IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v8y2020i12p2208-d461104.html
   My bibliography  Save this article

Analysis of Long-Term Impact of Maintenance Policy on Maintenance Capacity Using a Time-Driven Activity-Based Life-Cycle Costing

Author

Listed:
  • Orlando Durán

    (Pontificia Universidad Católica de Valparaíso, Valparaíso 2490000, Chile)

  • Paulo Afonso

    (Centro ALGORITMI, Universidade do Minho, 4710-057 Braga, Portugal)

  • Vinicius Minatogawa

    (Pontificia Universidad Católica de Valparaíso, Valparaíso 2490000, Chile)

Abstract

In capital-intensive industries, physical assets and maintenance activities play a relevant and strategic role in terms of providing operational continuity and business sustainability. As a result, maintenance support structures are highly complex and sophisticated. Therefore, maintenance capacity planning must be addressed using reliable techniques to assure the adequate service levels and availabilities of critical assets at the minimum opportunity cost. There has been relatively limited research on how to determine and optimize the maintenance support structure (human resources) in such organizations. This paper proposes a novel technique for dimensioning and optimizing maintenance capacity that combines Time-Driven Activity-Based Costing and Life-Cycle Costing with the Weibull function-based reliability model. Following the main principles of the Design Science Research we propose a sophisticated but simple artifact. Through this model, it is possible to compute maintenance costs and assess both used and idle capacities, considering the behavior over time of the failure rates and the reliability of critical assets within a plant. To demonstrate how the proposed methodology addresses the problem, the model was applied in a real medium-sized Chilean comminution plant and a sensitivity analysis was performed, particularly, to evaluate the relevance of appropriate maintenance workforce planning.

Suggested Citation

  • Orlando Durán & Paulo Afonso & Vinicius Minatogawa, 2020. "Analysis of Long-Term Impact of Maintenance Policy on Maintenance Capacity Using a Time-Driven Activity-Based Life-Cycle Costing," Mathematics, MDPI, vol. 8(12), pages 1-24, December.
    • Handle: RePEc:gam:jmathe:v:8:y:2020:i:12:p:2208-:d:461104
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/8/12/2208/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/8/12/2208/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hümeyra Adıgüzel & Marios Floros, 2019. "Capacity utilization analysis through time-driven ABC in a small-sized manufacturing company," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 69(1), pages 192-216, September.
    2. Anwar Meddaoui & Driss Bouami, 2013. "Cost modelling in maintenance using time-driven activity-based costing," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 12(3), pages 247-270.
    3. De George, Emmanuel T. & Li, Xi & Shivakumar, Lakshmanan, 2016. "A review of the IFRS adoption literature," LSE Research Online Documents on Economics 67599, London School of Economics and Political Science, LSE Library.
    4. Joan E. van Aken, 2004. "Management Research Based on the Paradigm of the Design Sciences: The Quest for Field‐Tested and Grounded Technological Rules," Journal of Management Studies, Wiley Blackwell, vol. 41(2), pages 219-246, March.
    5. John V. Farr & Isaac J. Faber & Anirban Ganguly & W. Andy Martin & Steven L. Larson, 2016. "Simulation-based costing for early phase life cycle cost analysis: Example application to an environmental remediation project," The Engineering Economist, Taylor & Francis Journals, vol. 61(3), pages 207-222, July.
    6. Herbert A. Simon, 1996. "The Sciences of the Artificial, 3rd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691914, December.
    7. Dinis, Duarte & Barbosa-Póvoa, Ana & Teixeira, Ângelo Palos, 2019. "A supporting framework for maintenance capacity planning and scheduling: Development and application in the aircraft MRO industry," International Journal of Production Economics, Elsevier, vol. 218(C), pages 1-15.
    8. Hilson, Gavin & Murck, Barbara, 2000. "Sustainable development in the mining industry: clarifying the corporate perspective," Resources Policy, Elsevier, vol. 26(4), pages 227-238, December.
    9. Mohammed Kishk, 2004. "Combining various facets of uncertainty in whole-life cost modelling," Construction Management and Economics, Taylor & Francis Journals, vol. 22(4), pages 429-435.
    10. Emmanuel T. De George & Xi Li & Lakshmanan Shivakumar, 2016. "A review of the IFRS adoption literature," Review of Accounting Studies, Springer, vol. 21(3), pages 898-1004, September.
    Full references (including those not matched with items on IDEAS)

