Optimal maintenance policy considering maintenance errors for systems operating under performance-based contracts

Qingan Qiu*, Lirong Cui, Jingyuan Shen, Li Yang

*Corresponding author for this work

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    Abstract

    In recent years, performance-based contracts (PBCs) have been extensively adopted in both manufacturing and service industries. However, maintenance strategies under PBCs are not often addressed. This paper considers a novel maintenance policy for a single-component system operating under a PBC. Failures of this system may either be hard or soft, but can only be revealed by periodic inspection. Imperfect repair (subject to the virtual age model) is used to fix a soft failure. However, imperfect repair actions may be ineffective and could cause a catastrophic failure (maintenance error) that ultimately leads to replacement. In the model proposed in this paper, we consider maintenance error, and the system is replaced upon a hard failure, a maintenance error, or preventively replaced at the nth soft failure. The objective of this model is to maximize the expected net revenue of the supplier operating under a PBC. Moreover, we compare the properties of the optimal maintenance policy under three different failure rate functions and show that, with different parameters, our model reduces to several classic maintenance models. Finally, a case study on a wind turbine system is provided to illustrate the application of the maintenance model.

    Original languageEnglish
    Pages (from-to)147-155
    Number of pages9
    JournalComputers and Industrial Engineering
    Volume112
    DOIs
    Publication statusPublished - Oct 2017

    Keywords

    • Maintenance errors
    • Optimal maintenance policy
    • Performance-based contract

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    Qiu, Q., Cui, L., Shen, J., & Yang, L. (2017). Optimal maintenance policy considering maintenance errors for systems operating under performance-based contracts. Computers and Industrial Engineering, 112, 147-155. https://doi.org/10.1016/j.cie.2017.08.025