safety management guide

7/30/2019 safety management guide

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1OR-OSHA 107 Selling Safety to Management

Selling Safety to

Management!

1005




Trainer Intro Page




Goals

• Gain a greater awareness of the tools and

methods to sell safety to management.

• Understand and apply the seven steps of aneffective recommendation process.




Form Teams

• Introductions

• Elect a team leader

• Select a team spokesperson

• Everyone is a recorder




The primary communication goalof a recommendation is to

________________ because it askssomeone to do something.

The Safety Communications Process

Persuade




Factors that influence the success of arecommendation

Steak

Sizzle

Style

Content

Motivation

Presentation


http://slidepdf.com/reader/full/safety-management-guide 7/607OR-OSHA 107 Selling Safety to Management

What kind of change does a recommendation promote?

Recommendation ThoughtsAttitudesBeliefs

Feelings

What the decision-maker decidesto do:

• Approve• Revise• Revisit• Disapprove



Pushing the Right Buttons

Correcting hazards is generally viewedby employees as an ___________ need.

Correcting hazards is generally viewedby management as a _________ event.

Immediate

planned



Knowing what motivates lets you target and

appeal to needs.

What motivates the employer to act?



The Legal Imperative

Fulfill obligation to government to comply with the law.

What’s the message?

What benefits would you emphasize?



The Financial Imperative

Fulfill obligation to stakeholders to operatebusiness in a fiscally prudent manner - at a profit.





The Social Imperative

Fulfill obligation to be socially responsible as a

corporate citizen.





The challenge is to transform the perceived

planned activity into an immediate need!



Safety Costs at XYZ INC.



Scenario #1:Worried in the warehouse

Scenario #2:Faint in fabrication

Scenario #3:Help in the Hole



Today we'll take a look at nine important steps of aneffective safety recommendation process.

Step 1: Identify the Problem

Step 2: Write a Descriptive Problem Statement

Step 3: Gather Information About the Problem

Step 4: Determine the Cause

Step 5: Recommend Solutions

Step 6: Determine the CostsStep 7: Determine the Risk

Step 8: Determine the Benefits

Step 9: Write a Recommendation That Sizzles!

Steps in Preparing theRecommendation



• Hazardous condition - tools, equipment, machinery,workstation, employee

• Unsafe behavior - can occur at any level of theorganization

• Inadequate system design - lack of well-writtenplans, procedures, policies, procedures, etc.

• Inadequate system performance - programs, plans,

policies, etc. not effectively performed

Step 1. Identify the Problem



Step 2: Write a descriptive problem statement

• Condition. Several ladders in the supply area arecracked or warped.

• Behavior. An authorized employee did not complete

the chipper lockout/tagout procedure.

• System Performance. Lockout/tagout training is notbeing provided to new maintenance personnel.

• System Design. he lockout/tagout program does notinclude a training plan.



Develop a statement of the problem fromyour group's assigned scenario.

Write a problem statement for onehazardous condition or unsafe behavior.



• develop the findings that justify your problemstatement

• ensure the best solutions are proposed

• effectively sell your suggestions by identifying the

benefits.

Step 3. Gather informationabout the problem



Use the following documents to help you gatherbackground information:

1. Injury/Illness records

2. OSHA 300 logs

3. Employee hazard reports

4. Observation programreports

5. Safety inspection reports

6. Incident/Accident reports

7. Safety committee minutes8. Job hazard analyses

9. Employee safety surveys

10. Maintenance requests

11. First aid logs

12. Safety policies andprocedures

13. Safety rules

14. Manufacturer manuals

15. Material Safety DataSheets (MSDS)

16. Observation reports

17. Safety suggestions

18. Insurance carrier lossreports




Common Measurements of Results




Step 4: Determine the Cause

• Conduct an analysis just as you would whenconducting an incident/accident analysis.

• The great advantage, here, is that the employer

hasn't suffered an accident.

It’s a FREEBIE!




Cause-Effect Analysis

Every hazard we identify in the JHA representsthe effect of a cause .

