TY - GEN
T1 - Understanding operational availability in performance-based logistics and maintenance services
AU - Jin, Tongdan
AU - Xiang, Yisha
AU - Cassady, Richard
PY - 2013
Y1 - 2013
N2 - Performance-based service contracting is envisioned to reduce the assets ownership cost while ensuring the system performance. Operational availability is considered as the key performance measure to assess the system reliability outcome. This paper presents a unified modeling approach that comprehends eight key performance drivers underpinning the operational availability. These drivers include inherent reliability, usage rate, maintenance, spare parts, fleet size, repair-by-replacement time, and parts repair and reconditioning turn-around times. We investigate the maintenance logistics in a single-site repairable inventory setting, yet the result can be appropriately extended to more complex logistics networks. This study shows that high operational availability could be attained even under low parts availability. This finding is contradictory to the traditional belief that low operational availability is ascribed to excessive parts backorders. The study has the great potentials to shift the service business paradigm from traditional material-based contracting to performance-based contracting.
AB - Performance-based service contracting is envisioned to reduce the assets ownership cost while ensuring the system performance. Operational availability is considered as the key performance measure to assess the system reliability outcome. This paper presents a unified modeling approach that comprehends eight key performance drivers underpinning the operational availability. These drivers include inherent reliability, usage rate, maintenance, spare parts, fleet size, repair-by-replacement time, and parts repair and reconditioning turn-around times. We investigate the maintenance logistics in a single-site repairable inventory setting, yet the result can be appropriately extended to more complex logistics networks. This study shows that high operational availability could be attained even under low parts availability. This finding is contradictory to the traditional belief that low operational availability is ascribed to excessive parts backorders. The study has the great potentials to shift the service business paradigm from traditional material-based contracting to performance-based contracting.
KW - Weibull reliability
KW - parts availability
KW - performance-based contract
KW - product-service supply chain
UR - http://www.scopus.com/inward/record.url?scp=84879355837&partnerID=8YFLogxK
U2 - 10.1109/RAMS.2013.6517654
DO - 10.1109/RAMS.2013.6517654
M3 - Conference contribution
AN - SCOPUS:84879355837
SN - 9781467347099
T3 - Proceedings - Annual Reliability and Maintainability Symposium
BT - 59th Annual Reliability and Maintainability Symposium, RAMS 2013 - Proceedings and Tutorials
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 59th Annual Reliability and Maintainability Symposium, RAMS 2013
Y2 - 28 January 2013 through 31 January 2013
ER -