Title :
Cost-benefit analysis of the application of prognostics and health management technology
Author :
Bo Wu ; Xisheng Jia ; Lianghua Xia ; Congying Lei ; Yabin Wang
Author_Institution :
Dept. of Manage. Eng., Mech. Eng. Coll., Shijiazhuang, China
Abstract :
This paper presents a methodology to perform cost-benefit analysis on the application of Prognostics and Health Management (PHM) technology for equipment. The purpose of the methodology is to estimate the economic feasibility of the application of the PHM technology. This paper discusses the calculation of economic metrics for PHM technology, and determines the potential Return on Investment (ROI) and Payback Period of a PHM approach relative to unscheduled maintenance policy using Monte Carlo simulation. The case study of a kind of electronic equipment indicates the proposed methodology of cost-benefit analysis can be used as a useful tool for aiding the decision-making for the application of PHM technology.
Keywords :
Monte Carlo methods; condition monitoring; cost-benefit analysis; decision making; electronic equipment manufacture; electronic products; industrial economics; investment; maintenance engineering; Monte Carlo simulation; PHM technology; cost-benefit analysis; decision making; economic metrics; electronic equipment; prognostics health management technology; return on investment; unscheduled maintenance policy; Biological system modeling; Cost benefit analysis; Electronic equipment; Investment; Maintenance engineering; Prognostics and health management; Monte Carlo simulation; cost-benefit analysis; prognostics and health management; return on investment;
Conference_Titel :
Quality, Reliability, Risk, Maintenance, and Safety Engineering (QR2MSE), 2013 International Conference on
Conference_Location :
Chengdu
Print_ISBN :
978-1-4799-1014-4
DOI :
10.1109/QR2MSE.2013.6625955
