insight

Edition 1
generating

Ready to Meet
New Grid
Code Changes

Edition 1:
Page 7-8
Big Benefits,
Small Footprint

Page 9-10
Future Network
Challenges Meets
the Cyberspace
Generation

Page 11-12
Savings on Rare
Earth Metals
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generating insight | edition 1

Foreword

“At Cummins Generator Technologies, it’s not just the products we make that set us apart – it’s how we engage
our customers everyday.” I could think of no better way to introduce and welcome you to our inaugural issue of
Generating Insight, one of many ways we at Cummins Generator Technologies are engaging our customers and
stakeholders, than to quote our Brand Promise.

“At Cummins Generator Technologies, it’s

not just the products we make that set us
apart – it’s how we engage our customers
everyday.”

Generating Insight will be published
twice a year. In each issue, we will
cover a variety of topics relevant to
our products, our customers and our
industry. Some articles will address
current products and issues whilst
others will take a more forward
looking view. We’re confident each
will be interesting and informative.
Most importantly, we hope they
provide value to your own business.
One article in this month’s issue
describes a major new anti-
counterfeiting initiative. Premium
brands like STAMFORD® are often
targeted by counterfeiters and the
resultant losses are estimated to be
$500B each year. Going forward,
Cummins Generator Technologies’
products bearing the STAMFORD®
brand will now be labelled with a
3-dimensional security hologram.
This initiative will protect our brand
and, ultimately, our customers by
insuring levels of quality, reliability and
innovation that you have come to
expect.
Historically, Cummins Generator
Technologies’ business has been
focused on synchronous or fixed-
speed generators; more than one
million of our synchronous generators
are operating today. Looking forward,
we see significant opportunities in
asynchronous or variable speed
generators driven by a desire to
reduce our collective dependence
on hydrocarbon based fuels. In
this issue of Generating Insight, we
describe an exciting new product
called Variable Speed Integrated
Generators (VSIG) which offers
increased flexibility and improved fuel
efficiency in a very
compact size. We also describe a
collaborative research effort focused
on reducing our dependency on rare
earth magnets which are a critical,
but also a very costly component of
variable speed generators.
From the text above, you’ve probably
gathered that, just like our products,
Generating Insight is intended to
serve a diverse variety of customers,
markets and applications. We
hope the articles and information
we present are just as useful and
relevant to you as our products have
proven to be.
Jeff Matthews
Global Technical and Quality Director

Generating Insight is the Cummins Generator Technologies magazine focusing on topics

Editorial relevant to our products, our customers and our industry.

Copyright 2012. Cummins Generator Technologies Ltd. All Rights Reserved.

Editor: Anita Fountain
Email: anita.fountain@cummins.com
STAMFORD, AvK and MARKON are registered trade marks of Cummins Generator
Technologies Ltd.
Publication design by Media Mill Ltd.
+44 (0) 1457 877 164

