Tool-Replacement Policies: Variations in Cost, Tool Quality, and Monitoring Rules

Abstract

Abstract A computer simulation experiment was conducted to examine cutting-tool operating costs under varying conditions. The input variables included the level of tool quality (high versus low), cost structure (two cost structures were used), and tool-replacement policies incorporating four types of quality-control decision rules. The rate of tool deterioration, the length of tool life, and the stage of tool life at which significant deterioration began were all stochastically defined. A primary finding was that replacement policies incorporating quality-control decision rules were not significantly better than a strict interval-replacement policy for the cost structure and input variables used in the study. It was further demonstrated that the relative performance of the decision rules was not consistent for variations in input characteristics (tool quality) and cost structure.