Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

A Study on the IoT-based Fleet Maintenance Considering the Parts Reliability
Kangbae Lee
Management Information Systems, College of Business Administration, Dong-A University,
225, Gudeok-ro, Seo-gu, Busan, Rep. of KOREA, 49236, +8210-8956-4005
Doo-hwan Kim
Management Information Systems, College of Business Administration, Dong-A University,
225, Gudeok-ro, Seo-gu, Busan, Rep. of KOREA, 49236, +8210-7193-6968
Hyung Rim Choi
Management Information Systems, College of Business Administration, Dong-A University,
225, Gudeok-ro, Seo-gu, Busan, Rep. of KOREA, 49236, +8210-5416-4031
Byung Kwon Park
Management Information Systems, College of Business Administration, Dong-A University,
225, Gudeok-ro, Seo-gu, Busan, Rep. of KOREA, 49236, +8210-3254-9260
Min Je Cho
Management Information Systems, College of Business Administration, Dong-A University,
225, Gudeok-ro, Seo-gu, Busan, Rep. of KOREA, 49236, +8210-6515-4444
Seong Ho Park
Management Information Systems, College of Business Administration, Dong-A University,
225, Gudeok-ro, Seo-gu, Busan, Rep. of KOREA, 49236, +8210-9396-2975
ABSTRACT
The Fleet is consist of many parts, and when a
failure of a part occurs, the availability of the Fleet
is decreased by limitation of the maintenance time.
In order to increase the availability of Fleet, Fleet
Maintenance is used to prevent the failures by
allocating the necessary resources and scheduling
activities for the maintenance of Fleet. Fleet
Maintenance includes two major types of
maintenance - periodic maintenance and preventive
maintenance. Shorter maintenance cycles for high
reliability and availability of Fleet increases costs.
On the contrary, longer maintenance cycles reduces
costs but decreases reliability and availability.
This study proposes an IoT-based Fleet
Maintenance to reduce the maintenance cost of
Fleet and to improve the availability considering the
parts reliability by collecting and analyzing data of
the parts from the IoT (Internet of Things).
Key words: IoT, Fleet Maintenance, Fleet
Management
1. Introduction
The reduction of freight costs, which accounts for
1/3 to 2/3 of total logistics costs, can decrease total
operating costs for the supply chain management
(SCM) consisting of consumers, logistics
companies, and suppliers [1]. In particular, domestic
freight transportations are conducted by sea,
railway, air, and highroad. Freight transportation by
highroad is 90.6% of total domestic freight
transportation that is increasing every year.
Many companies are adopting IT technology to
reduce the freight cost of highroad transportation.
Most freight is transported by highroad. Fleet
maintenance is important to reduce transportation
costs in highroad freight transportation using trucks.
Fleet maintenance refers to the process of allocating
and scheduling resources for repair activities such
as repair, replacement, preventive maintenance, and
sustaining of normal operation, as well as,
maintaining the quality of the system at a certain
level or higher [2][3].
Thanks to the development of ICT, IoT
technology, which enables communication between
people and people, objects and objects, as well as,
people and objects, is being applied to various
industrial fields and real-time information is being
produced.
IoT complements the limitations of RFID
technology by equipping a communication module,
which enables real-time network communication
[4][5][6].
This study proposes an IoT-based Fleet
Maintenance to reduce the maintenance cost of
Fleet and to improve its usability considering the
parts reliability based on IoT by collecting and
analyzing parts data from the IoT.
2. The outline of mathematical model and
assumptions
Figure 1 shows the entire system of fleet as a model
consisting of a serial-parallel system. K (K= 1, …,
6) refers parts of fleet. Each part has different
failure probabilities, and the failure probability
increases when fleet is available. Maintenance of
each part is done by real-time monitoring if the
reliability of part falls below a certain level. The
cost of repairing each part is also different.
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