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Model contract for outsourcing of maintenance: a principal-agent approach

The outsourcing is being used to reduce work on activities not related to production activities. Nowadays, the models of contracts of maintenance use the repair time and the cost of maintenance activities as main control indicator to estimate the political of incentives. The main objective of this paper is to introduce a model of incentives considering other variables that affect substantially the profit and that they are affected by the maintenance activities as the quality of products produced and the reduction of production capacity. The paper uses the Principal-Agent Theory to develop an incentive contract that leads the agent to execute activities that maximize the profit. It is used a numerical example in order to highlight the positive impact on company results, in addition to the generalization and adaptation of the model.

Maintenance contract; Maintenance quality; Principal-Agent Theory


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