October 19: Amazon’s Correction of Error Mechanism (Part 1)
Identify the issue, measure the customer impact, ask questions about how it happened, and generate action items to ensure the error never happens again.
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Source: Dave Anderson, Scarlet Ink
Published: June 2021
Amazon’s Correction of Error Mechanism (Part 1)
Human error is inevitable. Amazon uses a mechanism called correction of error (COE) which identifies the issue, measures the customer impact, asks questions (the 5 whys) about how it happened, and generates action items to ensure the error never happens again.
Example: a large server failure takes down the Amazon.com store
Issue: Site went down for US customers on the east coast.
Customer impact: 3 hours of outage, 501,430 customers could not place orders, $39M estimated loss in order revenue
5 Whys: Asking “why” 5 times is a method for root cause analysis from the Toyota Production System. We’ll give example questions and answers tomorrow.
Action items: Who is responsible for making changes and by what date. More on this tomorrow.
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