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THE HUMAN ERROR


look at the fix to ensure the event does not recur. The SMS is part of the fix with an estimated total cost of painting lines and training personnel etc at $50,000. But we humans are genius at finding way to get around Safety nets developed to prevent a


reoccurrence. Thus, one has to factor in the probability of success of the fix. In some cases, a WAG (Wild Ass Guess) may be necessary. Let’s say that the chances of it preventing a reoccurrence is 75%. Multiply the % (.75) by the total cost ($100,000) to


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30 DOMmagazine.com | apr 2020


get a return of $75,000. Subtract the cost to obtain this return, $50,000, and the ROI is 25,000. This is a positive ROI on preventing a future occurrence. A properly functioning SMS will help prevent the occurrence from happening in the first place. Later we’ll look at a simpler cost/benefit analysis model as well as a computer program that will greatly assist in illustrating with fancy charts, the cost benefit and ROI of the system. Figure 4 indicates the SMS lowering of human error results in greater profit and certainly lessens the chances or odds of a major fatality accident occurring. Most managers are just too busy to do all of this for each incident, but a well-designed SMS program can make it easier to do and is better than the “trust me — its working,” as we are having less human error costs. Many companies have reported their human errors cost have decreased by more than 50%, but most rely on a gut feeling that it has improved as past costs of incidents were never properly tracked but hidden in the total maintenance costs as part of the price of doing business. A bonus of a properly organized SMS is improved morale that leads to improved productivity — which helps provide increased profits.


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