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Measurement Tools For Management - Final

The document discusses safety measurement tools and accident statistics. It provides formulas to calculate frequency rates and severity rates to measure a company's safety performance. It also gives an example showing a frequency rate of 13.33 and severity rate of 2008.88 for a company that had 24 disabling accidents and 452 days charged over 900,000 man-hours worked in 2012. Safety measurement allows management to determine the status of safety within a company.

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100% found this document useful (2 votes)
1K views

Measurement Tools For Management - Final

The document discusses safety measurement tools and accident statistics. It provides formulas to calculate frequency rates and severity rates to measure a company's safety performance. It also gives an example showing a frequency rate of 13.33 and severity rate of 2008.88 for a company that had 24 disabling accidents and 452 days charged over 900,000 man-hours worked in 2012. Safety measurement allows management to determine the status of safety within a company.

Uploaded by

Sn Carbonel
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mr. Christian S.

Sol
Accredited DOLE-OSH Safety Consultant
Accredited DENR Pollution Control Officer
 NO SAFETY & HEALTH PROGRAM within an
organization is complete without some form
of REVIEW OF MISHAPS that have actually
occurred.
 ACCIDENT & INCIDENT ANALYSIS is so
important that it is still relied upon until now
in determining the SAFETY PERFORMANCE OF
A COMPANY.
 Its only drawback is that THE ANALYSIS IS
PERFORMED AFTER THE FACT, too late to
prevent the consequences of the accident
that has already happened. But the value of
the analysis for future accident prevention is
critical.
 MEASUREMENTS are means by which
management can determine THE STATUS OF
SAFETY within a company.
 CHARACTERISTICS of MEASUREMENT TOOLS
are:

Practical Understandable
Quantifiable Valid
Objective Error free
Sensitive to change
1. INJURY FREQUENCY/SEVERITY RATES
(FR/SR).
2. INJURY/ILLNESS INCIDENCE RATE: number
of injury/illness in a year.
3. FATALITY INCIDENCE RATE: number of
fatalities in a year.
4. LOST–WORK DAY–CASES INCIDENCE RATE
(LWDI): number of lost-workday (lost-time)
cases in a year.
5. NUMBER OF LOST–WORK DAYS RATE:
number of lost workdays in a year.
6. SPECIFIC HAZARD INCIDENCE RATE: number
of specific hazards in a year.
 FREQUENCY RATE
• The disabling injury FREQUENCY RATE relates the injuries
to the hours worked during the period & expresses them
in terms of a million-hour unit by use of the following
formula:
Total number of disabling injuries X 1,000,000
Employee-hours of exposure
 SEVERITY RATE
• The disabling injury SEVERITY RATE relates the days
charged to the hours worked during the period &
expresses them in terms of a million-hour unit by the use
of the following formula:
Total days charged X 1,000,000
Employee-hours of exposure
FREQUENCY RATE:
Total number of disabling injuries X 1,000,000
Employee-hours of exposure

SEVERITY RATE:
Total days charged for all accident X 1,000,000
Employee-hours of exposure

DAYS CHARGED X 8 hrs/day

• 500 persons x 40 hours per week per person x 50 weeks per


year = 1,000,000.
• 250 persons x 40 hours per week per person x 50 weeks per
year = 500,000.
• 100 persons x 40 hours per week per person x 50 weeks per
year = 200,000.
 AVERAGE DAYS CHARGED
• The frequency and severity rates show, respectively, the
rate at which disabling injuries occur and the rate at
which time is charged. A third measure included in the
standard procedure shows the average severity of the
disabling injuries. It is called the average days charged
per disabling injury and may be calculated by either of the
following formulas:
Total days charged or Severity rate
Total disabling injuries Frequency rate
 DISABLING INJURY INDEX
• As an aid to those companies expressing a desire to
combine frequency and severity rates into a single
measure, the following disabling injury index is shown:
Frequency rate X Severity rate
1,000
 MEDICAL TREATMENT INJURY (NON-
DISABLING INJURY)
• an injury which does not result in a disabling injury but
requires first aid and medical treatment of any kind.
 DISABLING INJURY
• a work injury which results in permanent partial disability
or temporary total disability.
 DEATH (F/D)
• any fatality resulting from a work injury regardless of the
time intervening between injury and death.
 PERMANENT PARTIAL DISABILITY (PPD)
• injury or sickness which results in the loss or loss of use
of any member or part of a member of the body regardless
of any pre-existing disability of the injured member or
impaired body function.
 PERMANENT TOTAL DISABILITY (PTD)
• any injury or sickness which permanently & totally
incapacitates a worker from any gainful occupation or
which results in the loss of the complete loss of use of any
of the following:
o Both eyes, both legs or feet, both arm.
o Any two of the following not in the same limb.
o Permanent complete paralysis of two limbs.
o Brain injury resulting in incurable imbecility or insanity.

