A maintenance prioritisation approach to maximise return on investment subject to time and budget constraints

Tam, Allen S. B.; Price, John W H

doi:10.1108/13552510810899472

Cited by 13 publications

(12 citation statements)

References 11 publications

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“…On the other hand, several researchers have already linked the asset management perspective to the company-level goals and profitability (e.g. Aoudia et al, 2008;Tam and Price 2008). Considering the present state of industrial services, the global trend towards networkin g and focusing on core competences has led to some notable changes (Broedner et al, 2009;Boulaksil and Fransoo, 2010;Holschbach and Hofmann, 2011).…”

Section: Introductionmentioning

confidence: 99%

Profitable working capital management in industrial maintenance companies

Marttonen

Monto

Kärri

2013

Journal of Quality in Maintenance Engineering

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Purpose -The purpose of this paper is to analyze the impact of working capital management on profitability in industrial maintenance service companies.Design/methodology/approach -Analytical modeling has been used as the research method. Finnish industrial maintenance companies have been analyzed on the basis of their financial statements.Findings -We reveal a significant negative correlation between the cycle times of operational working capital and the return on investment of industrial maintenance companies. Ligth fixed assets and good profitability of the maintenance sector emphasize the importance of working capital management. Large maintenance service companies seem to achieve competitive advantage over small and medium sized maintenance service providers through both fixed assets-and working capital-related economies of scale, and through the fact that large maintenance service providers often focus on providing services mostly for their host companies.Research limitations -The scarcity of large enterprises in the market in question precludes the use of a more extensive sample in the analysis.Practical implications -In the industrial maintenance service business, more attention should be paid to active management of working capital. We can conclude that this holds true especially in large industrial maintenance service enterprises.Originality/value -We contribute to the unexplored perspective of industrial maintenance companies. Previous studies of industrial maintenance companies have not addressed working capital management, which gains more and more attention under the volatile economic circumstances of the present day.Keywords Industrial maintenance services, Profitability, Working capital, Flexible asset management model Paper type Research paper IntroductionThe focus of this paper is on the working capital management of industrial maintenance service providers. There is not much previous research about industrial maintenance service providers, although maintenance performance has grown t o be of high importance to industrial companies (e.g. Al-Turki 2011;Simões et al., 2011). Previous research has been mainly done from the point of view of service buyers, concerning mostly outsourcing. On the other hand, several researchers have already linked the asset management perspective to the company-level goals and profitability (e.g. Aoudia et al., 2008;Tam and Price 2008). Considering the present state of industrial services, the global trend towards networkin g and focusing on core competences has led to some notable changes (Broedner et al., 2009;Boulaksil and Fransoo, 2010;Holschbach and Hofmann, 2011). A vast majority of outsourced business functions can be classified as services (Bailey et al., 2002;Benson and Ieronimo, 1996;Kakabadse and Kakabadse, 2002;Harland et al., 2005;McIvor et al., 2009). Bailey et al. (2002) reported that 70% of the companies in their research sample had outsourced one or more of their business functions. Gradually the outsourcing practi ce has extended to more and m...

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Section: Introductionmentioning

confidence: 99%

Profitable working capital management in industrial maintenance companies

Marttonen

Monto

Kärri

2013

Journal of Quality in Maintenance Engineering

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“…Several research papers have discussed the prioritisation and selection between different maintenance packages, such as the work done by Tam and Price (2008) to maximise the return on maintenance investment under time and budget constraints (Tam & Price, 2008). The AAPM tries to achieve the same objective differently by using a dedicated maintenance package for each dominant operating context scenario rather than using a single maintenance package.…”

Section: Shape Packagesmentioning

confidence: 99%

A conceptual framework for an agile asset performance management process

Karar

Labib

Jones

2021

JQME

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PurposeDisturbances in terms of major crises such as pandemics, fluctuations in demand and oil price, energy consumption and supply chain can significantly impair the maintenance programs effectiveness and efficiency. Hence, there is an urgent need for an agile asset performance management (AAPM) framework.Design/methodology/approachThis paper's main objective is to design a comprehensive framework for an AAPM system that sustains the desired asset performance by reacting efficiently, quickly and intelligently to the changes in the operating context parameters and asset health conditions. Such a framework is adaptive to changes in scenarios and aims to systematise the decision support process, considering different objectives.FindingsThe development of the proposed framework has led to identifying an innovative way of seamless integration between crucial reliability and asset management tools. Also, the methodology implementation is expected to promote the practical use of its reliability tools and enable asset stakeholders to break silo working for clear communication around asset performance.Originality/valueThe implementation of the AAPM framework follows a new approach developed during this research and coined by the authors as the “8S approach.”

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“…Many organizations aim to have the value for money in their business and services. They need to invest in their capital assets to generate revenue from their goods and services for their customers (Sciences, 2012;Tam & Price, 2008). Therefore, it is undeniable that each of the organizations trying to figure out the excellent techniques and strategies to overcome the weaknesses in their management.…”

Section: Problem Statementmentioning

confidence: 99%