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2.2 Best Practices and the Economics of a Reliability Program

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Best Practices

There are no universal best practices. Every company must choose the appropriate set of practices and implement a program that optimizes return on investment in reliability activities. Reliability is all about cost‐benefit trade‐offs. Since reliability activities are not a direct revenue generator, they are strongly driven by cost. By increasing efficiency in reliability activities, companies can achieve a lower risk at the same cost; and addressing reliability during the design phase is the most efficient way to increase the cost‐benefit ratio. Industry rules of thumb indicate the following returns on investment (Ireson and Coombs 1989):

 Issue caught during design: 1 cost

 Issue caught during engineering: 10 cost

 Issues caught during production: 100 cost

Additional Economic Drivers

 Use environment and design life

 Manufacturing volume

 Product complexity

 Margin and profit requirements

 Schedule and delivery needs

 Field performance expectations and warranty budget

Design for Excellence in Electronics Manufacturing

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