Cost Benefit Analysis for condition based maintenance

Abstract

Investment in maintenance of machines is significant for industries. In this paper, we suggest a Cost Benefit Analysis model and review most commonly used maintenance strategies like corrective maintenance and preventive maintenance with the model. Here, we presented a method to calculate net revenue generated by machine for optimal and cost effective alternative for machine maintenance. Method used for calculating net revenue is improved using factors such as labor cost, failure rate, utilization factor etc. Formulated net revenue provides satisfactory results when compared with the industrial information on machine maintenance strategies. Realistic data are used to analyze revenue with different maintenance strategies. From the results it is concluded that though condition based maintenance as a maintenance strategy has high initial investment cost with time it has high revenue generation compared to other maintenance polices.