Your Reliability Engineering Professional Development Site
Guest Post by Keith Ridgeway (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Did you know on average around 30% of all organisations do not know what they own, where their assets are located or who is using them; and over 65% of information recorded on asset registers is incomplete, inaccurate or even missing. What’s more concerning is a number of these assets may not be statutory compliant e.g passenger/good/DDA lifts, fire, gas, pressure asset etc. [Read more…]
We hear a lot about things that are being called “Black Swans” today thanks to Nassim Taleb and his extremely successful book, “The Black Swan: The Impact of the Highly Improbable,” now in its second edition. I have written several articles centering on the “Black Swan” phenomenon; defending, clarifying and analyzing the nature of “Black Swan” events. And, I am finding that wildly improbable events are becoming perfectly routine events. [Read more…]
Guest Post by Roxann Dawson (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
In order to improve business performance, manufacturing companies need to reduce the levels of non-conformance and attendant failure costs stemming from poor product design and development. Failure costs generally make up the largest cost category in a manufacturing business and include those attributable to rework, scrap, warranty claims, product recall and product liability claims. This represents lost profit to a business and as a result, it is the area in which the greatest improvement in competitiveness can be made. [Read more…]
Guest Post by Greg Hutchins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
More ISO management systems are incorporating RBT and risk, so the standard is becoming a ‘must know’ standard. ISO 31000 risk management principles, risk management framework, and risk management process are the preferred tools to use with ISO management systems because ISO 31000: [Read more…]
Guest Post by Keith Ridgeway (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Every day we are exposed to all types of hazards, but what really makes these hazards become risks.
For the past 30 years, I’ve been involved in one way or another, investigating the root causes of failure modes be it a system, process, person, plant or product. During this time I’ve applied different problem-solving tools like “FMEA, 8D, 5Whys, FEA’s, DMAIC etc” in order to find the true root cause of this failure mode. Only to get frustrated, thinking I had found the root cause, only 3 months later a new failure mode would come to the surface. [Read more…]
In May of 2015, we finished ISO: Risk Based Thinking book. We answer more than 300 questions about risk, quality, RBT, risk based auditing, and certification. We will start answering questions that we get weekly.
So, what gives us credence since ISO 9001:2015 is coming out in 4 months. Well …. We coined and trademarked the expression: Future of Quality: Risk®. We used the expression CERM: Risk Based Problem Solving | Risk Based Decision Making years before ISO developed Risk Based Thinking. Twenty years ago, we wrote best selling ISO books. We worked with the first ISO CB’s in 1987. Anyway, you get the idea, we’ve been in this business a long time. [Read more…]
Guest Post by Stuart Rosenberg (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
The supply chains of most companies, large and small, exploit a world of opportunities. But increasing global exposure comes with an increasing range of risks. These companies’ complex networks of suppliers and customers are as diverse as the goods and resources they manage. Within the same supply chain, giant multinational companies can sit side-by side with small to medium enterprises (SMEs). Yet among companies large and small there is growing awareness that extreme weather and a changing climate pose new risks and opportunities to old ways of doing business. [Read more…]
Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Most companies have policies and procedures for concurrent engineering but many are ineffective for various reasons resulting in poor implementation of improved producibilty in their products. I have made this observation based on working for a variety of companies in different industries. Three examples of different approaches I encountered are presented below for your consideration. Two of the examples were used by defense companies, one of which I consider excellent and the other poor. One method was used by a commercial company is one I consider to be very good. [Read more…]
Guest Post by Ed Perkins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Risk-based decision making is employed to implement risk management.
But how is this implemented? In this article, we will look at the process of making “risk-based” decisions.
Guest Post by James Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
On March 28, 1979, there was a cascading failure in reactor number 2 at Three Mile Island.
This failure allowed large amounts of nuclear reactor coolant to escape. The accident coalesced the anti-nuclear movement and ultimately caused the decline in nuclear plant construction in the United States. [Read more…]
Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Reliability is designed into a product. Quality is built into a product. Poor reliability is long term, difficult and expensive to rectify because it is woven into the fabric of the product.
Quality is a relative short term problem because once the badly written procedure, non-compliant material or poor workmanship is identified, it usually can be fixed relatively quickly with minimal impact to the program. [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…]
Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
Risk management involves the identification of risks, prioritization of the risks based on probability of occurrence and impact of occurrence, and mitigation plans to control the risks. Once identified and prioritized the question then becomes which risks should be incorporated into the schedule and which ones should be included in the risk register?
The general rule of thumb I have used requires risks with a 50% or greater probability of occurrence to be incorporated into the schedule. The other risks are entered into the risk register. [Read more…]
Guest Post by Greg Hutchins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)
When evaluating risk response strategies, executive management along with process owners must align risk responses with the organization’s risk appetite, business objectives, costs/benefits, and overall risk strategy/tactics. Risk response strategies and tactics may involve: [Read more…]