Cummins Innovation Centre Opens at
the University of Nottingham
Cummins Generator Technologies have a long history of
working with the University of Nottingham’s Faculty of
Engineering on projects including electromagnetic and
thermal modelling of synchronous generators, high speed
machines for turbochargers and novel machine and control
topologies for traction applications.
As a result of this successful collaboration, Cummins have
decided to establish an Innovation Centre at the University
with projected funding of around £2m over the next five
years. The Centre has also been recognised as a centre
of excellence by the Royal Academy of Engineering who
has awarded the Centre a prestigious senior fellowship and
additional strategic equipment funds.
Dr Chris Gerada, Research Director of the Cummins
Innovation Centre, said: “This partnership with Cummins
will strengthen the electrical machines research base at
Nottingham and will form a true multidisciplinary team,
which can effectively and holistically look at electrical
machine systems and their integration within high-
performance applications.”
Electrical machines research has recently seen a
rapid development driven by interest in more-electric
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generating insight | edition 1
transportation, renewable energy generation and high
efficiency targets aimed at reducing carbon emissions in
domestic and industrial applications.
Dr Neil Brown, Chief Engineer, Research and Technology,
Cummins Generator Technologies, said: “Product
innovation will be a central part of meeting the changing
needs of our customers and our success as a business.
Building effective collaborative relationships is a key
element in the innovation process.
“The academic staff at Nottingham are long serving and
of high standing and the quality of students outstanding.
These factors, combined with excellent facilities, a broad
spectrum of disciplines, strong relationships and close
proximity to our factory based in Stamford, Lincolnshire,
made The University of Nottingham the logical choice for
our innovation centre.”
During his visit to the UK, Dr. John Wall, VP Chief
Technology Officer of Cummins Inc. unveiled a STAMFORD
P0/P1 generator as part of the launch to commemorate
the opening of the Cummins Innovation Centre which was
held at the University of Nottingham on Monday, March
26th 2012.
Pictured left to right:
Dr. Chris Gerada,
Professor Hai-Sui Yu,
Pro-Vice-Chancellor
of the University of
Nottingham, Dr. John
Wall and Dr. Neil Brown,
at the unveiling of the
STAMFORD generator
to commemorate the
opening of the Cummins
Innovation Centre.
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Protecting Our Brands,
Protecting Our Customers
Premium brands’ have long been the target for
counterfeiters and it’s not just brand-name clothing,
fashion accessories or luxury watches that are being
‘ripped-off’. Counterfeiters have long been targeting
high-tech products and passing them off as cheap
versions of the ‘original’. Only don’t be fooled. They
may look like the real thing, and come in packaging
that suggests they’re the real thing, but ultimately
they’ll fail to deliver on quality, performance and
reliability.
Recently that counterfeit threat has extended to AC
generators and in response to this growing global attack
Cummins Generator Technologies, manufacturers of
STAMFORD® AC generators, has hit back with a major
new anti-counterfeit initiative.
The ‘retaliatory-strike’ will protect the Cummins’ brand,
its reputation, its customers and its distributor network
from the risk posed by the illegal counterfeit manufacturers
whose worldwide activities are estimated by industry
experts to be costing businesses in excess of $500 billion
a year.
In addition to investing heavily in protecting its trademarks
and technologies through registration and patents, all
global production of STAMFORD® AC generators will
now bear a highly-visible, high-security hologram and
unique machine reference number, enabling both visual
authentication and rapid on-line verification of genuine
STAMFORD® machines.
1SPECIFY quality
and reliability

Ben Miller, Managing Director, Cummins Generator
Technologies explains: “This ground-breaking initiative
shows how Cummins Generator Technologies is working
harder to defend their brand, their customers and their
customers’ businesses. This will also help protect the
customers and end-users from the potential safety, quality
and reliability issues of many illegally-produced counterfiet
products.”
Working in partnership with DuPont Authentication, the
global leader in secure overt authentication technology,
each STAMFORD® AC generator will henceforth be labelled
with a 3D DuPont™ Izon® security hologram that protects
and authenticates the generator, providing new levels
of confidence in the continued ability of STAMFORD®
products to deliver on their world-wide reputation for built-
2IDENTIFY
in quality, reliability and innovation.
Look for the hologram
authentication dots
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generating insight | edition 1
By investing in this innovative security system STAMFORD®
is helping to protect its customers from the financial
operational risks associated with counterfeit products,
which use sub-standard materials and tolerances leading
to shortened equipment life, high running costs and
the potential threat to life through fire or catastrophic
equipment failure. Through its partnership with DuPont,
the STAMFORD® AC generator anti-counterfeit initiative
will protect and promote the interests of the end-user, the
customer and the global distributor network by making it
increasingly difficult for counterfeiters to place counterfeit
STAMFORD® products in the market.
For further information on how to be sure you’re using
genuine Cummins Generator Technologies products and
STAMFORD® be sure to visit our website at
3VERIFY
www.cumminsgeneratortechnologies.com
Click online and confirm
machine authenticity
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generating insight | edition 1

Ready to Meet
New Grid Code Changes
Traditionally, most electricity has been generated Design for compliance: involves ensuring through the
in large centralized facilities using fossil fuel (coal, genset / components’ design that they meet:
gas), nuclear, large solar power plants or hydropower ■■ the static grid codes (conditions regulating steady
plants. Despite having excellent economies of scale, state performance – power factor, voltage,
they invariably have to transmit electricity over long frequency etc at the point of common coupling)
distances, negatively affecting the environment. and requires re-programming the genset controls,
However, recent growing concern over climate reducing the Xd (synchronous reactance) of the
change has prompted a major re-examination of alternator and designing the alternator to withstand
energy policies to ensure energy is produced and higher stator currents for long operating times
consumed in a more eco-friendly manner. (thermal stresses).

