A technique for managing hard failures in a memory system employing a locking is disclosed. An error count is maintained for units of memory within the memory system. When the error count indicates a hard failure, the unit of memory is locked out from further use. An arbitrary set of error counters are assigned to record errors resulting from access to the units of memory. Embodiments of the present invention advantageously enable a system to continue reliable operation even after one or more internal hard memory failures. Other embodiments advantageously enable manufacturers to salvage partially failed devices and deploy the devices as having a lower-performance specification rather than discarding the devices, as would otherwise be indicated by conventional practice.