Mediation analysis of fuel cost on maintenance cost and production- bench drilling phase of diamond wire sawing technique of Stone Extraction

Abstract

Maintenance cost is the expenses incurred for either or both of proactive and reactive maintenance. There is a moderate and statistically significant correlation between maintenance cost and production. Fuel cost is the expenses incurred as diesel and lubricants’ consumption. When production is regressed on maintenance cost, the regression model is statistically significant and maintenance cost has a statistically significant and moderate influence on production. This paper aims to find the mediation effect of fuel cost on the relationship between production and maintenance cost. Pearson correlation suggests that fuel cost has statistically significant and strong correlations with both of these variables. When production is regressed on maintenance cost and fuel cost for the mediation analysis of fuel cost, the regression model suggests that fuel cost has statistically significant and strong influence on production but in this model maintenance cost has statistically insignificant and negligible influence on production. This shows that fuel cost has mediation effect on the relationship between maintenance cost and production.