Performance Measurement Training
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PART V. Reliability The reliability measurements assess the engineering design process, supplier delivery and capability of the equipment used in the manufacturing process. 1. Percent increase of process capable equipment The first step must be to establish that the equipment is statistically in control, then measure process capability. The measure is percent of machines or processes at CP = 2.0. CP is the specifications width (tolerance) divided by the process spread ( + /-3 stigma). Measure number of machines in the department divided by the number of machines capable of meeting this standard. 2. Percent increase in overall equipment effectiveness Machine effectiveness is availability (hours running divided by scheduled run hours) times performance (actual machine cycle or rate divided by theoretical machine cycle or rate) times rate of quality product (good material divided by total material run). 3. Percent reduction in warranty costs Measure and track monthly by product line in dollars as percent of sales and as percent of operating cost. Utilize trend charts. 4. Percent reduction in engineering changes Measure by comparing a series of new products released to Manufacturing. The measure is for right first time or quality of release. Depending upon the frequency of new product introduction, the measurement can be monthly by product line on a trend line. 5. Percent increase in on-time delivery Measurement shows whether the product was shipped to the customer in the time promised. Actual measurement is orders shipped on time divided by total orders shipped.
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