IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v253y2016i1p94-107.html
   My bibliography  Save this article

Joint optimization of condition-based maintenance and production lot-sizing

Author

Listed:
  • Peng, Hao
  • van Houtum, Geert-Jan

Abstract

Due to the development of sensor technologies nowadays, condition-based maintenance (CBM) programs can be established and optimized based on the data collected through condition monitoring. The CBM activities can significantly increase the uptime of a machine. However, they should be conducted in a coordinated way with the production plan to reduce the interruptions. On the other hand, the production lot size should also be optimized by taking the CBM activities into account. Relatively fewer works have been done to investigate the impact of the CBM policy on production lot-sizing and to propose joint optimization models of both the economic manufacturing quantity (EMQ) and CBM policy. In this paper, we evaluate the average long-run cost rate of a degrading manufacturing system using renewal theory. The optimal EMQ and CBM policy can be obtained by minimizing the average long-run cost rate that includes setup cost, inventory holding cost, lost sales cost, predictive maintenance cost and corrective maintenance cost. Unlike previous works on this topic, we allow the use of continuous time and continuous state degradation processes, which broadens the application area of this model. Numerical examples are provided to illustrate the utilization of our model.

Suggested Citation

  • Peng, Hao & van Houtum, Geert-Jan, 2016. "Joint optimization of condition-based maintenance and production lot-sizing," European Journal of Operational Research, Elsevier, vol. 253(1), pages 94-107.
  • Handle: RePEc:eee:ejores:v:253:y:2016:i:1:p:94-107
    DOI: 10.1016/j.ejor.2016.02.027
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221716300649
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2016.02.027?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Harry Groenevelt & Liliane Pintelon & Abraham Seidmann, 1992. "Production Lot Sizing with Machine Breakdowns," Management Science, INFORMS, vol. 38(1), pages 104-123, January.
    2. Dehayem Nodem, F.I. & Kenne, J.P. & Gharbi, A., 2009. "Hierarchical decision making in production and repair/replacement planning with imperfect repairs under uncertainties," European Journal of Operational Research, Elsevier, vol. 198(1), pages 173-189, October.
    3. V. Makis & X. Jiang, 2003. "Optimal Replacement Under Partial Observations," Mathematics of Operations Research, INFORMS, vol. 28(2), pages 382-394, May.
    4. Guo, Haitao & Watson, Simon & Tavner, Peter & Xiang, Jiangping, 2009. "Reliability analysis for wind turbines with incomplete failure data collected from after the date of initial installation," Reliability Engineering and System Safety, Elsevier, vol. 94(6), pages 1057-1063.
    5. Massimiliano Giorgio & Maurizio Guida & Gianpaolo Pulcini, 2015. "A condition‐based maintenance policy for deteriorating units. An application to the cylinder liners of marine engine," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 31(3), pages 339-348, May.
    6. D Lin & D Banjevic & A K S Jardine, 2006. "Using principal components in a proportional hazards model with applications in condition-based maintenance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(8), pages 910-919, August.
    7. Kazaz, Burak & Sloan, Thomas W., 2013. "The impact of process deterioration on production and maintenance policies," European Journal of Operational Research, Elsevier, vol. 227(1), pages 88-100.
    8. Alaa H. Elwany & Nagi Z. Gebraeel & Lisa M. Maillart, 2011. "Structured Replacement Policies for Components with Complex Degradation Processes and Dedicated Sensors," Operations Research, INFORMS, vol. 59(3), pages 684-695, June.
    9. Tian, Zhigang & Liao, Haitao, 2011. "Condition based maintenance optimization for multi-component systems using proportional hazards model," Reliability Engineering and System Safety, Elsevier, vol. 96(5), pages 581-589.
    10. P J Vlok & J L Coetzee & D Banjevic & A K S Jardine & V Makis, 2002. "Optimal component replacement decisions using vibration monitoring and the proportional-hazards model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(2), pages 193-202, February.
    11. Ponchet, Amélie & Fouladirad, Mitra & Grall, Antoine, 2010. "Assessment of a maintenance model for a multi-deteriorating mode system," Reliability Engineering and System Safety, Elsevier, vol. 95(11), pages 1244-1254.
    12. Liao, Gwo-Liang & Chen, Yen Hung & Sheu, Shey-Huei, 2009. "Optimal economic production quantity policy for imperfect process with imperfect repair and maintenance," European Journal of Operational Research, Elsevier, vol. 195(2), pages 348-357, June.
    13. Dieulle, L. & Berenguer, C. & Grall, A. & Roussignol, M., 2003. "Sequential condition-based maintenance scheduling for a deteriorating system," European Journal of Operational Research, Elsevier, vol. 150(2), pages 451-461, October.
