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Showing content with the highest reputation on 03/23/2021 in all areas

  1. 4 Eyes Principle - it is a risk control method where a set of 4 eyes (or 2 people) must approve or check something before it could be done. The fact that no human being is perfect led to the use and popularity of method. The concept is simple - the odds of two different people making the same mistake at the same time are very very small and NOT ZERO. This is the reasons that there have been instances where some errors have happened even when 2 or more people have checked the same thing. If implemented in the process, will it be value adding or non-value adding? Ideally, it will be a non value adding activity. However there are instances where the customers are willing to pay for multiple people checking the same thing. In such scenarios, 4 or 6 or even 8 eye checks become value adding. Barring it, 4 eyes principle is a non-value adding activity usually made mandatory by the regulator for safety concerns and hence is classified as value enabling activity. Examples where 4-Eyes principle is value adding 1. Authors usually want multiple reviews (copy edits, proof reads etc.) of their work before publishing and they are willing to pay for such reviews. 2. Managed services (outsourcing work), clients sometime warrant dual data entry and pay for the same (imagine the cost arbitrage - cost of 2 outsourced FTEs is less than 1 onshore FTE) 3. Patients willingly take second opinions before major medical procedures. In the above it is clear that the customer is willing to pay for the multiple reviews or checks. Examples where 4-Eyes principle is non-value adding 1. Banking transactions need to be approved by 2 or more people depending on the ticket value (usually called as maker-checker process) 2. Presence of 2 pilots in the cockpit. Both should check and confirm the same thing before an action is taken 3. Closing of doors on the plane. 2 crew members should check and confirm it 4. Presence of team of doctors and nurses during surgeries. Doctors ask for the instrument by calling its name, the junior doctors or nurses hands over the instrument by calling its name again. Double confirmation that correct instrument is being used 5. Presence of two people for opening of bank safes and lockers All these examples have a cost of failure and hence 4-Eyes principle is implemented so that the risk of failure is minimized. In such cases this becomes an example of a value enabler activity. Example where 4-Eyes principle is a complete waste 1. Putting additional layers of audits in service industry because of customer complaints and escalations
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