Abstract:
This chapter presents key aspects of multicriteria (MCDM/A) approaches for decisions on maintenance outsourcing regarding maintenance contract, which includes contract selection (e.g. repair contract) and supplier selection. Contract design is a multi-objective task that leads the maintenance manager (or decision maker - DM) to decide amongst a combination of contracts and suppliers’ bids for the service. Given the multiple objective nature of this kind of problem, this chapter presents models that include maintainability, dependability, quality of repair and other aspects besides cost. The decision models presented consider methods such as Multi-attribute utility theory (MAUT) to address compensatory preferences and ELECTRE for preferences that require an outranking method. The DM’s behavior to risk (prone, neutral and averse) is considered by using Utility Theory and Decision theory foundations in order to include the state of nature in decision models. Thus, most of the problems are related to supplier and contract selection, which may be modeled into a single problem when considering all combinations of contracts and suppliers as alternatives, including the possibility of in-house maintenance being undertaken by a maintenance service supplier. Depending on the organization and in how strategic its maintenance function may be, decisions in maintenance outsourcing may be approached in different stages. Thus, a key performance indicator (KPI) for such problems are defined depending on the type of organization, its capabilities and the number of maintenance activities, while the tradeoff amongst strategic objectives is balanced in order to assure the system’s availability.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
de Brito AJ, M, Almeida-Filho AT de, de Almeida AT, (2010) Multi-criteria decision model for selecting repair contracts by applying utility theory and variable interdependent parameters. IMA J Manag Math 21:349–361
Brito AJ de M, de Almeida AT (2007) Multicriteria decision model for selecting maintenance contracts by applying utility theory and variable interdependent parameters. In: Carr M, Scarf P, Wang W (eds) Model. Ind. Maint. Reliab. Proc. Mimar. 6th IMA Int. Conf. Manchester, United Kingdom, pp 74–79
Buck-Lew M (1992) To outsource or not? Int J Inf Manage 12:3–20
Chai J, Liu JNK, Ngai EWT (2013) Application of decision-making techniques in supplier selection: A systematic review of literature. Expert Syst Appl 40:3872–3885
de Almeida AT (2001a) Repair contract decision model through additive utility function. J Qual Maint Eng 7:42–48
de Almeida AT (2001b) Multicriteria decision making on maintenance: Spares and contracts planning. Eur J Oper Res 129:235–241
de Almeida AT (2002) Multicriteria modelling for a repair contract problem based on utility and the ELECTRE I method. IMA J Manag Math 13:29–37
de Almeida AT (2005) Multicriteria Modelling of Repair Contract Based on Utility and ELECTRE I Method with Dependability and Service Quality Criteria. Ann Oper Res 138:113–126
de Almeida AT (2007) Multicriteria decision model for outsourcing contracts selection based on utility function and ELECTRE method. Comput Oper Res 34(12):3569–3574
de Almeida AT, Ferreira RJP, Cavalcante CAV (2015) A review of multicriteria and multi-objective models in maintenance and reliability problems. IMA Journal of Management Mathematics (forthcoming)
de Almeida AT, Souza FMC (2001) Gestão da Manutenção: na Direção da Competitividade (Maintenance Management: Toward Competitiveness) Editora Universitária da UFPE. Recife
Goldman AS, Slattery TB (1977) Maintainability: a major element of system effectiveness. Krieger Publishing Company, New York, Robert E
Ho W, Xu X, Dey PK (2010) Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. Eur J Oper Res 202:16–24
Kennedy WJ (1993) Modeling in-house vs. contract maintenance, with fixed costs and learning effects. Int J Prod Econ 32:277–283
Martin HH (1997) Contracting out maintenance and a plan for future research. J Qual Maint Eng 3:81–90
Murthy DNP, Jack N (2008) Maintenance Outsourcing. In: Kobbacy KAH, Murthy DNP (eds) Complex Syst. Maint. Handb. SE - 15. Springer London, pp 373–393
Slack N, Lewis M (2002) Operations Strategy. Prentice Hall, London
Tsang AHC (2002) Strategic dimensions of maintenance management. J Qual Maint Eng 8:7–39
Vincke P (1992) Multicriteria Decision-Aid. John Wiley & Sons, New York
Wang W (2010) A model for maintenance service contract design, negotiation and optimization. Eur J Oper Res 201:239–246
Wideman RM (1992) Project and program risk management: a guide to managing project risks and opportunities. Institute, Project Management
Wu S (2013) A review on coarse warranty data and analysis. Reliab Eng Syst Saf 114:1–11
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2015 Springer International Publishing Switzerland
About this chapter
Cite this chapter
de Almeida, A.T., Cavalcante, C.A.V., Alencar, M.H., Ferreira, R.J.P., de Almeida-Filho, A.T., Garcez, T.V. (2015). Decision on Maintenance Outsourcing. In: Multicriteria and Multiobjective Models for Risk, Reliability and Maintenance Decision Analysis. International Series in Operations Research & Management Science, vol 231. Springer, Cham. https://doi.org/10.1007/978-3-319-17969-8_7
Download citation
DOI: https://doi.org/10.1007/978-3-319-17969-8_7
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-17968-1
Online ISBN: 978-3-319-17969-8
eBook Packages: Business and EconomicsBusiness and Management (R0)