Tutorial 2

3:30 to 5:00 p.m. Thursday, October 14, 2010

Back to Basics – Bringing Reliability to the Core of Executive Management

The product is the single most important interface with the customer. Generally, organizations are thriving and spiraling in a web of complex management systems and technologies. They have lost adequate focus on the product, as evidenced from the series of product recall notices from companies that symbolized product reliability and thereby inspired consumer trust and confidence. It takes several decades to build the quality and reliability brand image, but a few product safety incidents can smash that image to pieces. This tutorial will address: Why not have a Chief Reliability Officer (CRO) as part of top level management?

• Reliability organization structure (core and support)
• Establishing a reliability management program across the value chain
• Setting up product reliability goals and review at top level (importance level at par with monthly financials)
• Spend on reliability enhancement as a percentage of sales revenue
• Accountability matrix for reliability metrics and cascading of reliability metrics to individual Key Result Areas
• Linkages of various reliability metrics across the value chain (funnel methodology)
• Operationalising the reliability program (as part of daily work management practices)
• Development of prioritized projects and activities
• Deployment of reliability tools and techniques
• System to sense early warning signals, escalation procedures and reaction systems (including product recall)
• Internal/external audits for reliability management program (like financial audits)

Key Words: Reliability Management, Weibull Analysis, Business Triangle, Funnel Methodology, Chief Reliability Officer

G. Sundararaman

JCB India Limited