 TEMPORARY TOTAL DISABILITY (TTD)


• injury or illness which does not result in PPD or PTD but
which result in disability from work for a day or more.
 SCHEDULED CHARGES
• the specific charge (full days) assigned to a PPD, PTD,
F/D.
 EXPOSURE
• the total number of employee-hours worked by all
employees of the company or unit.
TABLE 11 – A : SCHEDULED CHARGES
 DEATH resulting from accident shall be assigned a
time charge of 6,000 DAYS.
 PERMANENT TOTAL DISABILITY resulting from work
accident shall be assigned a time charge of 6,000
DAYS.
 PERMANENT PARTIAL DISABILITY, either traumatic
or surgical, resulting from work accident shall be
assigned a time charge as provided in the TABLE OF
CHARGES. This charges shall be used whether the
actual number of days lost is greater or less than the
scheduled charges, or even if no actual days are lost
at all.
 For each finger or toe, use only charge for the highest
valued bone involved. For computations of more than
one finger or toe, total the separate charges for each
finger.
 LOSS OF HEARING is considered PPD only in the event
of impairment of hearing from traumatic injury,
industrial noise exposure or occupational illness.
 For permanent impairment affecting more than one
part of the body, the total charge shall be the sum of
the schedule of charges for the individual body parts.
If the total exceeds 6,000 days, the charge shall be
6,000 DAYS.
 Where an employee suffers from both permanent
partial & total disabilities in one accident, the greater
days lost shall be used & shall determine the injury
classification.
 EMPLOYEE-HOURS OF EXPOSURE:
calculating WORK INJURY RATES are
intended to be the actual hours
worked. When actual hours worked is
not available, ESTIMATED HOURS may
be used.
 Actual EMPLOYEE-HOURS OF
EXPOSURE shall be taken from the
PAYROLL OR TIME CLOCK records and
shall include only actual time hours &
actual overtime hours worked.
 ESTIMATED HOURS can be obtained as
follows:
ESTIMATED HOURS = Total employee days
worked X Average number of hours
worked per day

EXAMPLE: One daytime per


individual is:
ESTIMATED HOURS = 1 day X 10 hrs per
day

10 HOURS = REGULAR TIME (8 HOURS) + OVERTIME (2 HOURS)


AD SAFETY MANAGEMENT
CONSULTANCY SERVICES
ACCIDENT STATISTICS - YEAR 2012
 TOTAL MANNING COMPLEMENT = 390 PERSONS
 TOTAL MAN-HOURS WORKED = 900,000.0
 TOTAL DISABLING ACCIDENTS = 24
 TOTAL DAYS CHARGED = 452

FREQUENCY RATE = Total number of disabling injuries X 1,000,000


Employee-hours of exposure

SEVERITY RATE = Total days charged for all accident X 1,000,000


Employee-hours of exposure
FREQUENCY RATE = Total number of disabling injuries X 500,000
Employee-hours of exposure

FR = 24 X 500,000/900,000 = 13.33
FR of 13.33 means that one person was injured for every
16.25 or 17 individuals during the year 2012.
SEVERITY RATE = Total days charged for all accident X 500,000
Employee-hours of exposure

