The goal of the maintenance optimization process is to select the appropriate maintenance technique for each piece of equipment within a system and identifying the periodicity that the maintenance technique should be conducted to achieve regulatory requirements, maintenance targets concerning safety, equipment reliability, system availability and costs. This paper presents a predictive maintenance model for a deteriorating system in a manufacturing industry. In the deterioration process the important parameters of the system gradually worsen, and if left unattended, the process leads to deterioration failure of the whole system. In this study we consider discrete stage deterioration, where the first stage is a good stage and the last stage is the failed stage. During the life period of a machine the breakdown in the system can be rectified by immediate corrective maintenance programmes and the deterioration of the system can be solved by proper preventive maintenance schedule. The corrective and preventive maintenances bring the manufacturing system into a good and new stage of operation. Using Markov chains, this study presents closed-form analytical solutions for the performance measures of the model. The study also presents algorithms to find the optimal model parameters that maximize the system availability. An optimal design of the condition based models is essential for getting a closed form solution.
