Outcome-based maintenance contract for certain equipment considering incentive mechanism

Aiming at reducing the equipment maintenance efficiency after sales, customer needs to analyze equipment availability, cost and incentive mechanism during the contract negotiation phase. This paper presents a novel contract named “outcome-based maintenance contract”. Such a contract is desirable for both costumers and manufacturers since costumer receive better maintenance services and logistic support, at the same time, manufacturers may enjoy increase in profit due to improve product performance. The maintenance mathematic model was proposed to find the optimal maintenance policy at first. Then Monte Carlo simulation process was established to get the actual situation when implement the optimal maintenance policy. At last, the penalty function is built based on the simulation results, such information will be great use in designing Outcome-based maintenance terms.