Last Time Buy and Control Policies With Phase-Out Returns: A Case Study in Plant Control Systems

This research involves the combination of spare parts management and reverse logistics. At the end of the product life cycle, products in the field (so called installed base) can usually be serviced by either new parts, obtained from a Last Time Buy, or by repaired failed parts. This paper, however, introduces a third source: the phase-out returns obtained from customers that replace systems. These returned parts may serve other customers that do not replace the systems yet. Phase-out return flows represent higher volumes and higher repair yields than failed parts and are cheaper to get than new ones. This new phenomenon has been ignored in the literature thus far, but due to increased product replacements rates its relevance will grow. We present a generic model, applied in a case study with real-life data from ConRepair, a third-party service provider in plant control systems (mainframes). Volumes of demand for spares, defects returns and phase-out returns are interrelated, because the same installed base is involved. In contrast with the existing literature, this paper explicitly models the operational control of both failed- and phase-out returns, which proves far from trivial given the nonstationary nature of the problem. We have to consider subintervals within the total planning interval to optimize both Last Time Buy and control policies well. Given the novelty of the problem, we limit ourselves to a single customer, single-item approach. Our heuristic solution methods prove efficient and close to optimal when validated. The resulting control policies in the case-study are also counter-intuitive. Contrary to (management) expectations, exogenous variables prove to be more important to the repair firm (which we show by sensitivity analysis) and optimizing the endogenous control policy benefits the customers. Last Time Buy volume does not make the decisive difference; far more important is the disposal versus repair policy. PUSH control policy is outperformed by PULL, which exploits demand information and waits longer to decide between repair and disposal. The paper concludes by mapping a number of extensions for future research, as it represents a larger class of problems.spare parts;reverse logistics;phase-out;PUSH-PULL repair;non stationary;Last Time Buy;business case

State of the art in simulation-based optimisation for maintenance systems

Recently, more attention has been directed towards improving and optimising maintenance in manufacturing systems using simulation. This paper aims to report the state of the art in simulation-based optimisation of maintenance by systematically classifying the published literature and outlining main trends in modelling and optimising maintenance systems. The authors investigate application areas and published real case studies as well as researched maintenance strategies and policies. Much of the research in this area is focusing on preventive maintenance and optimising preventive maintenance frequency that will lead to the minimum cost. Discrete event simulation was the most reported technique to model maintenance systems whereas modern optimisation methods such as Genetic Algorithms was the most reported optimisation method in the literature. On this basis, the paper identifies the current gaps and discusses future prospects. Further research can be done to develop a framework that guides the experimenting process with different maintenance strategies and policies. More real case studies can be conducted on multi-objective optimisation and condition based maintenance especially in a production context

A condition-based maintenance policy for multi-component systems with a high maintenance setup cost

Condition-based maintenance (CBM) is becoming increasingly important due to the development of advanced sensor and ICT technology, so that the condition data can be collected remotely. We propose a new CBM policy for multi-component systems with continuous stochastic deteriorations. To reduce the high setup cost of maintenance, a joint maintenance interval is proposed. With the joint maintenance interval and control limits of components as decision variables, we develop a model for the minimization of the average long-run maintenance cost rate of the systems. Moreover, a numerical study on a case of a wind power farm consisting of a large number of non-identical components is performed, including a sensitivity analysis. At last, our policy is compared to a corrective-maintenance-only policy

Maintenance Strategies Design and Assessment Using a Periodic Complexity Approach

People become more dependent on various devices, which do deteriorate over time and their operation becomes more complex. This leads to higher unexpected failure chance, which causes inconvenience, cost, time, and even lives. Therefore, an efficient maintenance strategy that reduces complexity should be established to ensure the system performs economically as designed without interruption. In the current research, a comprehensive novel approach is developed for designing and evaluating maintenance strategies that effectively reduce complexity in a cost efficient way with maximum availability and quality. A proper maintenance strategy application needs a rigorous failure definition. A new complexity based mathematical definition of failure is introduced that is able to model all failure types. A complexity-based metric, complication rate , is introduced to measure functionality degradation and gradual failure. Maintenance reduces the system complexity by system resetting via introducing periodicity. A metric for measuring the amount of periodicity introduced by maintenance strategy is developed. Developing efficient maintenance strategies that improve system performance criteria, requires developing the mathematical relationships between maintenance and quality, availability, and cost. The first relation relating the product quality to maintenance policy is developed using the virtual age concept. The aging intensity function is then deployed to develop the relation between maintenance and availability. The relation between maintenance and cost is formulated by investigating the maintenance effect on each cost element. The final step in maintenance policy design is finding the optimum periodicity level. Two approaches are investigated; weighted sum integrated with AHP and a comfort zones approach. Comfort zones is a new developed physical programming based optimization heuristic that captures designer preferences and limitations without substantial efforts in tweaking or calculating weights. A mining truck case study is presented to explain the application of the developed maintenance design approach and compare its results to the traditional reward renewal theory. It is shown that the developed approach is more capable of designing a maintenance policy that reduces complexity and simultaneously improves some other performance measures. This research explains that considering complexity reduction in maintenance policy design improves system functionality, and it can be achieved by simple industrially applicable approach