Value for any business activity is a guiding principle to stay in business.
While not always about money, it is about value. We invest in product design and distribution, plant design and operation, to realize a benefit or return on the investment which makes the investment worth the effort and time. Same with our individual work- we endeavor to make a difference and realize not just a paycheck, (well some do). Increasing value is our responsibility as reliability professionals.
Projects may create value by developing one or more of the following.
- revenue
- profit
- growth
- value of offerings
- retention
- return on investment
- return on assets
- efficiency
- visibility
- equity
- net preference
(Fields 2012)
Make reliability valuable
Reliability improvements may impact all of these. Focusing on one to provide the value, and letting others contribute, may provide the means to create the raw justification to embark on a reliability improvement project.
My favorite and easiest to understand is profit. If you offer a warranty or incur costs when a product or asset fails, then you can increase value (by way of profit) by reducing failures – that means making the product or equipment more robust such that it works longer.
What’s visibility?
Visibility – this can translator into sales, leads, opportunities, or what other benefits come from increased visibility. We are talking about the positive benefits of visibility – not the news headlines from court indictments type of notoriety. Creating a product that creates word of mouth recommendations is fundamental to success.
Think of the last rental car you encountered. Was it a model that you would recommend or not? I’ve enjoyed wonderful vehicles and a few classic duds.
Once I overheard a woman exclaim as she approached her vehicle (garish yellow) “That is no a color I will drive.” as she turned around and headed to the rental office. Recently I enjoyed a German car with a navigation system I would enjoy engaging in conversation with. She was that good. (Mercedes)
Think like a consumer
As we move through life we experience products and let those around us know how it works or doesn’t. As you create products one of the key attributes is the reliability of the product – if you let down your customers, think of the stories they will tell.
Have you noticed yourself telling stories about a product as it met or didn’t meet your expectation? Tell us about it here. Comment.
Fields, David. The Executive’s Guide to Consultants: How to Find, Hire and Get Great Results From Outside Experts. Kindle ed. New York: McGraw-Hill, October 23, 2012.
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Finding Value: How to Determine the Value of Reliability Engineering Activities
10 Ways to Find Reliability Value
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