These changes have brought about an increase in what is
now called ‘Distributed Generation’ which also manages
to accommodate a grid architecture, with renewables
such as wind power. While distributed generation plants
have low maintenance, low pollution and high efficiencies,
unfortunately they’ve a tendency to make the grid unstable.
As a result of this instability a number of grid operators
around the world have begun applying new Grid Codes on
generating sets to ensure stable and continuous operation
of their power systems. The most challenging of these
codes is the Fault Ride-Through/Low Voltage Ride-Through
(LVRT) requirements. LVRT being defined as an event when
the voltage at the point of common coupling drops below a
critical value.
Cummins Generator Technologies has been looking at
various ways to deal with these new codes, and how
future generators will be designed to meet the challenges
imposed by them. In the sections below, the article
attempts to succinctly describe the challenges posed by
grid codes to the genset component manufacturers – the
alternator in particular.
Designing Alternators For LVRT Applications
Ensuring that a genset has good grid code compliance
and fault ride-through performance involves designing the
alternator and engine both individually, and as a system
for optimum performance. During its analysis of LVRT
application and grid-code compliance, Cummins Generator
Technologies has determined that in order to achieve grid
code compliance gensets need to be:
■■ Designed for compliance and
■■ Designed for robustness
■■ the dynamic grid codes (conditions regulating
transient performance – fault ride through capability
– no pole slip for upto 250ms of LVRT, active and
reactive power delivery, recovery times etc for
the genset) through combined optimization of the
electromagnetic and mechanical design of the
alternator and the design of engine / engine control
systems. Cummins Generator Technologies believe
that the three most critical parameters that can be
optimized to achieve a good alternator design for
grid codes compliance are:
I. Xd (main reactance) – lowers steady state load
angle for worst case continuous conditions –
also helps with avoiding pole slip during fault
ride through.
II. H (inertia constant) – higher value helps with
reducing acceleration of the shaft during fault
ride through.
III. X’’d (sub-transient reactance) – lowers fault
currents, increases duration of ‘braking’ during
fault.
Design for Robustness: to fully appreciate the need for
a robust design, it is crucial to understand the effect of the
grid codes on the structural integrity of the alternator. This
is done by examining the alternator performance under
various scenarios suggested by the grid codes.
■■ Steady State conditions: The grid codes require
power plants to operate at extreme leading / lagging
power factors and voltage deviations that affect the
temperature rise in the stator and rotor windings.
A design that therefore accounts for elevated
temperatures is necessary.

References
[1] Technical Connection Requirements, E.ON: Source: BDEW
[2] S.Narayanan, N.L.Brown, A.Mebarki, P.Anpalahan, D.Gerada, A.Biebighaeuser, H.T.Vrihriaelae, “An analytical tool to check for static grid code compliance of generating sets”,
proceedings of the 45th international universities’ power engineering conference , Sep’ 2010 Cardiff, UK
[3] J.Machowski, J.W.Bialek, J.R.Bumby, Power System Dynamics, Stability and Control 2nd Ed. John Wiley & Sons Ltd.
[4] J.M. Fogarty “Connections Between generator Specifications and Fundamental Design Principles”, proceedings of the international electrical machines and drives conference, 2001.

