Blog - Accendo Reliability

How Accounting Policies Affect Maintenance Costs

Accounting decisions can greatly affect maintenance costs. Two examples are the decision to purchase items as maintenance or capital and plant item asset numbering.

Maintenance costs are expensed in the financial year incurred and are claimed as a tax deduction at the company tax rate (soon 30% in Australia) in the year they are spent. Capital expenditure, on the other hand, is depreciated and can only be claimed as a tax deduction over the usable life of the equipment. Depending on the industry, the depreciation rate for industrial equipment is 20% per year. It can be as little as 2.5% per year for office buildings. There is a clear tax advantage to claim as much expenditure as possible as a maintenance cost and not a capital cost. [Read more…]

by Greg Hutchins Leave a Comment

Exploiting New Challenges in Enterprise Risk Management

Heightened Awareness or Reactive, Backwards Looking?

Guest Post by Geary Sikich (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

From financial crises to energy catastrophes to earthquakes and threats of terrorism, we hear a lot about events that challenge our ability to identify and manage risk. Unfortunately, some of the things that emerge from many of these events are reactive regulatory rules and requirements. [Read more…]

by Fred Schenkelberg Leave a Comment

The 1 Parameter Exponential Distribution 7 Formulas

This is part of a short series on the common life data distributions.

The Exponential distribution is popular and useful in isolated situations. It has some nice features and flexibility that support it’s popularity. This short article focuses on 7 formulas of the Exponential Distribution.

If you want to know more about fitting a set of data to a distribution, well that is in another article.

It has the essential formulas that you may find useful when answering specific questions. Knowing a distribution’s set of parameters does provide, along with the right formulas, a quick means to answer a wide range of reliability related questions. [Read more…]

by Ash Norton Leave a Comment

5 Tips to Ace the Interview

5 Body Prep Tips to Ace the Interview

Even a seasoned professional gets a little nervous (or a lot nervous!) before an interview. It is human nature. Luckily for you, there are lots of things that you can do to prepare to boost your confidence and ready yourself. Now, I am not talking about wearing a great suit, studying your material, practicing your Ten Second Tease elevator speech, or rehearsing your Me at My Best Stories. Yes, those are all important things to do. [Read more…]

by Perry Parendo Leave a Comment

Underused Product Development Tools

Is that tool really going to help me?

We do not want tools that waste our time. How do we know which tool can create benefit for us? Here are a few tools worth using on most projects. Each section below contains a 2-minute video to expand on the topic provided.

[Read more…]

by Doug Plucknette 1 Comment

10 Things a Maintenance Tech Can Do Today to Improve Reliability

As companies around the globe look to improve equipment reliability, I can’t help but think of the Technicians and Craftspeople I meet after conference presentations. As they step up to introduce themselves to comment on the presentation, these attendees will often say, “I really liked your presentation, but I don’t think our management would ever support a program like this. What you are doing makes a lot of sense, but we just don’t have the people and our Operations Managers don’t understand maintenance and reliability.” [Read more…]

by Adam Bahret Leave a Comment

She’s a Menace!

The Titanic had two sister ships, the Britannic and the Olympic. There was a woman called Violet Jessop, a nurse and a cruise liner stewardess that worked on all three. (That’s her, to the right->)

The Olympic crashed into a warship whilst leaving harbor but was able to make it back.
She was on the Titanic as it sank and is referenced in the Titanic film, a stewardess that was told to set an example to the non english speaking passengers as the ship sank. She looked after a baby on lifeboat 16 until being rescued by the Carpathia the next day.
It’s not known what exactly caused the sinking of the Britannic but the lifeboats hit the water too early. As the ship sank, the rear listed up and a number of the lifeboats were sucked into the propellers. Violet had to jump out of the lifeboat she was in and sustained a serious head injury, but survived.

