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What Is A Key Performance Indicator (KPI)?

What Is A Key Performance Indicator (KPI)?

Identifying the Right KPI for Your Business is Critical to Managing the Performance of the Business (Part 1)

“What gets measured, gets done” and Key Performance Indicators (KPI) are critical to measuring the performance of the organization and business. So what specifically is a KPI? According to the The Professionals Guide To Maintenance And Reliability Terminology, a KPI is a vital indicator which is used to evaluate process performance. KPIs are used to represents a measure (or set of metrics) focusing on those aspects of organizational performance that are the most critical for the current and future success of the organization. [Read more…]

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Reliability is Not Metrics, It’s Decision Making

Reliability is Not Metrics, It’s Decision Making

Reliability is Not Metrics, It’s Decision Making

MTBF, KPIs, yield, return rate, warranty… bah!

We may use one or more of these when establishing product reliability goals. When tracking performance. When making decisions.

Goals, objectives, specifications, and requirements, are stand-ins for the customer’s experience with the product.

We’re not trying to reduce warranty expenses or shouldn’t be solely focused on just that measure. We need to focus on making decisions that allow our product deliver the expected reliability performance to the customer. [Read more…]

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5 Ways Your Reliability Metrics are Fooling You

5 Ways Your Reliability Metrics are Fooling You

5 Ways Your Reliability Metrics are Fooling You

We measure results. We measure profit, shipments, and reliability.

The measures or metrics help us determine if we’re meeting out goals if something bad or good is happening, if we need to alter our course.

We rely on metrics to guide our business decisions.

Sometimes, our metrics obscure, confuse or distort the very signals we’re trying to comprehend.

Here are five metric based mistakes I’ve seen in various organizations. Being aware of the limitations or faults with these examples may help you improve the metrics you use on a day to day basis. I don’t always have a better option for your particular situation, yet using a metric that helps you make poor decisions, generally isn’t acceptable.

If you know of a better way to employ similar measures, please add your thoughts to the comments section below. [Read more…]

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How to Measure Success: The 7 Key Performance Indicators You Must Measure

How to Measure Success: The 7 Key Performance Indicators You Must Measure

Being able to see what world class Reliability & Maintenance looks like is one thing. Communicating that success and level of performance to non-maintenance people can be difficult. Not to mention, that we always need to improve, and how can we if we only use qualitative measures?

I remember one time, trying to explain how Maintenance Planning & Scheduling has improved our maintenance department. I used explanations like; “The team isn’t wandering around looking for parts” and “They don’t need to leave the job to get the manuals anymore”. I was met with blank stares and was asked “How much were we saving on labour” and “How much were we able to reduce planned downtime”. [Read more…]

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The Dirge of the MTBF Bias

The Dirge of the MTBF Bias

14586667289_a699805f98_m_dThe Dirge of the MTBF Bias

We use our biases every day to make choices.

We select the beige sweater because we have a color bias concerning our sweaters.

Many of our biases help us quickly make decisions. We rely on biases to move through the day. Many of our biases are under the surface, unconsciously guiding our daily decisions. Mostly, biases are good or at least inconsequential.

The problem is the bias that shields us from achieving our goals.  [Read more…]

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Rewards and Incentives Have an Impact On Reliability

Rewards and Incentives Have an Impact On Reliability

A maxim of business management is to measure what is important.

The focus on aligning metrics, rewards, and incentives is not a new concept. Many businesses create target focused incentives with the expectation it will assist achieving those important business goals.

In many cases, simply monitoring a metric improve the team’s ability to achieve a specific goal.

In some cases, though, achieving the goal and associated incentive has an associated negative impact on the business.

If you offer a bonus for a short-term behavior or goal and offer nothing to balance with the long-term impact.

Your incentive may actually damage your business in the long term. [Read more…]

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Considering WIIFT When Reporting Reliability

Considering WIIFT When Reporting Reliability

14762172376_976f51db33_oWIIFT and Reliability Measures

WIIFT is “what’s in it for them”. Similar to what’s in it for me, yet the focus is your consideration of what value are you providing your audience.

As a reliability engineer you collection, analyze and report reliability measures. You report reliability estimates or results. Do you know how your audience is going to use this information?

Consider WIIFT when reporting reliability. [Read more…]

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Do Your KPIs Adversely Impact Reliability?

Do Your KPIs Adversely Impact Reliability?

Key Performance Indicators (KPIs) are measurable values related to essential business objectives.

A KPI provides a means to monitor the performance of a specific function.

In larger organizations, with sales & marketing, research & development, operations, supply chain and other teams working to bring products to market, each department has a specific role. [Read more…]

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Reliability Paradigm Shift From Time to Stress Metrics

Reliability Paradigm Shift From Time to Stress Metrics

Traditional electronics reliability engineering began during the period of infancy in solid state electronic hardware. The first comprehensive guide to Failure Prediction Methodology (FPM) premiered in 1956 with the publication of the RCA release TR-1100:  “Reliability Stress Analysis for Electronic Equipment” presented models for computing rates of component failures.  “RADC Reliability Notebook” emerged later in 1959, followed by the publication of a military handbook know as  that addressed reliability prediction known as Military Handbook  for [Read more…]

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Shaping Organizational Behavior

When conducting a Human Reliability Assessment (HRA) we use the terminology: errors of commission or errors of omission. It behoves every professional to question why we focus upon one metric in preference to all others, in an objective and constructive manner in order to discern whether we are exposing our organization to errors of professional omission or commission. Obviously the other conclusion is that we are doing the right thing and this is also an empowering piece of knowledge. [Read more…]