Investigating economic replacement policy under uncertainty for managerial application based on grey-reliability approach using QCC

Abstract
Purpose – The main purpose of present study is to model the replacement policy under uncertainty for
managerial application based on grey-reliability approach by considering the subjective views of quality
control circle (QCC). The study objectively links the optimality between individual replacement and group
replacement policies for determining the minimum operational costs. The integrated framework between QCC,
replacement theory, grey set theory and supply chain management is presented to plan replacement actions
under uncertainty.
Design/methodology/approach – The study proposes the concept of grey-reliability index and built a
decision support model, which can deal with the imprecise information for determining the minimum
operational costs to plan subsequent maintenance efforts.
Findings – The findings of the study establish the synergy between individual replacement and group
replacement policies. The computations related to the numbers of failures, operational costs, reliability index
and failure probabilities are presented under developed framework. An integrated framework to facilitate the
managers in deciding the replacement policy based on operational time towards concerning replacement of
assets that do not deteriorate, but fails suddenly over time is presented. The conceptual model is explained with
a numerical procedure to illustrate the significance of the proposed approach.
Originality/value – A conceptual model under the framework of such items, whose failures cannot be
corrected by repair actions, but can only be set by replacement is presented. The study provides an important
knowledge based decision support framework for crafting a replacement model using grey set theory.
The study captured subjective information to build decision model in the ambit of replacement.