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Get Your Maintenance Management Terminology Down!

What is Annualized Failure Rate (AFR) ?

Annualized Failure Rate (AFR) is a metric used in maintenance operations and management to measure the reliability of a system or component over a given period of time. It is calculated by dividing the total number of failures in a year by the total number of operating hours in that year. AFR is expressed as a percentage and is used to identify potential problems and prioritize maintenance activities. AFR is an important metric for maintenance operations and management as it helps to identify areas of improvement and ensure that systems and components are operating at optimal levels. It is also used to compare the reliability of different systems and components, allowing for informed decisions to be made about maintenance activities.

The Annual Failure Rate (AFR) is a measure used in maintenance management to quantify the likelihood of a system or component failing within a year. It is typically expressed as a percentage or a ratio.

The formula for AFR is:

AFR=( Total Number of Units / Number of Failures in a Year) × 100

Here’s a step-by-step breakdown of the Annual Failure Rate Formula:

  • Number of Failures in a Year: Count the total number of failures that occurred over the span of a year.
  • Total Number of Units: Determine the total number of units or components being considered.

By plugging these values into the formula, you can calculate the Annual Failure Rate.

For example, if you have 1,000 units and 25 of them fail over the course of a year, the AFR would be calculated as follows:

AFR = ( 25 / 1000) *100 =2.5%

This means that 2.5% of the units are expected to fail annually.

Calculate Annual Failure Rate for Your Use Case:

Annual Failure Rate

AFR=( Total Number of Units / Number of Failures in a Year) × 100


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Annual Failure Rate (AFR) and Mean Time Between Failures (MTBF)

AFR and MTBF are two related metrics used in reliability and maintenance management to quantify the reliability of systems or components. They are inversely related to each other.

Here’s how they are related:

1. Annual Failure Rate (AFR): This measures the percentage of units expected to fail within a year.

AFR = (1 / MTBF) *100

2. Mean Time Between Failures (MTBF): This is the average time between failures of a system or component.

MTBF = (1 / AFR)

To convert between AFR and MTBF, you can use these formulas.

Calculate AFR from MTBF

AFR = (1 / MTBF) *100


Calculate MTBF from AFR

MTBF = (1 / AFR)


Example Calculation

Suppose you have an AFR of 2.5%.

To find the MTBF:

Convert the AFR to a decimal: 2.5% = 0.025.

Use the formula for MTBF:

MTBF = (1 / 0.025) = 40 years

This means, on average, each unit is expected to run for 40 years between failures.

Conversely, if you know the MTBF and want to find the AFR:

Suppose the MTBF is 40 years.

Use the formula for AFR:

AFR = (1 / 40) * 100 = 2.5%

This shows how AFR and MTBF are directly inversely proportional, providing different perspectives on the equipment reliability.

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