How Much is Ignorance Costing Your Organization?

from www.mpactlearning.com
Posted 10/04/2004

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 conduct themselves.

Ignorance is not just on the production floor.

Business executives have the ultimate influence in organizations performance and direction. Maintenance is critical component for a company to deliver capacity and quality. However, how many actually truly understand the value of maintenance? How many have actually attended a proactive maintenance seminar?

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.

“The society that scorns excellence in plumbing, because it is a “humble” activity, and tolerates shoddiness in philosophy, because philosophy is an “exalted” activity, will not have good plumbing nor good philosophy- neither its pipes nor its theories will hold water.”  John Gardner

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