Financial Cost Of Human Errors In Manufacturing
                     Financial Cost Of Human Errors In 
Manufacturing
Gary Martin
Writer at big-topics.com, made
many article contributions to
http://big-topics.com
The human errors seriously impact the profitability of the company, 
along with affecting the key aspects of safety and return on 
investment (ROI). The ROI is in relation to the processes followed 
and training provided to employees.
The various strategies of risk management have markedly decreased 
the instances of injuries and accidental deaths in the manufacturing 
plants. Yet, the resultant financial costs of the errors continue to be 
an enormous burden on the manufacturers.
The misunderstanding and misinterpretation of the various processes 
and procedures of the business, by the employees, is negatively 
affecting the revenues of manufacturing companies. This 
misunderstanding and misinterpretation is the primary reason for the 
occurrence of human errors.
In this connection, the major issue is that many organizations are 
sticking to “to err is human” to the letter. Thus, many manufacturing 
companies treat the financial implications of these human errors as 
inevitable in the course of business that can’t be avoided altogether.
Among the many negatives of human errors, we also have downtime. 
Repeated instances of downtime exercise a negative effect on the 
company’s profits.
Sometimes the human errors can lead to the most adverse crises such 
as the factory being forced to wind up its operations. Though these 
cases are not that common, they do happen on and off. And, the 
financial repercussions of these errors are too extreme.
Minimizing financial costs of human errors
There is only one way to minimize the financial costs resulting from 
human errors in factories: to reduce the instances of human errors, as 
much as possible. If any employee has a callous attitude towards their 
work or does not possess the experience needed for the job, errors 
tend to happen at a manufacturing plant. But, if there is a frequent 
recurrence of errors, it indicates that the flaw is with the 
procedures/processes of the factory operations.
If a manufacturing organization is committed to addressing this 
matter, a broader approach has to be adopted. Business needs to 
candidly admit that not all errors can be attributed to employee 
carelessness; a shortcoming in the organizational processes could also 
be the reason.
Manufacturing businesses need to focus on the improvement of 
procedures and encourage the employees to participate in the same. 
This greatly lessens the number of incidents of human error and 
contributes to the revenues.
Manufacturers must discard the misconception that only complex 
procedures shall be effective. Nothing can be farther from the truth. 
And, the truth is that the simpler you keep the processes, the lower 
the risk of human errors. If manufacturing plants stick to this 
fundamental point, they will be able to avoid unwanted costs.
Companies should opt for automation, at least covering those 
important aspects where there is a high possibility of human errors 
from oversight.
Organizations are entailed to train its employees to promptly identify 
their errors as well as particular situations where errors are likely to 
take place. In these training programs, the staff has to be educated 
with all relevant knowledge. Subsequently, the employees can take 
timely remedial measures, before the issue on hand escalates to the 
extent of financially burdening the business.
About Big Topics
Big-topics.com is a website focused on covering unbiased and
functional information on wide range of significant topics that might be
useful and interesting in your everyday living. The topics provided are
across from different fields including home, recreation, health,
business, science, society etc. For more details on the categories, visit
http://big-topics.com
Thank you for spending your precious time in reading this article.