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Kultur Dokumente
OLUWOLE
MATRIC NUMBER:
13CF015171
QUESTION 1.
A manufacturer provides a warranty against failure ofa carbon
steel product within the first 30 days after sale. 10 Out of 1000
sold were found to have failed by corrosion during the warranty
period. Total cost of replacement for each failed product is
approximately N1,200,000, including the cost of environmental
clean-up, loss of product, downtime, repair, and replacement.
a.) Calculate the risk of failure by corrosion, in Naira.
SOLUTION.
R=P C
R= Risk
P= Probability
C= Consequence
Calculating probability,
If 10 out of 1000 carbon-steel products fail, the probability of one
product failing is
P=
10
=0.01
1000
QUESTION 2
Linings of tanks can fail because of salt contamination of the
surface that remains after the surface is prepared for the
application of the lining. Between 15% and 80% of coating
failures have been attributed to residual salt contamination.
R= Risk
P= Probability
C= Consequence
Calculating probability,
If 20% of all failures are caused by salt contamination, then the
probability of failure due to salt contamination is
P=
20
=0.2
100
From the above risk calculation, it can be seen that the probability
of a lining failing due to salt contamination as well as its
consequence (in monetary terms) is high. This means that the risk
involved is also on high.
If the cost of testing and removal of contaminating salts is
N450,000, to ensure that no lining is affected by salts the cost is
N450,000 X (where X is the number of tanks).
If the probabilty of a number of tanks failing out of a given
number of tanks due to salt contamination is 20% ( taking a basis
of 100 tanks, then 20 fail will fail due to salt contamination), then
the cost of removing the risk of failure is
N 450,000 X=N 450,000 100=N 45,000,000
45,000,000
=5
9,000,000