    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. Dalila Cisco Collatto & Aline Dresch & Daniel Pacheco Lacerda & Ione Ghislene Bentz, 2018. "Is Action Design Research Indeed Necessary? Analysis and Synergies Between Action Research and Design Science Research," Systemic Practice and Action Research, Springer, vol. 31(3), pages 239-267, June.
    2. Hyunmi Ji, 2019. "The Impact of Interest Coverage Ratio on Value Relevance of Reported Earnings: Evidence from South Korea," Sustainability, MDPI, vol. 11(24), pages 1-11, December.
    3. Bertrand, Jérémie & de Brebisson, Hélène & Burietz, Aurore, 2021. "Why choosing IFRS? Benefits of voluntary adoption by European private companies," International Review of Law and Economics, Elsevier, vol. 65(C).
    4. Ester Chen & Ilanit Gavious & Nadav Steinberg, 2019. "Dividends from unrealized earnings and default risk," Review of Accounting Studies, Springer, vol. 24(2), pages 491-535, June.
    5. Paul A. Griffin & Hyun A. Hong & Ivalina Kalcheva & Jeong‐Bon Kim, 2022. "Shorting activity and stock return predictability: Evidence from a mandatory disclosure shock," Financial Management, Financial Management Association International, vol. 51(1), pages 27-71, March.
    6. Michael Minnis & Nemit Shroff, 2017. "Why regulate private firm disclosure and auditing?," Accounting and Business Research, Taylor & Francis Journals, vol. 47(5), pages 473-502, July.
    7. Xiaomeng Chen & Meiting Lu & Yaowen Shan & Yizhou Zhang, 2021. "Australian evidence on analysts' cash flow forecasts: issuance, accuracy and usefulness," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(1), pages 3-50, March.
    8. Nagae, Akira & Katayama, Hajime & Takase, Koichi, 2022. "Donor aid allocation and accounting standards of recipients," Economic Modelling, Elsevier, vol. 106(C).
    9. Gatluak Gach Chuol Thony & Anthony Duku Peter, 2023. "The Impact of Adoption of International Financial Reporting Standard on Quality of Accounting Information in South Sudan: A Case Study of Kenya Commercial Bank and Cooperative Bank," International Journal of Science and Business, IJSAB International, vol. 19(1), pages 28-48.
    10. Chantziaras, Antonios & Koulikidou, Kleopatra & Leventis, Stergios, 2021. "The power of words in capital markets: SEC comment letters on foreign issuers and the impact of home country enforcement," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 42(C).
    11. Valentin BURCA, 2020. "Earnings Quality Versus Accounting Regulation. Empirical Assesment On Accuracy Of Macroeconomic Estimates," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 72-87, November.
    12. Alessandro Zattoni & Emmanouil Dedoulis & Stergios Leventis & Hans Van Ees, 2020. "Corporate governance and institutions—A review and research agenda," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 465-487, November.
    13. Meshram, Vedprakash Vasantrao & Arora, Jagriti, 2021. "Accounting constructs and economic consequences of IFRS adoption in India," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 45(C).
    14. Chiu, She-Chih & Lin, Hsuan-Chu & Chien, Chin-Chen & Liang, Chia-Chen, 2022. "Does Form 20-F reconciliation elimination for IFRS filers affect the risk forecasting ability of accounting numbers?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(3).
    15. Bin Li & Gianfranco Siciliano & Mohan Venkatachalam & Patricia Naranjo & Rodrigo S. Verdi, 2021. "Economic Consequences of IFRS Adoption: The Role of Changes in Disclosure Quality," Contemporary Accounting Research, John Wiley & Sons, vol. 38(1), pages 129-179, March.
    16. El-Helaly, Moataz & Ntim, Collins G. & Soliman, Mark, 2020. "The Role of National Culture in International Financial Reporting Standards Adoption," Research in International Business and Finance, Elsevier, vol. 54(C).
    17. Joanna Shuang Wu & Ivy Xiying Zhang, 2019. "Mandatory IFRS Adoption and the Role of Accounting Earnings in CEO Turnover," Contemporary Accounting Research, John Wiley & Sons, vol. 36(1), pages 168-197, March.
    18. Angelo M. Solarino & Peter J. Buckley, 2023. "Equivalence in international business research: A three-step approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 550-567, April.
    19. Elizabeth A. Gordon & Elaine Henry & Bjorn N. Jorgensen & Cheryl L. Linthicum, 2017. "Flexibility in cash-flow classification under IFRS: determinants and consequences," Review of Accounting Studies, Springer, vol. 22(2), pages 839-872, June.
    20. Khadija S. Almaghrabi & Kwaku Opong & Ioannis Tsalavoutas, 2021. "Compliance with pension‐related mandatory disclosures and debt financing," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(1-2), pages 148-184, January.

    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:gam:jmathe:v:8:y:2020:i:12:p:2208-:d:461104. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.