question

So, the pallet moves with the flow item. Imagine, pallet is carrying the item from one station to another, and the pallet has a probability to go down, get repaired at the station and then keep moving with the same flow item

@Pranav K Still information is missing because pallets are no magical carpets. They don't float through the air. The other thing is what happens when the pallets reach the station, can the station continue anyway or is blocked?

So if the pallet is blocking the processor, why not set the MTBF/MTTR directly on the processor?

Other thing you could do is just create an MTBF/MTTR function and on the down function set a label on the pallet that goes down. When it arrives at a station and it has this label, then you have to call an operator and the process time is longer. You can misuse the setup for instance or use an extra processor in front of the main processor.