IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v263y2023ics0925527323001895.html

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

Author

Listed:
  • Wang, Kung-Jeng
  • Basuki, Satrio Samudro Aji
  • Kurniati, Nani

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.

Suggested Citation

  • Wang, Kung-Jeng & Basuki, Satrio Samudro Aji & Kurniati, Nani, 2023. "A life-cycle asset management model by response surface method based optimization," International Journal of Production Economics, Elsevier, vol. 263(C).
    • Handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323001895
    DOI: 10.1016/j.ijpe.2023.108957
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323001895
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108957?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Bokrantz, Jon & Skoogh, Anders & Berlin, Cecilia & Wuest, Thorsten & Stahre, Johan, 2020. "Smart Maintenance: a research agenda for industrial maintenance management," International Journal of Production Economics, Elsevier, vol. 224(C).
    2. Schücking, Maximilian & Jochem, Patrick, 2021. "Two-stage stochastic program optimizing the cost of electric vehicles in commercial fleets," Applied Energy, Elsevier, vol. 293(C).
    3. Lima, Eliana Sangreman & McMahon, Paul & Costa, Ana Paula Cabral Seixas, 2021. "Establishing the relationship between asset management and business performance," International Journal of Production Economics, Elsevier, vol. 232(C).
    4. Petchrompo, Sanyapong & Parlikad, Ajith Kumar, 2019. "A review of asset management literature on multi-asset systems," Reliability Engineering and System Safety, Elsevier, vol. 181(C), pages 181-201.
    5. Li, Mingxin & Jiang, Xiaoli & Carroll, James & Negenborn, Rudy R., 2022. "A multi-objective maintenance strategy optimization framework for offshore wind farms considering uncertainty," Applied Energy, Elsevier, vol. 321(C).
    6. Lima, Eliana Sangreman & Costa, Ana Paula Cabral Seixas, 2019. "Improving Asset Management under a regulatory view," Reliability Engineering and System Safety, Elsevier, vol. 190(C), pages 1-1.
    7. López-Ibarra, Jon Ander & Gaztañaga, Haizea & Saez-de-Ibarra, Andoni & Camblong, Haritza, 2020. "Plug-in hybrid electric buses total cost of ownership optimization at fleet level based on battery aging," Applied Energy, Elsevier, vol. 280(C).
    8. Gascard, Eric & Simeu-Abazi, Zineb, 2018. "Quantitative Analysis of Dynamic Fault Trees by means of Monte Carlo Simulations: Event-Driven Simulation Approach," Reliability Engineering and System Safety, Elsevier, vol. 180(C), pages 487-504.
    9. Danielis, Romeo & Giansoldati, Marco & Rotaris, Lucia, 2018. "A probabilistic total cost of ownership model to evaluate the current and future prospects of electric cars uptake in Italy," Energy Policy, Elsevier, vol. 119(C), pages 268-281.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cuesta, Jokin & Leturiondo, Urko & Vidal, Yolanda & Pozo, Francesc, 2025. "A review of prognostics and health management techniques in wind energy," Reliability Engineering and System Safety, Elsevier, vol. 260(C).
    2. Bauer, Johannes & Letmathe, Peter & Woeste, Richard, 2025. "Total cost of ownership for battery electric vehicles: The role of energy prices," Applied Energy, Elsevier, vol. 389(C).
    3. Gu, Bo & Li, Fangxing & Mao, Chengxiong & Wang, Dan & Fan, Hua & Liu, Bin & Li, Wenhao, 2025. "A Bilevel robust coordination model for community integrated energy system with access to HFCEVs and EVs," Applied Energy, Elsevier, vol. 390(C).
    4. Adalberto Polenghi & Laura Cattaneo & Marco Macchi, 2024. "A framework for fault detection and diagnostics of articulated collaborative robots based on hybrid series modelling of Artificial Intelligence algorithms," Journal of Intelligent Manufacturing, Springer, vol. 35(5), pages 1929-1947, June.
    5. Yuan, Zijian & Wang, Tao & Tian, Junfang & Zhang, Jing & Zheng, Jianfeng & Wu, Jianjun & Gao, Ziyou, 2026. "Mitigate the range anxiety: two-stage optimization for the electric vehicle routing problem with time windows and battery status uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 205(C).
