Condition-based Maintenance Optimization for Gamma Deteriorating Systems under Performance-based Contracting

Abstract

With the further development of service-oriented, performance-based contracting (PBC) has been widely adopted in industry and manufacturing. However, maintenance optimization problems under PBC have not received enough attention. To further extend the scope of PBC’s application in the field of maintenance optimization, we investigate the condition-based maintenance (CBM) optimization for gamma deteriorating systems under PBC. Considering the repairable single-component system subject to the gamma degradation process, this paper proposes a CBM optimization model to maximize the profit and improve system performance at a relatively low cost under PBC. In the proposed CBM model, the first inspection interval has been considered in order to reduce the inspection frequency and the cost rate. Then, a particle swarm algorithm (PSO) and related solution procedure are presented to solve the multiple decision variables in our proposed model. In the end, a numerical example is provided so as to demonstrate the superiority of the presented model. By comparing the proposed policy with the conventional ones, the superiority of our proposed policy is proved, which can bring more profits to providers and improve performance. Sensitivity analysis is conducted in order to research the effect of corrective maintenance cost and time required for corrective maintenance on optimization policy. A comparative study is given to illustrate the necessity of distinguishing the first inspection interval or not.

A Comparative Study of Preventive Maintenance Thresholds for Deteriorating Systems

“…In this study, we focus on single unit systems with continuous state degradation where the degradation is modelled through a Gamma process. In the recent years, numerous models based on Gamma deteriorating systems have been developed with different specificities: Reference [15] developed a maintenance strategy considering performance based maintenance, Reference [16] considers a similar model but with imperfect maintenance; Reference [17] includes some economic aspects such as the market price volatility to determine the best maintenance strategy; Reference [18] considers a system with multiple Gamma degradation processes; Reference [19] developed a maintenance strategy for a system with random failure thresholds. As can be observed in the literature, the maintenance of Gamma modelled deteriorating systems is widely studied.…”