2019 International Conference on Quality, Reliability, Risk,

Maintenance, and Safety Engineering (QR2MSE 2019)

August 06-09, 2019, Zhangjiajie, Hunan, China

QR2MSE2019-0003-0197

Condition-Based Maintenance Strategy for Stochastic Degradation

Systems Considering Spare Parts

Nai-Fei Ren1, Yu Wang2, Shu-Yuan Gan1,*

1.School of Mechanical Engineering,
Jiangsu University,
Zhen Jiang, Jiangsu, 212013, P.R. China
Jiangsu Key Laboratory of Advanced Numerical Control Technology, Nanjing 211167, PR China
2.School of Mechanical Engineering,
Jiangsu University,
Zhen Jiang, Jiangsu, 212013, P.R. China

[la : the number of components ordered during T .

ABSTRACT
Effective spare parts inventory management can not
only ensure timely maintenance of equipment maintenance
activities, but also reduce inventory capital occupation and
improve the economic benefits of enterprises. In this paper,
we present a condition-based maintenance strategy that
considers spare parts issues for systems, with the goal of
jointly optimizing conditional-based maintenance and
spare parts management. Random systems are gradually
degraded and continuously monitored. Spare parts supply
using S  1, S type inventory strategy. According to the
proposed strategy, the replacement of components is based
on the actual degree of degradation, which is caused by the
demand for spare parts. The Monte Carlo simulation
method was used to simulate the proposed condition-based
maintenance and spare parts replacement strategy.
Therefore, the optimal solution is obtained by jointly
optimizing the spare parts and condition-based
maintenance of the components. Finally, a numerical
example is delivered to show the proposed method.
KEYWORDS: condition-based maintenance, spare parts,
replacement
NOMENCLATURE
FDE t : the distribution function per unit life time.
E : the stochastic value indicating the lead time.
g e : the probability density function of lead time E .
C pr : the cost of preventive replacement
C d : the cost of downtime for the unit time.
T : one work cycle.
*Corresponding Author: gxganshuyuan@163.com
Tel: +86-15951732007.
SCL : the total number of out-of-stock spare parts in the
work cycle [0, T].
N la : the total number of parts used during T .
C H : the inventory holding cost in work cycle >0ˈT @ .
CO : the regular ordering cost in work cycle > 0ˈT @ .
A T : average availability in the work cycle > 0ˈT @ .
P4 t : probability that inventory is I .
1 INTRODUCTION
Spare parts are the guarantee for equipment
maintenance and emergency treatment. Spare parts are also
an important factor to ensure that the equipment can be
repaired in time to continue uninterrupted operation [1-3].
In order to maintain the normal operation of the equipment
during the use of the equipment, it is necessary to make a
maintenance plan and make decisions on the procurement
and storage of spare parts. Especially when buying
expensive equipment parts, companies usually buy spare
parts at a favorable price. Therefore, it is necessary to
determine how many spare parts are purchased, which
spare parts inventory levels to maintain, and make the right
decision on the spare parts reserve [4-5]. With the rapid
development of technology, equipment has become much
more complex and the degree of automation has been
increasing. On the one hand, equipment downtime losses
are also increasing, sometimes even catastrophic. In order
to perform maintenance activity on time, enterprises often
need to increase the spare parts reserve; on the other hand,
with the increase of the number of spare parts required for
equipment, the purchase and storage costs are getting

