4 Stop InjuriesWhat is the single most important factor to prevent employee injuries and vehicle accidents?
5 Overt management commitment Stop InjuriesOvert management commitmentWhen the employees believe that you are committed to their safety, they will stop having accidents…Uncomfortable?
6 Stop Injuries Case studies Fatality investigation Fingers crushed Internal audit response… disappointedSteelPigment manufacturerEastern Region… post fatality
7 Case History #1 – Fatality Tommy BrubakerMachinistMidnight shiftLatheWarnings? JacketsAccountability?
8 Case History #2 – Crushed Fingers Trailer manufacturerPunch press operatorDual actuator buttonsThree fingers crushedWarnings?Accountability?
9 Case History #3 – Audit Response Bhopal tragedyUCC internal auditCleanupTrue commitment?
10 Case History #4 – Steel Company High quality rail road wheelsPoor labor relationsEmerged from bankruptcyProjection of $1.1 million in workers compensation losses per year.
11 Case History #4 – Steel Company $38M sales, $3.5M W/C premiumSignificant evidence:ExaggerationMisapplication of benefits …workers’ compensation was used in lieu of health or unemployment benefits
12 Case History #4 – Steel Company The SolutionSuccessful proactive loss prevention programSupervisors trained in accident investigations, modified duty, and profit consequencesSafety committee was refocused from complaint evaluation to injury prevention
13 Case History #4 – Steel Company Results…First year:50% reduction in injuries66% reduction in costs$1M premium reduction
14 Case History #5 – Pigment Manufacturer PA company bought similar VA companyDue diligence – W/C insuranceZero reported injuriesTrue?
15 Case History #5 – Pigment Manufacturer Facility inspectionFX, floor holes, open vats, bicycle chains/gears, housekeeping, machine guardingOwner interview – 0 injuries
16 Case History #5 – Pigment Manufacturer How was injury rate so low?Onsite owner impact, owner attentionRemote owner… prediction
17 Case History #6 – Eastern Region FatalityNew safety consultant12 months (training, investigations, STOP, etc.)Worst to first
18 The maximization of profits comes from the minimization of losses Peter DruckerThe maximization of profits comes from the minimization of lossesProactive Loss Prevention
19 Proactive risk management vs. traditional loss control Applies to Two Safety ParadigmsProactive risk management vs. traditional loss controlApplies toWorkers’ CompensationVehicle Liability
20 Where proactive risk management works? Security ServicesGroceryDelivery FleetsTemporary Service EmployersRestaurantsIron & Steel ManufacturingHospitality & Healthcare InstitutionsWelding Gas Distributors
22 Loss Control vs Risk Control Loss Control (Traditional Approach)Manages Costs After Loss ExperienceIn Short, “Reactive”Insurance company responsibilityRisk Control (Alternative Approach)Manages Performance Before ExperienceIn Short, “Proactive”Your responsibility
23 If Common TodayPoor PlanningLack of TrainingUnsafe ConditionsPossible TomorrowOn Site AccidentsInjury/Death
24 Case Study #1 Client – Midsize Welding Gas Distributor Problem 30 vehicle units - 6 months9 preventable accidents2 non-preventable accidentsSolution - A structured programOutcome0 preventable accidents
25 What made the difference? Commitment! Accountability Case Study #1What made the difference?Commitment!AccountabilityFirst Executive Safety Committee meeting – all OKSecond meeting – commitmentThird meeting - performance
26 Why Practice Prevention??? Preventing losses IS possible!Always less expensive than traditional loss control approachesLess equipment damage and downtimeFewer customer issuesProfessionalism risesProfit is improved
27 10 essential elements 1. Management leadership 2. Assignment of responsibility and accountability3. Maintenance of vehicles, equipment4. Pre-employment checks5. Establishment of effective safety committees and training
28 10 Essential Elements 6. Accident record keeping system 7. Medical and first aid systems8. Acceptance of personal responsibility by employees9. Post loss management activity10. Results monitoring and program evaluation
29 Management Techniques Systematic accident investigationsMajor, minor, near missNational Safety Council guidelines for determining preventabilityOperator and driver/supervisor trainingPersonnel and vehicle safety incentives & communicationDiscipline & accountability
30 Benefits of Prevention HumanitarianLess painRegulatory ComplianceAvoid OSHA/DOT hassles, citationsFinancialLower costs, liabilities, down timeBusiness/Officer ProtectionDocumentation, manual, program
31 How to measure the company’s real safety performance? Whose performance?
32 Your performance How to measure… You (owners, line managers) are accountable … or can become accountableCase Study – Temporary Service EmployeesCase Study – Fraud, Pasadena, CA
34 How to measure your real safety performance? Long term – W/C rate Professional, unbiased numerical appraisal
35 How to measure your real safety performance? Short termNon-injury incidents (near misses)First Aid CasesRecordable injuriesLost workday cases
36 FatalitiesLostTime CasesRecordable InjuriesMedical Visits/First Aid CasesUnsafe Behaviors/Unsafe Acts
37 Insurance company structures (policy, rent-a-captive, captive, self) W/C InsuranceInsurance company structures (policy, rent-a-captive, captive, self)Premiums adjust for 3 years plus 1Do some insurance companies care about your performance?
38 W/C InsuranceInsurance companies are designed to make more money when you have more injuriesCase Study - Rapid City
39 Experience Modification Factor (XMod) W/C InsuranceExperience Modification Factor (XMod)Frequency – each injury counts as 1xSeverity – Lost workday cases count about 10x
40 W/C Insurance - Frequency Control your frequency by stopping accidentsAccountabilityMeasurementTrainingOvert commitment