Cost of Ignorance
A proactive solution By Joel Leonard
How much is ignorance costing your organization?
Ignorance is more serious problem than what's identified during the Tonight Show street interviews of pedestrians for answers to commonly known questions.
Studies have proven that approximately 70% of equipment failures are self induced. Maintenance operations currently perform at levels between 10-40% efficiency. Organizations typically operate in the very expensive reactive mode and not the optimal proactive mode. Businesses strive to achieve their performance goals but yet continually fall short not due to customer demand or competitor strength but simply due to obstacles of their own creation.
Ignorance is a very expensive, unstated problem
plaguing business. Numerous companies literally are closing their factories
and receiving numerous lawsuit penalties due to product defects. In
addition many companies are losing market share not because of the lack of
sales or product quality but because of the lack of manufacturing capacity.
These results are often not because of employee laziness, apathy or criminal
intent. Many times they literally just do not know any better method to
Ignorance is not just on the production floor.
Daily CFO's reject personnel training
programs and other capacity enhancements initiatives due to short term
costs. They typically do not fully comprehend long term
value provided. Although they have good intentions of saving the company
money, unknowingly many are literally restricting their companies growth and
ability to fully achieve their business objectives.
How long can we afford to ignore our business'
AFE Chapter 26 - Serving Greater St. Louis Area, USA