How do you balance cost and reliability in your engineering projects?

If we know and can monitor and measure the impact of possible failures, knowing the cost they represent, we can have a clear idea of what we have to do in our Risk management. We will have a clearer idea of the possible results predictively, for reliability.

In my opinion, we should focus well in these areas like: 1. Clarity in the scope: Clarity should be in the place for the project, product or service from which identify the cost components 2. Data collection: Collect cost data associated with the project which could be direct (labor, materials, equipment etc.) or indirect (overhead, administrative etc..) cost association 3. Usage of tools: Using right cost analysis tools or softwares are always a value add 4. Reusable: Identify the components where one time cost investment which produces all time good ROI and reusability is high 5. Cost savings: Ensuring quality at the top most, hinder for solutions which helps to reduce costs

Equilibrar custo e confiabilidade em projetos de engenharia é um desafio comum que requer uma abordagem sistemática e estratégica. Aqui est?o seis passos para alcan?ar esse equilíbrio: 1. Defini??o Clara dos Requisitos Análise das Necessidades: Entenda completamente os requisitos do projeto, incluindo as expectativas de confiabilidade e os limites de or?amento. Prioriza??o: Classifique as necessidades em termos de "essenciais" e "desejáveis" para identificar onde é possível fazer trade-offs.

The easily stated but harder to achieve answer is to balance the whole life cycle costs/total cost of ownership of the product during each of the product’s various parts of life-concept demonstration, demonstration/validation, low rate initial production, production, field maintenance, product improvement/cost savings cycles. Minimizing the number of key requirements and associated verification methods is a major strategy to reduce life cycle costs. Reliability and maintenance strategies are tied to where the product operates(ground, airborne, space) and needs to balance systems availability/cost/maintenance.

2. Escolha Adequada de Materiais e Componentes Avalia??o de Op??es: Compare diferentes materiais e componentes considerando tanto o custo quanto a confiabilidade. Qualidade vs. Pre?o: Selecione materiais e componentes que ofere?am um equilíbrio adequado entre qualidade e custo, sem comprometer a seguran?a ou a durabilidade.

I believe that defining and utilizing reliability metrics has been essential in balancing cost and reliability in engineering projects. For instance, during the development of a critical infrastructure project, we established Mean Time Between Failures (MTBF) as a key metric. By setting a target MTBF early on, we were able to make informed decisions about materials and design features that impacted both cost and reliability. Regularly monitoring failure rates during testing phases also provided valuable feedback, allowing us to fine-tune the design without overshooting budget constraints. This structured approach ensured the final product met the required reliability standards while staying within budget.

When discussing reliability and metrics, numbers, data, and facts are at the core of success. As a general rule; the more of these, the better. In addition to MTBF, in my opinion other metrics include: -> MTTR (Mean Time to Repair), which represents the time required to repair a failed system or component, -> Availability rate, the percentage of time a system is operational and functional, -> Failure rate, indicating the frequency at which a system or component fails. The qualitative quantification of these metrics yields statistics that can be used soundly in cost planning. Additionally, clear benchmarks for reliability are established. The targeted rebalancing of metrics allows for adjusting them to the project-specific needs.

Balancing cost and reliability in engineering projects involves: Define Requirements: Focus on critical needs and set realistic goals. Cost-Benefit Analysis: Compare options for cost vs. reliability. Value Engineering: Optimize design and implement cost-effective solutions. Risk Management: Assess risks and develop mitigation strategies. Testing and QA: Conduct thorough testing and maintain quality control. Proven Technologies: Use established solutions. Optimize Procurement: Choose reliable, cost-effective suppliers. Lifecycle Cost Analysis: Consider total cost of ownership. Continuous Improvement: Learn from each project. Training: Ensure a skilled workforce.

The product’s design must treat meeting the reliability metrics and associated maintenance requirements as part of the key requirements of the product. The cost to select a higher reliability part(less frequent maintenance required) or a redundant set of hardware has to be justified to meet the operational needs. For example a product has a requirement to maintain it’s operational temperature below a design limit to meet the MTBF requirement. Using fans to cool hardware on the ground where a maintenance schedule to pull the fan tray out and blow out the dust can be performed is the most cost effective. The same cooling requirement for a space application will be no maintenance (no fans) and use of passive thermal conduction.

