Purpose -This paper aims to present a case study where proportional hazards modeling software is used to evaluate the potential benefits of a condition-based maintenance policy for military vehicle diesel engines. Design/methodology/approach -Maintenance records for diesel engines were supplied by the UK Ministry of Defence. A proportional hazards model based on these data was created using EXAKT software. Covariate parameters were estimated using the maximum likelihood method and transition probabilities were established using a Markov Chain model. Finally, decision parameters were entered to create an optimal decision model. Findings -Two significant covariates were identified as influencing the hazard rate of the engines. In addition, the optimal decision model indicated a potential economic saving of up to 30 per cent. Practical implications -A model of this nature is particularly useful to predict failures, improve maintenance policies, and possibly reduce maintenance costs. In addition, the cost of implementing maintenance policies based on this model should be balanced with the potential to reduce the risk of danger to personnel. Originality/value -The model presented provides military personnel with a decision tool that optimizes the maintenance policy for diesel engines installed in military vehicles.
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