Purpose – This paper aims to present a case study where proportional hazards modeling software is used to evaluate the potential benefits of a condition‐based maintenance policy for military vehicle diesel engines.Design/methodology/approach – Maintenance records for diesel engines were supplied by the UK Ministry of Defence. A proportional hazards model based on these data was created using EXAKT software. Covariate parameters were estimated using the maximum likelihood method and transition probabilities were established using a Markov Chain model. Finally, decision parameters were entered to create an optimal decision model.Findings – Two significant covariates were identified as influencing the hazard rate of the engines. In addition, the optimal decision model indicated a potential economic saving of up to 30 per cent.Practical implications – A model of this nature is particularly useful to predict failures, improve maintenance policies, and possibly reduce maintenance costs. In addition, the cost of...
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