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Cost Analysis Case Study 2

History:  A large product sales and distribution center was experiencing hardware damage with the telephone and computer equipment after an electrical storm.  This problem has been present since the building was built approximately three years ago.

                        Cost of average service call:

                        (telephone service company)                $   15,000.00

                        (computer service company)                $   12,000.00

                        Cost of both service calls:                     $   27,000.00

 

                        Average lost customer revenue:

                        (average downtime of 4 hrs)

                        (sales: $ 1,500.00 per/min)                  $ 360,000.00

                        (customer labor costs)                          $   15,000.00

                        Total lost customer revenue:                $ 375,500.00

 

                        Cost to customer per incident:

                        (both service calls)                                $   27,000.00

                        (lost customer revenue)                        $ 375,500.00

                        Total cost to customer:                    $ 402,500.00

Result:  Improper earthing system along with no building steel bond between the warehouse (electrical service entrance point) and main office (telephone and computer equipment location).  The main office computer room transformer was grounded to the ungrounded building steel in the main office.  The telephone equipment was referenced to a separate ground rod in the computer room.

Cost Of Repair:  Less than $6,000.00

 


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