3. Projeto e Desenvolvimento Rigorosos Modelagem e Simula??o: Utilize ferramentas de modelagem e simula??o para prever o desempenho e identificar potenciais pontos fracos. Padr?es e Normas: Aderência a padr?es e normas reconhecidos pode aumentar a confiabilidade sem adicionar custos excessivos.

In my professional experience, design efficiency is crucial for balancing cost and reliability in engineering projects. For example, while working on a large-scale bridge project, we utilized advanced simulation software to test various design scenarios. This approach allowed us to optimize the use of materials and simplify construction methods without compromising on performance or safety. By iterating through different designs virtually, we identified a solution that minimized material costs and reduced energy consumption, while still meeting stringent reliability standards. This not only kept the project within budget but also enhanced its overall sustainability and effectiveness.

Also remember to design in stability and health monitoring for large complex products as locating the failure or replacing large portions of the product will drive costs up in the later parts of the product’s life cycle.

Consider technical requirements and product cost impact. Technical Requirements: Develop Proof of Concept (PoC) scenarios, ensure security and governance compliance, conduct stress tests, and evaluate integration capabilities (docs, APIs, audit logs). Assess support and service channels, including SLA and escalation processes. Product Cost Impact: Analyze profit and loss (P&L), forecast cost impacts, and assess cost-effectiveness in scaling operations or enhancing customer experience. It's crucial to consider the aggregated value and incentives of the partnership over an extended period. This relationship is likely to be enduring, so it should benefit both parties.

4. Prototipagem e Testes Prototipagem Rápida: Desenvolva protótipos para testar e validar conceitos antes da produ??o em larga escala. Testes Exaustivos: Realize testes rigorosos em condi??es reais e simuladas para garantir que o produto final atenderá aos requisitos de confiabilidade.

In my work, supplier selection is paramount in balancing cost and reliability in engineering projects. For instance, during the construction of a high-rise building, we prioritized selecting suppliers with a proven track record for quality and reliability over merely the lowest bid. By partnering with trusted suppliers, we secured high-quality materials and components that significantly reduced the risk of failures and maintenance issues. Additionally, fostering strong relationships with these suppliers allowed us to negotiate better terms and loyalty discounts, ultimately optimizing both our budget and project reliability. This approach ensured a successful project completion with minimized long-term costs.

For larger production volumes consider having multiple suppliers and verify their production capacity over the products manufacturing lot.

Reliability is about risk management, plain and simple. The impact and cost of failures needs to completely assessed to determine the necessary investment to be made to achieve high values of system reliability. Investment in predictive capabilities/ technologies can actually reduce maintenance costs and result in higher levels of reliability.

Risk management starts with assessing all risks and using standard methodologies to assign criticality of these risks and impact to the business All aerospace companies do risk management at enterprise and lower management levels because it is a prerequisite for compliance with QMS ( AS9100) Smart companies understand fully the usefulness and focus on managing risks at all levels. It all depends on the level of knowledge and culture of the decision makers of every company. Sone managers follow intuitive approach and ‘know all’ approach and fewer are face the reality of the risks and manage them. Needless to say which approach is best . Purely leadership decision !

Effective risk management is essential for balancing cost and reliability. In a recent infrastructure project I managed, we identified potential risks early, such as the temptation to use lower-cost materials. While initially cheaper, these materials posed significant risks to long-term reliability. We conducted a thorough risk assessment, evaluating the impact of material failures on the project. By selecting higher-quality materials and implementing rigorous testing protocols, we avoided costly setbacks and ensured reliability. This approach underscores the importance of integrating risk management into cost-reliability decisions.

To be consistently successful planning and executing strategically important Projects we need to Balance the constraints (i.e., Costs, Schedule, Scope, Resources, and Product Requirements) within organizational Risk Tolerances. I prescribe to the notion that a change in any one of these 6 conditions will impact at least one other, and we usually end up taking the "easiest" and most detrimental path -- electing to accumulate more and more Risk. Knowing and monitoring risk tolerance levels is therefore paramount. What are they? At the task level it should be defined as the Red zone of the Risk Matrix. At the overall project level it is the % Confidence (70%?) in meeting the cost/schedule/technical goals -- Monte Carlo simulations anyone?

5. Gerenciamento de Riscos Identifica??o de Riscos: Mapeie todos os possíveis riscos relacionados ao desempenho e ao custo. Planos de Mitiga??o: Desenvolva estratégias para mitigar esses riscos, como alternativas de design, fornecedores de backup e testes adicionais.

