Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

July 27, 2022 | Mark Paradies

How Much Money Can TapRooT® Root Cause Analysis Save Your Company?

$100 Dollar Billes Saved

Example of Money Saved

One of the students in a 5-Day TapRooT® Advanced Root Cause Team Leader Course came up to me on the third day of the course and told me that the course had already paid for itself many times over.

I asked him what he meant. He said while we were teaching that morning, he used the information he learned in the course to spot a problem in some engineering work they were doing. He immediately called his office, and they fixed the problem. The savings they achieved totaled over $1 million dollars.

That’s a great return on investment. A $2500 course and a $1,000,000 payback.

That’s about a 40000% instant ROI.

What is Your ROI?

That made me think …

Do TapRooT® Users think about how much they are saving their company?

Do they track the savings?

Do they know how much problems cost their company and have a cost-saving goal?

If you are a TapRooT® User, how much money have you saved your company? How many lives have you saved?

Here is a TapRooT® Success Story about another site that saved a bundle:

4,000% ROI Using TapRooT® to Improve Process Reliability

Let me know if you have a Success Story involving saving money for your company by leaving a note below…

Categories
Success Stories & Testimonials
-->
Show Comments

2 Replies to “How Much Money Can TapRooT® Root Cause Analysis Save Your Company?”

  • Mark Wilfong says:

    I have a huge concern with this “testimonial.” One of the most common failures with engineering projects in general, and with most continuous improvement initiatives, is failure to effectively and consistently capture and report results. These are the results that validate the project investment and are the greatest measure of project success. In your example a hypothesis was generated, a call to the “office” was made, and a 4,000% ROÍ was ascribed on that same day. I do not see how this savings could possibly have been validated in this timeframe.
    At the very least the engineer should have been advised to validate the savings subsequent to project commissioning and you should not have advertised this “testimonial” before that happened.

    • Mark Paradies says:

      Thanks, Mark,

      You are right; this wasn’t the most rigorous calculation. His was a comment at a course. It was meant to be an example, not a case study.

      However, changes in design engineering can prevent many errors that cost terrific amounts of money during operations and maintenance. But in this case, the error prevented was in the engineering, and the savings were in engineering costs. But for the example, that really doesn’t make much difference

      Another example that won’t pass your standards check was an engineer in a course that recognized that he had put a pump start button in a confined space and that people were starting the pump without using a confined space procedure. He had the button moved to a more convenient location outside the confined space. What were the savings there? A life? Had to say.

      I would guess that most sites don’t know the cost of human errors. Maybe this article will get people to think about the cost of errors and start calculating at least a guess on the savings possible.

      Best Regards,

      Mark

Leave a Reply

Your email address will not be published. Required fields are marked *