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Fundamentals of Managing an Outsourced (CM) Value Stream

Fundamentals of Managing an Outsourced (CM) Value Stream

This article will cover the management of a contract manufacturer (CM) value stream from the perspective of a company that has outsourced the manufacturing of its product.  A typical CM model is most likely “turn-key” such that the “Company” purchases the only finished goods from the CM. 

Part/component purchases are a shared responsibility between the company and CM.  Company-controlled suppliers have negotiated pricing and purchased orders may be placed by the company or the CM for long-lead and specialty items. 

Ultimately, the liability for part/component inventory rests on the company. For this reason, minimizing inventory, maximizing inventory turns, and value stream flexibility are some major objectives of managing a CM. 

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Markov Chain Analysis

Markov Chain Analysis

Markov Chain Analysis and Eigenvector/Eigenvalue Problem: A Powerful Tool for Reliability Engineering

In reliability engineering, predicting system behavior over time is crucial for maintenance planning and risk assessment. One powerful mathematical tool for this analysis is Markov Chain modelling. In this article, I’ll demonstrate how Markov Chains can predict device reliability using a real-world example: battery reliability in reliability testing facilities.

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5 Decisions Reliability Analysis Can Help With

5 Decisions Reliability Analysis Can Help With

Introduction to Reliability or Life Analysis

Reliability Analysis or Life Analysis is a process where asset records are used to build a statistical model for the asset. The model will in turn provide information of its future performance. It becomes an indispensable tool for asset managers in terms of making life cycle decisions with regards to the asset preservation and eventually replacement. Let alone the safety of employees. Typically, though not necessarily always, those records are obtained from the Computer Maintenance Management System (CMMS).

The basis of the model is a statistical distribution. An example of the process is illustrated in Diagram 1 where a number of “n” centrifugal pumps are run on a test bench until they fail. Each time interval to failure is recorded and once all the failure records are collected, a normalized frequency graph can be constructed. This frequency graph helps define the statistical distribution that best represents the life cycle of a typical component in the population. Using specific mathematical transformations applied to the distribution, the probability of failure after a defined mission time can be derived. And much more information as we will discover in this article.

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How We Think About Reliability

How We Think About Reliability

How We Think About Reliability Is Important

Getting on an airplane we think about the very low probability of failure during the flight duration. This is how we think about reliability.

When buying a car we think about if the vehicle will leave us stranded along a deserted stretch of highway. When buy light bulbs for the hard to reach fixtures we consider paying a bit more to avoid having to drag out the ladder as often.

When we consider reliability as a customer does, we think about the possibility of failure over some duration.

And, we really don’t like it when something fails sooner than expected (or upon installation). [Read more…]

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How to Fit Data to a Distribution

How to Fit Data to a Distribution

Understanding the different types of data and their respective uses is critical for product development, testing, and analysis. Each type of data plays a role in ensuring that products meet quality standards and fulfill user needs. As a mechanical engineer with a focus on R&D testing and data analysis, you would likely encounter and utilize these various data types throughout the product development and validation process.

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Maintenance Management Strategy by Physics of Failure Factors Analysis

Maintenance Management Strategy by Physics of Failure Factors Analysis

The Physics of Failure Factors Analysis for selecting maintenance strategy is a one-person exercise that identifies all ways a component can physically fail. Equally important to its simplicity is its ability to select the most effective life cycle strategies for maximising reliability. Another powerful business advantage is the failure-addressing solutions arrived at are universal solutions that apply to every other identical component, whatever equipment it is in. Do a Physics of Failure Factors Analysis for one part and you do it for all identical parts for the life of your operation. It is a highly accurate and cost-effective maintenance strategy selection methodology.

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Disruption is Creating New Work Worlds

Disruption is Creating New Work Worlds

There are lots of lessons to learn from Amazon. Never stop innovating or questioning the fundamentals of your business. Disrupt yourself before others do.
Brad Stone – Journalist & Author

Consulting firms, academics, and consultants are developing models for the Future of Work.   Price Waterhouse Coopers (PwC) developed a scenario called the Future of Work: A Journey to 2022.  The premise of the study is: “disruptive innovations are creating new industries and business models, and destroying old ones.”[i]  PwC outlined three distinct worlds of work: Blue, Green, and Orange.

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Confidence Intervals for Mean ( part-2:) : Using t-distribution

Dear friends, we are happy to release this Part-2 of our videos on Confidence Intervals. In this video, Hemant Urdhwareshe explains how to estimate confidence interval of population mean when population standard deviation sigma is not known In such cases, we need to use Student’s t-distribution instead of normal distribution and Z-Score.

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A Big Mistake Organizations Make with Reliability Centered Maintenance

A Big Mistake Organizations Make with Reliability Centered Maintenance

Hi everyone, I’m Nancy Regan, coming to you from The Watermelon Festival in Russellville, Alabama! In today’s video, I share one of the most common mistakes organizations make when it comes to Reliability Centered Maintenance (RCM)—and why this often leads to failed analyses.

Using a simple analogy of growing watermelons, I explain how RCM can go wrong when the right people aren’t involved. Just like watermelons need the right conditions to grow, RCM needs experienced facilitators and equipment experts to ensure the process succeeds.

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MTBF Use May Reduce Product Reliability

MTBF Use May Reduce Product Reliability

Is MTBF Preventing Your Product From Being Reliable?

MTBF is not reliability. Attaining a specific MTBF does not mean your product is reliable. MTBF use may be the culprit.

Therefore, working to achieve a MTBF value may actually be preventing you from creating a product that mets your customer’s reliability performance expectations.

Actively working to achieve MTBF using the common tools around MTBF may be taking you and your team down the wrong rabbit hole. You may be working to reduce the reliability of your products rather than improving them.

Let’s take a look at a couple of ways the pursuit of MTBF is harmful to your product’s reliability potential and contrary to your customer’s expectations. [Read more…]

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What is the Connection between Equipment Risk and Equipment Reliability?

What is the Connection between Equipment Risk and Equipment Reliability?

When it comes to Risk we have simplified it so much that we have failed Einstein’s advice, “Everything should be made as simple as possible, but not simpler.” It has been made too simple and missed the connection between risk and reliability.

Equipment risk has a direct impact on equipment reliability. What risks you allow your production plant and equipment to suffer will negatively impact its reliability. About 6 months ago I was playing about with the risk equation and a mathematical connection between risk and reliability revealed itself.

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Disengaged and Stressful Workplaces Create Risk for Organizations

Disengaged and Stressful Workplaces Create Risk for Organizations

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

Gallup’s State of the Global Workplace: 2022 Report found that only 21% of employees are engaged at work and 44% of employees experienced a lot of stress on the previous day – both findings are up 1% from 2021.

In one of the largest studies of burnout, Gallup found the biggest source was “unfair treatment at work.” That was followed by an unmanageable workload, unclear communication from managers, lack of manager support and unreasonable time pressure.

Disengagement and stress in workplaces are good indicators of an organisation’s workplace climate. They can also provide insights into potential issues with the organisation’s culture.

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“Our World,” a Book for your Children

“Our World,” a Book for your Children

Here’s one you probably don’t expect from me. A children’s book! “Our World” is intended to spark curiosity In children about the world around them. It asks questions like, where does the water in my shower come from, how does the electricity in my light bulb get there, and many more. It uses everyday childhood experiences to spark questions.

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