Life Cycle of

Engineered
Objects
 Reliability: Product Life Cycle
Perspective
The reliability of products and plants from a life cycle
perspective is of interest from both manufacturers’ and
customers’ perspectives and this leads to different
notions of reliability.
 Reliability: Product Life Cycle
Perspective
 NPD Perspective
Figure below describes a typical scenario of the
reliability of a new product over the different phases of
its life cycle.
Reliability: Product Life Cycle
Perspective
 Reliability: Product Life Cycle
Perspective
• During the feasibility phase, a study is carried out
using various target values for product reliability, such
as customer satisfaction, warranty costs, profits,
market share, and so on.
• The design stage is carried out in two phases. In the
conceptual design phase, reliability targets for the
product are defined in order to ensure that reliability‐
related targets such as customer satisfaction
(measured by no failures over the warranty period) and
 Reliability: Product Life Cycle
Perspective
• During the detailed design phase, the architecture of the
product is established through a sequential process proceeding
down to component level. The product reliability is determined
from component reliabilities using the structure function
• During the detailed design phase, the architecture of the
product is established through a sequential process proceeding
down to component level. The product reliability is determined
from component reliabilities using the structure function
 Reliability: Product Life Cycle
Perspective
• Deciding on the desired component reliabilities to achieve the
reliability target at the system (object) level is called reliability
allocation. If the actual reliability of components does not meet
the desired reliability, then one needs to make design changes
(such as using redundancy – if appropriate) or use a development
process to understand the cause and mechanisms of failure and
then redesign the component, perhaps using a different material.
This is the reliability improvement process (which is costly and
time‐consuming) and it stops once the final reliability of the
prototype matches the target reliability.
 Reliability: Product Life Cycle
Perspective
• In the pre‐production phase, the reliability of items produced is
usually below the target reliability for a variety of reasons which
are process and/or supplier related. This is mainly caused by
variations resulting from the manufacturing process. These are
sorted out (through proper quality control of the process and
input materials and components) so that the reliability of items
produced meets the target reliability. Once this is achieved, full‐
scale production starts and manufactured products are
rechecked (by random sampling), approved, and released for
sale.
 Reliability: Product Life Cycle
Perspective
• During the operation phase, the reliability of a product
decreases with age and/or usage, and maintenance is used
to ensure that it functions properly. The frequency of
failures increases with age (for most of the mechanical
components) and this results in maintenance costs going
up and availability going down.
• When it is no longer economical to continue using the item,
it either needs to be discarded or replaced by a new item.
The reliability characteristics of a product over its life cycle
have implications for both the manufacturer and
 Reliability: Product Life Cycle
Perspective
 Different Reliability Notions (Product)
When viewed from the product life perspective, one can
define four different notions of product reliability. Figure
below shows these notions, the relationships between
them, and the main factors that affect the various
reliabilities.
Reliability: Product Life Cycle
Perspective
 Reliability: Product Life Cycle
Perspective
• Design reliability is based on component reliability and is
decided at the end of the design/development phase, as
discussed earlier.
• Inherent reliability is based on the reliability of the product at
the end of the manufacturing and assembly process. In spite
of proper quality control, errors may be made in
manufacturing or assembly, or some of the components may
be non‐conforming. As a result, a fraction of the items
produced may not meet the reliability target.
 Reliability: Product Life Cycle
Perspective
• Reliability at sale represents the reliability attributes that a
customer gets. Items need to be transported to markets and
are often stored for some period before they are sold. Items
can experience mechanical shocks if transported without
proper packaging. The storage conditions can also have an
impact on the items (for example, trucks left in open lots are
exposed to the harsh influence of weather). As a result, the
reliability at sale is different and lower than the inherent
reliability.
 Reliability: Product Life Cycle
Perspective
• Field reliability is a notion of product reliability that a customer
achieves in day‐to‐day operations. Errors in commissioning of
engineered objects and different operating or usage environments
(good roads as opposed to poor roads in the case of automobiles) and
usage intensity (the number of times a washing machine is used per
week or the amount washed per week) create loads (mechanical,
thermal, electric, etc.) that differ from the loads under nominal usage.