■■ Genset entering a fault ride through: This is similar
to a three phase symmetrical short-circuit; however,
the genset and hence the alternator will begin to
accelerate due to the absence of a sink to dump
the kinetic energy of the rotating genset shaft. The
grid codes demand that pole slip be avoided for
upto 250ms even though the shaft accelerates.
This will stress the damper cage and stator
windings mechanically and thermally and the shaft
mechanically.
■■ Fault clears and genset connecting back to grid:
The genset that has accelerated during the fault
and attempts to re-connect with the grid with a
phase mismatch. Depending on the level of phase
mismatch, the stator currents and damper currents
induced could vary from being at least similar to
short-circuit levels to upto 2 times short-circuit
levels. This would stress the stator windings and
damper cage mechanically and thermally and the
shaft mechanically. The mechanical forces can
sometimes be transmitted from the alternator to
the engine and could in some cases damage the
engine. Fig 1 shows the extent of damage an out of
phase synchronization would cause to the shaft of
an alternator.
Figure 1. Damage to shaft due to torque transients
These changes involve significant modifications to the
electrical machine design. For example, an optimal tuning
of the reactance involves either a de-rate, or designing
the machine with a bigger air gap. Any change to the
machine design (like air gap increase) will affect the overall
performance of the machine (e.g. efficiency). There’s also
a practical limit on how much inertia can be added to any
alternator / genset.
Tough and Compliant - No Easy Task
In fig 2, the magnitude of various forces on generator
windings have been compared. The diagram clearly
reinforces the need to understand these forces while
designing a robust alternator that is also grid code
compliant.
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generating insight | edition 1
Double frequency System
running forces faults
0.1 1 100
Thermal expansion
Figure 2. Relative magnitudes of forces on windings
S.Narayanan et al [1] have shown that for an alternator
to satisfy the steady-state requirements of the German
grid code, the short-circuit ratio of the alternator needs
to be at least 0.45 which puts the value of Xd (main
d-axis reactance) at around 2.28pu. If the same machine
had to be then optimized to satisfy fault ride-through
requirements, a further reduction in Xd is required followed
by an increase in the inertia and sub-transient reactances
of the machine to ensure robustness and grid code
compliance.
A high sub-transient reactance to reduce forces on
windings also means reduced fault current levels and low
starting torques. Modifying winding stiffness to minimize
displacements involves re-configuring the windings to
eliminate failure modes, modifying bracing and hence
potentially modifying alternator packaging. The paper only
includes alternator design with the German grid code as an
example.
However, other grid codes exist in other countries which
some are more stringent than the German codes. This
would mean different alternator sizes for the grids in
different countries. Unreasonable requirements such
as voltage being depressed for a prolonged time after
fault clearing, or overly-long fault clearance times, in
combination with abnormal operation conditions such
as operation on overload or under excitation, might lead
to fault ride-through conditions that may not be met by
commercially viable equipment.
Therefore there’s a need for sound engineering judgement
as to which conditions should apply for any given network.
Designing for absolute extremes or unlikely operation
conditions is neither economical nor practical. Transmission
and distribution operators should therefore set reasonable
rules for fault ride-through capabilities. An alternator that’s
meant to be used in a standby generating set should by
nature be compact – hence smaller air gap (high power
density) and reduced mass (for easy transportation). The
introduction of grid code compliance and the proliferation
of distributed generation would mean that these alternators
that were traditionally used only in standby gensets will
now have to become bigger and more robust to be allowed
to connect to the grids.
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Big Benefits,
Small Footprint
The major investment costs of creating large-scale
power generating infrastructure, and the inherent
difficulties of subsequently transmitting that power
across long distances, is driving a growing interest in
more localized ‘Distributed Generation’ power plants.
That’s hardly surprisingly, considering they not only
reduce the amount of energy lost in transmission
(as the electricity is produced closer to where it’s
needed, often within the same building or work
site) but also the size and number of power lines
necessary to carry the power to the end-user.
Traditionally these ‘Distributed Generation’ power plants
(producing 50-60Hz) have been built around large-
displacement diesel engines with a synchronous-wound
field generator. However, as diesel engine technology has
developed over the past decade a new family of lighter,
smaller-displacement, more-powerful turbocharged
engines, derived from automotive units, have become
available for portable/semi-permanent power generation
applications. In particular, they offer the potential of
reduced fuel consumption compared to larger, more
traditional genset engines.
Yet the arrival of these smaller-displacement, higher-
revving diesels has given power-generation engineers a
new challenge to solve - namely how to ensure that they
provide the kind of constant speed (typically 1,500rpm)
found within conventional gensets which, by their very
nature have a limited speed range, thereby optimising fuel
economy around the synchronous speed of the genset
itself.
The new engines have a much wider potential speed
range. Moreover, having not been originally designed for
the kind of constant speed, continuous running mission of
a genset, there are issues of engine durability to address,
and naturally for genset customers and operators long
life-cycles and low cost of ownership are buying
‘must-haves’.
So what are the bottom-line benefits of
these variable speed gensets?

