   We have a piece of complex equipment that is used in remote locations.  We have a 95% reliability/availability rating on this Asset.  What we are considering is what would be the incremental value in going to a 96% or a 97% reliability level?  For purposes of solving this, consider each field asset costs $1M and requires $30K / yr. for maintenance.  The intangible value of being "more competitive" in our market is certainly an intangible and hard to measure.  But for actual value recognition (and add any assumptions you would like that can explain how to approach this mathematical problem), what formula should be used or explanation of considerations should be put forth.

Your help and assistance is appreciated.  Thank you in advance,

B.

Math &quot;Stumper&quot; - What is a 1% incremental improvement in AVAILABILITY/RELIABILITY WORTH?

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Math &quot;Stumper&quot; - What is a 1% incremental improvement in AVAILABILITY/RELIABILITY WORTH?

Math "Stumper" - What is a 1% incremental improvement in AVAILABILITY/RELIABILITY WORTH?