Using Condition Based Maintenance to Improve the Profitability of Performance Based Logistic Contracts

Johan Reimann, Greg Kacprzynski, Dennis Cabral, and Robson Marini
Submission Type: 
Full Paper
AttachmentSizeTimestamp
phmc_09_52.pdf191.25 KBSeptember 18, 2009 - 9:28am

This paper outlines a scheduling algorithm which leverages Condition-Based Maintenance (CBM) data to determine when maintenance should be performed. The objective of the scheduler is to reduce the cost associated with Performance-Based Logistics contracts, which ultimately improves the profit margins of Product Support Providers.
An example consisting of 50 vehicles for which regular recurring maintenance and CBM actions are required is analyzed as a representative problem both in term of complexity and scale. The results indicate that significant cost savings can be achieved by utilizing a CBM scheduling algorithm. In addition, to the maintenance cost savings, the CBM scheduling algorithm is also able to identify potential resource limitations within the maintenance organization.

Publication Control Number: 
052
Submission Keywords: 
classification
condition based maintenance (CBM)
cost-benefit analysis
economics and cost-benefit analysis
fleet-level optimization
performance based logistics (PBL)
platform operational availability
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