Managing System Reliability and Maintenance Under Performance Based Contract (面向综合表现合同的系统可靠性和维修性管理)

Tongdan Jin
Tongdan Jin is an Assistant Professor of Industrial Engineering at Texas State University. Prior to the academia, he held a reliability engineer position for five years at Teradyne Inc. He obtained the Ph.D. in Industrial & Systems Engineering from Rutgers University. His research interests include system reliability modeling and optimization, design for reliability in Six Sigma, and system more


Performance based contracting (PBC) emerged as a new service model which is reshaping the acquisition, operation and maintenance of capital equipment. PBC is often referred to as performance based logistics in defense industry, or is called as power-by-the-hour in the airline industry. The focus of PBC is on the outcome of the system reliability performance, not materials and labors involved in the maintenance. This presentation introduces a novel quantitative approach to planning performance-based contracts in the presence of system usage uncertainty. We develop an analytical model to characterize the system availability by comprehending five key performance drivers: failure rate, usage variability, spare parts inventory, repair turn-around time, and system fleet population. This analytical insight into the system performance allows us to estimate the lifecycle cost by taking into account the design, manufacturing, maintenance and repair across the system lifetime. Two types of contracting schemes are examined under the cost minimization and the profit maximization. This presentation aims to provide theoretical guidance to facilitate the paradigm change as it shits from material based services to performance based contracting.

- Login to view the video -


Interested in Membership?

Take charge of your career and education. Join us today and get access to a wealth of webinars covering cutting edge topics important in reliability engineering today!

Find out more
Webinar Categories
Previous Webinars
  • Robustness Thinking in Design for Reliability II (可靠性设计中建壮性的思考:系列二)
    November 9, 2014
    View Webinar
  • Cost-Optimized Reliability Test Planning and Decision-Making Through Bayesian Methods and Leveraging Prior Knowledge
    June 6, 2013
    View Webinar

Provide a global forum for networking among practitioners of reliability engineering, management and related topics,


Facilitate growth and development of division members,

Provide Resources

Promote reliability engineering principles and serve as a technical resource on reliability engineering for ASQ, standards agencies, industry, government, academia and related disciplines


Sponsor, present and promote reliability, maintainability, and related training materials for courses, symposia, and conferences.