The impact of preventive activities on the economics of production systems: Modeling and application

In this paper, the impact of preventive activities on the economics of production systems has been discussed. A defective production system has been used to evaluate the financial return of a system with and without preventive activity. A mathematical model has been developed to simulate the situation. A practical case in the automotive industry has been used to verify the model. According to this research, it has been found that preventive activities will affect the return of the production system, and the effect depends on the cost of the action that has been taken. (c) 2007 Elsevier Inc. All rights reserved.