December 16, 2009 | Dave Janney

Is $73K Just the Cost of Doing Business?

Read this article:

This is a really sad story.  The company was fined in 2008 after an inspection yet still had these problems.  I wonder how much that was….is this just the cost of doing business?

$73K for 20 “serious” violations?  Is that number sufficient to deter bad behavior?  The really sad thing is if the company requests a conference and actually shows up the fine will probably be cut by 50%.  Not a bad ROI for just showing up for a meeting.  The real question is whether they intend to do something NOW that something really bad has happened.  I’m quite sure this poor gentleman’s family does not think $73K is worth a life.

While we only have the details listed in the article, I see a lot of problems, and many of the root causes (best practices) in TapRooT® just jump out from the page to me;  procedures not followed, task not analyzed, lesson plan NI (needs improvement), SPAC NI, corrective action NI, labels NI, obstruction, work package NI, pre-job briefing NI, No PM for equip….to name a few.  I’m sure if we did a thorough TapRooT® investigation on this there would be more.  I’m also sure with our corrective action tools we could prevent recurrence.

If the company really wanted to save money, they could invest in training in advanced root cause analysis, and it would be much cheaper in the long run.  And, if they wanted to do the right thing, cost would not be much of an issue anyway.

Don’t end up like this company.  Do the right thing.  Invest in solving problems and preventing things like this from happening.

If you want to learn more about the root causes I mentioned, the many others, and the corrective action processes in TapRooT®, attend a course soon.  We have the 2010 schedule posted HERE.

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