Do You Have an Extra Billion for Improvement?
How much is in your improvement budget?
Initial estimates from JP Morgan published in the Star-Telegram say:
“The Deepwater Horizon oil rig that caught fire and sank in the Gulf of Mexico last week may cost insurers and reinsurers $1.6 billion, according to estimates by JPMorgan Chase & Co.“
Of course, that’s what insurance is for. To insure against loss.
Wouldn’t it be better to spend less to prevent loss by being proactive? If the budget for prevention was 10% of the actual cost of the loss, I bet this accident could have been prevented. What company – even in the oil business – is spending $160,000,000 on their improvement program.
Of course, that assumes that the estimate of $1.6 Billion is correct. My guess is the total cost (beyond insurance coverage) will be much more.
Maybe it’s time to consider PROACTIVE improvement rather than just insurance.
Consider attending a 5-Day TapRooT® Advanced Root Cause Analysis Team Leader Course and the TapRooT® Summit to learn more.