A portfolio approach to maintenance: A case study of a residential estate

Abstract

The choice between repairing and replacing a defective piece of equipment is an economic decision that is faced by all maintenance managers, including housing estate managers. Such decisions need to be made within the limits and constraints set by maintenance expenditure budgets and by manpower availability. Our particular problem is concerned with the development of a maintenance policy for a residential estate of the Hong Kong Housing Authority. Our approach is to treat the numerous housing systems as a portfolio and to exploit flexibilities in performing or delaying the repair I replacement of these systems. The cost of a repair/replacement plan for the portfolio is formulated as an integer programme and genetic algorithms (GAs) are employed to generate optimal and sub-optimal solution plans. The novel features of the approach are the model developed and use of GAs in this particular optimization context. The results and discussion of the case study will help practitioners to better understand the difficulties involved in collecting relevant cost data and in formulating repair/replacement plans for a group of buildings. Copyright ©2007 John Wiley & Sons, Ltd.