[Read more…]

by Carl S. Carlson 21 Comments

Understanding FMEA Severity Risk – Part 1

The Seriousness of Consequences

Have you ever been in an FMEA meeting where the team did not agree on the severity rating? Understanding and correctly applying severity risk is an important part of FMEA application. This article discusses the subject of severity risk, including examples for design and process FMEAs, and offers a tip on what to do when the team does not agree on the severity risk rating.

“The only real mistake is the one from which we learn nothing.”
Henry Ford

[Read more…]

by Robert Allen Leave a Comment

Enabling People, Processes and Product Development

Clear roles and responsibilities for project managers and team leaders can significantly improve alignment of skillsets and overall teamwork

A generally accepted principle for a successful business is great people, processes & products. This can be further simplified as “maximizing customer value and minimizing cost” of the product.

Consider the following:

An excellent product development process should ensure maximum customer value while product cost is minimized
Process improvement minimizes (or reduces) costs across the enterprise
Project management ensures execution of product development, or process improvement products

[Read more…]

by Katie Switzer Leave a Comment

Defeat Your Lizard Brain and Banish Procrastination Forever

Do you sometimes (or often) suffer guilt or frustration due to procrastination? If so, you are not alone. It’s a common perception that procrastination is an inherent personality flaw, the result of laziness or other slothfulness. People get frustrated by procrastinators and label them as lazy, untrustworthy, and unreliable.

However, in recent decades scientists have learned a lot about how our brains work that gives insight into procrastination and why it happens. It turns out that when your advanced human brain sets out to accomplish a task, but can’t see a clear path to completion, the doubting antiquated lizard brain takes over. Your lizard brain, a leftover instinct-driven antique from the days of the caveman, decides the apparently unsolvable is overwhelming, and creates a bad attitude toward the task. It’s fight or flight, and procrastination is the flight response to the stress created by the task. [Read more…]

by Mike Sondalini 6 Comments

Metal Fatigue Failure

Metal Fatigue Failure Theory and Design Considerations

This article is a basic introduction to the mechanism of metal fatigue failure where parts break after a period of time in service. Explanations of accepted theories are provided and relevant design practices to reduce metal fatigue are presented and explained. [Read more…]

by Greg Hutchins 1 Comment

ERM and Intelligent Risk

Guest Post by James J. Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

In the Baldrige Excellence Framework the term “Intelligent Risk” appears. It is defined as: “Opportunities for which the potential gain outweighs the potential harm or loss to your organization’s future success.” This definition expresses a concern that risk might inhibit innovation. With the addition of Enterprise Risk Management to the 2017-18 Framework has a condition been created where two best business criteria, innovation and risk management, might cancel each other out? More basically, does Enterprise Risk Management (ERM) inhibit innovation related risk taking?

[Read more…]

by Fred Schenkelberg Leave a Comment

The Gamma Distribution 7 Formulas

This is part of a short series on the common life data distributions.

The Gamma distribution is routinely used to describe systems undergoing sequences of events or shocks which lead to eventual failure. Also used to describe renewal processes. This short article focuses on 7 formulas of the Gamma Distribution.

If you want to know more about fitting a set of data to a distribution, well that is in another article.

by Doug Plucknette Leave a Comment

Does the Company You Work For Care About You?

If Not, Does it Matter?

One of the best things about my job is from time to time I get to work with some younger people who have a passion for the Maintenance and Reliability business and have made the decision to pursue a career in this business. I really enjoy being a mentor, guiding the ambitious and offering advice on where to find information, articles and real, workable solutions. [Read more…]

by Perry Parendo Leave a Comment

Training Effectiveness

We need training that is useful.

All companies train their people. How can you get what you need? What is the most effective approach? Each section below contains a 2-minute video to expand on the topic provided.

We need the training impact to last longer than the class

A company sees a need for training. They set up a class agenda and bring in an instructor. The ratings were good, but no one is using the new information so no value was created. How can they achieve training success and make it stick? This video shows our approach to make it more beneficial and create company value.

[Read more…]