Cost Effective Hybridge Models for Allocating Industrial Machine Maintenance Budget in a Dynamic Economy
Abstract
In today's fast-paced and competitive business landscape, understanding the cost of failure has become increasingly crucial. The cost of failure refers to the financial and non financial consequences that arise from unsuccessful projects, initiatives, or processes. It encompasses not only the direct monetary losses but also the indirect impacts on reputation, customer satisfaction, and employee morale. Prevention is better than cure. Avoiding cost of failure occurrence is better than proffering solution after its ill effect. This is purely medicine after death. This study found this as gap in literature that needs the attention of economic researcher. Hence the development cost effective models capable of allotting available budget optimally for its effective usage. By this, failed projects that often results in wasted resources, such as time, labor, and materials as well as failed projects that demoralize employees, leading to decreased productivity and increased turnover rates will be under control from onset. Cost effectiveness models are analytical tools that help businesses compare the costs and benefits of different alternatives and make informed decisions. This study identified the required strategic decisions, with their attributes and their models adopted from literature for the required logics to these models. The computer algorithms was developed as well as the software model using a JAVA scripts for its implementation for decision making. Performance index of each machine were: Winnowing machine (WM is 0.324) ; Milling Machine (MM is 0.327); While that of Liquor Press Machine ( LPM was 0.349). The company available maintenance budget (AB) for the three machines in 2025 was Eighteen Million, Six hundred and forty five Thousands (18,645,000) Naira. Using the performance index of each machine to predict what should be allocated to each of this machine in 2025 maintenance activities ; Winnowing Machine Allocation Budget (ABwm), 6,040,980 Naira; Milling Machine Allocation Budget (ABmm), 6,096,915 Naira. While that of Liquor Press Machine Allocation Budget (ABlpm), 6,507,105 Naira. This model is very simple and easy to use. It will find its application in small , medium and large scale industries.
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