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Federal Aviation Administration

This presentation discusses the ROI challenges in maintenance human factors and provides example approaches to calculate ROI. It also highlights the importance of considering the cost of error and the need for organizations to prioritize ROI calculation in HF interventions.

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Federal Aviation Administration

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  1. Federal Aviation Administration ADVANCING THE HUMAN FACTORS BUSINESS CASE: Maintenance Human Factors William B. Johnson, Ph.D. Chief Scientific and Technical Advisor Human Factors in A/C Maintenance Systems bill.johnson-dr@faa.gov 14th Symposium on Aviation Psychology Dayton, OH, April 25, 2007

  2. Human Factors #1 Causal Factor Maintenance Human Factors

  3. Presentation Topics Operator‘s Manual for HF in Aviation Maintenance (4) ROI Discussion and Examples (12) Discussion as Time Permits

  4. www.hf.faa.gov/opsmanual

  5. Sample display from Op’s manual

  6. 3 key references plus slides

  7. Presentation Topics Operator‘s Manual for HF in Aviation Maintenance (4) ROI Discussion and Examples (12) Discussion as Time Permits

  8. The Reality of Sustainment and Justification • Continental Airlines had a HF program and does not now! • US Airways had a HF program and does not now! • Northwest had a HF program and does not now! • Some airlines had an HF person , not now……. WHY?

  9. ROIChallenges - What is it difficult? • Assigning cost to a particular challenge/event • Establishing cost of intervention • Matching HF intervention to performance change • Assigning value to what did not happen • Add your reasons here……

  10. Here are Example ROI Approaches* • Cost vs. Lost Product Production • Costs of R&D and Returns – FAA Style • Justification from Improved Work Performance • “Trust Me”: A NonAnalytic Approach * Described in paper

  11. Five steps to calculate ROI RATIO • Estimate annual cost of a specific event: COST • Estimate cost to address the contributing factors: COST TO FIX • Estimate the probability the COST TO FIX will be successful: PROBABILITY OF SUCCESS • Multiply COST times PROBABILITY OF SUCCESS and then subtractCOST TO FIX: RETURN • Divide RETURN by COST TO FIX: ROI RATIO

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

  13. 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 to Fix: $52K

  14. ROI on Fixes for ground damage

  15. The Conference paper has 3 examples • Ground Damage During Towing ROI = 2.75 • Damage in the Paint Hangar ROI = 5.5 • Technical Documentation ROI = .52

  16. Observations about ROI • ROI calculation is not high enough priority. • Organizations often don’t count the cost of error. • Organizations don’t count error costs very well. • Workers are not sensitive enough to the cost of error.

  17. 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!

  18. Observations (Con’t.) • Most interventions are seemingly intuitive and cost justifiable. • But the times are changing… • ROI for HF interventions is in infancy. • It does not have to be complicated to make the case! • Numerous small justifications make a big point!

  19. Presentation Topics - Summary Operator‘s Manual for HF in Aviation Maintenance (4) ROI Discussion and Examples (12) Discussion as Time Permits Thank you For these slides and more: www.hfskyway.com

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