Chapter 04S – Reliability
4S-9
3. The capacity to handle the additional load of battery production and battery exchanges
due to failures;
4. The amount of additional business generated as a result of adding the premium
battery. (In other words, the company must consider the trade-off between the
additional business generated from the premium battery vs. the cannibalization of the
current base and the existing batteries.)
Enrichment Module: Measurement of Reliability
In practice, there are two basic ways of measuring reliability. The most common measure of reliability
is called the failure rate. The failure rate is defined as the number of failures for a given time period
and is generally denoted by the Greek letter (lambda).
For most products, failure rates change over time. As can be observed from Figure 4S–1, the failure
rates tend to be high during the infant mortality phase (early stages of the product life cycle) due to
defective parts and lack of testing. There are fewer failures in the middle stage of the product life
cycle, while there are high failure rates late in the product life cycle due to worn out components and
Failure Rate as a Function of Time