Characteristics of Surface Causes

Characteristics of Root Causes




Effect

Cause

System Performance Root CausesGeneral failure to carry out management and supervisory responsibilities

1. Leadership 1. Resources 2. Enforcement 3. Supervision 5. Training

Effect – The Observed Hazard or Unsafe PracticeHazardous condition and unsafe/Inappropriate behavior identified in the analysis

System Design Root CausesInadequate/missing programs, policies, plans, processes, procedures, practices

1. Commitment 2. Accountability 3. Involvement

4. Hazard Identification/Control 5. Accident Analysis 6. Training 7. Evaluation

Analyze

Evaluate

EffectCause

AnalyzeEvaluate

Contributing Surface CausesHazardous conditions and unsafe/Inappropriate behaviors contributing to the problem

1. Material 2. Equipment 3. Environment 4. Employees

EffectCause

AnalyzeEvaluate

Why?

Why?

Why?

Because!

Because!

Because!




Exercise: Cause of Effect

Read the examples below.

Place a “O” before each statement that describes

an observable condition or behavior – the effect.

Place a “P” before each statement that describes

a performance root cause.

Place a “D” before each statement that describes

a design root cause.




Exercise: Determining the Causes




Contributing Surface Causes

Describe possible contributing surface causes.

Example - A maintenance person failed to replace theguard after completing corrective maintenance.




System Performance root causes

Describe possible performance root causes.

For example - Lockout/Tagout training plan doesnot include training of "affected employees."




System Design Root Causes

Describe possible design root causes.

Example - Supervisor accountability is notaddressed in the safety accountability plan.




Step 5. Recommended Solutions

• Provide options - Ideal state, nice state, quick fix

• Corrective actions include: engineering controls,management controls, personal protectiveequipment, interim measures

• System improvements include: revised policies,

programs, plans, processes, procedures, andpractices




1. Engineering Controls

Engineering controls are based on the followingbroad principles: 1. design the facility, equipment, or process

2. enclose the hazard

3. establish barriers or local ventilation




2. Management Controls

Controlling specific work procedures

Controlling specific work practices

Controlling work schedules

Interim measures




3. Personal Protective Equipment (PPE)

When exposure to hazards cannot be engineered

completely out of normal operations or maintenancework, and when other management controls cannotprovide sufficient additional protection from exposure,personal protective clothing and/or equipment may be

required.

4. Interim measures.

Temporary use of the other controls to reduce oreliminate exposure.




Immediate Corrective Actions

System Improvements

Group Exercise: Develop Solutions




Insured(Direct) Costs

Uninsured(Indirect) Costs

Step 6. Determine the Costs

Unknown Costs

Oregon average to closea claim = $12,611

Oregon estimated average= $18,000

Unseen costscan sink theship!




Workers' Compensation Made Simple

How are rates determined?

Manual Rating - Also called the “Pure Premium Rate,” this rate is

applied to all industries of the same type or standard industrial

classification (SIC). Expressed as:

Dollars per $100 dollars of payroll

Example: $3.15 per $100 dollars of payroll.

Experience Rating - used to vary the company’s own rates,

depending on its experience by comparing actual losses with

expected losses.




BelowAverageAccident

Rate

Average

AccidentRate

AboveAverageAccident

Rate

3.75

3.50

3.15

2.75

2.50

2.00

1.75

1.50

3.75

3.50

3.15

2.75

2.50

2.00

1.75

1.50

M a n u

a l R a t e

MOD

Rate

1.301.201.101.00.90

.80

.70

.60

1.301.201.101.00.90

.80

.70

.60




If the company has a profit margin of 5%,additional business volume to replace$78,500 would be $1, 570,000!

XYZ Contractors MOD Rate in 2003 = 1.3Classification Description Code Payroll Base Rate/Premium Adjusted Rate/PremiumConcrete - Floor/Driveway 5221 $500,000 $1.26/$63,000 $1.64/$$82,000

Carpentry - Multiple Family Dwel. 5651 $500,000 $3.97/$198,500 $5.16/$258,000

$261,500 $340,000

Adjusted Premium = $261,500 + $78,500 = $340,000




Wow! If you reduce your MOD Rate from 1.3 to.7, total savings will be $157,000. That’s $3.14million in business volume saved!

