I have posted previously about the need to obtain buy-in for FMEAs in order to successfully deploy DFMEAs and PFMEAs within the design and development processes.
In regards to metrics, what are some possible methods to calculate the potential financial savings of completing a well constructed DFMEA and PFMEA? In other words, If I calculate RPN values and through actions, I lower the RPN value, is there a way to calculate the potential savings? These metrics will be helpful in communicating to upper management the importance of these prevention tools.
-Baseline the cost of a potential failure (This would have to be linked to likelihood of occurrence)
-Cost of reworking a product
-Cost of an escape to customer
Does anyone have any other financial metrics and methods of calculating them? I'm a little stuck in how to incorporate the above, so feedback would be valuable.
Rambling a bit here... at the OEM and Tier 1 transportation firms I was part of none such existed....my guess is that if one does exist, especially at transportation, airframer or medical device firms...it would be tightly held, company proprietary. If shared with the public, it could be used in legal actions against the firm when a significant product failure occurs.
Could you use as a baseline the Cost of Poor Quality related to certain defects to demonstrate the known costs of risks? You could combine that with PPM results. At a prior company that I worked for, I had a weekly quality meeting with top management. Part of this meeting involved reviewing the prior week's and MTD replacement costs due to certain defects to show how poor planning on our part impacted our customers and our bottom line.