Integrating maintenance and production decisions in a hierarchical production planning environment

doi:10.1016/S0305-0548(99)00022-2

Computers & Operations Research

Volume 26, Issues 10–11, September 1999, Pages 1059-1074

https://doi.org/10.1016/S0305-0548(99)00022-2 Get rights and content

Abstract

This article presents a three-part model to evaluate an organization’s maintenance policy. In stage one, an aggregate production plan is generated using a linear programming formulation suggested by Chung and Krajewski (Operations Management 1984;4:389–406). In stage two, a master production schedule is developed to minimize the weighted deviations from the goals specified by the aggregate production plan. In stage three, work center loading requirements, determined through rough cut capacity planning using resource profiles, are used to simulate equipment failures during the aggregate production planning horizon. Several experiments are used to test the significance of various factors for maintenance policy selection. These factors include the category of maintenance activity, maintenance activity frequency, failure significance, maintenance activity cost, and aggregate production policy.

Scope and purpose

In order to resolve often conflicting objectives of system reliability and profit maximization, an organization should establish appropriate maintenance guidelines that take into consideration (1) costs associated with performing production activities, (2) costs associated with performing maintenance activities, and (3) the various costs associated with equipment failure and the resulting interruptions to the production plan. In currently prevailing practices, maintenance policy often is determined at the operational level in a political test between production and maintenance management. The resulting policy often is not optimal for the organization’s overall objectives.

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Citation Excerpt :
They proposed a model concerning condition-based maintenance for a production system with parallel lines that had bottleneck feature [4]. Weinstein & Chung (1999) proposed a three-stage hierarchical approach for a production system with interchangeable components [6]. In the first stage, the aggregate production plan and cyclical or run-based maintenance activities are determined while in the second stage, the master schedule plan is defined concerning the first-stage model, and finally, master schedule and maintenance plans are integrated through a simulation process [6].
Integrating production and maintenance plans is a novel solution to reduce the related errors of these basic manufacturing planning problems. The purpose of the proposed paper is to integrate production and maintenance planning in a multi-state system. Production planning is considered in regard to multi-item capacitated lot sizing problem, while the maintenance policy is divided into corrective and preventive actions. The main contribution of the proposed study is in using robust optimization approach in modeling the integrated problem when the system faces demand fluctuations. Additionally, components of the assumed multi-state system are subjected to both independent and common cause failures. The presented model has the advantage to decide between perfect or imperfect preventive maintenance to be performed. For assessing the performance of the model, small to medium size numerical examples are generated. It is shown that using robust optimization method would reduce the cost of the integrated model when there are diverse levels for demand. Besides, sensitivity analysis shows that the maintenance strategy of the proposed model returns the lowest integrated production and maintenance cost in comparison with alternative models featuring different approaches for implementing preventive maintenance activities in the generated examples.
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^☆: This research was made possible through a grant from the Wright State University Strategic Initiatives Support Fund.

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Integrating maintenance and production decisions in a hierarchical production planning environment☆

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