XYZ Contractors MOD Rate in 2004 = .7Classification Description Code Payroll Base Rate/Premium Adjusted Rate/Prem

Concrete - Floor/Driveway 5221 $500,000 $1.26/$63,000 $.88/ $44,000

Carpentry - Multiple Family Dwel. 5651 $500,000 $3.97/$198,500 $2.78/$139,000

$261,500 $183,000

Adjusted Premium = $261,500 - $78,500 = $183,000




What injuries are causing the most claims in Oregon?

Average Cost For DisablingClaims

By Event or Exposure

-




Total Claims: 22,569

Average Cost: $13,107

Where's the "average"?




$ A F E T Y P A Y S ! OSHA Advisor

OSHA Hazard Awareness Advisor




Determine the costs

What are the total estimated direct costs?

What are the total estimated uninsured costs?

What is the ratio of uninsured to insured costs in your scenario?

What are the total accident costs?




Step 7. Determine the Risk

Determine the risk to the employer if the problem is notsolved.




Risk is a function of Probability, and Severity

R=PxS

• What is the probability of an accident occurringwhen exposed?

• How severe will the injury or illness be when

exposed?




Factors that increase risk

• The number of employees exposed

• The frequency and duration of exposure

• The proximity of employees to the point of danger

• Potential severity of the injury or illness

• Factors that require work under stress• Factors that increase severity

• Lack of proper training and supervision

• Improper workplace design

• Other factors

What factors might increase stress?




Group Exercise: Determine the risk




Rating _____

Probability

The likelihood of injury or illness. Rating

Is the most likely and expected result if employee enters danger zone. 10

Is quite possible, would not be unusual, has an even 50/50 chance. 6

Would be unusual sequence or coincidence 3

Would be remotely possible coincidence. It has been known to have happened 1Extremely remote but possible. Has never happened after many years of exposure. .5

Practically impossible sequence or coincidence. Has never happened when exposed. .1




Rating ______

Severity

The most likely result - degree of Severity of Consequences Rating

Major Catastrophe: Numerous fatalities. Extensive Damage >$1M 100

Several fatalities; damage $500K to $1M 50

Fatality; damage $100K to $500K 30Extremely serious injury; (amputation, permanent disability); damage $1K to $100K 20

Disabling injuries; damage up to $1,000 10

Minor cuts, bruises, bumps; minor damage 1




Risk Score = P _______ x S _______ = ________

Risk Scores for scenarios

Scenario #1 = __________________ Scenario #2 = __________________ Scenario #3 = __________________

Using the information from the three charts above and the risk score equation, determine the risk associated with your scenario.

So, what do these scores mean?




The Risk Assessment Matrix




Step 8. Determine the benefits

You're going to have to ask the questions, "What arethe benefits that result from …

• fulfilling social obligations - higher morale, reputation,

long-term success

• fulfilling fiscal obligations - lower premiums, higher productivity, profits, efficiency, quality

• fulfilling legal obligations - no/low OR-OSHApenalties, no litigation.




Group Exercise: Determine the benefits

Total Investment $__________________________




What’s XYZ’s return on our investment going

to be?

ROI = Total Estimated Accident CostsTotal Investment

Return on Investment




How long will it take to get our money back from the investment?

Payback Period = Total InvestmentTotal Estimated Accident Costs

Payback Period




How much product or service will XYZ have to sell to pay for the accident costs?

BV = Total Estimated Direct/Indirect Accident Costs

Profit Margin

Business Volume




I. Description of Problem

II. History of the Problem

III. Cause Analysis

IV. Recommendations and estimated investment

V. Costs associated with failure to implementrecommendation(s)

VI. Summary of Benefits

VII. Action Items:

Step 9. Write a recommendation That Sizzles!




Let's review!



That's it! Thanks for Coming

See you in another workshop!

Drive carefully!

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