Performance Modelling for Maintenance Outsourcing Providers based on the Kano Model

Abstract

Usually, maintenance activities are carried out by the maintenance department in a company, but now, some companies are outsourcing their maintenance activities. Outsourcing is the delegation of business functions to another company. The advantages of outsourcing include enabling a company to focus on its core business by outsourcing support activities, and changing fixed costs to variable costs. The aim of this research is to develop a multi-criteria performance measurement to assess the performance of maintenance outsourcing providers. Several previous studies have identified suitable performance criteria for maintenance outsourcing providers. However, those studies did not classify the criteria for achieving the desired level of performance. To address these shortcomings, this research has classified the criteria based on the Kano criteria. The criteria are: basic, one-dimensional, indifferent, reverse, and attractive. A managed case study analysis was performed at five Class B private hospitals in East Java to better understand the criteria in terms of the needs of a real hospital maintenance department. Previous research studies focused on understanding the relationship between each criterion and the associated level of performance, whereas the current research has focused instead on the relationship links between the criteria and the weighting of each criterion using DEMATEL-ANP. The outcome of this study is a simple instrument that can be directly used to evaluate the performance of maintenance outsourcing providers.

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