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 higher and higher, and spare parts reserve affects the
economic benefits of enterprises. Wang [6] proposed an
order replacement strategy for a condition-based
maintenance single-part system. Assuming the lead time is
unchanged, the preventive replacement time and the
number of spare parts ordered is determined based on the
degree of component degradation detected. However, many
reasons for production and transportation affect delivery
time, and delivery time has a lot to do with randomness.
There are three main issues that need to be addressed in
controlling inventory: (a) determining the inventory
inspection cycle; (b) determining the quantity of spare
parts ordered; and (c) determining the time of ordering.
Dieulle [7-8] et al. focused on the study of
stochastically degraded systems and derived the proposed
analysis model for the visual inspection and replacement
strategy, but they did not consider the spare parts problem.
In fact, the condition-based replacement strategy
presupposes that spare parts are enough for maintenance,
but the reality is that there is a lag between the expected
arrival time of the spare parts and their actual arrival time.
This delay is called the lead time. In fact, the effect of the
spare parts supply decision on the alternative strategy
cannot be ignored, because the order and quantity of spare
parts is limited, and the procurement preparation time
cannot be ignored, so Osaki and his core researchers [9-12]
introduced a subscription strategy, where the ordering and
replacement time is jointly optimized, and various
mathematical models are constructed under different
conditions, and the ordering strategy can be expressed as:
The ordering time for the spare parts is at the specified
time ‫ݐ‬଴ and is delivered after a constant lead time L, and
the spare parts are kept in stock for another specified time
t1 t t0  L . When the operating part fails before t 0 , the
spare part is ordered immediately. When the operating part
fails between t0  L and t1 , the failed part will be replaced
by the spare part in the stock. The joint optimal ordering
time t0* 0 d t0*  f and the replacement time t1* (to
t0*  L or f ) are determined by minimizing the expected
total inventory cost per unit time (e.g. ordering cost,
inventory holding cost and the expected total shortage
costs).
There are several major drawbacks to the spare parts
ordering strategy to date. First, they are focused on a single
component and a spare parts inventory with predetermined
size. However, there are multiple identical components that
operate in many manufacturing situations, such as bearings,
valves and so on. Policies considering single component
can’t achieve expected result. Even for a single-part case,
there is important balance required to be achieve between
maintenance and spare parts. Acharya [13] et al. have
pointed out that due to the higher demand for spare parts
and lower replacement costs, the inventory cost of the
preventive replacement strategy is higher than the "fault
only replacement" strategy. Conversely, inventory costs are
lower and replacement costs are higher for corrective
replacement strategies. Thus, the replacement interval that
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can be combined with the optimal replacement and spare
parts supply strategy will be obtained by considering any
of the two types of costs. Falkner [14] also indicated that
including replacement costs would reduce optimal
inventory. Zhao [15] proposed a condition-based
maintenance (CBM) order replacement decision for a
randomly progressively degraded system designed to
optimize CBM and spare parts order management, and the
status of the system is continuously monitored. The spare
parts supply strategy using S  1, S type inventory
strategy, but the strategy does not consider the diversity of
maintenance methods.
This paper proposes a maintenance and spare parts
replacement strategy, spare parts supply S  1, S type
inventory strategy, and considers maintenance operations
such as preventive maintenance, preventive replacement
and fault replacement. The replacement of spare parts is
based on the actual degree of degradation. This paper uses
Monte Carlo simulation to simulate the proposed
maintenance and spare parts replacement strategy. The
optimal expected total cost is obtained by genetic
algorithm combined optimization of spare parts inventory
management and component maintenance.
2 SYSTEM DESCRIPTION AND SPARE PARTS
REPLACEMENT STRATEGY
2.1 System Degradation Process
This paper considers the gradual degradation of
stochastic systems. As the working hours continue to
advance, the system or structure will continue to
accumulate degradation. In general, it can be directly or
indirectly monitored through some feature measurements.
The rejection rate l t indirectly reflects the degree of
degradation of the system, and the increment of the system
degradation amount in time interval is greater than 0. The
degradation model satisfies the following assumptions:
(1) It is assumed that the rejection rate at time t is l t ,
and the state of the component at time t is completely
represented by the rejection rate l t . This variable
monotonically increases or remains constant over time as
the system degrades. We define l t =0 when t 0 , and
consider the system state is new. A larger l t indicates
that the system is closer to failure. If l t t lmax , where
lmax is the maximum predetermined threshold for the
rejection rate, then the system is considered to be in a fault
condition, as shown in Figure 1.

