safety management guide
TRANSCRIPT
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1OR-OSHA 107 Selling Safety to Management
Selling Safety to
Management!
1005
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Trainer Intro Page
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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.
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Form Teams
• Introductions
• Elect a team leader
• Select a team spokesperson
• Everyone is a recorder
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The primary communication goalof a recommendation is to
________________ because it askssomeone to do something.
The Safety Communications Process
Persuade
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Factors that influence the success of arecommendation
Steak
Sizzle
Style
Content
Motivation
Presentation
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What kind of change does a recommendation promote?
Recommendation ThoughtsAttitudesBeliefs
Feelings
What the decision-maker decidesto do:
• Approve• Revise• Revisit• Disapprove
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Pushing the Right Buttons
Correcting hazards is generally viewedby employees as an ___________ need.
Correcting hazards is generally viewedby management as a _________ event.
Immediate
planned
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Knowing what motivates lets you target and
appeal to needs.
What motivates the employer to act?
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The Legal Imperative
Fulfill obligation to government to comply with the law.
What’s the message?
What benefits would you emphasize?
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The Financial Imperative
Fulfill obligation to stakeholders to operatebusiness in a fiscally prudent manner - at a profit.
What’s the message?
What benefits would you emphasize?
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The Social Imperative
Fulfill obligation to be socially responsible as a
corporate citizen.
What’s the message?
What benefits would you emphasize?
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The challenge is to transform the perceived
planned activity into an immediate need!
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Safety Costs at XYZ INC.
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Scenario #1:Worried in the warehouse
Scenario #2:Faint in fabrication
Scenario #3:Help in the Hole
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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
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• 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
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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.
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Develop a statement of the problem fromyour group's assigned scenario.
Write a problem statement for onehazardous condition or unsafe behavior.
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• 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
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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
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Common Measurements of Results
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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!
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Cause-Effect Analysis
Every hazard we identify in the JHA representsthe effect of a cause .
Characteristics of Surface Causes
Characteristics of Root Causes
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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!
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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.
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Exercise: Determining the Causes
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Contributing Surface Causes
Describe possible contributing surface causes.
Example - A maintenance person failed to replace theguard after completing corrective maintenance.
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System Performance root causes
Describe possible performance root causes.
For example - Lockout/Tagout training plan doesnot include training of "affected employees."
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System Design Root Causes
Describe possible design root causes.
Example - Supervisor accountability is notaddressed in the safety accountability plan.
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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
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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
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2. Management Controls
Controlling specific work procedures
Controlling specific work practices
Controlling work schedules
Interim measures
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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.
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Immediate Corrective Actions
System Improvements
Group Exercise: Develop Solutions
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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!
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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.
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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
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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
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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
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What injuries are causing the most claims in Oregon?
Average Cost For DisablingClaims
By Event or Exposure
-
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Total Claims: 22,569
Average Cost: $13,107
Where's the "average"?
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$ A F E T Y P A Y S ! OSHA Advisor
OSHA Hazard Awareness Advisor
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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?
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Step 7. Determine the Risk
Determine the risk to the employer if the problem is notsolved.
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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?
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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?
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Group Exercise: Determine the risk
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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
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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
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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?
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The Risk Assessment Matrix
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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.
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Group Exercise: Determine the benefits
Total Investment $__________________________
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What’s XYZ’s return on our investment going
to be?
ROI = Total Estimated Accident CostsTotal Investment
Return on Investment
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How long will it take to get our money back from the investment?
Payback Period = Total InvestmentTotal Estimated Accident Costs
Payback Period
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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
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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!
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Let's review!
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That's it! Thanks for Coming
See you in another workshop!
Drive carefully!