Lessees’ satisfaction and optimal condition-based maintenance policy for leased system

Zhang, Yunzheng; Zhang, Xiaohong; Zeng, Jianchao; Wang, Jinhe; Xue, Songdong

doi:10.1016/j.ress.2019.106532

Cited by 17 publications

(5 citation statements)

References 20 publications

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“…The condition of the leased product is characterized by the level of degradation due wear as in [ 36 ]. We consider that the leased product deteriorates with the age, usage and operating condition of the product, and ultimately the product fails when the degradation level (represented by the accumulation of wear) exceeds a critical level.…”

Section: Model Description and Assumptionsmentioning

confidence: 99%

“…However, the application of CBM for maintaining a leased product has received little attention. We are aware only the work of [ 36 ] who proposed a CBM policy to control the condition of the leased new product aiming to increase availability and performance of the product. Therefore, CBM is expected to improve the satisfaction of lessees and the sale volume.…”

Section: Introductionmentioning

confidence: 99%

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Condition-based maintenance policy for a leased reman product

Husniah

Pasaribu

Wangsaputra

et al. 2021

Heliyon

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Many firms prefer to lease rather than to buy a product as leasing does not require a large investment cost. Leased products can be brand new products or remanufactured products (henceforth referred to as reman products). The market of reman products has grown in the last two decades due to the increasing concern of sustainability issues. This in turn brings a positive impact on the demand of leased reman products. In general, the reliability of the reman product is closed to the reliability level of a new product. To guarantee a high performance of a leased reman product, a more effective maintenance strategy is required. In this paper, we investigate a condition-based maintenance (CBM) policy to be used for maintaining a lease reman product. With the CBM policy, the condition of the reman product is monitored and controlled periodically, and hence it can avoid failure before it occurs and reduce unnecessary maintenance actions. This in turn improves the performance of the leased reman product and provides more value to the lessee. The lessor will incur a penalty cost if the performance is below a predefined threshold value. We obtain the optimal inspection interval minimizing the expected total cost and provide the numerical example for illustrating the optimal solution.

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Section: Model Description and Assumptionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Condition-based maintenance policy for a leased reman product

Husniah

Pasaribu

Wangsaputra

et al. 2021

Heliyon

View full text Add to dashboard Cite

show abstract

“…Based on the identified system degradation model, the maintenance optimization model can be constructed according to certain criteria including cost, reliability, and availability, etc. 27,[33][34][35] Currently, limited works have been concerned with the determination of optimal maintenance policies within the framework of PBC. More specifically, Jin et al 9 proposed a multi-criteria and multi-item service delivery mechanism under PBC to optimize the maintenance, spares inventory, and the repair capacity.…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Condition-based maintenance optimization for deteriorating systems considering performance-based contracting and destructive inspections

Zhang

Wang

et al. 2023

Proceedings of the Institution of Mechanical Engineers, Part O:

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As a novel contracting approach, the performance-based contracting (PBC) utilizes defined performance goals and structured incentives to improve the system availability and reduce the cost by tying the compensation to the service supplier to the system performance outcome. In this paper, two new CBM optimization models within the PBC framework are proposed considering the impacts of destructive inspections on the system degradation behavior. The average maintenance cost rate and the system availability within the contract horizon are estimated. Under the inspection-based replacement scheme, the objectives are to maximize the expected profit rate to the supplier and/or the resulting system average availability. A solution procedure based on the non-dominated sorting genetic algorithm (NSGA-II) combining with the weighted sum method (WSM) is introduced to derive the optimal CBM policies. Numerical examples and sensitivity analysis are conducted to examine the applicability of the proposed models.

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“…In other words, lease equipment is often bundled with maintenance and free repair service that offered by the lessor as a package to the lessee under a contract. Zhang et al (2019) [51] presented their perspective about the issue of lease equipment. They considered that most firms may lease them not own them to avoid to afford the burden of purchasing equipment.…”

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confidence: 99%

Bayesian decision making in determining optimal leased term and preventive maintenance scheme for leased facilities

Fang¹

2021

JIMO

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Under a business competitive environment, quite a few enterprises choose capital leasing to reduce tax payment and investment risk instead of buying facilities. Since the durability and service life of leased facilities will be longer, the breakdowns and deterioration of leased facilities are inevitable during lease period. Accordingly, in order to reduce the related costs and keep the facility's health during lease period, preventive maintenances are required to perform to reduce the cost of free-repair warranty and maintain customers' satisfaction. However, performing preventive maintenance is not easy to scheme due to the scarcity of historical failure data. Accordingly, the study integrates lease and maintenance decisions into a synthetic strategy, and it can be applied under the situation of only expert's evaluation and/or scare historical failure data by employing Bayesian analyses. In this study, the mathematical models and corresponding algorithms are developed to determine the best preventive maintenance scheme and the optimal term of contract for leased facilities to maximize the expected profit. Moreover, the computerized architecture is also proposed, and it can help the lessor to solve the issue in practice. Finally, numerical examples and the sensitive analyses are provided to illustrate the managerial strategies under different leased period and the preventive maintenance policies.

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Lessees’ satisfaction and optimal condition-based maintenance policy for leased system

Cited by 17 publications

References 20 publications

Condition-based maintenance policy for a leased reman product

Condition-based maintenance policy for a leased reman product

Condition-based maintenance optimization for deteriorating systems considering performance-based contracting and destructive inspections

Bayesian decision making in determining optimal leased term and preventive maintenance scheme for leased facilities

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