Unforced Errors…Unforced Costs

By George E. Krauter

May 22, 2017 at 5:26 PM

Unforced Errors Tennis Ball.jpgIn the world of sports, reference is made to unforced errors that add to the reasons for losses.

In tennis, an unforced error occurs when a ball SHOULD be returned to an opponent. However, when it is hit into the net or out of bounds, it is considered unforced. When a ball is hit in bounds by an opponent and not able to be returned because of the quality of the shot or if it is a service ace, it is not considered an unforced error. Unforced errors are tracked in tennis, squash, and sometimes in a baseball reference and has become a political metaphor: “Unforced Errors from Tennis to Politics” (a Wall Street Journal headline). I even heard the term referred to during a PGA golf tournament; however, I cannot see how a golfer can experience an unforced error when there is no opponent returning a ball to be hit. A bad shot is an error made by the golfer; it is not unforced.

Companies are continually looking for ways to cut costs. If a known cost exists and the company continues to accept the existence of that cost without doing anything about it when there ARE corrections that can be made, is that an unforced error? Or is it an unforced assumption of cost?

The function of internal maintenance, repair and operations (MRO) distribution, the MRO storeroom, is an unforced cost a company assumes because it recognizes the negative existence of the cost on profit drain, but does not take steps to correct the situation. Any company large enough to have an MRO storeroom is assuming unnecessary costs that can be recovered. The operation of MRO distribution is a profit drag; if a function in the management of the plant lost money, it would be changed or eliminated. Getting parts to maintenance when needed is critical in achieving a reliable plant. When a company operates its own storeroom, it is not recognizing alternatives that can change the unforced cost into a profit contributor. This unforced cost condition continues to exist in most companies.

The expert MRO storeroom company brings Master Data Leadership, connected EAM / CMMS technology, asset reliability engineering, and a profitable distribution of the correct part in the quantity needed on time. 

Unforced costs go away.



Tags: master data MRO distribution MRO storeroom
Category: Blog Post

George E. Krauter

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George Krauter currently serves as Vice President for Synovos in Radnor, Pa. He is recognized as the originator of the concept that became known as “integrated supply.” He has participated as a guest speaker at Reliability 2.0, ISM Indirect Conference, International Maintenance Conference (IMC), The Conference Board, and events for APICS, SMRP, and ISM professional chapters. 

George is recognized as an authority on methods to achieve reliable, maintenance-connected MRO storerooms; he has published his experiences in Uptime Magazine, Food Manufacturing, My Purchasing Center, and Supply & Demand Chain Executive. He holds a B.A. and M.B.A.A. from Temple University (Philadelphia) and has conducted seminars internationally (Oslo, Abu Dhabi) as well as sessions at Duke University, MIT, Howard University, and Temple. He lives in Bucks County, Pa., with his wife Joyce; all grandkids live within eating distance. You may reach George by phone at 610-246-6492.



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