Records and logs for medical compensation and lost time
were calculated at a cost savings of approximately $16,000,000 per
year.
Description of Problem
A large US company had one of the worst safety records in the industry. Injuries, including incidents relating to deaths were high. Medical reimbursements, medical compensations, lost time, lost capacity due to absences and process knowledge were deteriorating.
Approach
One of the assumptions of enhancing the performance of any business is to be able to perceive that all events can be represented as a process. Safety, like a service or tangible manufactured product can be expressed as a process. The outputs in this case are the result of the process, i.e, injuries, lost time, etc.
A cross-functional team was commissioned to study safety horizontally as opposed to within departments (vertically). Problem solving techniques and large scale historical data sweep analysis were conducted. Once the root causes were discovered, countermeasures were identified and implemented.
Results
Several interesting findings were discovered. First, safety was seasonal. There were more “seasoned” veterans going on vacation in the summer time and more “greenhorns” or temporary labor coming in to replace those leaving. This produced a higher risk factor for those operating the process with less experience. Secondly, wearing safety equipment was not being enforced to the level previously thought. Thirdly, safety awareness and training were lax. Finally, safety injuries were found to be horizontally integrated versus vertically integrated. For example, accidents associated with poor cat walks or slippery surfaces were not unique to a particular department. Lifting, often a cause for back injuries are examples as well.
Countermeasures including training and education, revised safety meetings and other rigid disciplines allowed this firm to reach the enviable position of one of the leading firms in the country for the best safety record. Records and logs for medical compensation and lost time were calculated at a cost savings of approximately $16,000,000 per year.
Submitted by LWI
Consultant
Bob Pahlkotter