A decision-making framework to integrate maintenance contract conditions with critical spares management

Godoy, David R., Pascual, Rodrigo and Knights, Peter (2014) A decision-making framework to integrate maintenance contract conditions with critical spares management. Reliability Engineering and System Safety, 131 102-108. doi:10.1016/j.ress.2014.06.022

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Author Godoy, David R.
Pascual, Rodrigo
Knights, Peter
Title A decision-making framework to integrate maintenance contract conditions with critical spares management
Journal name Reliability Engineering and System Safety   Check publisher's open access policy
ISSN 0951-8320
Publication date 2014
Sub-type Article (original research)
DOI 10.1016/j.ress.2014.06.022
Open Access Status
Volume 131
Start page 102
End page 108
Total pages 7
Place of publication London, United Kingdom
Publisher Elsevier
Collection year 2015
Language eng
Abstract Maintenance outsourcing is a strategic driver for asset intensive industries pursuing to enhance supply chain performance. Spare parts management plays a relevant role in this premise since its significant impact on equipment availability, and hence on business success. Designing critical spares policies might therefore seriously affect maintenance contracts profitability, yet service receivers and external providers traditionally attempt to benefit separately. To coordinate both chain parties, we investigated whether the spare components pool should be managed in-house or contracted out. This paper provides a decision-making framework to efficiently integrate contractual conditions with critical spares stockholding. Using an imperfect maintenance strategy over a finite horizon, the scheme maximizes chain returns whilst evaluating the impact of an additional part to stock. As result, an original joint value - preventive interval and stock level - sets the optimal agreement to profitably allocate the components pool within the service contract. Subsidization bonuses on preventive interventions and pooling costs are also estimated to induce the service provider to adjust its policy when needed. The proposed contractual conditions motivate stakeholders to continuously improve maintenance performance and supply practices, thus obtaining higher joint benefits.
Keyword Imperfect maintenance
Inventory pooling allocation
Maintenance outsourcing contract
Spare parts stockholding
Supply chain coordination
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: School of Mechanical & Mining Engineering Publications
Official 2015 Collection
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 6 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 7 times in Scopus Article | Citations
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Created: Tue, 19 Aug 2014, 02:32:06 EST by System User on behalf of School of Mechanical and Mining Engineering