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Traffic signal equipment procurement based on cost of ownership and community cost
Author(s) -
Blanks H. S.
Publication year - 1985
Publication title -
quality and reliability engineering international
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.913
H-Index - 62
eISSN - 1099-1638
pISSN - 0748-8017
DOI - 10.1002/qre.4680010310
Subject(s) - procurement , reliability engineering , computer science , signal (programming language) , operations research , hazard , mean time between failures , incentive , risk analysis (engineering) , operations management , business , failure rate , engineering , economics , microeconomics , chemistry , organic chemistry , programming language , marketing
The principles of cost of ownership have been applied to the development of a system of traffic signal equipment procurement in which the failure cost includes the cost to the community arising from increased accident rate and traffic disruption due to malfunctioning equipment. The paper first summarizes some of the principles and guidelines of LCC procurement. It then gives the cost‐of‐ownership equation which has been developed for the comparative tender assessment of traffic signal equipment. It explains the categorization of signal malfunction modes according to their hazard‐creation and traffic‐disruption severities, providing a matrix of 5 × 5 hazard/disruption categories, and gives the derivation of the corresponding community cost rates. It discusses the proposed method of implementation of the system, including a warranty/guarantee plan intended to overcome the problem of MTBF prediction inaccuracy and to provide incentive for MTBF improvement. The paper concludes with a discussion of the savings which can be achieved through use of the system and of its cost effectiveness. The system was developed for the Department of Main Roads, New South Wales.