The solution is the Variable Speed Integrated Generating
Set (VSIG) which, through smart electronics and hardware,
handles those engine speed fluctuations particularly during
engine start-up and ‘rush’ conditions (where the engine is
expected to rev at a higher rate) thereby ensuring optimum
power density and system dynamics. Engine speed is
adjusted by measuring the load power at the output of the
inverter while engine torque is monitored by the current in
the DC bus. Thus the output voltage from the genset is
independent of engine speed and can be ‘tuned’ for tight
regulation at any output frequency.
So what are the bottom-line benefits of these variable
speed gensets? Cummins Generator Technologies,
has used its expertise in generator design to offer a
comprehensive range of variable speed generating sets
that deliver high-quality output power in a very compact
package along with significantly reduced fuel consumption. 
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generating insight | edition 1
Their primary features include:
■■ Significant fuel savings (the most important benefit
of Variable Speed Technology)
■■ A substantial reduction in genset weight and
dimensions
■■ High efficiency
■■ No bearings
■■ Integrated flywheel replacement
■■ A compact modular design
■■ Independent self-regulated 3-phase output
■■ A high Power/Weight/Torque ratio
■■ With its latest variable-speed generating sets
Cummins is offering customers a genset with a
smaller footprint and lower cost-of-ownership,
capable of delivering the optimum system response
to their local power-generating needs.
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generating insight | edition 1
Future Network Challenges Meets
the Cyberspace Generation
Imagine a small synchronous electrical generator,
perfect in every detail, that looks like the real
thing, performs like the real thing, and can even be
‘put under stress’ like the real thing - but it’s on a
computer screen. Stop imaging. It’s here today and
it’s called Cybergen.
As the use of small Synchronous Generators (SG) of less
than 5MW in both the UK and European power grids
grows, the challenges of operating them are growing
too, especially as the environment for ‘embedded’ SGs
becomes increasingly difficult.
However, thanks to Cybergen, an exciting, new,
computer-based design and modelling tool developed
jointly by Cummins Generator Technologies and Cobham
Technical Services; power generation professionals now
have a powerful weapon in the fight to build better SGs,
more capable of withstanding the rigours of increasingly
unstable networks.
In recent years SG usage has shifted from the traditional
emergency standby power or prime-power applications,
with limited running time, to the present day where the
SG ‘mission’ is increasingly one of continuous power
to a network that can be categorised as stable. This
has not been without problems. Recent
major grid disruptions in Europe and
the UK, resulting in the tripping of
Embedded Generation units have
led to revisions in grid operating
codes.
Traditionally, when serious
faults have occurred
within a power generation
network the small Embedded
Generation protection
circuits ensured a unit was
disconnected. Now “Low Voltage
Ride Through” regulations
(introduced this year) demand
that the
Embedded Generation stays on-line and that contributes
to the fault condition. In some circumstances, the
network voltage can reduce to zero for up to 150mS
before it returns, which presents an extremely demanding
requirement for a SG. As the voltage reduces, the SG
provides an initial transient current in-rush, followed by a
sustained level of current, often in the region of 2-3 per
unit.
However, at the point when the network voltage has
reduced to zero, the prime-mover can be contributing full
power, which is likely to be larger than the required power
to feed the fault current. Hence, the prime-mover will
begin to increase in speed due to the latency of stopping
the fuel entering the engine. And when the network
voltage returns the, SG is likely to have a significant
mismatch in frequency and phase, resulting in multiple
pole slips. These pole slips usually manifest themselves
as large stator currents and high rotor voltages, which
place a severe mechanical stress on the SG and prime
mover.
Another challenge for SGs is found in developing
countries where it’s now quite common for large numbers
of these small generators to make up a significant
percentage of the overall generating capacity of a
network. Only the very nature of breaking the power
generation sources into much smaller independently-
controlled power units is problematic as the grid
becomes less stable resulting in discrete shifts
in voltage and frequency. These shifts are a
direct result of power source and load switching
and unstable grids increase the risk of pole slip
events, as well as raising the number of times the
generating set is switched to the grid as protection
circuits are activated. The operational stress on the
generator can be made worse as the temptation
to relax generating set protection settings to ensure
multi million pound assets remain operational are
high.

