Question 4: (7 marks) A servicing equipment used in SERVISCO company is composed of four subsystems is shown in diagram below. Knowing that: The reliability of the subsystem A is 0.75 The reliability of the subsystem B is 0.81 The reliability of the subsystem C is 0.67 The reliability of the subsystem A is 0.98 Subsystem A System C Sudnystem D Calculate the reliability of this system. During testing period, 10 servicing equipment have been evaluated. The record of breakdowns is presented in the table below: Number of 02356 breakdowns Frequency of 0.10502040.1 occurrence The average cost of breakdown is 70KD. In order to improve the reliability, SERVISCO company decides to contract out the preventive maintenance to MSC company. The contract will include fixed fees of 100 KD and the cost of: -Spare parts: 5KD .Labor: 50KD .Consumables: 10KD -Equipment: 5 KD MSC company performed a trial period in which 10 servicing equipment have been controlled, the record of breakdown presented by this company is shown by the table below: Number of 0124 breakdowns Frequency of 0.70.30.10.05 Occurrence 2 If SERVISCO expect a 30 % reduction of total annualized maintenance cost (AMC), is it better to contract the preventive maintenance service to MSC? To sign the contract, SERVISCO require a minimum 50% reliability improvement. MSC suggests to duplicate only two subsystems which represent the lower reliability. Only one similar redundant component will be considered for each subsystem. Will SERVISCO sign the contract with MSC? If yes, calculate the annualised maintenance cost.