Abstract: In the one-dimensional renewing warranty period, the quality of the spares for product is likely to be improved during the warranty period. Therefore, upgrading maintenance becomes more and more common. Then the manufacturers (customers) may have to decide whether or not to provide (buy) the warranty considering upgrading maintenance. This paper presents a mathematical model considering upgrading maintenance for products with multiple failure modes. Upgrading maintenance is taken into account with the assumption that the warranted item is upgraded one time during the warranty cycle. The upgrading maintenance is carried out, when the corrective maintenance is taken place. After upgrading maintenance, the high-quality spares are used to replace the failed item. In the numerical example, the results of the models are calculated. Monte Carlo simulation results are compared with the analytical results to demonstrate the correctness and efficiency of the proposed models considering upgrading maintenance. © 2016, Shanghai Jiaotong University and Springer-Verlag Berlin Heidelberg.

Key words: corrective maintenance; multiple failure modes; one-dimensional renewing warranty policy; upgrading maintenance; warranty cost