Figure 1 The random degradation process of the system
(2) When the system is running, it is assumed that the
degree of degradation can be obtained instantaneously by
non-destructive inspection. In other words, the inspection
is instantaneous, perfect and non-destructive.
(3) Since the gamma distribution is highly versatile in
most cases, therefore, it is assumed that the system
degradation is a gamma distribution process. The gamma
cumulative distribution function (CDF) is defined as
follows:
FDE t Pr X  t Pr l t ! lmax (1)
Where X is the life of the system, l0 represents the initial
starting point of the degradation process, and lmax is the
failure threshold. If l t t lmax , the system is considered to
be in a fault condition. Park [16] shows the failure time
associated with the gamma distribution function in Eq. (2).
* D t , E lmax  l0
FDE t (2)
* Dt
While 0.6 ≤ α ≤ 0.8, 0.005 ≤ β ≤ 0.007.
2.2 Spare Parts Replacement Strategy
The condition-based maintenance and spare parts
replacement strategy is a control restriction decision with a
preventive safety replacement threshold la [17].Since the
use of the CBM system is the most useful decision with
low spare parts consumption, in order to reduce the waste
caused by ordering spare parts, the spare parts inventory
strategy of S  1, S type was adopted. where S is the
maximum inventory level [18]. The inventory strategy
states that spare parts are ordered each time a spare part
demand occurs. Define S OH as the quantity of spare parts
available, S DI is the quantity of spare parts ordered, and
S BO is the quantity of spare parts delivered late. The
connection between S OH , S DI and S BO is as described
follows:
S SOH  S DI  S BO (3)
The Eq. (3) indicates that when there is a spare part
demand, the number of spare parts ordered S DI is increased
by 1. If the number of spare parts available at this time is,
SOH ! 0 , the number of available spare parts S OH is
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decreased by 1, if the number of spare parts available at
this time, SOH 0 , the number of spare parts delivered is
delayed by S BO plus one. When the ordered spare parts
arrive at the warehouse, the number of spare parts ordered
S DI is reduced by 1. If the number of spare parts delivered
is delayed by S BO ! 0 , the number of delayed delivery
spare parts S BO is decremented by 1. If the number of
spare parts delivered late is S BO =0 , then the number of
available spare parts ୓ୌ is increased by 1.
Based on the inventory strategy, when the system's
degradation level reaches the preventive safety
replacement threshold la , the system will replace the new
spare parts and generate an order for the spare parts order.
The lead time is E and its probability density function is
g e . If the degree of degradation of the system is higher
than the preventive replacement threshold l a ,
Simultaneously, when the warehouse lacks spare parts, this
status is considered to be out of stock.
3 A CONDITIONAL-BASED MAINTENANCE
MODEL OF CONSIDERING SPARE PARTS
The cost (reliability or availability) used to evaluate
the system under the maintenance strategy is primarily a
mathematical model of the expected total cost of the
system considered in the development strategy, which
obtains the definite value for the cost and can accurately
minimize the expected total cost by using mathematical
simulations. The reality is that most maintenance decisions
are difficult to analyze, and they must be analyzed using
simulations to optimize the maintenance strategy by using
algorithms to determine optimization problems.
According to the above-mentioned CBM and spare
parts replacement strategy, the way in which components
are serviced is based on the degree of degradation and
inventory levels of the respective components in the
system. On the other hand, the inventory level is
determined by the exhaustion level of spare parts generated
by the supply of spare parts and replacement of
components. In this paper, in order to assess the quality of
the strategy adopted the Monte Carlo simulation method,
e.g. the expected total cost. Through extensive simulation
of system history, the Monte Carlo simulation method can
estimate the overall average of the hidden content used to
calculate the performance criteria of the strategy. The goal
of this model is to select the optimal preventive safety
replacement threshold la and the preventive maintenance
threshold lm to optimize the expected total cost.
3.1 Model Assumptions and Parameter Definitions
