Time Value of Information
Fans of Malcolm Gladwell’s Blink will surely agree: In many situations, it makes sense to act promptly and decisively upon arrival of information indicating a problem.
You can clearly apply this logic in industrial manufacturing setting. For instance, if a machine on the manufacturing line has drifted out of spec and starts spewing bad parts, it should be shut down immediately in order to reduce the number of bad parts it produces. Then, the machine needs to be repaired equally expeditiously in order to restore production as soon as possible. In this example, the impact, or the business value, of the decision is the highest when a quick and decisive action is taken. The longer we wait to shut down production, the more bad parts are going to be produced and scrapped.
As Lee Iacocca remarked: “Even a correct decision is wrong when it was taken too late.”