The Price of Poor Process Management
Examples of Business Mistakes Caused by Poor Process Management or Poor Knowledge Management
Below are examples of business mistakes that should have been prevented by people, processes and/or systems. These mistakes were not necessarily caused by poor rules management; they may have been caused by poor process management or poor knowledge management instead.
These examples fall into the "what were they thinking?" category:
Wrong Version Business Mistakes
Wayward Airbus - Cross-border clashes have led to costly
production errors. Job One for a new CEO will be to unify the
jetmaker. "Airbus' A380 double-decker jet is two years
behind schedule, sending billions of dollars in potential
profits down the drain. But the reason sounds too simple to be
true: Airbus factories in Germany and France were using
incompatible design software, so the wiring produced in
Hamburg didn't fit properly into the plane on the assembly line
in Toulouse. It's one of the costliest blunders in the history
of commercial aviation, and it has plunged Airbus into crisis.
Chief Executive Christian Streiff quit on Oct. 9 after only
three months on the job... The delays in the A380 mean EADS will
take a $6 billion profit hit over the next four years... When
bundles of the cabin wiring started arriving in Toulouse early
this year, assembly slowed to a crawl. Workers tried to make
them fit into the fuselage by pulling them apart and rethreading
the wires, but that proved to be impractical, and the effort was
abandoned. Airbus says it has introduced new software to correct
the wiring design, but it will take months for engineers to get
up to speed on the new system. That's why Airbus now predicts it
won't deliver the first A380 orders until late 2007...
BusinessWeek, Oct. 23, 2006
Units of Measurement Business Mistakes
- Amazon dinged on pricing gaffe - Some customers looking for a good deal on an LCD TV at Amazon.com this week are now staring at a blank wall. Sept. 6, 2005
Human Factors Design Business Mistakes
- Bad Human Factors Design - A scrapbook of illustrated examples of things that are hard to use because they do not follow human factors principles. By Michael J. Darnell
- John Grout's Mistake-Proofing Center - "The causes of defects lie in worker errors, and defects are the results of neglecting those errors. It follows that mistakes will not turn into defects if worker errors are discovered and eliminated beforehand..."
- John Grout's Poka-Yoke Page - Information on Mistake-Proofing, Zero Quality Control, & Failsafing (note: A poka-yoke device is any mechanism that either prevents a mistake from being made or makes the mistake obvious at a glance)
This list is to be continued... We welcome your suggestions.