Preventive maintenance only restores the system, but
does not return the system to a new state. The system
provides three maintenance operations: preventive
maintenance, preventive safety replacement, and corrective
replacement.
We assume that the time spent on system replacement
 (whether preventive safety replacement or corrective
replacement) is negligible. Although both preventative
safety replacement and corrective replacement restore the
system to a new state, they are not necessarily identical
because corrective replacement must be performed on a
more degraded system. Therefore, corrective replacement
can be more complicated and more expensive. Establish a
simulation model based on the following assumptions:
(a) Degradation of system is a Gamma distribution
process whose cumulative distribution function for
failure time is as shown by eq. (2).
(b) The duty cycle T is longer than the lead time E and
it is constant.
(c) Downtime due to time required to repair or insufficient
spare parts can be costly and directly proportional to
downtime.
(d) Fixed order costs include component costs and
management costs for generating spare parts orders.
(e) After the ordered parts arrive at the warehouse, the parts
will neither failure nor degrade, and the time length of the
reserve has no effect on their life.
(f) The earlier the spare parts are ordered, the sooner the
spare parts arrive at the warehouse.
3.2 The Condition-Based Maintenance Strategy of
Considering Spare Parts
According to the above-mentioned condition-based
maintenance and spare parts replacement strategy, the
specific methods for replacing spare parts and ordering
spare parts in the work cycle > 0ˈT @ are as follows:
(1) When lm d l t  la , the components are degraded to
some extent, and the components are subjected to
preventive maintenance.
(2) When la d l t  lmax , the components are largely
degraded, and the components are subjected to preventive
safety replacement.
a) When there is a demand for spare parts, if the existing
stock I ! 0 , then the existing stock I is reduced by 1,
the number of replacement spare parts N la is increased by
1, and if the existing stock is I 0 , the number of
out-of-stock spare parts SCL is plus 1;
b) When the ordered spare parts arrive, the spare parts
replenishment quantity [la is increased by 1, and the
existing stock I is increased by 1.
(3) When lmax d l t  l1 , the system fails at this time, the
system is in the quasi-failure state, and the component is
replaced by fault.
a) When there is a demand for spare parts, if the existing
stock I ! 0 , then the existing stock I is reduced by 1, the
number of replacement spare parts N la is increased by 1,
and if the existing stock is I 0 , the number of
out-of-stock spare parts SCL is plus 1;
b) When the ordered spare parts arrive, the spare parts
replenishment quantity [la is increased by 1, and the
existing stock I is increased by 1.
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Figure 2 Actions to perform according to the evolution of
the reject rate
As shown in Figure 2 above, because the reject rate
indirectly reflects the degree of degradation of the system,
different maintenance methods are adopted according to
the change of the reject rate. The main measures are no
action, preventive maintenance, preventive safety
replacement, corrective replacement. In this paper,
preventive safety replacement and corrective replacement
should consider whether there is spare parts inventory. If
spare parts are in stock, the components are replaced. If
there is no spare parts inventory, the spare parts are out of
stock, and the system immediately orders spare parts,
which will delay the arrival of spare parts.
3.3 Optimization of Condition-Based Maintenance
and Spare Parts Replacement Model
The expected total cost of the system includes failure
cost, downtime cost, quality cost of non-conforming
product, ordering cost, inventory holding cost, preventive
maintenance cost, preventive safety replacement cost, and
corrective replacement cost. The ordering cost is related to
the total number of spare parts used during the work cycle.
The total order cost is as follows:
The total order cost= CO N la (4)
The total cost of inventory holdings is related to the
existing inventory in the work cycle. The total cost of
inventory holding is as follows:
The total cost of inventory holding
CH ¦ I
I N
0
IP4 t (5)
Where P4 t is the probability that the inventory is
I , I 0,1, 2, , N .