    14. Hau L. Lee & Meir J. Rosenblatt, 1987. "Simultaneous Determination of Production Cycle and Inspection Schedules in a Production System," Management Science, INFORMS, vol. 33(9), pages 1125-1136, September.
    15. Massimiliano Giorgio & Maurizio Guida & Gianpaolo Pulcini, 2011. "An age- and state-dependent Markov model for degradation processes," IISE Transactions, Taylor & Francis Journals, vol. 43(9), pages 621-632.
    16. El-Ferik, Sami, 2008. "Economic production lot-sizing for an unreliable machine under imperfect age-based maintenance policy," European Journal of Operational Research, Elsevier, vol. 186(1), pages 150-163, April.
    17. van Noortwijk, J.M., 2009. "A survey of the application of gamma processes in maintenance," Reliability Engineering and System Safety, Elsevier, vol. 94(1), pages 2-21.
    18. Ben-Daya, Mohamed, 2002. "The economic production lot-sizing problem with imperfect production processes and imperfect maintenance," International Journal of Production Economics, Elsevier, vol. 76(3), pages 257-264, April.
    19. Chen, Dongyan & Trivedi, Kishor S., 2005. "Optimization for condition-based maintenance with semi-Markov decision process," Reliability Engineering and System Safety, Elsevier, vol. 90(1), pages 25-29.
    20. Aghezzaf, E.H. & Jamali, M.A. & Ait-Kadi, D., 2007. "An integrated production and preventive maintenance planning model," European Journal of Operational Research, Elsevier, vol. 181(2), pages 679-685, September.
    21. Liao, Haitao & Elsayed, Elsayed A. & Chan, Ling-Yau, 2006. "Maintenance of continuously monitored degrading systems," European Journal of Operational Research, Elsevier, vol. 175(2), pages 821-835, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cheng, Guo Qing & Zhou, Bing Hai & Li, Ling, 2018. "Integrated production, quality control and condition-based maintenance for imperfect production systems," Reliability Engineering and System Safety, Elsevier, vol. 175(C), pages 251-264.
    2. Song Jiu, 2021. "A two-phase approach for integrating preventive maintenance with production and delivery in an unreliable coal mine," Journal of Heuristics, Springer, vol. 27(6), pages 991-1020, December.
    3. A. S. Xanthopoulos & S. Vlastos & D. E. Koulouriotis, 2022. "Coordinating production, inspection and maintenance decisions in a stochastic manufacturing system with deterioration failures," Operational Research, Springer, vol. 22(5), pages 5707-5732, November.
    4. de Jonge, Bram, 2019. "Discretizing continuous-time continuous-state deterioration processes, with an application to condition-based maintenance optimization," Reliability Engineering and System Safety, Elsevier, vol. 188(C), pages 1-5.
    5. uit het Broek, Michiel A.J. & Teunter, Ruud H. & de Jonge, Bram & Veldman, Jasper, 2021. "Joint condition-based maintenance and condition-based production optimization," Reliability Engineering and System Safety, Elsevier, vol. 214(C).
    6. Yan, Tao & Lei, Yaguo & Wang, Biao & Han, Tianyu & Si, Xiaosheng & Li, Naipeng, 2020. "Joint maintenance and spare parts inventory optimization for multi-unit systems considering imperfect maintenance actions," Reliability Engineering and System Safety, Elsevier, vol. 202(C).
    7. Michiel A. J. uit het Broek & Ruud H. Teunter & Bram de Jonge & Jasper Veldman & Nicky D. Van Foreest, 2020. "Condition-Based Production Planning: Adjusting Production Rates to Balance Output and Failure Risk," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 792-811, July.
    8. Yihai He & Changchao Gu & Zhaoxiang Chen & Xiao Han, 2017. "Integrated predictive maintenance strategy for manufacturing systems by combining quality control and mission reliability analysis," International Journal of Production Research, Taylor & Francis Journals, vol. 55(19), pages 5841-5862, October.
    9. Liu, Bin & Liang, Zhenglin & Parlikad, Ajith Kumar & Xie, Min & Kuo, Way, 2017. "Condition-based maintenance for systems with aging and cumulative damage based on proportional hazards model," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 200-209.
    10. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    11. Gössinger, Ralf & Helmke, Hanna & Kaluzny, Michael, 2017. "Condition-based release of maintenance jobs in a decentralised production-maintenance system – An analysis of alternative stochastic approaches," International Journal of Production Economics, Elsevier, vol. 193(C), pages 528-537.
    12. Lin Wang & Zhiqiang Lu & Yifei Ren, 2019. "A rolling horizon approach for production planning and condition-based maintenance under uncertain demand," Journal of Risk and Reliability, , vol. 233(6), pages 1014-1028, December.
    13. Ekin, Tahir, 2018. "Integrated maintenance and production planning with endogenous uncertain yield," Reliability Engineering and System Safety, Elsevier, vol. 179(C), pages 52-61.
    14. Zhang, Zhengxin & Si, Xiaosheng & Hu, Changhua & Lei, Yaguo, 2018. "Degradation data analysis and remaining useful life estimation: A review on Wiener-process-based methods," European Journal of Operational Research, Elsevier, vol. 271(3), pages 775-796.
    15. Truong Ba, H. & Cholette, M.E. & Borghesani, P. & Zhou, Y. & Ma, L., 2017. "Opportunistic maintenance considering non-homogenous opportunity arrivals and stochastic opportunity durations," Reliability Engineering and System Safety, Elsevier, vol. 160(C), pages 151-161.
