Therefore any equipment in the factory whose failure would stop production has the highest possible impact on the company. Example 2 Other factories within the company in Example 1 make a series of products. The impact of failure to produce any one of these products will be proportional to the contribution that the product makes to the company. Therefore any inventory item whose failure will stop manufacture of that product will have that level of impact. However, any inventory item common to all products will have the same level of impact as the raw materials factory because it will stop all production.
Packaging machinery is an example of such an inventory item.
In the retail and commercial sectors companies have many premises which are basically very similar. Failure of one branch might not have a catastrophic effect on the whole business. However, failure of one piece of equipment found in many branches could have a very serious impact. Example 4 A company makes two products, one of which is available from competitors while the other is not. In this case it may be that the second product is the more important because that is the one that customers rely on your company to provide.