Is maintenance worth the money? A data-driven answer
For many industrial and commercial operations, maintenance accounts for a large part of operating costs. For instance, maintenance costs range from 15% to 60% of the total production costs in manufacturing plants. In the airline industry, the 2014 global spend on maintenance, repair, and overhaul accounted for around 9% of the total operational costs, and this spend is estimated to reach 90 billion dollars in 2024. Even with maintenance cost being such a substantial part of the overall cost, maintenance managers have little visibility into whether maintenance expenditure is money well spent or not, i.e., whether the maintenance is effective or not. In this blog, I’d like to talk about a mathematical formulation of the maintenance effectiveness evaluation problem and a systematic way of solving it.