Therefore, the expected total cost of the system during the
work cycle can be written as:
CT N f C f  Cd ¦ t miss0 ª¬1  A t º¼  Cq Lmax  CO N la 
T
CH ¦ I
I N
0
IP4 t  (6)
­°nCcr P1 t  nC pr P2 t  ½°
¦
Tmiss
® ¾
ª º
¯° ¬ n'L t C pmd  nTm C pmt  C pms ¼ P3 t °¿
t 0
 The joint optimization model can be expressed as:
min CT ^
min N f C f  Cd ¦ t miss0 ª¬1  A t º¼
T
`
Cq Lmax  CO N la  CH ¦ I
I N
0
IP4 t
­°nCcr P1 t  nC pr P2 t 
 ¦ t miss0 ®
T
°¯ ª¬ n'L t C pmd  nTm C pmt  C pms º¼ P3 t °¿
Subject to S 1, 2,3, , N ˗0  lm  la  lmax  1
Eq. (7) establishes a constrained multivariable
nonlinear target optimization model, and Eq. (6) defines a
simulation estimate of the objective function, wherein the
optimized variables lm and la have values between
0ˈlmax . Considering the randomness of the system and
the long-term simulation of the objective function in the
genetic algorithm optimization process, all feasible
solutions and their fitness values are stored in the historical
population database, and each feasible solution appearing
in the descendant group first queries the historical
population database. If there is a solution, the historical
fitness value is taken directly from the database without
re-simulation; otherwise, the discrete event simulation
system simulation is invoked to obtain the fitness value and
stored in the historical population database.
4. ILLUSTRATIVE EXAMPLE
First initialize the strategy parameters, enter the
system parameters D , E , T and set T0 0 , I 0 S ,
N la =0 , [ la 0 , SCL 0 , the simulation number should
be set large enough. In order to analyze and explain the
proposed maintenance and spare parts replacement strategy,
a numerical example is given, in which the model
parameter values are shown in Table 1.
Table 1 Model parameter values
Model variable
Value
D 0.7
E 0.006
T 100
Ccr 100
C pr 80
C pmd 5 components as new and preventive maintenance is
C pmt 10
C pms 50
Cf 200
Cd
100
C0 50
CH 50
According to the parameter values given in Table 1,
set the number of simulation N 5000 , S 1 , using
Monte Carlo simulation and iterative method simulation,
the results are shown in Figure 3.
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½°
¾
(7)
Figure 3 The corresponding relationship of expected total
costs and la ǃ lm
Figure 3 shows the relationship between the expected
total cost and the maintenance threshold la , lm when
S 1 , the expected total cost taking into account the
failure cost, downtime cost, non-conforming product
quality cost, ordering cost, inventory holding cost,
preventive safety replacement cost, corrective replacement
costs and preventive maintenance costs. As can be seen
from the figure, when the maximum stock level is constant,
the smaller the preventive replacement threshold la , the
higher the expected total cost.
The smaller the preventive replacement threshold la
indicates that the component degrades to a certain extent,
the replacement is performed when the degree of
degradation reaches a relatively small value, and the
replacement frequency is more frequent, and the
replacement cost has preventive safety replacement cost,
order cost, and inventory holding cost, so the
corresponding expected total cost is greater. When the
maximum inventory level is constant, the preventive
maintenance threshold lm is larger; the expected total cost
is higher. The greater the preventive maintenance threshold
lm indicates that when the component degrades to a
certain extent, the degree of degradation reaches a
relatively large value and preventive maintenance is
performed. Preventive maintenance does not restore
frequently performed. The costs associated with preventive
maintenance include preventive maintenance material costs,
preventive maintenance labor costs, and preventive
maintenance setup costs, and sometimes unexpected
situations occur. If equipment failure causes downtime, it
will also increase downtime costs, failure costs, and
corrective replacement costs, so the corresponding
expected total cost is greater. Therefore, selecting a suitable
size of the preventive replacement threshold la and the
preventive maintenance threshold lm has a great influence
on the expected total cost. The optimal values of the
selected maintenance thresholds la , lm are described
below.
261
 The Monte Carlo simulation and genetic algorithms
are used to obtain the optimal threshold and total cost for
each generation. In Figure 4, the lowest point of the total
cost of expectation is the best expected total cost, which
