Effective performance management is crucial to improve service quality, end-user satisfaction and the sustainability of public-private partnership (PPP) projects. Recognizing the long-term nature of PPP operations, this study develops a reliability-based performance optimization model to explore optimal maintenance strategies that achieve the lowest life-cycle cost within the constraints of performance reliability.
Engineering reliability theory is drawn upon in this study to define the performance reliability of PPP operations, while Lagrange optimization is employed to determine optimal maintenance strategies. Empirical data from three Australian PPP schools were used to validate the proposed optimization model. The methodology integrates theoretical models from engineering reliability theory and optimization theory, providing a foundation for “analytic generalization” to similar contexts.
The results reveal that maintenance strategies with randomized inspection numbers and intervals achieve lower life-cycle costs while maintaining performance reliability at an acceptable level. Additionally, the deterioration rate has a more significant impact on life-cycle cost.
The study provides a quantitative decision-support tool for decision-makers in PPPs, enabling the development of cost-effective maintenance strategies.
This study contributes to the theoretical development of PPP research by adopting engineering reliability theory into performance analysis. The proposed reliability-based model outperforms traditional methods by controlling the life-cycle costs while ensuring performance reliability over time. Moreover, the role of the end-user is emphasized. It demonstrates potential applicability in other performance management contexts, which warrants further investigation.
