Document Type

Closed Project

Publication Date

Fall 2003


Timothy Anderson

Course Title

Engineering Economic Analysis

Course Number

EMGT 535/635


An electronics manufacturing company is investigating redundant power for one of its facilities. Whenever a power outage occurs there is manufacturing down and recovery time to get systems back in test. This is due to automated software test suites that have a set run time. When the plant is running at full capacity, a worst-case scenario occurs. A power outage will affect all systems in test and increase the cycle time of the facility. The confidential company has a facility located in the Portland, Oregon metro area. The facility is responsible for high value custom electronics. To protect the company’s confidentiality, sensitive information has been changed to disguise any proprietary information. This study investigates the causes of power outages and their frequencies of occurrence based on historical data. Based on those frequencies, the economic analyses of opportunity lost and inventory carrying costs were evaluated for the facility. Redundant power options were analyzed on an economic basis. The decision criteria were payback and net present worth.


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