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Assessing maintenance contracts when preventive maintenance is outsourced

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  • Wu, Shaomin

Abstract

In some companies, corrective maintenance is conducted in-house but preventive maintenance might be outsourced. This raises a need to optimise some parameters such as the number of contracts from a perspective of the equipment owner. This paper considers a maintenance policy for such a situation, analyses the roles of the parameters in a PM model, proposes approaches to defining bonus functions, and finally discusses special cases of both the PM policy and the bonus function. Numerical examples are also given to explore the impact of parameters on the expected lifecycle cost rate.

Suggested Citation

  • Wu, Shaomin, 2012. "Assessing maintenance contracts when preventive maintenance is outsourced," Reliability Engineering and System Safety, Elsevier, vol. 98(1), pages 66-72.
    • Handle: RePEc:eee:reensy:v:98:y:2012:i:1:p:66-72
    DOI: 10.1016/j.ress.2011.10.004
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    References listed on IDEAS

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    1. Wang, Wenbin, 2010. "A model for maintenance service contract design, negotiation and optimization," European Journal of Operational Research, Elsevier, vol. 201(1), pages 239-246, February.
    2. Jackson, Canek & Pascual, Rodrigo, 2008. "Optimal maintenance service contract negotiation with aging equipment," European Journal of Operational Research, Elsevier, vol. 189(2), pages 387-398, September.
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    4. Wu, Shaomin & Clements-Croome, Derek, 2005. "Preventive maintenance models with random maintenance quality," Reliability Engineering and System Safety, Elsevier, vol. 90(1), pages 99-105.
    5. Yi Ding & Anatoly Lisnianski & Ilia Frenkel & Lev Khvatskin, 2009. "Optimal corrective maintenance contract planning for aging multi‐state system," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 25(5), pages 612-631, September.
    6. Pongpech, J. & Murthy, D.N.P., 2006. "Optimal periodic preventive maintenance policy for leased equipment," Reliability Engineering and System Safety, Elsevier, vol. 91(7), pages 772-777.
    7. Wang, Hongzhou, 2002. "A survey of maintenance policies of deteriorating systems," European Journal of Operational Research, Elsevier, vol. 139(3), pages 469-489, June.
    8. Adiel Almeida, 2005. "Multicriteria Modelling of Repair Contract Based on Utility and ELECTRE I Method with Dependability and Service Quality Criteria," Annals of Operations Research, Springer, vol. 138(1), pages 113-126, September.
    9. Jaturonnatee, J. & Murthy, D.N.P. & Boondiskulchok, R., 2006. "Optimal preventive maintenance of leased equipment with corrective minimal repairs," European Journal of Operational Research, Elsevier, vol. 174(1), pages 201-215, October.
    10. Wang, Wenbin & Banjevic, Dragan & Pecht, Michael, 2010. "A multi-component and multi-failure mode inspection model based on the delay time concept," Reliability Engineering and System Safety, Elsevier, vol. 95(8), pages 912-920.
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    Citations

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    Cited by:

    1. Zhou, Xiaojun & Wu, Changjie & Li, Yanting & Xi, Lifeng, 2016. "A preventive maintenance model for leased equipment subject to internal degradation and external shock damage," Reliability Engineering and System Safety, Elsevier, vol. 154(C), pages 1-7.
    2. Karar, Ahmed Noaman & Labib, Ashraf & Jones, Dylan, 2023. "Post-warranty maintenance strategy selection using shape packages process," International Journal of Production Economics, Elsevier, vol. 255(C).
    3. Xia, Tangbin & Sun, Bowen & Chen, Zhen & Pan, Ershun & Wang, Hao & Xi, Lifeng, 2021. "Opportunistic maintenance policy integrating leasing profit and capacity balancing for serial-parallel leased systems," Reliability Engineering and System Safety, Elsevier, vol. 205(C).
    4. Jackson, Canek & Pascual, Rodrigo & Mac Cawley, Alejandro & Godoy, Sergio, 2023. "Product–service system negotiation in aircraft lease contracts with option of disagreement," Journal of Air Transport Management, Elsevier, vol. 107(C).
    5. Wakiru, James M. & Pintelon, Liliane & Muchiri, Peter N. & Chemweno, Peter K., 2019. "A simulation-based optimization approach evaluating maintenance and spare parts demand interaction effects," International Journal of Production Economics, Elsevier, vol. 208(C), pages 329-342.
    6. Liu, Bin & Xu, Zhengguo & Xie, Min & Kuo, Way, 2014. "A value-based preventive maintenance policy for multi-component system with continuously degrading components," Reliability Engineering and System Safety, Elsevier, vol. 132(C), pages 83-89.
    7. Wu, Shaomin & Chen, Yi & Wu, Qingtai & Wang, Zhonglai, 2016. "Linking component importance to optimisation of preventive maintenance policy," Reliability Engineering and System Safety, Elsevier, vol. 146(C), pages 26-32.
    8. Huang, Yeu-Shiang & Gau, Wei-Yo & Ho, Jyh-Wen, 2015. "Cost analysis of two-dimensional warranty for products with periodic preventive maintenance," Reliability Engineering and System Safety, Elsevier, vol. 134(C), pages 51-58.
    9. Murthy, D.N.P. & Karim, M.R. & Ahmadi, A., 2015. "Data management in maintenance outsourcing," Reliability Engineering and System Safety, Elsevier, vol. 142(C), pages 100-110.
    10. Jackson, Canek & Pascual, Rodrigo, 2021. "Joint pricing and maintenance strategies in availability-based product-service systems under different overhaul conditions," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    11. Xia, Tangbin & Cao, Lei & Xu, Yuhui & Zhang, Kaigan & Chen, Zhen & Pan, Ershun & Xi, Lifeng, 2024. "Multi-level maintenance and inventory joint optimization for a k-out-of-n hyper-system considering the selection of suppliers with incentive discount policies," Reliability Engineering and System Safety, Elsevier, vol. 241(C).

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