Profit-driven Maintenance in Process Industries

L. C. Lemes*, L. Hvam*

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

Process industries still mainly approach maintenance in terms of cost, in which the goal is to achieve lowest possible costs. Since the 1970s, literature advocates for a profit-driven approach for maintenance. A profit-driven maintenance approach enables companies to improve operations as it covers the impact from maintenance on the revenue and contribution margins in the company, e.g. by assessing the value of increased or decreased output on the production. In case the industry faces drastic changes due to technological advances—such as increase in automation, Industry 4.0, Big Data, and Internet of Things—and instability on the market, reducing costs of maintenance without considering impact on profit could potentially lead to lost revenue. Without a clear definition of the profit-driven approach—and how to achieve it—both researchers and managers run the risk of losing profitable opportunities. This paper presents characteristics of cost and profit-driven approaches for maintenance activities, shows KPIs associated with profit centers, and lists maintenance enablers for the transition to profit center.
Original languageEnglish
Title of host publication2020 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM)
Number of pages5
PublisherIEEE
Publication date2021
Pages1325-1329
ISBN (Electronic)978-1-5386-7220-4
DOIs
Publication statusPublished - 2021
Event2020 IEEE International Conference on Industrial Engineering and Engineering Management - , Singapore
Duration: 14 Dec 202017 Dec 2020

Conference

Conference2020 IEEE International Conference on Industrial Engineering and Engineering Management
CountrySingapore
Period14/12/202017/12/2020

Keywords

  • Maintenance
  • Cost
  • Profit
  • Strategy
  • Key performance indicators
  • Enablers

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