Investment in Reliability Program versus Return     How to DecideFred Schenkelberg, Consultant  January 23rdthru 26th, 201...
Trade offanalysisCostTime to MarketFunctionalityReliability
Value
Avoiding lost sales and development expensesHALT & TIME TO MARKET
Situation     •   New Design – no history     •   Portable electronics     •   Expect drop damage     •   Holiday market  ...
Current PlanDesign verificationtesting    Accelerated LifeTest    2nd prototypesHistorically    25% of time    discover fa...
ProposalHALT40% chanceof finding major fault1st Prototypes
HALT ValueCost of HALT   Chamber access, prototypes, techniciantime, and failure analysis $24kValue of HALT    assume $500...
Lets explore how to estimate return on reliability investmentMANY WAYS TO ESTIMATE VALUE
Ideas on estimating valueAvoid field failure expense   Save time
YesNo
What are your questions?
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Investment in reliability program versus return – how to decide

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Paper presented at 2012 RAMS about basic methods to estimate the value of specific reliability activities

Published in: Technology, Economy & Finance
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Investment in reliability program versus return – how to decide

  1. 1. Investment in Reliability Program versus Return How to DecideFred Schenkelberg, Consultant January 23rdthru 26th, 2012 RAMS Session 1D
  2. 2. Trade offanalysisCostTime to MarketFunctionalityReliability
  3. 3. Value
  4. 4. Avoiding lost sales and development expensesHALT & TIME TO MARKET
  5. 5. Situation • New Design – no history • Portable electronics • Expect drop damage • Holiday market • 98% reliability over 1 year of use
  6. 6. Current PlanDesign verificationtesting Accelerated LifeTest 2nd prototypesHistorically 25% of time discover fatal flaw 30 day delay
  7. 7. ProposalHALT40% chanceof finding major fault1st Prototypes
  8. 8. HALT ValueCost of HALT Chamber access, prototypes, techniciantime, and failure analysis $24kValue of HALT assume $500k/day lost sales 30 days - - $15m 40% x 25% x $15m = $1.5m
  9. 9. Lets explore how to estimate return on reliability investmentMANY WAYS TO ESTIMATE VALUE
  10. 10. Ideas on estimating valueAvoid field failure expense Save time
  11. 11. YesNo
  12. 12. What are your questions?

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