In these troubled economic times, many of us are seeing reduced demand for our products so the question surfaces, “Why go after improved reliability now?” The simple truth is that we need to improve now more than ever.

As our profits shrink due to reduced sales, our respective companies are in dire need to improve bottom line performance. By improving reliability we can have a very significant impact on financial results. Think of the value to be gotten by increased throughput while working fewer shifts as a result of our assets being more reliable. The labor and energy savings can be greatly impacted in a very favorable direction. Think of the impact on overtime that can also be gained via our assets performing in a much more predictable manor.

Another often missed opportunity to be seen by improved reliability is that of reduced quality loses. It’s not uncommon to see 35% to 45% of a manufacturing units “cost of quality” related to poor asset reliability. Think about what it would mean if you could cut this loss in half?

So once again, in these difficult times, improved reliability can be one of the few opportunities that exist for us to help minimize the financial impact that our global markets are struggling with. Don’t you think NOW is the right time to go after it?

November 11th, 2008   Al Weber   Strategy & Leadership   Leave a Comment »