FMP cheat sheet

Availability = MTBF / (MTBF + MTTR); raising MTBF or cutting MTTR both raise availability, but MTTR reductions usually cost less.

Reliability R(t) = e^(-t/MTBF) assumes a constant failure rate; it applies to the useful-life portion of the bathtub curve, not to infant-mortality or wear-out phases.

OEE = Availability x Performance x Quality. Availability = run time / planned production time; Performance = (ideal cycle time x total count) / run time; Quality = good count / total count.

Planned preventive maintenance is time- or usage-triggered; predictive (condition-based) maintenance is triggered by measured condition such as vibration, thermography, oil analysis, or ultrasound.

RCM decision logic asks: what is the function, what causes functional failure, what does failure look like, what does it matter, and what task is worth doing. Default to run-to-failure when failure has no safety, environmental, or economic consequence.

TPM pillars include autonomous maintenance by operators, planned maintenance, quality maintenance, focused improvement, and early equipment management; overall goal is zero unplanned downtime.

Criticality ranking (consequence x likelihood) sets PM frequency and spares strategy; A-critical assets get condition monitoring and redundant spares, C-critical assets get run-to-failure.

Spare-parts stocking rule: stock when failure consequence is high and lead time exceeds tolerable downtime; use insurance spares for long-lead, low-demand, high-impact items.

Work-order backlog in craft-weeks divided by weekly craft capacity gives weeks of backlog; a common planning target band is roughly 2-4 weeks of ready backlog.

Critical path = longest path through the network; it sets project duration and has zero total float. A path with float greater than zero is not critical.

Total float = LS - ES = LF - EF. Free float = ES of successor - EF of current activity; free float can never exceed total float.

Crashing shortens duration by adding resources to critical-path activities; fast-tracking overlaps activities that were sequential. Crashing raises cost per unit of time saved; fast-tracking raises rework risk.

Earned value: CV = EV - AC; SV = EV - PV; CPI = EV / AC; SPI = EV / PV. Negative CV or CPI below 1.0 means over budget.

Forecasts: EAC = BAC / CPI when current cost efficiency persists; EAC = AC + (BAC - EV) when remaining work is expected at budgeted rate; EAC = AC + ETC when a fresh bottom-up estimate exists.

TCPI = (BAC - EV) / (BAC - AC) for the budget target, or (BAC - EV) / (EAC - AC) for the forecast target. TCPI above 1.0 means remaining work must be more efficient than plan.

Risk response types: avoid, transfer, mitigate, accept for threats; exploit, share, enhance, accept for opportunities. Contingency reserves cover identified risks; management reserves cover unidentified scope.

Scope change control: any change to scope, schedule, or cost passes through integrated change control, with impact assessed on the baseline before approval.

RACI rule: exactly one accountable person per deliverable; responsibility can be shared, accountability cannot. Too many consulted parties slows decisions.

Net present value = sum of cash flow_t / (1 + r)^t minus initial outlay. Accept independent projects with NPV greater than zero; rank mutually exclusive projects by highest NPV.

IRR is the discount rate that makes NPV zero. Accept when IRR exceeds the hurdle rate; IRR can mislead on mutually exclusive or non-conventional cash-flow projects, so use NPV as the decision rule.

Payback period ignores cash flows after the cutoff and the time value of time; use it as a liquidity screen alongside NPV, not as the sole criterion.

WACC = (E/V) x Re + (D/V) x Rd x (1 - tax rate). Because interest is tax-deductible, the after-tax cost of debt is Rd x (1 - t).

Break-even quantity = fixed costs / (price - variable cost per unit). Contribution margin per unit is price minus variable cost; contribution margin ratio is that divided by price.

Straight-line depreciation = (cost - salvage) / useful life. MACRS accelerated depreciation front-loads deductions, raising early cash flow and NPV versus straight-line.

Current ratio = current assets / current liabilities; quick ratio excludes inventory. A current ratio below 1.0 signals reliance on near-term financing.

Return on investment = net benefit / cost. When comparing options, incremental analysis compares only the differences in cost and benefit between alternatives.

Sunk costs are excluded from decisions; opportunity cost and incremental cash flow are included. Allocate only avoidable overhead to a decision.

Situational leadership matches style to follower readiness: directing for low competence and low commitment, coaching for low competence and some commitment, supporting for capable but variable commitment, delegating for high competence and high commitment.

Tuckman stages are forming, storming, norming, performing, and adjourning; conflict peaks in storming, and interventions should shift from direction to facilitation as the team matures.

Maslow orders needs physiological, safety, social, esteem, self-actualization; Herzberg separates hygiene factors (pay, policy, conditions) that prevent dissatisfaction from motivators (achievement, recognition, growth) that create satisfaction.

SMART goals are specific, measurable, achievable, relevant, and time-bound; without a measure and a deadline a goal cannot be tracked.

Porter's generic strategies are cost leadership, differentiation, and focus; being stuck in the middle without a clear advantage erodes margin.

SWOT pairs internal strengths and weaknesses with external opportunities and threats; SO strategies use strengths on opportunities, WT strategies defend against threats.

Lewin change model: unfreeze, change, refreeze. Kotter's eight steps begin with urgency and coalition and end with anchoring changes in culture.

Conflict modes per Thomas-Kilmann: competing, collaborating, compromising, avoiding, accommodating. Collaborating suits high-stakes issues with time and trust; avoiding suits trivial issues or cooling-off.

Delegation requires clear outcome, authority, resources, and a check-in point; accountability for the result remains with the delegator.