may not be visible in the figure with the naked eye, but in
the mathematical simulation and optimization process,
after several thousand iterations, the output will be
automatically optimized value. In Figure 4, the iterative
process of 100 times (300 generations to 400 generations)
is shown. The expected total cost is higher at the beginning
of the iteration and there is a peak. As the number of
iterations increases slowly, with the small increase or
decrease of time, the expected total cost is expected to
decrease slowly. After a certain number of iterations, the
operator crosses and mutates to generate new individuals,
and peaks appear. But as the iteration progresses, the
expected total cost is slowly decreasing. In summary,
thousands of expected total costs are obtained during
constant iterations, with the smallest expected total cost
being the optimal value sought.
Figure 4 The change of expected total cost
In this paper, the values of each set of optimal control
strategies ( la , lm , CT ) are represented as a set of
solutions in the iterative process of genetic algorithm.
Table 2 shows the iterative algebra around the optimal
value and its corresponding total cost.
Table 2 The number of iterations and corresponding
expected total costs
The number of iterations Expected total cost
340 339781.4
341 344652.3
342 343985.6
343 341652.5
344 336181.4
345 344679.2
346 343896.3
347
340867.6
348 344985.1
349 342296.5
350 343768.7
As can be seen from Table 2, the iterative algebra of
the optimal expected total cost is 344 generations, and the
corresponding expected total cost and optimal maintenance
threshold la , lm are as shown in Table 3 below.
Table 3 Optimal thresholds and corresponding expected
total costs
The optimal threshold Value
lm 0.17524
la 0.68264
Cr 336181.4
5. CONCLUSIONS
This paper considers the gradual degradation of
stochastic systems. The reject rate l t indirectly reflects
the degree of system degradation. The condition-based
maintenance and spare parts replacement strategy is a
control restriction strategy with a preventive safety
replacement threshold la , and it is used S  1,S type of
spare parts inventory strategy, when the system's
degradation level reaches the preventive safety
replacement threshold la , the system will replace the new
spare parts and generate an order for the spare parts order.
This paper uses Monte Carlo simulation method to
simulate the process of system degradation, and uses
genetic algorithm to optimize the optimal solution, and
establish a constrained multivariable nonlinear target
optimization model. Based on the model, the optimal
threshold la for preventive replacement and the threshold
lm for preventive maintenance are optimized to achieve
the minimal expected cost. In this paper, preventive safety
replacement and corrective replacement should consider
whether there is spare parts inventory. Replace spare parts
if stock is available. If there is no stock, it will be out of
stock. Order the spare parts immediately, and the spare
parts will be delayed.
In order to analyze and explain the proposed
maintenance and spare parts replacement strategy, the
results of numerical analysis show that the decision of
conditional maintenance and spare parts inventory can get
a reasonable optimal solution. When the maximum
inventory level is certain, the preventive maintenance
threshold lm is bigger, the expected total cost is higher,
and the preventive replacement threshold la is smaller,
the expected total cost is higher.
Therefore, the maintenance strategy and
corresponding results proposed in this paper have
important theoretical and practical significance for the
study of condition-based maintenance decision-making. In
addition, this paper considers several aspects of component
degradation, multi-component maintenance, quality
information and spare parts inventory. Combining these
factors to implement maintenance optimization, this part of
the research has certain innovation.

262

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 ACKNOWLEDGEMENTS
The research work is supported by the following
foundations: National Natural Science Foundation of China
(71601086), the Natural Science Foundation of Jiangsu
Province (BK20160485), China Postdoctoral Science
Foundation Funded Project (2015M581748), the Opening
Project of Jiangsu Key Laboratory of Advanced Numerical
Control Technology (sykj201607), and Advanced Talent
Foundation of Jiangsu University (14JDG138 &
15JDG033).
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