Reliability and condition-based maintenance modeling for systems operating under performance-based contracting

•Two-stage degradation-based and shock-based failure processes are established.•System state transition and unit-specific heterogeneity are incorporated.•Reliability and CBM models are formulated.•Optimal maintenance policy is obtained under performance-based contracting.•Applicability of the models...

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Published inComputers & industrial engineering Vol. 142; p. 106344
Main Authors Wang, Yukun, Liu, Yiliu, Chen, Junyan, Li, Xiaopeng
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.04.2020
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ISSN0360-8352
1879-0550
DOI10.1016/j.cie.2020.106344

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Abstract •Two-stage degradation-based and shock-based failure processes are established.•System state transition and unit-specific heterogeneity are incorporated.•Reliability and CBM models are formulated.•Optimal maintenance policy is obtained under performance-based contracting.•Applicability of the models is demonstrated through a numerical study. Performance-based contracting motivates service providers to implement effective maintenance policies so as to boost profits and improve system performance at a lower cost. This paper deals with reliability and condition-based maintenance modeling for single-unit systems operating under performance-based contracting. For a system subject to degradation and sudden shocks, there involves three states: normal, degraded and failed. Once entered into the degraded state, the system deteriorates faster and becomes more susceptible to shocks. The degradation conforms to a two-stage inverse Gaussian process with random effects characterizing unit-specific heterogeneity in the population. Furthermore, the arrival of sudden shocks follows a doubly stochastic Poisson process. A reliability model is developed based on degradation-based and shock-based failures modeling. Afterwards, the long-run maintenance cost rate and the average system availability are evaluated. Optimal inspection-based preventive replacement policy is obtained by maximizing the expected profit rate to the service provider. Finally, a numerical example along with sensitivity analysis of model parameters is presented to demonstrate the applicability and solution procedure of the proposed models.
AbstractList •Two-stage degradation-based and shock-based failure processes are established.•System state transition and unit-specific heterogeneity are incorporated.•Reliability and CBM models are formulated.•Optimal maintenance policy is obtained under performance-based contracting.•Applicability of the models is demonstrated through a numerical study. Performance-based contracting motivates service providers to implement effective maintenance policies so as to boost profits and improve system performance at a lower cost. This paper deals with reliability and condition-based maintenance modeling for single-unit systems operating under performance-based contracting. For a system subject to degradation and sudden shocks, there involves three states: normal, degraded and failed. Once entered into the degraded state, the system deteriorates faster and becomes more susceptible to shocks. The degradation conforms to a two-stage inverse Gaussian process with random effects characterizing unit-specific heterogeneity in the population. Furthermore, the arrival of sudden shocks follows a doubly stochastic Poisson process. A reliability model is developed based on degradation-based and shock-based failures modeling. Afterwards, the long-run maintenance cost rate and the average system availability are evaluated. Optimal inspection-based preventive replacement policy is obtained by maximizing the expected profit rate to the service provider. Finally, a numerical example along with sensitivity analysis of model parameters is presented to demonstrate the applicability and solution procedure of the proposed models.
ArticleNumber 106344
Author Liu, Yiliu
Li, Xiaopeng
Chen, Junyan
Wang, Yukun
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  organization: School of Management Science and Engineering, Nanjing University of Finance & Economics, Nanjing, China
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Keywords Degradation
Shock
Condition-based maintenance
Inverse Gaussian process
Performance-based contracting
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Snippet •Two-stage degradation-based and shock-based failure processes are established.•System state transition and unit-specific heterogeneity are...
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StartPage 106344
SubjectTerms Condition-based maintenance
Degradation
Inverse Gaussian process
Performance-based contracting
Shock
Title Reliability and condition-based maintenance modeling for systems operating under performance-based contracting
URI https://dx.doi.org/10.1016/j.cie.2020.106344
Volume 142
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