Maintenance Costs and Life Cycle Cost Analysis

Authors have attempted to create coherent chapters and sections on how the fundamentals of maintenance cost should be organized, to present them in a logical and sequential order. Necessarily, the text starts with importance of maintenance function in the organization and moves to life cycle cost (LCC) considerations followed by the budgeting constraints. In the process, they have intentionally postponed the discussion about intangible costs and downtime costs later on in the book mainly due to the controversial part of it when arguing with managers. The book will be concluding with a short description of a number of sectors where maintenance cost is of critical importance. The goal is to train the readers for a deeper study and understanding of these elements for decision making in maintenance, more specifically in the context of asset management. This book is intended for managers, engineers, researchers, and practitioners, directly or indirectly involved in the area of maintenance. The book is focused to contribute towards better understanding of maintenance cost and use of this knowledge to improve the maintenance process. Key Features: • Emphasis on maintenance cost and life cycle cost especially under uncertainty. • Systematic approach of how cost models can be applied and used in the maintenance field. • Compiles and reviews existing maintenance cost models. • Consequential and direct costs considered. • Comparison of maintenance costs in different sectors, infrastructure, manufacturing, transport.

Chapter 1 The relevance of the maintenance function in asset management 1.1 Purpose of Maintenance Function. 1.2 Reliability versus Maintenance. 1.3 Changing Role of Maintenance in Asset Management. 1.4 Physical Asset Management and Maintenance Cost. 1.5 Focusing on the Bottom Line. References Chapter 2 Maintenance Costing in Traditional LCC Analysis 2.1 Traditional LCC. 2.2 Life-cycle cost analysis as a project follow-up for assets 2.3 Trade-off tools for LCC. 2.4 LCC analysis as maintenance DSS 2.5 Rul as gauge and driver for maintenance expenses and investments. 2.6 Uncertainty in LCC and maintenance cost estimations. 2.7 LCC data acquisition and tracking systems. 2.8 Restriction of maintenance role in operation phase. References Chapter 3 Maintenance budget versus global maintenance cost 3.1 Asset management and Annual Maintenance Budget. 3.2 Cost of Labor Force: In-House vs Outsourced, Blue vs White Collar. 3.3 Spare Parts Policies for Cost Savings. 3.4 Over-Investments in Maintenance and Avoided Costs. 3.5 CMMS as maintenance cost control tool References Chapter 4 Maintenance performance measurement: Efficiency 4.1 Key Performance Indicators (KPIs) for Maintenance. 4.2 Maintenance Costs. 4.3 Financial KPIs and Their Relation to Maintenance Costs 4.4 Benchmarking Financial KPIs. 4.5 Key Performance Indicators (KPIs), Benchmarking, and Best Practices. 4.6 The maturity of maintenance as a roadmap: Outcome of bechmarking. 4.7 Attempts at Standardization from Europe (EN) and USA (ISO). 4.8 Role of Maintenance Cost in a Maintenance Audit References Chapter 5 Consequential maintenance cost: A problem area 5.1. Economic Importance of Maintenance. 5.2. Classification of Maintenance Costs. 5.3. Costs after Downtime. 5.4 Intangible Aspects of Maintenance Costs and Uncertainty. 5.5 Combining Tangible and Intangible Maintenance Costs and Benefits. References Chapter 6 Maintenance services and new business models: A new way to consider costs 6.1. New Maintenance Service Providers. 6.2. Impact of Business and Technological Environment on Maintenance Costs. 6.3. Planned Obsolescence and the End of Traditional Maintenance. 6.4. Outsourcing Maintenance: New frameworks 6.5. Warranty Management: Extensions and Claims. 6.6. Insurance: Economic Responsibility of Third Parties. References 7.Maintenance costs across the different sectors 7.1. Maintenance Costs Across the Sectors. 7.2. Transportation Assets: Rolling stock case study 1. 7.3. Transportation Assets: Rolling stock case study 2. 7.4. Infrastructure: Railway Infrastructure 7.5. Manufacturing Assets. 7.6. Military Equipment. 7.7. Aviation. 7.8. Facilities. 7.9. Energy. 7.10. Mining. References

Diego Galar has a Msc in Telecommunications and a PhD degree in Manufacturing from the University of Saragossa. He has become Professor in several universities, including the University of Saragossa or the European University of Madrid. He also was a senior researcher in I3A, Institute for engineering research in Aragon, director of academic innovation and subsequently pro-vicechancellor of the university. In industry, he has been technological director and CBM manager. He has authored more than hundred journal and conference papers, books and technical reports in the field of maintenance. Currently, he is Professor of Condition Monitoring in the Division of Operation and Maintenance in LTU, Luleå University of Technology, where he is coordinating several EU-FP7 projects related to different maintenance aspects and is also involved in the SKF UTC centre located in Lulea focused in SMART bearings. He is also visiting Professor in the University of Valencia, Polytechnic of Braganza (Portugal), Valley University (Mexico), Sunderland University (UK) and NIU (USA). Peter Sandborn is a Professor in the CALCE Electronic Products and Systems Center at the University of Maryland. Dr. Sandborn’s group develops obsolescence forecasting algorithms, performs strategic design refresh planning, and lifetime buy quantity optimization. Dr. Sandborn is the developer of the MOCA refresh planning tool. MOCA has been used by private and government organizations worldwide to perform optimized refresh planning for systems subject to technology obsolescence. Dr. Sandborn also performs research in several other life cycle cost modeling areas including maintenance planning and return on investment analysis for the application of prognostics and health management (PHM) to systems, total cost of ownership of electronic parts, transition from tin-lead to lead-free electronics, and general technology tradeoff analysis for electronic systems. Dr. Sandborn is an Associate Editor of the IEEE Transactions on Electronics Packaging Manufacturing and a member of the editorial board of theInternational Journal of Performability Engineering. He is a past conference chair and program chair of the ASME Design for Manufacturing and Life Cycle Conference. He is the author of over 150 technical publications and several books on electronic packaging and electronic systems cost analysis and was the winner of the 2004 SOLE Proceedings and 2006 Eugene L. Grant awards. He has a B.S. degree in engineering physics from the University of Colorado, Boulder, in 1982, and the M.S. degree in electrical science and Ph.D. degree in electrical engineering, both from the University of Michigan, Ann Arbor, in 1983 and 1987, respectively. Uday Kumar, the Chaired Professor of Operation and Maintenance Engineering is Director of Luleå Railway Research Center and Scientific Director of the Strategic Area of Research and Innovation- Sustainable Transport at Luleå University of Technology, Luleå, Sweden. Before joining Luleå University of Technology, Dr. Kumar was Professor of Offshore Technology (Operation and Maintenance Engineering) at Stavanger University, Norway. Professor Kumar has research interest in the subject area of Reliability and Maintainability Engineering, Maintenance modelling, Condition Monitoring, LCC & Risk analysis etc. He has published more than 300 papers in International Journals and peer reviewed Conferences and has made contributions to many edited books. He has supervised more than 25 PhD Theses related to the area of reliability and maintenance. Prof Kumar has been a keynote and invited speaker at numerous congresses, conferences, seminars, industrial forums, workshops and academic Institutions. He is an elected member of the Swedish Royal Academy of Engineering Sciences.