1. Aircraft Maintenance Human Factors 25th and 26th September 2000 The Hatton, London

3. ROI is Straightforward! Huh! “…net income over by total assets…” “…net earnings over total assets…” “…cost of the investment over the return ($$ saved or $ earned)…” Any questions??

4. Presentation Plan FAA Installation Errors Project as related to ROI 2 examples Observations associated with ROI for Human Factors Initiatives

5. Participants

6. The Installation Error Project* Errors related to installation are repeatedly identified as the most prevalent in the industry. “…any misinstallation action or inaction that may result in a reliability, safety, or regulatory violation effect…” * Project focused on errors detected within 21 days out-of-check.

7. The Installation Error Project Research Objective: Reduce installation errrors in heavy maintenance. Demonstrate how human factors R&D can have a quantifiable result. Activities: Collect error data with 3 industry partners. Analyze data and create corrective actions. Implement corrective actions. Continue data collection and analyses. Assess and report impact.

8. Data So Far About 150 MEDA*-like forms 125 were related to installation * Boeing’s Maintenance Error Decision Aide (MEDA)

9. Contributing Factors to Installation Error #1 #2 #3 #4

10. Installation Error & Information (64%) Information Not Used Not Understandable #1 #2

11. Installation Error & Technical Knowledge/Skills (33%) Task Knowledge #1

12. Installation Error & Organizational Factors (31%) 22% Company Work Process #1

13. Installation Error & Communication (25%) 10% Between Departments 4% Between Shifts 4% Between Lead/Mgmt. #1

14. Next Steps Obtain additional MEDA data Compare contributing factors among participating organizations Identify common interventions Create a matrix of best practices/interventions For each factor assess value of interventions to predict error reduction

16. Presentation Plan FAA Installation Errors Project as related to ROI 2 examples Challenges and Observations associated with ROI for Human Factors Initiatives

17. 2 Easy Examples of ROI Ground damage during towing Aircraft damage caused by lifts in hangar

18. Ground damage during towing 16 significant towing incidents at one hangar during 1999. (Average Year) Cost is $260K/year Organization conducted focus groups and event analysis to understand the contributing factors. Example 1: Ground Damage

19. Ground damage during towing Prevention Measures Paint Centerlines, Clear zones, tail zones, etc. Standardize lights on hangar doors Modify work platforms Train personnel Audit performance and deliver feedback. Total cost of intervention: $52K Example 1: Ground Damage

20. Ground damage during towing Summary Damages reduced by $195K Number of events reduced by 75% Payback time is 4.3 months ROI is 2.75 Example 1: Ground Damage

21. Calculations Old Cost New Cost Intervention Net Savings Time to Payback ROI Monthly($K)Annual($K)* 21.7 260 5.4 65 4.3 52 12 143 4.3 Months (52/12) 2.75 (143/52) Example 1: Ground Damage * Based on 5 Mos.data

22. Damage from lifts in hangar 5 significant incidents in 2 months. Cost is $20K, $4K/event Organization used MEDA system to identify contributing factors. Organizational “Norms” is the suspected problem. Example 2: Damage from lifts

23. Norms is the main factor Equipment is sub optimal but people want to get the job done! –Used emergency controls for normal operation. Operation checks are not ideal. Example 2: Damage from lifts

24. Damage from Lifts in Hangar Prevention Measures Refurbish selected controls on equipment. Refresh awareness of operational checking the equipment. Example 2: Damage from lifts

25. Damage from Lifts in Hangar Summary * Damages are reduced by $104K Number of events reduced by 87% Payback time is 2.2 months ROI is 5.5 Example 2: Damage from lifts * Annualized from 5 months of data

26. Calculations Old Cost New Cost Intervention Net Savings Time to Payback ROI Monthly($K)Annual($K) 10 120 1.3 16 (87% reduction) 1.3 16 7.4 88 2.2 Months (16/7.4) 5.5 (88/16) Example 2: Damage from lifts

27. Presentation Plan FAA Installation Errors Project as related to ROI 2 examples Challenges and Observations associated with ROI for Human Factors Initiatives

28. Observations about ROI ROI calculation is not high priority. Organizations often don’t count the specific cost of error. Organizations don’t count error costs very well. Workers’ performance is not driven by a sensitivity to the cost of error.

29. Observations about ROI (Con’t.) When something breaks you fix it and don’t calculate it. When something is not safe you fix it and don’t calculate it. When work conditions are not safe you fix it and don’t calculate. You just don’t calculate it!

30. Observations (Con’t.) Most interventions are seemingly intuitive and cost justifiable. But the times are changing… ROI for HF interventions is in infancy.

31. Conclusions The industry can calculate ROI in maintenance human performance interventions.The industry can calculate ROI in maintenance human performance interventions. Example studies show high ROI.Example studies show high ROI. People must be assigned 100% to the error tracking and ROI calculating task!People must be assigned 100% to the error tracking and ROI calculating task!

32. Presentation Plan FAA Installation Errors Project as related to ROI 2 examples Observations associated with ROI for Human Factors Initiatives

33. Thank You