118 BETTER BUSINESS DECISIONS USING COST MODELING Example 7.6. Maintenance Costs Lamp replacement is not a maintenance-intensive activity, and the time expended to replace each lamp is the same; however, the direc- tor learned early in this process that there were a number of injuries to store associates and claims associated with falls from ladders. In order to understand the potential value of fewer trips up the ladder, he requests a listing of all recordable incidents involving the use of ladders with their corresponding insurance costs while replacing lamps from human resources. From the information he receives, he can see that over the last 3 years the average value of all insurance claims pertain- ing to ladders and changing lamps is $250,000. Because the alternate lamp being considered has a longer life, an analysis is conducted to see how fewer trips may lead to fewer insurance claims and a safer store associate environment. The first step to calculate this value is to determine the value across