Determining return on investment of maintenance projects using statistical cost modeling

Knights, P. F., Louit, D. and Lay, A. (2004) Determining return on investment of maintenance projects using statistical cost modeling. Mining Engineering, 56 8: 33-39.

Author Knights, P. F.
Louit, D.
Lay, A.
Title Determining return on investment of maintenance projects using statistical cost modeling
Journal name Mining Engineering
ISSN 0026-5187
Publication date 2004-08
Sub-type Article (original research)
Volume 56
Issue 8
Start page 33
End page 39
Total pages 7
Place of publication Littleton, Colo.
Publisher Society for Mining Metallurgy and Exploration Inc.
Language eng
Subject 0914 Resources Engineering and Extractive Metallurgy
Abstract This paper presents a methodology for quantifying the expected benefits of maintenance improvement initiatives using statistical techniques. Multivariable regression models are used to correlate monthly equipment maintenance costs with monthly planned and unplanned downtime. The models permit the expected cost savings for an equipment fleet to be quantified as a function of the percentage reduction in unplanned maintenance downtime likely to result from an improvement initiative. The models also make it possible to quantify expected increases in fleet availability and reliability and to calculate cost factors that indicate how much more expensive it is on average to apply unplanned as opposed to planned maintenance strategies. A case study is presented that demonstrates how the methodology was applied to the mobile equipment fleets in an openpit copper mine in Northern Chile.
Keyword Industrial economics
Investments
Preventive maintenance
Project management
Statistical methods
Strategic planning
Q-Index Code CX

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
School of Chemical Engineering Publications
 
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Created: Tue, 25 Apr 2006, 00:09:25 EST