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Profit-based optimization of maintenance activities in an end of system life perspective.

Heusschen, J (2016) Profit-based optimization of maintenance activities in an end of system life perspective. Master's Thesis / Essay, Industrial Engineering and Management.

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The management decision of the NAM to decommission the desulfurizer plant of Area East in 2020 has reaching consequences for its operations. In order to avoid earlier decomissioning, the GZI should regain its profitability. The STEP-team is charged with the overall reorganization and optimization of operations in order to succeed in this desire for profit. Maintenance is an important pillar of this reorganization. This research aims at the development of a profit-based end of system life (EOSL) maintenance strategy for the case of the GZI. The expenditure and income side of profit are analyzed based on maintenance expenditures and production quantities. The optimization specifically focuses on the effectiveness and cost-effectiveness of maintenance in the strategy to be developed. The novelty of a specific EOSL approach is shown by the lack of relevant literature. Within NAM the general maintenance strategy is currently applied in an EOSL. Unfortunately the determination of effectiveness of maintenance, and with that its potential optimization, is limited by the available data. Cost-effectiveness though appears to vary highly between the major production fields of the GZI. The total maximum production will decrease in the coming four years. The impact of marginal availability and reliability will therefore decrease and the current fixed thresholds should be challenged and optimized. Based on the costs/production a prioritization among the different fields can be made. When future budget cuts request to focus on specific fields, this prioritization can be used to optimize the profitability of the allocated maintenance. Analyzing the statistical correlations between reliability and availability no relation with production is found. This challenges the applicability of these two variables as performance indicators in profit-optimization. There is also no long term effect of total maintenance identified based on reliability and availability in the successive year. Therefore the EOSL strategy should apply a year-to-year approach and the possibility of a premature stop of maintenance, while continuing operation, is not supported on meta-level. Further research is required to assess the general applicability of these findings.

Item Type: Thesis (Master's Thesis / Essay)
Degree programme: Industrial Engineering and Management
Thesis type: Master's Thesis / Essay
Language: English
Date Deposited: 15 Feb 2018 08:27
Last Modified: 15 Feb 2018 08:27

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