Research On The Design Of Maintenance Service Contracts For Multi-component Critical Equipment

Critical equipment systems generally refer to systems with high-value, high-tech complexity and mission-critical related in asset-intensive companies (such as commercial aviation, defense industry, etc). These systems are often composed of multiple subsystems, and the system performance is unstable since the reliability of the subsystem is not perfect. The failure of critical equipment systems will give companies huge economic losses.In order to minimize losses, the design of an appropriate incentive mechanism to induce suppliers to provide customers with better service is very necessary. Currently, a widely used mechanism is called performance-based contract, and it is said that the performance-based contract can effectively improve system performance and reduce costs.Currently, the study of maintenance services contract issues in critical equipment systems is rare at home and abroad, and the related research mostly focuses on a single component of the system, the study of multi-component system maintenance services contract almost none. And the research that combines the cascade failure among multiple components with multiple performance indicators in a variety of probability of failure scenarios and performance-based service contracts is none. Therefore, the maintenance service contracts design and incentives behavioral problems in critical equipment for multi-component systems are studied, and two aspects are following:(1)This paper studies the maintenance service contracts design and incentives behavioral problems in critical equipment for multi-component systems with considering single system performance and no cascade failures. This paper considers the entire process of systems from R & D to systems repairs, and serves system performance constraint as the benchmark to motivate suppliers to invest service capabilities, and creates two contracts according to whether the investment for system reliability and restoration is observed, that is time -based contract and performance-based contract. Finally, this paper calculates the supplier’s optimal reliability investment strategy in both contracts, and compares the efficiency of the two contracts.(2) This paper studies the maintenance service contracts design and incentives behavioral problems in critical equipment for multi-component systems with considering two system performance and cascade failures. This paper establishes two performance-based contracts which are based on the two distribution plan for system downtime caused by the cascading failures, and provides two system performances that depending on the frequency of failure, and finally analysis the efficiency of two contracts in different failure scenarios.By summarizing the research work, this paper concludes that in the framework of this study, performance-based contract is more efficiency than time -based contract, and the efficiency of performance-based contract changes as the frequency of failure changes. This study not only enriches the relevant theoretical research, but also provides an important reference and guidance on the application of performance-based contract in reality, and has practical significance.