Can you afford to take chances?
What type of risks might you be facing?
1. SAFETY: Refinery Insurance Claim Denied (December, 2003)
An independent safety audit at a Texas refinery, recommended 33 specific improvements. The company implemented corrective measures on 11 of the recommendations, deferring the rest to the following year. Four months later, the refinery suffered a $1.2 MM loss due to a localized fire.
The insurance investigators determined that the fire would have caused very limited losses, if one specific audit recommendation had not been deferred. They refused the claim arguing that this was a significant recommendation, and that the refinery should have included it in the first batch that was implemented. The refinery was asked show a valid basis for selecting other recommendations, excluding this specific recommendation. Unfortunately, the refinery had no basis, other than the judgment of a couple of managers.
When the insurance company realized that the refinery had ignored the auditor’s advice to use XpertUS for ranking, only $35,700.00 was paid on the claim.
Now this refinery uses XpertUS, to substantiate decisions and rank recommendations, thereby having a defensible basis.
2. HUMAN RESOURCES: Lawsuit Dropped (April, 2004)
When a chip manufacturer completed their fresh graduate hiring program, they had eliminated 21 of 27 candidates. Soon after, an African-American graduate, who was not selected, sued the company claiming discrimination.
At that point the company lawyers informed the Plaintiff’s lawyers that they had used XpertUS in their selection program, and that they had a very strong defense, based on a reliable and consistent technique. The Plaintiff’s lawyers contacted Shanmar Inc. for a brief discussion on XpertUS. Shanmar Inc. submitted a written statement, and the lawsuit was withdrawn immediately.
………. These are real examples of the value of basing your decisions on a structured methodology.
3. Government Entomologist Struggles
NAPA Valley Wine Growers were facing a serious threat – a “worm” was attacking grape vines.
Government entomologist Henry Totos was asked to investigate.
His team came up with six possible solutions – Pesticides, Predators, Genetic modification, Ultrasonic destruction, etc.
However, Henry was struggling to decide on which was the best option. He was a “domain expert” – not a decision-maker.
Finally, he used XpertUS to arrive at the final treatment option
Other activities in progress ……
4. A consulting group bidding on a feasibility study for “Identifying a site for a Nuclear Power Plant” has proposed the use of XpertUS.
5. The EPA is presently using XpertUS for selecting cites for hazardous waste disposal.
6. Homeland Security Agency is using XpertUS to rank evacuation routes, from industrial complexes and sensitive facilities.
