The Design of Effective Maintenance Outsourcing Contracts

Rosa Micale, Giuseppe Aiello, Ad Straub, Jappe Van Der Zwan, David Martinez, Roberto D. Cigolini

Research output: Chapter in Book/Report/Conference proceedingChapter

8 Citations (Scopus)

Abstract

Recent developments in maintenance planning andmanagement demonstrate that the establishment of optimizedmaintenance policies may drastically improve theperformance and reduce the operating cost of facilities.However maintenance activities are typically outside of thecore business of production facilities, hence enterprises oftenfail to catch the opportunities that may originate by properlyoptimized management strategies. A strategic maintenancemanagement should hence encompass the possibility ofoutsourcing maintenance activities to ensure the necessaryperfomance of production systems, while allowingenterprises to concentrate their resources on their coreactivities. In order to be effectively undertaken anoutsourcing strategy must be supported by a properperformance oriented contract. The present paper aims toprovide an adequate methodology to address such issues andto define a framework for the definition of the relevantcontract variables such as availability levels, penaltypolicies, rewards and service cost. The methodology hereproposed is based upon the evaluation of the expected profitfunction of both the outsourcer and the provider, byperforming a trade-off analysis on the basis of thetransaction costs.
Original languageEnglish
Title of host publicationRecent Advances in Maintenance and Infrastructure Management
Pages271-289
Number of pages18
Publication statusPublished - 2009

All Science Journal Classification (ASJC) codes

  • Engineering(all)

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