• Vol 9, No 4 (2018)
  • Industrial Engineering

Performance Modelling for Maintenance Outsourcing Providers based on the Kano Model

Moses Laksono Singgih, Primahasmi Dalulia, Mokh. Suef, Putu Dana Karningsih


Cite this article as:
Singgih, M.L., Dalulia, P., Suef, M., Karningsih, P.D., 2018. Performance Modelling for Maintenance Outsourcing Providers based on the Kano Model. International Journal of Technology. Volume 9(4), pp. 797-808
115
Downloads
Moses Laksono Singgih Institut Teknologi Sepuluh Nopember (ITS)
Primahasmi Dalulia University of Merdeka Malang
Mokh. Suef Institut Teknologi Sepuluh Nopember
Putu Dana Karningsih Institut Teknologi Sepuluh Nopember
Email to Corresponding Author

Abstract
image

Usually, maintenance activities are carried out by the maintenance department in a company, but now, some companies are outsourcing their maintenance activities. Outsourcing is the delegation of business functions to another company. The advantages of outsourcing include enabling a company to focus on its core business by outsourcing support activities, and changing fixed costs to variable costs. The aim of this research is to develop a multi-criteria performance measurement to assess the performance of maintenance outsourcing providers. Several previous studies have identified suitable performance criteria for maintenance outsourcing providers. However, those studies did not classify the criteria for achieving the desired level of performance. To address these shortcomings, this research has classified the criteria based on the Kano criteria. The criteria are: basic, one-dimensional, indifferent, reverse, and attractive. A managed case study analysis was performed at five Class B private hospitals in East Java to better understand the criteria in terms of the needs of a real hospital maintenance department. Previous research studies focused on understanding the relationship between each criterion and the associated level of performance, whereas the current research has focused instead on the relationship links between the criteria and the weighting of each criterion using DEMATEL-ANP. The outcome of this study is a simple instrument that can be directly used to evaluate the performance of maintenance outsourcing providers.

Case study analysis; ICU; KANO; Medical devices; Outsourcing

Introduction

Maintenance activities can be categorised into corrective and preventive. The term corrective maintenance refers to activities that are performed after a system breakdown (Nosoohi & Hejazi, 2011). On the other hand, preventive maintenance, includes inspection and spare part replacement, and is performed before system breakdown. The goal of preventive maintenance is to improve on one or more criteria, such as reliability, availability, and maintenance cost. All maintenance activities usually are performed by an internal maintenance department. Nevertheless, it is now common to outsource the performance of these activities. Outsourcing is defined as delegating a business function to other companies (Gomez et al., 2009). The Intensive Care Unit (ICU) in a hospital is a department which has a high degree of uncertainty. Medical equipment in ICU requires high availability and reliability to ensure patient safety.

Patient safety is a construct that implies behaviour that is intended to minimise the risk of harm to patients through both system effectiveness and individual performance, and is designed to avoid injuries to patients from the care that is intended to help them. Harm is an unintended physical injury resulting from or contributed to by medical care that requires additional monitoring, treatment, or hospitalisation, or that results in death (Albrecht, 2015). It is crucial that the maintenance service provider has a high enough performance level in order to achieve that goal. The aim of this study is to develop a performance measurement model to assess maintenance outsourcing providers. In the healthcare industry in Indonesia, the performance measurement of maintenance service providers has not been performed and there is no systematic method of performance measurement. Performance measurement of the maintenance service provider is important. If the maintenance service provider has a good level of performance, then the availability and reliability of the medical equipment can be maintained. If the performance or performance of the maintenance service provider is not measured and evaluated, then there is the possibility of the service providers not improving their performance. According to Jackson and Pascual (2008) in Cruz and Rincon (2012), research on maintenance service outsourcing focusing on the integration of provider maintenance selection, performance evaluation and measurement has not been performed. Cruz and Rincon (2012) conducted a themed mapping review on previous studies on outsourced maintenance in the healthcare industry area. These earlier studies are broadly divided into four categories, namely mathematical models, conceptual research, empirical research on maintenance outsourcing for medical equipment, and empirical research on maintenance outsourcing in other fields. Almeida (2005) conducted a study on maintenance contract issues related to decision-making. In making decisions, decision makers choose alternatives based on the main criteria of cost and performance. Cruz et al. (2013) conducted research on the performance criteria of the maintenance service providers. The object of this research is more specific, as it is about the maintenance of medical equipment.