When the loads exceed the nominal values, degradation occurs at a
faster rate (discussed in Chapter 3) and as a result, the field reliability
is the composite of how these factors affect the reliability of the
product.
 Reliability: Product Life Cycle
Perspective
 Different Reliability Notions (Plant)
The reliability notion for a plant differs from that of a product in the
sense that plant capacity and performance are discussed at equipment
or infrastructure level and reliability attributes are jointly decided by
the manufacturer/supplier and the customer. When viewed from the
plant life cycle perspective, one can define four different notions of
plant reliability: (i) design reliability; (ii) inherent reliability; (iii)
reliability at the start of operation; and (iv) field reliability. Figure
below shows these notions, the relationships between them, and the
main factors that affect the various reliabilities.
Reliability: Product Life Cycle
Perspective
 Reliability: Product Life Cycle
Perspective
As can be seen, this is very similar to the different notions
of product reliability discussed earlier. The main
differences between the two are as follows:
 In the case of a plant, customers and the builder
(contractor) jointly decide on design reliability (whereas
in the case of products, the decision is made by the
manufacturer based on customer needs).
 Poor field reliability of a plant requires the contractor to
make design changes to improve reliability.
 Reliability: Product Life Cycle
Perspective
• Poor field reliability of a plant necessitates increased maintenance
and service preparedness.
• Poor reliability also necessitates effective and efficient spare parts
and inventory management.
• Often, poor reliability leads to non‐conformance of product delivery
schedules and an increased focus on quality checks.
• Poor field reliability has major implications for plant owners as it
increases maintenance costs and lowers availability, as discussed in
Chapter 4, and it also results in accidents and injuries.
 Life Cycle Cost
• LCC refers to the total costs associated with an object
(product, plant, or infrastructure) over its useful life. It is
comprised of several cost elements
• The LCC from the manufacturer’s perspective is different from
that of the customer. They differ in terms of cost elements
included in the LCC, as will be indicated later in the section.
• Life cycle costing refers to the evaluation of alternative
products, system design configurations, operational, or
maintenance solutions.
 Life Cycle Cost
 Manufacturer’s Perspective
LCC from the manufacturer’s perspective (LCCM) includes all the
costs associated with all the items produced over the product life
cycle. The period of LCC starts with the feasibility phase of NPD and
ends when the post‐sale service (as part of a sale) for the last item
sold expires. It can be expressed as:
design and development cost + manufacturing cost + marketing
+post sale service support costs
If N units are produced, then the LCC per unit is given by LCCM/N.
 Life Cycle Cost
 Customer’s Perspective
LCC from a customer’s perspective (LCCC) for an item
purchased can be expressed as:
acquisition cost + operating costs + disposal cost
The operating costs include the maintenance cost (either
done in‐house or outsourced) and the acquisition cost is
the LCC cost per unit + the profit margin for the
manufacturer.
 Life Cycle Cost
 The Importance of LCC
The bulk of the LCC (up to 80%) is the result of decisions made
during the design, development, and manufacturing phases. As
such, proper decision making is needed to ensure the lowest
possible LCC.
Figure below shows the role and importance of LCC in the
context of the continuous evolution of products. LCC‐related data
from earlier generations are used in the design of the next
generation of products.
Life Cycle Cost
 Life Cycle Cost
LCC analysis may be applied for:
 The evaluation and comparison of alternative designs;
 The assessment of economic viability of projects/products;
 The identification of cost drivers and cost‐effective improvements;
 The evaluation and comparison of alternative strategies for product use,
operation, test, inspection, maintenance, and so on;
 The evaluation and comparison of different approaches for replacement,
rehabilitation/life extension, or disposal of aging facilities;
 The optimal allocation of available funds to activities in a process for product
development/improvement; Long‐term financial planning.