While unstable grids are the primary cause of
increased operational stress on the SG, the
stability of the speed governor on the prime
mover and the quality of synchroniser
can further compound the stress
on the generator. Consequently,
not only are modern SGs likely
to pole slip when operated
on unstable grids, they’re
now expected to withstand
frequent sub-cycle currents in
excess of their rated current
as they are switched. This not
only stresses the stator but
also the rotor circuits which
may become damaged as the
network quickly brings the rotor of
the small generator into synchronism.
Thus, as small SGs usage has changed,
so have their application requirements
become much more demanding. Moreover,
a future lack of investment in centralised
power generation, together with the increase
in renewable power generation and the
development of SMART Grids, is expected to
cause a further reduction in network stability,
placing even greater operational strains and
stress on small SGs. Fortunately, Cybergen
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generating insight | edition 1
is here to help. Clearly no-one wants to run a real SG
in a condition where severe mechanical stress occurs
to the SG or prime-mover simply to find out ways of
making them both more robust! So Cummins Generator
Technologies in collaboration with Cobham Technical
Services have developed Cybergen which can completely
model the interaction between the mechanical,
electromagnetic and electrical systems that together
combine to affect the generator design.
Using finite element analysis Cybergen has recreated
a ‘true’ model of the generator set connected to
the electrical network, without compromising the
representational accuracy for any of the individual
components. Consequently Cybergen replicates both
the real-life form and function of a multiplicity of individual
SG components from the AVR (Automatic Voltage
Regular) and prime mover to the generator or exciter.
And having created a fully-functioning generating set
and its connection to the Network ‘in Cyberspace’,
Cybergen can not only simulate all its normal operating
functions but also how it performs under stress and fault
conditions. Thanks to Cybergen, design improvements
to the next generation of SGs will be created, and tested,
‘on-screen’ and the data from those ‘cyber-tests’ will
allow power generation professionals to build better SGs
for the future.
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Savings on Rare Earth Metals
Cummins Generator Technologies has teamed up
with Sevcom, the electric vehicle-control systems
company and Newcastle University’s Centre for
Advanced Electrical Drives to develop a ‘green’
traction motor for future hybrid and full-electric
vehicles (EVs) that will use environmentally-
sustainable steel components in place of rare-earth
metal equivalents. The tripartite consortium reports
that the first fruits of the “High Torque Density
Switched Reluctance Drive System for Low Carbon
Vehicles” project could enter volume production in as
little as four years.
The pressure on supplies of rare-earth metals, coupled with
rising demand for this technology means the race is on to
find an alternative. Moreover, extracting these rare minerals
can be incredibly destructive to the environment. So to
pursue electric and hybrid vehicles as a truly ‘greener’
option they are not only looking at the fuel but also the
materials used to develop the various components.
Newcastle University, Sevcon and Cummins
are in an excellent position to deliver this world class
technology, as leaders in the development
of new electric motor technologies, the supply of the
electronics which drive the new electric vehicles and the
manufacture of engines for many of the world’s commercial
vehicles.
Unlike current EV motors (which rely on rare-earth metals
such as Neodymium and Dysprosium in their construction)
the new ‘green’ motor will feature magnets made from
steel, a raw material that’s not only widely available, but
also significantly-less expensive to produce – a key factor
as the demand for hybrid and electric vehicles grows.
Equally important, by using steel, in place of rare earth
metal magnets in the new electric motor, the consortium
will address growing environmental concerns over how
rare earth metals are currently mined and refined. The
green electric motor will also feature new control system
technology that will see conventional Insulated Gate Bipolar
Transistor (IGBT) inverters replaced by a “high temperature
alternative.”
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Dr. Peter Barras, Sevcon’s Vice President of Engineering,
reports: “This is an exciting, cutting-edge project in
a market sector with great potential. We’re already
very active in the low carbon vehicle sector and the
performance capabilities of our advance technology
motor controllers are ideal for this sort of application.
We’re delighted to be bringing our automotive drive-train
engineering expertise to this project.”
The development of a green traction motor comes as
the market for electric cars and commercial vehicles is
expected to grow five-fold over the next decade from less
than 2 million EVs sold in 2010 to an estimated 49 million
by 2020. However, experts predict future growth will be
hampered unless alternatives can be found for the
rare-earth metal magnets used in existing electric motors.

The tri-partite consortium has received a major financial

boost in the form of a £518,000 grant from UK’s
Technology Strategy Board following its success in the
‘Highly Innovative Strategic Technologies in Low Carbon
Vehicles’ competition for collaborative research and
development funding.

