Item-level life-cycle model for maintenance network – from cost to additional value
Sinkkonen, Tiina (2015-12-11)
Väitöskirja
Sinkkonen, Tiina
11.12.2015
Lappeenranta University of Technology
Acta Universitatis Lappeenrantaensis
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-265-883-8
https://urn.fi/URN:ISBN:978-952-265-883-8
Tiivistelmä
The importance of industrial maintenance has been emphasized during the last decades;
it is no longer a mere cost item, but one of the mainstays of business. Market conditions
have worsened lately, investments in production assets have decreased, and at the same
time competition has changed from taking place between companies to competition
between networks. Companies have focused on their core functions and outsourced
support services, like maintenance, above all to decrease costs. This new phenomenon
has led to increasing formation of business networks. As a result, a growing need for new
kinds of tools for managing these networks effectively has arisen.
Maintenance costs are usually a notable part of the life-cycle costs of an item, and it is
important to be able to plan the future maintenance operations for the strategic period of
the company or for the whole life-cycle period of the item. This thesis introduces an itemlevel
life-cycle model (LCM) for industrial maintenance networks. The term item is used
as a common definition for a part, a component, a piece of equipment etc. The constructed
LCM is a working tool for a maintenance network (consisting of customer companies that
buy maintenance services and various supplier companies). Each network member is able
to input their own cost and profit data related to the maintenance services of one item. As
a result, the model calculates the net present values of maintenance costs and profits and
presents them from the points of view of all the network members.
The thesis indicates that previous LCMs for calculating maintenance costs have often
been very case-specific, suitable only for the item in question, and they have also been
constructed for the needs of a single company, without the network perspective. The
developed LCM is a proper tool for the decision making of maintenance services in the
network environment; it enables analysing the past and making scenarios for the future,
and offers choices between alternative maintenance operations. The LCM is also suitable for small companies in building active networks to offer outsourcing services for large
companies.
The research introduces also a five-step constructing process for designing a life-cycle
costing model in the network environment. This five-step designing process defines
model components and structure throughout the iteration and exploitation of user
feedback. The same method can be followed to develop other models.
The thesis contributes to the literature of value and value elements of maintenance
services. It examines the value of maintenance services from the perspective of different
maintenance network members and presents established value element lists for the
customer and the service provider. These value element lists enable making value visible
in the maintenance operations of a networked business.
The LCM added with value thinking promotes the notion of maintenance from a “cost
maker” towards a “value creator”.
it is no longer a mere cost item, but one of the mainstays of business. Market conditions
have worsened lately, investments in production assets have decreased, and at the same
time competition has changed from taking place between companies to competition
between networks. Companies have focused on their core functions and outsourced
support services, like maintenance, above all to decrease costs. This new phenomenon
has led to increasing formation of business networks. As a result, a growing need for new
kinds of tools for managing these networks effectively has arisen.
Maintenance costs are usually a notable part of the life-cycle costs of an item, and it is
important to be able to plan the future maintenance operations for the strategic period of
the company or for the whole life-cycle period of the item. This thesis introduces an itemlevel
life-cycle model (LCM) for industrial maintenance networks. The term item is used
as a common definition for a part, a component, a piece of equipment etc. The constructed
LCM is a working tool for a maintenance network (consisting of customer companies that
buy maintenance services and various supplier companies). Each network member is able
to input their own cost and profit data related to the maintenance services of one item. As
a result, the model calculates the net present values of maintenance costs and profits and
presents them from the points of view of all the network members.
The thesis indicates that previous LCMs for calculating maintenance costs have often
been very case-specific, suitable only for the item in question, and they have also been
constructed for the needs of a single company, without the network perspective. The
developed LCM is a proper tool for the decision making of maintenance services in the
network environment; it enables analysing the past and making scenarios for the future,
and offers choices between alternative maintenance operations. The LCM is also suitable for small companies in building active networks to offer outsourcing services for large
companies.
The research introduces also a five-step constructing process for designing a life-cycle
costing model in the network environment. This five-step designing process defines
model components and structure throughout the iteration and exploitation of user
feedback. The same method can be followed to develop other models.
The thesis contributes to the literature of value and value elements of maintenance
services. It examines the value of maintenance services from the perspective of different
maintenance network members and presents established value element lists for the
customer and the service provider. These value element lists enable making value visible
in the maintenance operations of a networked business.
The LCM added with value thinking promotes the notion of maintenance from a “cost
maker” towards a “value creator”.
Kokoelmat
- Väitöskirjat [1099]