A risk-sensitive approach to total productive maintenance

While risk-sensitive (RS) approaches for designing plans of total productive maintenance are critical in manufacturing systems, there is little in the literature by way of theoretical modeling. Developing such plans often requires the solution of a discrete-time stochastic controloptimization problem. Renewal theory and Markov decision processes (MDPs) are commonly employed tools for solving the underlying problem. The literature on preventive maintenance, for the most part, focuses on minimizing the expected net cost, and disregards issues related to minimizing risks. RS maintenance managers employ safety factors to modify the risk-neutral solution in an attempt to heuristically accommodate elements of risk in their decision making. In this paper, our efforts are directed toward developing a formal theory for developing RS preventive-maintenance plans. We employ the Markowitz paradigm in which one seeks to optimize a function of the expected cost and its variance. In particular, we p...

• Type: Journal
• Year: 2006
• Where: AUTOMATICA
• Authors: Abhijit Gosavi
• Keywords: AUTOMATICA 2006, Discrete-time Stochastic Controloptimization, RS Maintenance Managers, Total Productive Maintenance