Open Access Mini Review

From the Maintenance Management until the Physical Asset Management – A Disruptive Paradigm

José Torres Farinha*

CEMMPRE, Coimbra, PORTUGAL, ISEC/IPC, Coimbra, Portugal

Corresponding Author

Received Date: July 29, 2020;  Published Date: August 18, 2020


This short paper proposes talks about the paradigm changing from the Maintenance Management until the Physical Life Cycle Cost. The maintenance activity has been done over equipment that are acquired by someone, usually without any strategic criterion. However, it is of common sense if we purchase a physical asset with an adequate reliability its Life Cycle will give a good return. In fact, during decades, a model for the Life Cycle of Physical Assets includes the maintenance policy, as has direct implications on the equipment’s ROI (return on investment) and Life Cycle Cost (LCC). It is obvious that an adequate purchase, having a strategic plan for each physical asset and for the global physical assets, permits to evaluate, based on a structured and mathematical way, how to maximize the physical assets performance. It is based on these considerations that this short paper discusses a novel model called a life cycle investment (LCI) model instead of the traditional life cycle cost (LCC). The paper proposes a new methodology based on the modified economic life cycle and lifespan methods by including the maintenance policy using key performance indicators of reliability, notably availability, based on the mean time between failures (MTBF) and the mean time to repair (MTTR) parameters.

Keywords: Physical Assets; Life Cycle Cost; LCC; Life Cycle Investment; ROI

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