Your Reliability Engineering Professional Development Site
We are rather good at being surprised when setting expectations for the future. This is the essence of risk. The difference between what we expect to occur or would like to occur, and what does occur.
The definition of risk in ISO 9000:2015 and ISO 31000 include the phrase “ effect of uncertainty”. Let’s remove some of the uncertainty around the term uncertainty in the context of risk and risk management. [Read more…]
Guest Post by Rod Farrar (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
The project management body of knowledge generally focuses on scope management, time management, and cost management. Risk management generally comes in at about 8th place out of the ten.
However, risk management is potentially the biggest part of the project management planning process.
Often organizations assign resources, dollars and time to project objectives to know exactly when the project is going to finish, how much it is going to cost and what resources are needed.
The problem with doing this is they have not identified risks. [Read more…]
Conventional consulting approaches begin with assessments to determine your current state of affairs, judge what’s good and bad about it, give it a score, provide a long list of recommendations and then build an improvement strategy based on the outcome.
Strategy development is normally carried out by a select leadership team and then the change is rolled out to lower levels in the organization. This approach has served well for a long time and it is at the outset of almost any major consulting engagement.
It is useful when comparing sites among each other, but is there some sort of award for being best? Usually not. [Read more…]
Guest Post by Rod Farrar (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
The project management body of knowledge generally focuses on scope management, time management, and cost management. Risk management generally comes in at about 8th place out of the ten.
However, risk management is potentially the biggest part of the project management planning process. [Read more…]
In this episode of the weekly podcast, the guest Scott Kelley explains the 5th cell of the Hexcellence Model. All of the previous cells of this hexagon are connected to each other and are equally important when it comes to getting the superior asset management outcomes. But when it comes to achieving optimum results for the company some sort of performance measures must be done and each of the factors involved in determining the performance level must be taken care of. Not only that you need to understand these factors deeply, you need to relate them to your baselines for budget and time as well. In this way, you will be able to meet the expectations and standards that ultimately lead to focused improvements in the long run. Now, these measures will change the behavior of your organization. So, you have to be careful while using any metrics for measurement to get those numbers that will determine the behavior of your people. A good performance metric is always balanced to avoid any counter-productive outcomes. You can create as many metrics as you want but unless those are aligned with your strategic goals, they won’t be of any help at all. That’s why all the metrics that you use should be fit for purpose—meaning that look at the overall picture and make the indicators in a comparative fashion if you want those to make sense.
ᐅ Play Episode
A Bloomberg articles details the Takata airbag recall series of events. The line that caught my attention is:
…company documents suggesting that Takata executives discounted concerns from their own employees and hid the potential danger…
“Sixty Million Car Bombs: Inside Takata’s Airbag Crisis”, Susan Berfield, et.al. Bloomberg Business Week, posted June 2nd, 2016, https://www.bloomberg.com/news/features/2016-06-02/sixty-million-car-bombs-inside-takata-s-air-bag-crisis
There are other examples where management doesn’t seem to listen when engineers raise concerns. Have we cried wolf too often? Has management gotten used to taken risks as a good business practice?
At times reliability risks are real and need to be clearly communicated. Let’s talk about how you can effectively get the message across. [Read more…]
In this episode, the guest Scott Kelley explains the role of the people component in the asset management model. Asset management is the most effective way of making the best use of investment and improve the production level of any organization. There are total six components in the model; people, plant, processes, policies and procedures, performance, and proactive maintenance. The people factor is of top priority among all of these factors. Why is the people component most important? Well, considering even if you have excelled in every other cell, you are going to need people to manage all of these and above all well trained and skillful people to make this work. Now, this cell in the model contains things such as organizational development, organizational structure, continuous improvement, change management, and operational excellence.
ᐅ Play Episode
In today’s episode, the guest Tara Holwegner explains the role of stakeholders and the management in an organization. It is very common that many new projects and big initiatives take place in the organizations but most of these don’t succeed or generate results as expected even if they have the potential. The problem in these cases is the little transfer of information, lack of communication, and incoherent business objectives. [Read more…]
In today’s episode, our guest is Scott Kelley and the discussion is about the ABC’s of the asset management. Most of the organizations fail in the implementation of this process or they don’t get good results. That’s why they need to follow the ABC’s of Asset Management. These are:
A – Always have the “RIGHT” executive sponsor
B – Before you begin have a vision or model of the finished product or outcome
C – CONSTANT & CONSISTENT implementation.
These principles are key to the success of any Asset Management Program.
Guest Post by Greg Hutchins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
The idea of supply chain risk management has been around for about 10 years. It is only in the last 5 years, that it has become popular. We are still at the early stage of supply chain risk management adoption and deployment.
In terms of total dollar amount, external suppliers provide a significant portion of a manufacturer’s product. For U.S. firms, 50% to 80% or more of the final price of a product can be the cost of purchased goods. In Japan, it can be even higher.
For these reasons, any supply disruption can kill a supply chain. As a result, supply chain risk management is now critical to a company’s competitiveness. [Read more…]
Reliability Centered Maintenance (RCM) is extremely useful for organizations considering certification in Asset Management or looking at improving their asset care practices.
Exploring RCM as a tool, getting training for instance, is something that any organization interested in Capital Asset Management™, Asset Management or compliance to ISO 55001, really should do. Here’s why… [Read more…]
This is second of 2-part episode of the Rooted in Reliability podcast which will give you a detailed insight about where to start with the asset management and then how to take it all the way out. Firstly you really need to understand this concept completely that what’s and what’s not the asset management. The first episode covers the Asset Management and the role of ISO 55000 in it.
ᐅ Play Episode
Some quality paradigms are expensive.
Quality is a mindset! When a wise man is given the chance to buy quality items he does so because quality pays for itself.
A quality item lasts longer, runs better and looks good when others fade. To change the way you think about quality takes a lot of experience with using poorer options. When you are sitting down with your head in your hands wondering what can be done to get costs down, to get production up and how you are going to hit the key performance indicators, remember the importance of quality equipment, quality systems, quality training and your quality mindset!
Keywords: quality control [Read more…]
Guest Post by Greg Hutchins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Last year, we reported that White House Office of Management and Budget (OMB – executive office) is requiring US departments to design and implement Enterprise Risk Management (ERM). The requirements are part of the OMB Circular A 11 Section 270 – Performance and Strategic Reviews.
US Departments are:
expected to manage risks and challenges related to delivering the organization’s mission. ERM is a strategic discipline that can help agencies to properly identify and manage risks to performance, especially those risks related to achieving strategic objectives.
Guest Post by Greg Hutchins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
ISO 31000 is organized around 11 risk management principles. A management principle refers to a fundamental idea, rule, or truth about a subject. ISO 31000 risk principles serve as the guideline, method, logic, design, and implementation for the risk management framework and its process. [Read more…]
