Coordination in Maintenance Outsourcing : Analysis of Various Incentive Mechanisms

ISBN-13: 9783639127584 / Angielski / Miękka / 2009 / 80 str.

Hakan Tarakci

Opis

This book analyzes various incentive mechanisms thatcan be used to coordinate a manufacturer who has aprocess with an increasing failure rate over time anda contractor who performs the necessary maintenanceactivities. It is demonstrated that the bestincentive mechanism is an incentive contract, whichis based on a combination of a target uptime leveland a bonus. This mechanism i) always leads to thedesired win-win coordination, ii) providesflexibility in allocating the extra profit generatedfrom coordination, iii) motivates the contractor andthe manufacturer to continuously improve efficiencyof maintenance operations, and iv) is able tocoordinate the improved system most of the time.An extension of this study - with a manufacturer, whohas a process consisting of multiple stages andmultiple contractors, who perform maintenanceactivities for each of these stages - shows that theaforementioned target-uptime level and a bonus schemeprovides benefits similar to the one manufacturer -one contractor system.

O autorze

Dr. Hakan Tarakci received his PhD from the Purdue University in
2004. He worked as a Visiting Asst. Prof. at Purdue and then, in
2005, started his current employment as a Senior Lecturer at
Melbourne Business School. His research has been published in IIE
Transactions, European Journal of Operational Research and
Decision Support Systems.