A life-cycle asset management model by response surface method based optimization

Abstract

Conventional asset management is easily trapped in local optimization. This study integrates the maintenance strategic planning in the asset management scheme to minimize the annualized Total Cost of Ownership (TCO). Critical steps are considered in the proposed model including failure rate modeling, reliability modeling for preventive maintenance, and TCO modeling. Monte Carlo simulation and response surface methodology are used as an integrated solution approach for the proposed model. The case study in a cement manufacturing plant shows that the model delivers the desired optimization result. Sensitivity analysis is carried out in terms of equipment contribution, clinker price, and escalation rate. The developed model contributes to the optimum combination of preventive maintenance strategy and useful life which provides the minimum annualized TCO.