Product reliability goals, or targets, must be specified during the scoping phase for a new project. For commercial products, these goals are often set based on baselines of other products or even anecdotal information. These targets, however, set up the amount of reliability demonstration testing required for project completion. A better method of setting reliability goals is using Net Present Value (NPV) financial analysis for the program. This presentation examines how to calculate an appropriate reliability target using NPV. It will also compare the impact to test plans using two different sets of reliability goals. The impact examined will be expressed in both dollars and project duration.

Key Words: Reliability Goals, Reliability Management, Project Scoping, Finance, Reliability Test Planning