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Milestone Three
By:
Ryan Franklin
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2
Economic Fit
The multi-generator will benefit the citizens of India greatly because they will not have to
pay for electricity for their homes. Husks Power Systems have been looking for ways to provide
power to the citizens in rural India to keep from having to charge them more than other places.
The organization is wanting to provide free electricity to the citizens. By providing this free
electricity, the company can advertise this to people around the world which will entice people to
move to India. While the government will help support the costs for the generator to work, the
increase of population will allow the government to have more taxes coming in. This will allow
the support for adding new power lines to the new houses and help maintain the multi-generator
for extended use. This multi-generator will also benefit because of the low maintenance that the
equipment requires. Preventive maintenance also translates into lower repair costs (since those
repairs are now being managed over the long run, versus on an ad hoc basis) and a safer
workplace (due to fewer catastrophic equipment or structural failures) (2019). This will benefit
the company by predicting the breakage of the equipment before it disrupts service. This multi-
generator will benefit the company greatly because of the low maintenance and increasing
population of India.
Operational Costs
The operational costs of this project are not that high due to the low maintenance that is
required for the multi-generator. Preventative maintenance should be done every six months to
keep maintaining the equipment for extended use. There will be one service engineer that will
perform the preventative maintenance that will costs the company approximately $500 an hour. It
will take approximately seven hours to perform the maintenance. This will be an operational cost
of $7,000 for preventative maintenance. The company will have a total of $15,000 per year so
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that they can have extra expenses for unexpected maintenance. If the maintenance becomes more
than that each year, the company will decide to invest more than what was expected for the
upcoming years. The cost for inventory will be $20,000. This will cover parts that need to be
stored, parts that need to be ordered, and preventative maintenance parts. By having excess
inventory, the equipment will have minimal downtime while still providing maximum power to
the citizens of India.
Benefits
This multi-generator will benefit the company greatly due to the no costs to the citizens
of India and low maintenance for the equipment. The benefits of having no costs to the citizens
of India are great because it will entice people around the world to move to India. This will
benefit the country as a whole because of the increased population that will bring in more
businesses, more schools, and more taxes for the government to improve other conditions within
the country. The company is confident that this multi-generat