Reliability analysis, GM has a 1.4L engine that they put

Reliability analysis

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Reference no: EM132267849

Reliability Analysis

GM has a 1.4L engine that they put into over 1,000,000 vehicles. This particular engine has a major issue with reliability. The PCV valve can break and it costs roughly $700 to repair. If the vehicle was made in between 2008 and 2014, the powertrain warranty covers this cost for the first 100,000 miles. After that, it’s on the owners, LIKE ME, to pay for it. If the part has a MTTF(mean) of 40,000 miles, answer the following:

Using the exponential distribution, calculate the probability it will fail within the first 20,000 miles…. Like mine just did.

Run a simulation with 3 columns and 1,000 random variables, using the Poisson Distribution with mean=40,000. Each column represents the lifetime of a replaced PCV valve.

In column 1, what is the probability of one of these parts failing on the car within 100,000 miles.

Combine the values in Column 1 and 2. What is the percent of vehicles that have the PCV valve replaced twice within the first 100,000 miles ? LIKE MINE.

Combine the values in column 1, 2 and 3. What percent of the vehicles have had 3 PCV valve replaced within the first 100,000?

At a cost of $700/repair, how much does it costs GM to fix 1,000,000 1.4L engines?

Cost = $700*1,000,000*P(from part ii) + $700*1,000,000*P(Part iii) + $700*1,000,000*P(Part iv)

GM’s fix for this situation is to drop the powertrain warranty from 100,000 miles to 36,000 miles. What is the new cost to GM if they only replace PCV valves that break in the first 36,000? (Hint: Use the data in the first column. What is the probability of a part failing before 36,000miles?)

Cost = $700*1,000,000*P(36,000)

Is the cost savings GM gets worth the hit to it’s reputation?

How much should I hate Chevy and GM right now if my third PCV valve failed at 120,000 miles and my second PCV valve failed at 100,532 miles?

Reference no: EM132267849

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