Financial Cost Of Human Errors In Manufacturing

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Financial Cost Of Human Errors In Manufacturing
Gary Martin Writer at big-topics.com, made many
article contributions to http//big-topics.com
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The human errors seriously impact the
profitability of the company, along with
affecting the key aspects of safety and return on
investment (ROI). The ROI is in relation to the
processes followed and training provided to
employees. The various strategies of risk
management have markedly decreased the instances
of injuries and accidental deaths in the
manufacturing plants. Yet, the resultant
financial costs of the errors continue to be an
enormous burden on the manufacturers. The
misunderstanding and misinterpretation of the
various processes and procedures of the business,
by the employees, is negatively affecting the
revenues of manufacturing companies. This
misunderstanding and misinterpretation is the
primary reason for the occurrence of human
errors.
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In this connection, the major issue is that
many organizations are sticking to to err is
human to the letter. Thus, many manufacturing
companies treat the financial implications of
these human errors as inevitable in the course of
business that cant be avoided altogether. Among
the many negatives of human errors, we also have
downtime. Repeated instances of downtime exercise
a negative effect on the companys
profits. Sometimes the human errors can lead to
the most adverse crises such as the factory being
forced to wind up its operations. Though these
cases are not that common, they do happen on and
off. And, the financial repercussions of these
errors are too extreme.
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Minimizing financial costs of human errors There
is only one way to minimize the financial costs
resulting from human errors in factories to
reduce the instances of human errors, as much as
possible. If any employee has a callous attitude
towards their work or does not possess the
experience needed for the job, errors tend to
happen at a manufacturing plant. But, if there is
a frequent recurrence of errors, it indicates
that the flaw is with the procedures/processes of
the factory operations. If a manufacturing
organization is committed to addressing this
matter, a broader approach has to be adopted.
Business needs to candidly admit that not all
errors can be attributed to employee
carelessness a shortcoming in the organizational
processes could also be the reason.
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Manufacturing businesses need to focus on the
improvement of procedures and encourage the
employees to participate in the same. This
greatly lessens the number of incidents of human
error and contributes to the revenues. Manufactur
ers must discard the misconception that only
complex procedures shall be effective. Nothing
can be farther from the truth. And, the truth is
that the simpler you keep the processes, the
lower the risk of human errors. If manufacturing
plants stick to this fundamental point, they will
be able to avoid unwanted costs. Companies
should opt for automation, at least covering
those important aspects where there is a high
possibility of human errors from oversight.
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Organizations are entailed to train its employees
to promptly identify their errors as well as
particular situations where errors are likely to
take place. In these training programs, the staff
has to be educated with all relevant knowledge.
Subsequently, the employees can take timely
remedial measures, before the issue on hand
escalates to the extent of financially burdening
the business.
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