Business-oriented prioritization: A novel graphical technique

R. Pascual, G. Del Castillo, D. Louit and P. Knights

Reliability Engineering and System Safety, 2009, vol. 94, issue 8, 1308-1313

Abstract: Traditionally, Pareto analysis has been used to select the most critical components and failure modes of a system. A clear disadvantage of this technique is that it requires preselecting a single criterion to establish priorities. More recently, a graphical log-scatter diagram technique has been proposed. It considers three key performance indicators simultaneously: reliability (MTBF), maintainability (MTTR), and unavailability (D). This technique considers only times and does not include economical effects explicitly. This article extends both techniques to explicitly consider both direct and indirect costs to prioritize from the point of view of an asset manager or from a maintenance decision-maker, as required. Due to the economic-based approach of this article, cost discounting is also considered inside financial costs such as—but not limited to—reliability-related investments. Also, the results are displayed on simple and accessible graphs which make them particularly useful for conveying results to non-technical managers. The methodology is illustrated by analyzing a shovel from the copper mine industry, and it clearly shows how the proposed technique facilitates business oriented decisions and how they should change under different market conditions.

Keywords: Prioritization; Physical asset management; Maintenance decision-making; Resource assignment; Criticality; Subset selection; Multicriteria analysis (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reensy:v:94:y:2009:i:8:p:1308-1313

DOI: 10.1016/j.ress.2009.01.013

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