
Guest post by B.D. McLaughlin, ScD, MInstrP
Using a comprehensive and inclusive definition, risk may be defined as the cost of “failure to add value” per unit time. Such failure includes performance deficiencies for employees, equipment, material and method. It includes the types of “failure to add value” comprising traditional waste such as overproduction, wait time, transportation, processing, inventory, motion and defects. It includes the cost of injury, litigation and damage to company reputation. It encompasses the total cost of failure and not just the cost of remediation. You must minimize risk to stay competitive. Risk is consuming the hidden wealth of your enterprise. It is disguised and concealed as the “cost of doing business.”














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