Evaluating the impact of cannibalization on fleet performance

Abstract

Organizations that utilize fleets of expensive repairable equipment are faced with numerous challenges related to the specification of maintenance policies and the allocation of maintenance resources. The associated maintenance decisions can have a drastic impact on fleet performance. Due to the significant acquisition costs associated with the components that comprise the units of equipment in the fleet, cannibalization is often used in the absence of available spare parts to enable fleet maintenance managers to satisfy fleet performance constraints such as readiness requirements. This research is focused on the development and analysis of a closednetwork, discrete-event simulation model that is used to assess the impacts of cannibalization, small spare parts inventories and maintenance-induced damage on a fleet of systems. Using numerical examples, we demonstrate the comparison between cannibalization and the investment in limited spare parts inventories. We evaluate fleet performance using average readiness and total maintenance cost. Specifically, we demonstrate that investments in spare parts inventories can reduce the need for and value of cannibalization. However, our results also support the use of cannibalization as a low-cost alternative to investing in expensive spare parts. We also explore the impact of damage induced by maintenance on fleet performance. Specifically, we demonstrate that maintenance-induced damage can reduce the benefit of cannibalization while drastically increasing maintenance expenditures.

A survey of maintenance and service logistics management: Classification and research agenda from a maritime sector perspective

“…Sherbrooke [17] evaluates the increase in availability that could be achieved under cannibalization. Numerical examples of Salman et al [131] demonstrate that investments in spare parts inventories can reduce the need for and the value of cannibalization. These studies represent initial efforts in modelling the effect of cannibalization on the overall performance.…”

Identification of Reverse Engineering Candidates utilizing Machine Learning and Aircraft Cannibalization Data

“…The theory was expanded by Cheung and Hausman (1995) as well as Sung and Kim (2001). A simulation based method has also been developed by Salman, Cassady, Pohl, and Ormon (2007). Salman et al proposed a decision making tool implemented using discrete-event simulation in order to assess the impact of cannibalization in terms of cost and readiness.…”

Model Development for Reliability Cannibalization

“…Cannibalization actions often bear negative connotations because of the following [4,5]: (1) cannibalizations indicate that there are problems with the spare part supply chain, (2) there is a …”

“…With failed components being replaced and/or repaired, the systems of equipment remain functional subservient to the said policy. Nevertheless, the two exceptions to the preceding policy are [1,2] as follows: (1) as a result of the high acquisition and holding costs, high-technology manufacturing environments and organizations, which make use of expensive equipment, will not be able to always stock spare parts and (2) when equipment has reached its last life-cycle stage, failure rates have increased, spare parts become increasingly difficult to acquire and there is a slump in the usage of the said equipment. Therefore, the inclination is not to acquire numerous spare parts as the said equipment will be phased out soon.…”