Annualized failure rate, or short AFR is the reciprocal of the MTBF expressed in years and percent.
For example, a typical disk drive MTBF number may be 1,200,000 hours. Divide that by 8,760 hours to get 136,9863 years, then take the reciprocal of 136,9863 years to get 0.73%. You can expect about 0.73 percent of the population to fail in the average year.
For example, in an automobile, the failure of the FM radio does not prevent the primary operation of vehicle, so that it may be desirable to differentiate the failurerates of critical versus non-critical failures.
One drawback of the MTBF is that it assumes that the failurerate is constant for all intervals.
Under certain engineering assumptions, the failurerate for a complex system is simply the sum of the individual failurerates of its components, as long as the units are consistent, e.g.