Cost Modelling to Support Optimum Selection of Life Extension Strategy for Industrial Equipment in Smart Manufacturing

Abstract

Industrial equipment/machinery is an important element of manufacturing. They are used for producing objects that people need for everyday use. Therefore, there is a challenge to adopt effective maintenance strategies to keep them well-functioning and well-maintained in production lines. This will save energy and materials and contribute genuinely to the circular economy and creating value. Remanufacturing or refurbishment is one of the strategies to extend life of such industrial equipment. The paper presents an initial framework of cost estimation model based on combination of activity-based costing (ABC) and human expertise to assist the decision-making on best life extension strategy (e.g. remanufacturing, refurbishment, repair) for industrial equipment. Firstly, ABC cost model is developed to calculate cost of life extension strategy to be used as a benchmark strategy. Next, expert opinions are employed to modify data of benchmark strategy, which is then used to estimate costs of other life extension strategies. The developed cost model has been implemented in VBA-based Excel® platform. A case study with application examples has been used to demonstrate the results of the initial cost model developed and its applicability in estimating and analysing cost of applying life extension strategy for industrial equipment. Finally, conclusions on the developed cost model have been reported.

Publication DOI: https://doi.org/10.1007/s43615-022-00154-0
Divisions: College of Engineering & Physical Sciences > School of Engineering and Technology > Mechanical, Biomedical & Design
College of Engineering & Physical Sciences
College of Engineering & Physical Sciences > Aston Institute of Urban Technology and the Environment (ASTUTE)
Additional Information: © The Author(s), 2022. This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit https://creativecommons.org/licenses/by/4.0/. The work described in this paper is part of the RECLAIM project “REmanufaCturing and Refurbishment LArge Industrial equipMent” and received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 869884.
Uncontrolled Keywords: Circular economy,Remanufacturing,Refurbishment,Life extension strategy,Industrial equipment,Cost modelling,Decision-making,Maintenance,Asset management
Publication ISSN: 2730-5988
Full Text Link:
Related URLs: https://link.sp ... 615-022-00154-0 (Publisher URL)
PURE Output Type: Article
Published Date: 2022-03-24
Published Online Date: 2022-03-24
Accepted Date: 2022-01-13
Authors: Amaitik, Nasser (ORCID Profile 0000-0002-0962-4341)
Zhang, Ming (ORCID Profile 0000-0001-5202-5574)
Wang, Zezhong
Xu, Yuchun (ORCID Profile 0000-0001-6388-813X)
Thomson, Gareth A. (ORCID Profile 0000-0002-7104-4348)
Xiao, Yiyong
Kolokas, Nikolaos
Maisuradze, Alexander
Garcia, Oscar
Peschl, Michael
Tzovaras, Dimitrios

Download

[img]

Version: Published Version

License: Creative Commons Attribution

| Preview

Export / Share Citation


Statistics

Additional statistics for this record