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Periodic preventive maintenance policies following the expiration of warranty

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Abstract

Two types of replacement policies, following the expiration of warranty, have been discussed in the literature: 1) minimal repair is applied for a fixed length of time and the unit is replaced at the end of this period, and 2) the unit is replaced at first failure following the minimal repair period. This paper considers a periodic preventive maintenance (PM) policy after the warranty period is expired. We assume that each PM, following the expiration of warranty, slows the rate of system degradation while the failure rate of the system keeps increasing monotonically. In this paper we determine the optimal number and period for the periodic PM following the expiration of warranty which minimize the expected long-run maintenance cost per unit time. Explicit solutions for the optimal periodic PM are presented for illustrative purposes.

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This paper deals with the optimal replacement policies following the expiration of warranty: renewing warranty and non-renewing warranty. If the system fails during its warranty period, it is replaced with a new one and if the system fails after the warranty period is expired, then it is minimally repaired at each failure. The criterion used to determine the optimality of the replacement period is the overall value function, which is established based on the expected downtime and the expected cost rate combined. Firstly, we develop the expected downtime per unit time and the expected cost rate per unit time for our replacement model when the cost and downtime structures of maintaining the system are given. The overall value function suggested by Jiang and Ji [Age replacement policy: a multi-attribute value model. Reliab Eng Syst Saf 2002;76:311–8] is then utilized to determine the optimal maintenance period based on the expected downtime and the expected cost rate. Numerical examples are presented for illustrative purpose.
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This paper develops the optimal periodic preventive maintenance policies following the expiration of warranty. We consider two types of warranty policies to discuss such optimum maintenance policies: renewing warranty and non-renewing warranty. From the user's perspective, the product is maintained free of charge or with prorated cost on failure during the warranty period. However, the users will have to repair or replace the failed product at their own expenses during the post-warranty period. Given the cost structure to the user during the cycle of the product, we derive the expressions for the expected maintenance costs for the periodic preventive maintenance following the expiration of warranty when applying two types of warranty policies and obtain the optimal number and the optimal period for such post-warranty maintenance policies by minimizing the expected long-run maintenance cost per unit time. Explicit solutions for the optimal periodic preventive maintenance are presented for illustrative purposes.
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This article adopts a Bayesian approach to derive an optimal maintenance policy following the expiration of non renewing warranty. If the system fails during its warranty period, it is replaced with a new one. If the system failure occurs after the warranty period is expired, then it is minimally repaired at each failure. As the criteria to determine the optimal replacement period, we use the expected cost and the expected downtime during the life cycle of the system. Under the replacement model considered, we first derive the formulas to compute the expected downtime per unit time and the expected cost rate per unit time in general. When the failure times are assumed to follow a Weibull distribution with unknown parameters, we propose an optimal maintenance policy based on the Bayesian approach, under which such unknown parameters are updated using the observed data. The overall value function suggested by Jiang and Ji (20023. Jiang , R. , Ji , P. ( 2002 ). Age replacement policy: a multi-attribute value model . Reliab. Eng. Sys. Safety 76 : 311 – 318 . [CrossRef], [Web of Science ®]View all references) is utilized to combine the expected downtime and the expected cost rate and to determine the optimal maintenance period. Numerical examples are presented for illustrative purpose.
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In dealing with the effects of product deterioration in the context of reliability analysis, it may not be satisfactory to consider only the effects of time or age because usage is often another essential factor that accounts for deterioration. A two-dimensional warranty with consideration of both time and usage for deteriorating products would be more advantageous for manufacturers. In this paper, a two-dimensional warranty model in which the customer is expected to perform appropriate preventive maintenance is analyzed and the warranty policy that maximizes the manufacturers' profits is determined. The proposed approach provides manufacturers with guidelines on how to offer customers two-dimensional warranty programs with proper time and usage limits. A numerical example shows the effectiveness of the proposed approach. Sensitivity analyses are conducted to investigate the robustness of the derived optimal warranty policy.