    16. Zhou, Wenhui & Zheng, Zhibin & Xie, Wei, 2017. "A control-chart-based queueing approach for service facility maintenance with energy-delay tradeoff," European Journal of Operational Research, Elsevier, vol. 261(2), pages 613-625.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    2. Kazaz, Burak & Sloan, Thomas W., 2013. "The impact of process deterioration on production and maintenance policies," European Journal of Operational Research, Elsevier, vol. 227(1), pages 88-100.
    3. Zhu, Qiushi & Peng, Hao & Timmermans, Bas & van Houtum, Geert-Jan, 2017. "A condition-based maintenance model for a single component in a system with scheduled and unscheduled downs," International Journal of Production Economics, Elsevier, vol. 193(C), pages 365-380.
    4. Alaswad, Suzan & Xiang, Yisha, 2017. "A review on condition-based maintenance optimization models for stochastically deteriorating system," Reliability Engineering and System Safety, Elsevier, vol. 157(C), pages 54-63.
    5. Peymankar, Mahboobe & Dehghanian, Farzad & Ghiami, Yousef & Abolbashari, Mohammad Hassan, 2018. "The effects of contractual agreements on the economic production quantity model with machine breakdown," International Journal of Production Economics, Elsevier, vol. 201(C), pages 203-215.
    6. de Jonge, Bram & Teunter, Ruud & Tinga, Tiedo, 2017. "The influence of practical factors on the benefits of condition-based maintenance over time-based maintenance," Reliability Engineering and System Safety, Elsevier, vol. 158(C), pages 21-30.
    7. Cheng, Guo Qing & Zhou, Bing Hai & Li, Ling, 2018. "Integrated production, quality control and condition-based maintenance for imperfect production systems," Reliability Engineering and System Safety, Elsevier, vol. 175(C), pages 251-264.
    8. K.Y. Kung & Y.D. Huang & H.M. Wee & Y. Daryanto, 2019. "Production-Inventory System for Deteriorating Items with Machine Breakdown, Inspection, and Partial Backordering," Mathematics, MDPI, vol. 7(7), pages 1-26, July.
    9. Chen, Nan & Ye, Zhi-Sheng & Xiang, Yisha & Zhang, Linmiao, 2015. "Condition-based maintenance using the inverse Gaussian degradation model," European Journal of Operational Research, Elsevier, vol. 243(1), pages 190-199.
    10. Shen, Jingyuan & Cui, Lirong & Ma, Yizhong, 2019. "Availability and optimal maintenance policy for systems degrading in dynamic environments," European Journal of Operational Research, Elsevier, vol. 276(1), pages 133-143.
    11. Bouslah, Bassem & Gharbi, Ali & Pellerin, Robert, 2013. "Joint optimal lot sizing and production control policy in an unreliable and imperfect manufacturing system," International Journal of Production Economics, Elsevier, vol. 144(1), pages 143-156.
    12. Zheng, Rui & Chen, Bingkun & Gu, Liudong, 2020. "Condition-based maintenance with dynamic thresholds for a system using the proportional hazards model," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    13. Si, Xiao-Sheng & Wang, Wenbin & Hu, Chang-Hua & Zhou, Dong-Hua, 2011. "Remaining useful life estimation - A review on the statistical data driven approaches," European Journal of Operational Research, Elsevier, vol. 213(1), pages 1-14, August.
    14. Lin Wang & Zhiqiang Lu & Yifei Ren, 2019. "A rolling horizon approach for production planning and condition-based maintenance under uncertain demand," Journal of Risk and Reliability, , vol. 233(6), pages 1014-1028, December.
    15. Olde Keizer, Minou & Teunter, Ruud, 2014. "Opportunistic condition-based maintenance and aperiodic inspections for a two-unit series system," Research Report 14033-OPERA, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    16. Ponchet, Amélie & Fouladirad, Mitra & Grall, Antoine, 2010. "Assessment of a maintenance model for a multi-deteriorating mode system," Reliability Engineering and System Safety, Elsevier, vol. 95(11), pages 1244-1254.
    17. Zhang, Nailong & Si, Wujun, 2020. "Deep reinforcement learning for condition-based maintenance planning of multi-component systems under dependent competing risks," Reliability Engineering and System Safety, Elsevier, vol. 203(C).
    18. Michiel A. J. uit het Broek & Ruud H. Teunter & Bram de Jonge & Jasper Veldman & Nicky D. Van Foreest, 2020. "Condition-Based Production Planning: Adjusting Production Rates to Balance Output and Failure Risk," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 792-811, July.
    19. Liu, Bin & Pandey, Mahesh D. & Wang, Xiaolin & Zhao, Xiujie, 2021. "A finite-horizon condition-based maintenance policy for a two-unit system with dependent degradation processes," European Journal of Operational Research, Elsevier, vol. 295(2), pages 705-717.
    20. Mosayebi Omshi, E. & Grall, A. & Shemehsavar, S., 2020. "A dynamic auto-adaptive predictive maintenance policy for degradation with unknown parameters," European Journal of Operational Research, Elsevier, vol. 282(1), pages 81-92.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:253:y:2016:i:1:p:94-107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.