    6. Si, Guojin & Xia, Tangbin & Gebraeel, Nagi & Wang, Dong & Pan, Ershun & Xi, Lifeng, 2025. "Holistic opportunistic maintenance scheduling and routing for offshore wind farms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    7. Mohamed Gaha & Bilal Chabane & Dragan Komljenovic & Alain Côté & Claude Hébert & Olivier Blancke & Atieh Delavari & Georges Abdul-Nour, 2021. "Global Methodology for Electrical Utilities Maintenance Assessment Based on Risk-Informed Decision Making," Sustainability, MDPI, vol. 13(16), pages 1-23, August.
    8. Zhou, Siwei & Li, Zhao & Xiang, Jianwen, 2025. "Reliability analysis of dynamic fault trees with Priority-AND gates using conditional binary decision diagrams," Reliability Engineering and System Safety, Elsevier, vol. 253(C).
    9. Li, Wangsen & Xiang, Dong & Liang, Fengwei, 2026. "Multi-objective opportunity maintenance optimization for wind farms considering multiple factors," Renewable Energy, Elsevier, vol. 256(PA).
    10. Romeo Danielis & Mariangela Scorrano & Manuela Masutti & Asees Muhammad Awan & Arsalan Muhammad Khan Niazi, 2024. "The Economic Competitiveness of Hydrogen Fuel Cell-Powered Trucks: A Review of Total Cost of Ownership Estimates," Energies, MDPI, vol. 17(11), pages 1-19, May.
    11. Joshua Holstein & Max Schemmer & Johannes Jakubik & Michael Vössing & Gerhard Satzger, 2023. "Sanitizing data for analysis: Designing systems for data understanding," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-18, December.
    12. Danielis, Romeo & Scorrano, Mariangela & Giansoldati, Marco & Rotaris, Lucia, 2019. "A meta-analysis of the importance of the driving range in consumers’ preference studies for battery electric vehicles," Working Papers 19_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    13. Yang, Kun & Zhang, Mingming & Yang, Shanghui & Song, Yuwei & Dong, Xinhui & Deng, Yanfei & Deng, Xiaowei, 2025. "Pareto frontier for multi-objective wind farm layout optimization balancing power production and turbine fatigue life," Renewable Energy, Elsevier, vol. 252(C).
    14. Zhang, Fengqi & Si, Guojin & Chen, Zhen & Zheng, Meimei & Xia, Tangbin & Xi, Lifeng, 2025. "A multi-faceted opportunistic-based maintenance optimization in offshore wind farms using long-term wind speed forecasting," Renewable Energy, Elsevier, vol. 255(C).
    15. Scorrano, Mariangela & Danielis, Romeo & Giansoldati, Marco, 2020. "Dissecting the total cost of ownership of fully electric cars in Italy: The impact of annual distance travelled, home charging and urban driving," Research in Transportation Economics, Elsevier, vol. 80(C).
    16. Lee, Namkyoung & Lee, Hyuntae & Joung, Seulgi, 2025. "A wake-induced two-phase planning framework for offshore wind farm maintenance with stochastic mixed-integer program," Applied Energy, Elsevier, vol. 380(C).
    17. David L. Alvarez & Diego F. Rodriguez & Alben Cardenas & F. Faria da Silva & Claus Leth Bak & Rodolfo García & Sergio Rivera, 2021. "Optimal Decision Making in Electrical Systems Using an Asset Risk Management Framework," Energies, MDPI, vol. 14(16), pages 1-25, August.
    18. Centeno-Telleria, Manu & Yue, Hong & Carrol, James & Aizpurua, Jose I. & Penalba, Markel, 2024. "O&M-aware techno-economic assessment for floating offshore wind farms: A geospatial evaluation off the North Sea and the Iberian Peninsula," Applied Energy, Elsevier, vol. 371(C).
    19. Viri, Riku & Mäkinen, Johanna & Liimatainen, Heikki, 2021. "Modelling car fleet renewal in Finland: A model and development speed-based scenarios," Transport Policy, Elsevier, vol. 112(C), pages 63-79.
    20. Zhou, Jia, 2025. "Impact of non-financial listed companies' investment in wealth management products on industrial investment efficiency and R&D expenditure: A dual effect analysis," International Review of Financial Analysis, Elsevier, vol. 97(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:263:y:2023:i:c:s0925527323001895. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.