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Re: [rootcauseconference] Re: FMEA in Root Cause Analysis

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  • Dr. Bill Corcoran at NSRC
    Vee, You have impressive company when you say that management is about managing risk. Peter Drucker said that the function of management is to convert risk to
    Message 1 of 1 , Mar 8, 2003
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      Vee,
       
      You have impressive company when you say that management is about managing risk. Peter Drucker said that the function of management is to convert risk to profit (or words to that effect).
       
      Have you tried Prof. Porras's Stream Analysis to do what you describe?
       
       
      Best Regards,
       
      Bill Corcoran
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      ----- Original Message -----
      Sent: Wednesday, February 26, 2003 6:50 PM
      Subject: [rootcauseconference] Re: FMEA in Root Cause Analysis

      BobN and BobL,

      Permit me to enter to enter into this discussion, with a slightly
      different perspective, one of risk management.

      The way I see it is is best described by a series of bullets.
      - prepare an inventory of failures that have harmed or have had the
      potential to harm.  This will include the sporadic big bangs as well
      as the chronic but costly smaller ones.
      - calculate or estimate their frequency and severity in $$$, injury,
      environmental or reputation metrics.  Lump all the chronic identical
      items as one.
      - place these items on a rectangular risk matrix grid, with say,
      left hand top corner representing low frequency, low severity and
      right hand bottom corner representing high frequency, high severity.
      - this balances out the argument about chronic events being more or
      less important than the big bangs.  Select items in the right hand
      bottom corner to work on, be it with RCA, RCM, FMECA or whatever
      (high cost) analysis option is appropriate.

      BTW I agree with BobN entirely that solving the chronic events is
      invariably just about $$$ element and often does not address
      attitudes and behaviours.  It is hard to find chronic events that
      register high on the Public Relations front, but big bangs capture
      the public eye!  Secondly, when we do an RCA on a big bang, provided
      we have been diligent, we will find a fair number of human and
      latent causes.  This gives us a great opportunity to apply the
      learnings throughout the Company, multiplying the $$$ benefits
      considerably.  Plus it help change cultures, attitudes and
      behaviours.

      I believe that all management is about managing risk, be it safety,
      reliability, PR, environment, or operating costs.  And all risks are
      not quantitative, so we need a way to manage risks of perception as
      well - (There are many incidents that have cost more in lives than,
      say, Columbia, but we perceive it to be of much higher value, hence
      our group's extra interest; how do we rank the PR, national pride
      issues involved?) Hence my suggestion to use a risk matrix to
      prioritize actions.

      Regards,

      V.Narayan (Vee)




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