Strategically optimum maintenance of monitoring-enabled multi-component systems using continuous-time jump deterioration models

Purpose - This article aims to analyze strategically optimal maintenance actions for a multi-component system whose deterioration is observed through a monitoring system set in place to support condition-based maintenance. Design/methodology/approach - Deterioration of a multi-component system is modeled by a continuous-time jump diffusion model which incorporates interaction between the components of the system. A simulation-based optimization heuristic is developed to obtain strategically optimum maintenance actions. The methodology is applied to an illustrative example. Findings - The article finds that the framework facilitates analyzing at a strategic level the role of degree of response to the deterioration of components for the overall functionality of a multi-component system. The optimal solution for the illustrative example recommends a provider to perform a variety of opportunistic maintenance. Practical implications - In this article, a framework is developed to determine strategically optimal maintenance actions for a multi-component system whose deterioration is observed in real-time through embedded monitoring units set in place to support condition-based maintenance (CBM). The framework facilitates analyzing at a strategic level the role of degree of response to the deterioration of components for the overall functionality of a multi-component system. A strategically optimal maintenance policy can then be enhanced to develop a detailed tactical maintenance strategy. This approach is expected to benefit the management of long-term service agreements, where a service contract is sold bundled with a product, which makes a provider responsible for maintaining the product over a specified contract period. Originality/value - Besides a tactical approach for performing maintenance, in order to stay profitable in the long-run, a decision maker needs to assess the strategic performance of maintenance strategies adopted. This framework is a first attempt to facilitate this analysis at a strategic level for a monitoring-enabled multi-component system.