The purpose of this Workbook is to estimate the net total life cycle cost (TLCC) impact of performing root cause failure analysis and corrective action (CA) identification, implementation and verification to improve system, product, assembly, component, part or process reliability.
It is intended to be an aid to the decision-making process that can be used to justify (or not) the upfront financial investment needed to perform root cause failure analysis and CA for specific failure incidents and compare them to the savings that may be achieved over the long term by virtue of the improved reliability of the system, product, assembly, component, part or process. It should be noted that net TLCC impact may be only one factor in determining whether root cause failure analysis and CA should be pursued. Other factors that should be considered may include, but not be limited to:
- The criticality of the item function
- Safety/liability impacts associated with a failure (regardless of net TLCC)
- Contractual requirements
- Schedule constraints
- Resource constraints.
Where cost is the sole determining factor, however, the results generated by this tool can be used to convince the user, his/her management, a Program Manager and Senior Management of the long-term financial benefits to the company of determining the root cause of a failure, and implementing the corrective action necessary to improve reliability.