Experimental Methods

2.    METHODS

2.1.    Performance Measurement

Performance measurement is defined as a quantitative indicator that can be used to measure a particular goal (Dewangan & Godse, 2014; Yildiz & Demirel, 2014). In hospital, the performance of the maintenance outsourcing providers is directly related to patient safety. So, the performance of the maintenance outsourcing providers should be managed. The first step is to gather suitable criteria to use in the measurement process.

2.2.    Criteria Development

The initial criteria in this study were gathered from a review of the literature. Then, the list of criteria was grouped into similar criteria (Almeida, 2005; 2007). Service quality is defined as the degree of error that occurs when a repair has been carried out, the expected condition of the equipment, and average customer satisfaction (Almeida, 2005; Almeida, 2007; Singgih & Dalulia, 2016). Therefore, service quality can be understood to have a comprehensive meaning, which refers to the level of customer satisfaction with the services of the maintenance outsourcing provider that can be identified by the degree of error when the maintenance activities have been carried out. The details of the criteria obtained from a review of the previous research has been illustrated in Table 1.

The next step after gathering the criteria from the literature was to choose what the suitable criteria are for the ICU hospitals in East Java. This was explored through a case study analysis (Wahjudi et al., 2016) that was conducted in 5 private hospitals, in which the head of the maintenance department in each hospital served as an expert in this research.

Table 1 Criteria obtained from the literature study

Conclusion

By integrating several methods, namely case study analysis, Delphi, Kano, DEMATEL, and ANP, a performance model was developed which can be used by the healthcare industry to assess the performance of their maintenance outsourcing providers. The resulting performance criteria can be used as a reference when assessing the performance of general outsourcing. Case study analysis and Delphi was used to determine new criteria based on the needs of the user, Kano was used to identify criteria for the basic and special dimension requirements, DEMATEL was used to determine linkages between the criteria, and ANP was used to weight the criteria. The results obtained from the Kano method indicated that the criteria that must be fulfilled (basic requirements) must also provide flexibility in terms of abnormal situations and the type of equipment that can be handled by the provider (equipment types). The three criteria that had the highest weighting were the criterion of technician skill at 0.256881, the criterion for diagnostic accuracy at 0.222181, and the criterion of flexibility at 0.175684. The two criteria that were assigned a weight of 0 (meaning that they did not contribute to performance) were the criteria of cost and dependability.

Acknowledgement

This research can be completed because of funds from Kementerian Riset, Teknologi, dan Pendidikan Tinggi, with contract number: 010/SP2H/LT/DRPM/IV/2017.

References

Albrecht, R.M., 2015. Patient Safety: The What, How, and When. The American Journal of Surgery, Volume 210(6), pp. 978982

Almeida, A.T., 2005. Multicriteria Modelling of Repair Contract based on Utility and ELECTRE I Method with Dependability and Service Quality Criteria. Annals of Operations Research, Volume 138, pp. 113–126

Almeida, A.T., 2007. Multicriteria Decision Model for Outsourcing Contracts Selection based on Utility Function and ELECTRE Method. Computers & Operation Research, Volume 34(12), pp. 3569–3574

Angkiriwang, R., Pujawan, I.N., Santosa, B., 2014. Managing Uncertainty through Supply Chain Flexibility: Reactive vs. Proactive Approaches. Production & Manufacturing Research: An Open Access Journal, Volume 2(1), pp. 50–70

Basfirinci, C., Mitra, A., 2015. A Cross Cultural Investigation of Airlines Service Quality through Integration of Servqual and the Kano Model. Journal of Air Transport Management, Volume 42, pp. 239–248

