Title: Financial view and profitability evaluation on multi-state weighted k-out-of-n:F system reliability
Authors: Hadi Akbarzade Khorshidi; Indra Gunawan; M. Yousef Ibrahim
Addresses: School of Applied Sciences and Engineering, Faculty of Science, Monash University, Melbourne, VIC, Australia ' School of Engineering and Information Technology, Federation University Australia, Gippsland Campus, Churchill, VIC 3842, Australia ' School of Engineering and Information Technology, Federation University Australia, Gippsland Campus, Churchill, VIC 3842, Australia
Abstract: A financial view is proposed for reliability evaluation of multi-state weighted k-out-of-n:F systems. Failure cost as the cost which is imposed on the components by failures is used to denote the importance weight of each component. The deterioration process of components over time is modelled by Markov chain. System failure behaviour is formulated by Universal Generating Function (UGF). Furthermore, the present value of system failure is calculated by considering time value of money. As a result, the system reliability is demonstrated as cost which is more sensible for managers. A numerical example is presented to illustrate the proposed approach. After that, a way is suggested to transform the system cost present value into system reliability value. MATLAB programming is developed to make a sensitivity analysis on example results. Therefore, the impact of maintenance activities is investigated to show how they can reduce system cost through improving the system reliability.
Keywords: multi-state weighted k-out-of-n:F system; reliability assessment; failure cost; UGF; universal generating function; present value; financial concepts; profitability; maintenance impact; component deterioration; component failure; modelling; Markov chain; system failure; system reliability.
International Journal of Reliability and Safety, 2014 Vol.8 No.2/3/4, pp.284 - 298
Received: 16 May 2014
Accepted: 09 Mar 2015
Published online: 20 May 2015 *