Sam,
In my limited experience, I find that most folks just aren't aware of it. At least, to the degree that they should be. In addition, most organizations only realize the losses when their butt is in the fire, often too late. While an organization makes money, enough to a bunch, they aren't interested in the waste within the system. This is part of the Caretaker Syndrom that Crosby speaks about. If things aren't broke, don't fix them. Stay the course.
Most organizations are aware of the blatently obvious, scrap and rework. These are normally 'measureables' within their systems. They measure these because they are taught to. Just a part of the failing Western Management Philosophy plaguing our Business Schools (my own opinion). A monkey see, monkey do approach. Sad, but true. Also, many times organizations only measure the Poor Costs of Quality, which traditionally only include Failure Costs. Doing this, you miss the Preventive (value added approach) and Appraisal (non value added, but necessary). Organizations are only concerned about measuring the 'waste' and issuing CA. While this is important, the move should be towards PA and away from CA. That is where the big savings are!
People need to made aware of the losses. But just a Barb points out, the sometimes hits the people in the sensative areas. Especially as organizations continue to make money in spite of themselves, these efforts often go unheaded and often resented. Too bad!
Regards,
Kevin
In my limited experience, I find that most folks just aren't aware of it. At least, to the degree that they should be. In addition, most organizations only realize the losses when their butt is in the fire, often too late. While an organization makes money, enough to a bunch, they aren't interested in the waste within the system. This is part of the Caretaker Syndrom that Crosby speaks about. If things aren't broke, don't fix them. Stay the course.
Most organizations are aware of the blatently obvious, scrap and rework. These are normally 'measureables' within their systems. They measure these because they are taught to. Just a part of the failing Western Management Philosophy plaguing our Business Schools (my own opinion). A monkey see, monkey do approach. Sad, but true. Also, many times organizations only measure the Poor Costs of Quality, which traditionally only include Failure Costs. Doing this, you miss the Preventive (value added approach) and Appraisal (non value added, but necessary). Organizations are only concerned about measuring the 'waste' and issuing CA. While this is important, the move should be towards PA and away from CA. That is where the big savings are!
People need to made aware of the losses. But just a Barb points out, the sometimes hits the people in the sensative areas. Especially as organizations continue to make money in spite of themselves, these efforts often go unheaded and often resented. Too bad!
Regards,
Kevin
