On the importance of maintenance costing

This paper presents the use of different approaches to costing management activities and relates these for the purpose of maintenance costing. A combination of the Activity-Based Costing methodology with discrete event simulation is introduced to attain more accurate estimations concerning the allocation of shared indirect maintenance cost to an individual machine and thereby the overall allocation of overheads to the product cost of outputs from the machine. The importance of maintenance costing is underlined by showing its relevancy in the context of the total cost of ownership analysis, product costing, and maintenance improvement.

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Submitted by soroka on Fri, 30/06/2006 - 7:42am.
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Discrete event simulation

Submitted by iwilliams on Fri, 07/07/2006 - 1:53pm.

Hi Hartanto Wong,

Thank you for participating in IPROMS 2006. In your paper you have proposed the use of Activity-Based Costing (ABC) combined with discrete event simulation for system maintenance. The inputs to the event simulation are they historical in nature or hypothetical?

Thank you.

Hi, Thanks for your

Submitted by hartanto on Mon, 10/07/2006 - 9:05am.

Hi, Thanks for your question.
The inputs for the simulation model should ideally come from real historical data. In the case where there is not enough data (e.g. when dealing with a new system) hypothetical data can still help especially when we are interested in doing 'what-if' analysis.

Regards
Hartanto

Hello Hartanto have you had

Submitted by tony fouweather on Tue, 11/07/2006 - 12:51pm.

Hello Hartanto

have you had any oppertunities to test whether the predictions made through the simulation are accurate?

Thankyou
tony

Our opion on default values

Submitted by Juhani Heilala on Thu, 13/07/2006 - 1:12pm.

Dear Authors, I would like to get your opinion on what king of default values I could use in my work. See the paper on Desing Systems:
http://conference.iproms.org/life_cycle_and_unit_cost_analysis_for_modular_re_configurable_flexible_light_assembly_systems
One part of the TCO analysis is maintenance cost, I have used following cost classes (based on SEMI E35 standard)
FR2.0 Maintenance (upper class, with following sub classes)
FR2.1 Maintenance: Labor
FR2.1.1 Maintenance: Labor - cost (own labour)
FR2.2 Maintenance: Spare Parts
FR2.3 Maintenance: Repair Parts
FR2.4 Maintenance: Service Contract (out sourced labour)
The task is design of assembly system with different level of automation, work time arragements, production recipes.
As starting point what kind of values as percentage on system purchase price I could use. Upper and lower limits, just for risk management. I am not aiming for absolute accurate values in first evaluation round. Naturally if a system sales engineer and end-customer are doing analysis together, they should get close enought predictions. We can also use discrete event sismulation here and actually our development parter simulates each customer case.
With all simulation: GIGO effect, garbage in - garbace out, so analysis is sensitive for input data quality
Juhani

On the importance of maintenance costing

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