A condition-based replacement and spare provisioning policy for deteriorating systems with uncertain deterioration to failure

A new policy, referred to as the condition-based replacement and spare provisioning policy, is presented for deteriorating systems with a number of identical units. It combines the condition-based replacement policy with periodical inspections and the (S,s) type inventory policy, noted as the (T, S, s, L-p) policy, where T is the inspection interval, S is the maximum stock level, s is the reorder level, and L-P is the preventive replacement threshold for the deterioration levels of units. The deterioration level of each unit in the system can be described by a scalar random variable, which is continuous and increasing monotonically. Furthermore, the deterioration level just when the Unit failure occurs, termed deterioration to failure, is uncertain. Therefore, the condition-based reliability is proposed in order to characterize various and uncertain deterioration levels when unit failure occurs. A simulation model is developed for the system operation under the proposed condition-based replacement and spare provisioning policy. Thus, via the simulation method and the genetic algorithm, the decision variables T, S, s, and L-P can be jointly optimized for minimizing the cost rate. A case study is given, showing the procedure of applying the proposed policy and the condition-based reliability methodology to optimizing the maintenance scheme of haul truck motors at a mine site based on oil inspections, and proving beneficial for plant maintenance managers to reduce maintenance cost. (c) 2007 Elsevier B.V. All rights reserved.