Ciptomulyono, U., 2001. Integrasi Metode Delphi dan Prosedur Analisis Hierarkhis (AHP) untuk Identifikasi dan Penetapan Prioritas Objektif/Kriteria Keputusan. Majalah IPTEK Jurnal Pengetahuan Alam dan Teknologi, ITS, Surabaya, Volume 12(1). pp. 42–52 (in Bahasa)

Cruz, A.M., Rincon, A.M.R., 2012. Medical Device Maintenance Outsourcing: Have Operation Management Research and Management Theories Forgotten the Medical Engineering Community? A Mapping Review. European Journal of Operational Research, Volume 221(1), pp. 186–197

Cruz, A.M., Rincon, A.M.R., Haugan, G.L., 2013. Measuring the Performance of Maintenance Service Outsourcing. Biomedical Instrumentation and Technology, Volume 47(6), pp. 524–535

Dewangan, V., Godse, M., 2014. Towards A Holistic Enterprise Innovation Performance Measurement System. Technovation, Volume 34, pp. 536­545

Gomez, J.F., Parra, C., González, V., Crespo, A., Moreu, P., 2009. Outsourcing Maintenance in Services Providers. Safety, Reliability and Risk Analysis: Theory, Methods and Applications, pp. 829837

Hartono, M., Santoso, A., Prayogo, D.N., 2017. How Kansei Engineering, Kano And QFD can Improve Logistics Services. International Journal of Technology. Volume 8(6), pp.1070–1081

Hartono, M., 2016. The Extended Integrated Model of Kansei Engineering, Kano, and TRIZ Incorporating Cultural Differences into Services. International Journal of Technology. Volume 7(1), pp. 97–104

Lee, W.-S., Huang, A.Y., Chang, Y.-Y., Cheng, C.-M., 2011. Analysis of Decision Making Factors for Equity Investment by DEMATEL and Analytic Network Process. Expert Systems with Applications, Volume 38(7), pp. 8375–8383

Liou, J.J.H., Chuang, Y.-T., 2010. Developing a Hybrid Multi-criteria Model for Selection of Outsourcing Providers. Journal of Expert Systems with Applications, Volume 37(5), pp. 3755–3761

Nosoohi, I., Hejazi, S.R., 2011. A Multi-objective Approach to Simultaneous Determination of Spare Part Numbers and Preventive Replacement Times. Applied Mathematical Modelling, Volume 35(3), pp. 1157–1166

Singgih, M.L., Dalulia, P., 2016. Peformance Criteria Development of Maintenance Service Provider using Case Study Approach Analysis. In: 2016 2nd International Conference of Industrial, Mechanical, Electrical, and Chemical Engineering (ICIMECE), Yogyakarta, 67 October, Indonesia

Suef, M., Suparno, S., Singgih, M.L., 2017. Categorizing Product Attributes Efficiently in QFD-Kano: A Case Analysis in Telecommunication. The TQM Journal, Volume 29(3), pp. 512527

Suzianti, A., Faradilla, N.D.P., Anjani, S. 2015. Customer Preference Analysis on Fashion Online Shops using the Kano Model and Conjoint Analysis. International Journal of Technology. Volume 6(5), pp.881–885 

Wahjudi, D., Singgih, M.L., Suwignjo, P., Baihaqi, I., 2016. The Relationship between Organisational Culture and Firm Performance: An Empirical Study on Indonesian Manufacturing Firms. International Journal of Productivity and Quality Management, Volume 18(1), pp. 118

Winkler, J., Kuklinski, C.P.J.-W., Moser, R., 2015. Decision Making in Emerging Markets: The Delphi Approach's Contribution to Coping with Uncertainty and Equivocality. Journal of Business Research, Volume 68(5), pp. 11181126

Yildiz, S., Demirel, Z.H., 2014. The Benefits, Risks and Effects on Performance of the Outsourcing: A Comparative Study of Seasonal and Permanent Hotels. Procedia - Social and Behavioral Sciences, Volume 109, pp. 514–521

Yoserizal, Y., Singgih, M.L., 2012. Integrasi Metode DEMATEL (Decision Making Trial And Evaluation Laboratory) dan ANP (Analytic Network Process) dalam Evaluasi Kinerja Supplier. In: Prosiding Seminar Nasional Manajemen Teknologi XV