Some New Advances in Modeling for Performance-Based Maintenance Services

Tongdan Jin (), Yisha Xiang, Jin Qin and Vinod Subramanyam
Additional contact information
Tongdan Jin: Ingram School of Engineering, Texas State University
Yisha Xiang: Texas Tech University
Jin Qin: School of Management, The University of Science and Technology of China
Vinod Subramanyam: Ingram School of Engineering, Texas State University

A chapter in Multicriteria and Optimization Models for Risk, Reliability, and Maintenance Decision Analysis, 2022, pp 459-486 from Springer

Abstract: Abstract Performance-based maintenance (PBM) has emerged as a new after-sales service contract to support the acquisition and operation of capital equipment. Under PBM contract, the service provider strives to achieve its performance goal while realizing its own business interests. In this chapter, we introduce several performance measures commonly used in PBM contracting and further investigate their interdependencies under different payment and reward schemes. We focus our efforts on service-oriented industry including integrated manufacturing firms and third-party logistics providers. We present new PBM contracting models with the goal of maximizing the service profit and minimizing the maintenance cost rate, respectively. Numerical examples from wind energy industry are used to demonstrate the application of proposed models. Two managerial insights are derived. First, zero spare parts inventory is achievable if reliability, maintenance, and repair logistics are appropriately coordinated; second, when detailed maintenance cost data are unavailable, the optimal policies aimed to maximize the system availability can be used as a good substitute for obtaining near maximum service profit.

Keywords: Design for reliability; Performance-based contracting; Repairable inventory; Life cycle cost analysis; Condition-based maintenance (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-3-030-89647-8_22

Ordering information: This item can be ordered from
http://www.springer.com/9783030896478

DOI: 10.1007/978-3-030-89647-8_22

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().