n a recent trip we inspected a manufacturer's location and reviewed exposures with plant personnel. One of the items we discovered was a foreign-manufactured motor valued at about $200. The motor could not be replaced in the American market, and would have to be ordered from its manufacturer in the event of failure. It drove a rotating device which allowed for change of production between two supply sources.

If the motor failed the first production line could continue to function, but there would be a loss of $1,000 worth of product in the change over process, which occurred on an average of 20 times daily. The daily potential for loss could reach $20,000. Estimates were that, even with an expedited order, it would take two weeks to replace the $200 motor. Two weeks multiplied by $20,000 -- for $200.

Do not fail to look at small items; they can be stocked to prevent a major loss. Duplication is a valuable, but commonly overlooked, risk management technique.