Saturday, October 23, 2004

The perils of efficiency

It is only natural in a free market economy to have a small number of companies that do one thing and do it very well. But there needs to be a balance. A case in point is the shortage of flu vaccine. One factory has problems, and half the flu vaccine for the United States doesn't get delivered.

Another case of efficiency shooting us in the foot is the closing of hospitals. Yes, having a smaller number of larger hospitals is more efficient. But what happens when a hospital gets quarantined because of SARS or some other disease. All of a sudden, a significant percentage of your hospital beds disappear.

Interestingly enough, as society forgets these lessons, computer scientists and engineers are learning these lessons. Rather than one computer, the Space Shuttle has five. Likewise, Canada's new frigates have about 30 different computers all over the ship. If a couple get destroyed, the rest still function. Sure, we lose efficiency, but the more mission critical a function, the less you can tolerate a single point of failure.

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