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A number of optimal maintenance policies have been proposed and studied based on several types of warranty policies. As the criteria for optimality, the expected cost rate per unit time during the life cycle of the system is quite often used by many authors. However, the expected cost rate may depend on the length of life cycle and so the definition of life cycle plays a significant role in optimizing the maintenance policy. This paper considers a system maintenance policy during the post-warranty period under the renewing warranty policy and the life cycle is defined from the user's perspective. The life cycle starts with the installment of a new system and ends when the system is replaced by a new one at the expense of the user. In many renewing warranty models, the life cycle is defined as the lifelength of the new system installed initially, which is quite different from our definition. The expected cost rate per unit time is evaluated based on the life cycle newly defined and is compared with the existing results.
Chapter
In general, a warranty is an obligation attached to products that require the manufacturer to provide compensation for customer (buyer) according to the warranty terms when the warranted products fail to perform their intended functions. A warranty is important to the manufacturer as well as the customer of any commercial product since it provides protection to both parties. As for the customer, a warranty provides a resource for dealing with items that fail due to the uncertainty of the product’s performance and unreliable products. For the manufacturer, it provides protection since the warranty terms explicitly limit the responsibility of a manufacturer in terms of both time and type of product failure. Because of the role of the warranty, manufacturers have developed various types of warranty policies to grab the interest of the customers. However, manufacturers cannot extend the warranty period without limit and maximize warranty benefits because of the cost related to it. Many researchers have studied in the last several decades on various warranty modeling and policies along with its maintenance policies. This chapter focuses on the developments of warranty modeling with various maintenance policies as well as the methodologies with various aspects that can be used to derive the mathematical warranty modeling. The concepts of warranty and review of the overall information about the warranty policy such as warranty’s role, concept and different types will be discussed. The basic mathematical maintenance concepts including counting processes such as renewal process, quasi-renewal process, non-homogeneous Poisson process, compound and marked Poisson process and bivariate exponential distribution also will be provided.
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In this paper, a general periodic preventive maintenance (PM) policy for a repairable revenue-generating system is developed and studied. We define ‘ageing losses’ as the difference in revenues generated by an ideal system (no ageing) and a real system that ages over the same period of consideration. It is assumed that preventive maintenance slows the system deterioration process and therefore reduces ageing losses. The proposed model is general in the sense that (1) both the warranty contracts and system ageing losses are incorporated in the maintenance cost modeling and (2) the implementation of PM actions does not have to be strictly periodic. A cost model is developed for the buyer under two decision variables—the calendar time of the first PM and the degree of each PM. Numerical examples are then presented to show the effectiveness of the proposed model. Sensitivity analyses are further conducted to investigate the impact of model parameters on optimal solutions.
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Article
A policy of periodic replacement with minimal repair at failure is considered for a complex system. Under such a policy the system is replaced at multiples of some period T while minimal repair is performed at any intervening system failures. The cost of a minimal repair to the system is assumed to be a nonde-creasing function of its age. A simple expression is derived for the expected minimal repair cost in an interval in terms of the cost function and the failure rate of the system. Necessary and sufficient conditions for the existence of an optimal replacement interval are exhibited in the case where the system life distribution is strictly increasing failure rate (IFR).
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The authors study two types of replacement policies, following the expiration of warranty, for a unit with an IFR failure-time distribution: (1) the user applies minimal repair for a fixed length of time and replaces the unit by a new one at the end of this period; and (2) the unit is replaced by the user at first failure following the minimal repair period. In addition to stationary strategies that minimize the long-run mean cost to the user, the authors also consider nonstationary strategies that arise following the expiration of a nonrenewing warranty. Following renewing warranties, they prove that the cost rate function is pseudo-convex under a fixed maintenance period policy. The same result holds under nonrenewing repair warranties, and nonrenewing replacement warranties when the optimal maintenance period of each cycle is determined as a function of the age of the item in use at the end of the warranty period