Em um projeto de constru??o de um centro comunitário, após a conclus?o, realizamos uma análise detalhada do desempenho do projeto. Identificamos que certas técnicas de constru??o modular poderiam ter economizado tempo e custos sem comprometer a qualidade. Nos projetos subsequentes, implementamos essas técnicas, resultando em uma redu??o significativa de custos e uma melhora na confiabilidade. Esse ciclo de aprendizado contínuo mostrou à equipe a importancia de sempre buscar inova??es e melhorias.

6. Monitoramento e Feedback Contínuos Monitoramento de Desempenho: Após a implementa??o, monitore o desempenho real do produto ou sistema para identificar qualquer problema de confiabilidade. Ciclo de Feedback: Utilize o feedback dos usuários e dados de desempenho para fazer ajustes e melhorias contínuas, equilibrando custos adicionais com ganhos em confiabilidade.

Continuous improvement stands as the cornerstone of any sucessful project, ensuring its enduring success over time. By meticulously considering indicators of reliability and efficiency, we illuminate the path toward a sustainable business future. It's essential to maintain a delicate equilibrium between costs, environmental impact, and assets, orchestrating a harmonious symphony of progress and responsibility. This is the way of a perpetual enhancement, when you team collaborates and where every step forward paves the way for a sustainable business.

Every project should provide insights that contribute to optimization, that much is clear. However, quality and reliability need not necessarily suffer as a result. This starts with simple work processes. Enhancing efficiency in internal workflows saves time in the project, thereby saving money and enabling competitive yet quality-driven pricing in the market. My experience has taught me that many organizations adhere to work processes that, from today's perspective, seem very static. The concept of lifelong learning embodies a culture that highlights an organization's dynamism, continuously adapting to changing times and striving for continuous improvement.

Again this parameter is also very much essential to rectify the past mistakes and improvise the current and upcoming to increase the productivity. But how? In agile we have a powerful ceremony named "retrospective" or "introspective". Having a periodic discussion with the ground team, understanding the hindrances, listening their proposals, welcoming productive tools, automations, etc..are few areas which we should always have retrospect. We shouldn't ignore even a soft or small solution coming from the team. No one knows that could be a change maker. Always discuss, allow team to talk, listen them with open mindset. Those outcomes which helps to improvise the process a d product.

People - if you are putting the needs of your customer/end user at the heart of what you are doing, so you are delivering what they actually need rather than what you think they need then you will save money and reduce the risk during the project

All the information is sections 1 thru 6 are correct and the input good, but past relevant experience has shown me that there will never be a perfect balance between cost and reliability; and added expense is the unintended consequence of not defining the priority between schedule, cost, and quality/reliability. All three should have stated objectives for every project, but one needs to be the primary objective while the other two are subordinate to the primary. I’ve watched many programs miss KPIs because clarity was not established at the time of project definition. This isn’t to say the primary objective cannot be changed as project evolution happens; but efficient development process requires that a primary objective be clearly stated.

I feel every project has its unique way to look at it, cost analysis, reliability metrics, risk assessment, and design with product selection is always the basics to start with; but the business benefit is what will come next as looking to the bigger picture and long term success which may allow some room for negotiation and flexibility to any element and the most important is always to meet your client criteria and their satisfaction factors, As in many cases it happened that the client asks for high Tech with high cost.. Always understand your clients' needs.

Acorde a vivencias pasadas puedo citar algunos puntos importantes de toda gestión de ingeniería que busque una solución integral: Establecimiento de pautas de dise?o lo más cercanas posible a la real demanda u operación de las futuras instalaciones. Dise?o que contemple los materiales que comercialmente estén disponibles en el entorno o cercanías de la locación. Encajar los paramétricos de dise?o del proyecto a normativas internacionales que realmente se acomoden a la zona de implantación del proyecto, innumerables veces vemos el innecesario crecimiento de volúmenes de hormigón por usar parámetros de dise?o sísmico no aplicables en su totalidad a la zona o el uso de material mecánico con un rating superior al requerido.

I would suggest reframing the question. What are the minimum and maximum acceptable reliability requirements the customer will demand of the product for it to be viable in the marketplace? Then base your design & engineering requirements and development costs on those objectives.