Cummins Generator Technologies is committed to

developing innovative cost-effective products for their
customers. The rising price of magnets can have a
significant impact on the cost of electric machines and
the award provides an excellent platform to develop a
new generation of electric motors to meet the challenges.
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‘Delicious Tension’…of Parts Reliability!

The Cost of Getting it Right First Time
We all want the machines we use to ‘last’. The
$64,000 question is for how long?

Inevitably, most customers accept that ‘time-expired’ parts

will ultimately fail in service but the problems start when
components fail ‘early’. A sudden spate of warranty claims
can be a nightmare for manufacturers and customers alike,
and dealing with them is an expensive and time-consuming
business. Obviously, the answer is to make sure it doesn’t
fail prematurely by ensuring the highest quality levels. But
isn’t there a limit to how much companies can, or should
spend on product quality?

The answer to that conundrum can be found in a

fascinating report sponsored by Cummins Generator
Technologies written by S. B. Olejnik and B. Al-Diri of
Lincoln School of Computer Science and the University of

Customer
Lincoln. In “Reliability vs. Total Quality Cost - Part Selection
Criteria Based on Field Data, Combined Optimal Customer
Sales

and Business Solution” the authors examine the paradox

of how product improvements can undoubtedly contribute
to lower failure (and warranty) costs, but conversely
simultaneously prompt an increase in what they describe
as “Preventive and Appraisal Costs.”

Thus, spending a lot of money to ensure a product lasts

longer can easily impact on a company’s bottom line,
not least if the cost of doing so can’t be passed onto the
customer. Indeed, they may well be unwilling to pay for it
anyway!

From the customer’s perspective, the objective is to buy

a product that, as the report explains: “…at least satisfies
their functional requirements and has the best Quality Price
Ratio.” Interestingly, product functionality is something
businesses and their customers both want. The problem
The paper’s authors also provide a timely reminder
is that there’s a ‘delicious tension’ (as management
that: “A pure reliability approach is not the best…unless
consultants love to describe it) between the needs of the
the customer requirement is to get maximum product
customer (often lower price/higher quality) and those of the
reliability, regardless of cost, such as for safety or space
manufacturer (higher unit prices/lower costs). The solution
reasons.” Put another way, yes some customers will
inevitably lies somewhere in the middle…creating a mutual
pay more for ‘total’ reliability but usually only where the
win-win, albeit a pragmatic one, for both parties.
cost of unscheduled-downtime, and the knock-on cost
implications of a breakdown, far outweighs the relatively-
higher price for the component or assembly.

From the customer’s perspective, the
objective is to buy a product that satisfies
their functional requirements and has the
best Quality Price Ratio.
Satisfaction
Quality
For the average customer, however, there’s usually an
understanding (if not tacit acceptance) that high-quality
comes ‘at-a-price’. For many the specification, and thus
ultimate performance of a particular product or component
will be influenced by how frequently they’re prepared to
have it replaced and vice versa. But how many companies
regularly look at their parts replacement rates? Those who
opt for the cheapest units ‘for all the right reasons’ might
well be surprised (if not shocked) at how much of a false
economy this can be.
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generating insight | edition 1
Meanwhile, back to product improvement and for
manufacturers, that’s usually all about maintaining an
extremely-delicate balancing act. Indeed, Olejnik and Al-
Diri insist: “The true product improvement is achieved if
Total Quality Costs and product prices are not increased.
Alternatively, if the product price increases, the added-
value is worth the price for the customer and is not harmful
to business profit.”
That much-used expression ‘added-value’ is certainly
apposite. When customers see something has been added
to a product that’s above-and-beyond the increase in price,
but one that will benefit their business in new ways, there’s
usually a willingness to embrace it.
Clearly, ensuring that good quality procedures exist on
the shop-floor in the first place is fundamental in the
fight to reduce premature product failures and warranty
claims. Moreover, as the report’s authors confirm, raising
quality standards through the use of programs such as
‘Zero Defect’ or the world-recognised ‘Six Sigma’, “…is
the right direction for product improvements.” However,
they caution: “But the targets need to be approved by
profitability studies. Uncontrolled focussing on reliability
improvements does not truly reflect either business
objectives or customer requirements. Moreover it can be
detrimental to the business profit…”
They conclude: “The process of parts and material
selection needs to start with a reliability analysis to exclude
[those] parts and material below minimum customer
reliability standards.” That sounds to us like using the right
things first, to get it right first time!
insight
generating

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