Outsourcing of Maintenance Activities: A Model

Abstract

The article is to propose a model and its analysis for deciding when maintenance activities should be outsourced, instead of doing in-house. A model, based on statistical regenerative processes theory and renewal reward theory, is given. Long term per unit time cost is minimized in the model. Examples are given to show the use of the model. The model and its analysis indicate that, it would be desirable sometimes to outsource the maintenance activities. Sometimes it is preferable not to outsource. This depends on lifetimes, repair times, costs, etc. The model gives a decision, based on such parameters.

Keywords: Maintenance, Outsourcing, Model, Analysis