An inflation-based maintenance profitability model Online publication date: Wed, 12-Mar-2008
by S.A. Oke, O.I. Oyedokun, O.G. Akanbi, F.A. Oyawale
International Journal of Productivity and Quality Management (IJPQM), Vol. 3, No. 3, 2008
Abstract: The maintenance profitability problem is an important but emerging concept of maintenance performance measurement that views the maintenance function as a value adding subsection of the organisation. The service provided by the maintenance system to production is charged as a price, which results in the monetary contribution of the maintenance department to the organisation. In the same way, as production would add financial benefits to the organisation the maintenance system is portrayed as adding profit to the organisation. In this work, we present a mathematical model that calculates the maintenance profitability of an organisation under the condition of inflation using a composite mathematical function. It is concluded that viewing maintenance from a profit-making orientation provides a challenge to the maintenance team, thus driving them towards improved performance.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Productivity and Quality Management (IJPQM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com