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Cost Modelling to Support Optimum Selection of Life Extension Strategy for Industrial Equipment in Smart Manufacturing

Authors :
Amaitik, Nasser
Zhang, Ming
Wang, Zezhong
Xu, Yuchun
Thomson, Gareth
Xiao, Yiyong
Kolokas, Nikolaos
Maisuradze, Alexander
Garcia, Oscar
Peschl, Michael
Tzovaras, Dimitrios
Source :
Circular Economy and Sustainability; December 2022, Vol. 2 Issue: 4 p1425-1444, 20p
Publication Year :
2022

Abstract

Industrial equipment/machinery is an important element of manufacturing. They are used for producing objects that people need for everyday use. Therefore, there is a challenge to adopt effective maintenance strategies to keep them well-functioning and well-maintained in production lines. This will save energy and materials and contribute genuinely to the circular economy and creating value. Remanufacturing or refurbishment is one of the strategies to extend life of such industrial equipment. The paper presents an initial framework of cost estimation model based on combination of activity-based costing (ABC) and human expertise to assist the decision-making on best life extension strategy (e.g. remanufacturing, refurbishment, repair) for industrial equipment. Firstly, ABC cost model is developed to calculate cost of life extension strategy to be used as a benchmark strategy. Next, expert opinions are employed to modify data of benchmark strategy, which is then used to estimate costs of other life extension strategies. The developed cost model has been implemented in VBA-based Excel® platform. A case study with application examples has been used to demonstrate the results of the initial cost model developed and its applicability in estimating and analysing cost of applying life extension strategy for industrial equipment. Finally, conclusions on the developed cost model have been reported.

Details

Language :
English
ISSN :
2730597X and 27305988
Volume :
2
Issue :
4
Database :
Supplemental Index
Journal :
Circular Economy and Sustainability
Publication Type :
Periodical
Accession number :
ejs59265788
Full Text :
https://doi.org/10.1007/s43615-022-00154-0