SR = 452 X 8 X 500,000/900,000 = 2008.88


SR of 2008.88 means that 18.88 or 19 days were charged
in every lost time accident during the year 2012.
DOLE – BWC : Administrative Report Requirements
1. Report on Business Registration (IP – 3)
2. Report of Work-Related Accidents (IP – 6)
 Supervisor’s Accident Investigation Reports
 Monthly Accident Summary Reports
 Annual Accident Summary Report
3. Annual Report of the HSC/Organization (IP – 5)
4. Quarterly report on the status of the Occupational
Safety Program & minutes of the HSC meetings
5. Quarterly report on the status of the Occupational
Health Program
6. Annual Work Accident/Illness Exposure Data Report
(IP – 6B)
7. Annual Medical Report (OH – 47A)
AD SAFETY MANAGEMENT CONSULTANCY
SERVICES
ACCIDENT STATISTICS (YEARS 2011 & 2012)

A TOTAL NUMBER OF DISABLING ACCIDENTS. 0


 Temporary Total Disability. 0
 Permanent Partial Disability. 0
 Permanent Total Disability. 0
 Fatality. 0
B TOTAL NUMBER OF NON-DISABLING ACCIDENTS. 0
C TOTAL DAYS CHARGED FOR THE ACCIDENTS. 0
D TOTAL ACCIDENT COST.
 E.C.C. Compensation Payments. 0
 Cost of Medicines & Hospitalization. 0
 Cost of Equipment/Materials Damaged., etc. 0
E TOTAL MAN-HOURS WORKED 18,300.0
F AVERAGED NUMBER OF EMPLOYEES PER MONTH. 5.0
G INJURY RATES
 Frequency Rate 0
 Severity Rate 0
H COMPARISON OF Y-2012 & Y-2011 RECORDS

Y-2012 Y-2011
1 Total Number of Disabling Accidents 0 0
2 Total Days Charged 0 0
3 Total Cost of Accidents 0 0
4 Total Man-hours Worked 18,300.0 18,250.0
5 FREQUENCY RATE 0 0
6 SEVERITY RATE 0 0
I DATE OF LAST DISABLING ACCIDENT Jan 01, 2009
TOTAL MAN-HOURS WORKED WITHOUT A DISABLING
J
ACCIDENT.
From 01-Jan-2009 To 31-Dec-2012 73,050.0

K REMARK/RECOMMENDATION:
• Up to this date, AD – SMC Services is maintaining its zero accident (injury)
performance record, i.e., 73,050 man hours w/o disabling injury accident.
• Another Perfect Safety Record achieved by the Organization !!!
• CONGRATULATIONS !!!
Prepared by: Submitted by:
  

MBAD & JSAD JUAN MIGUEL A. DELOS REYES


Safety & Environmental Officers General Manager
SAFETY PERFORMANCE
FROM YEAR–2009 TO YEAR–2012

YEAR 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
MAN-HOURS
18250 18250 18250 18300 NA NA NA NA NA NA
WORKED
MANNING
5 5 5 5 NA NA NA NA NA NA
COMPLEMENT
FREQUENCY
0 0 0 0 NA NA NA NA NA NA
RATE
SEVERITY
0 0 0 0 NA NA NA NA NA NA
RATE
INJURY INDEX 0 0 0 0 NA NA NA NA NA NA
• Medical
DIRECT COST
• Compensation

• Time lost from work by injured


• Loss time by fellow workers
• Damage to tools & equipment
Indirect & • Time damaged equipment is out of service
Hidden Costs of • Spoiled work
Accidents • Loss time by supervision
• Loss of Production
• Miscellaneous - 100 other items of cost

INDIRECT COST = 5 to 8 times DIRECT COST


But, in other countries IC = 34 x DC
 Say, you want to get the estimated
SAVINGS from an achievement of 1M
man-hours continuous facility operation
without disabling (injury) accident year
2000.
 Get the yearly average Direct Cost (DC)
of Accidents, say 3 to 10 years duration.
In this sample computation, I used 5
years prior to a disabling accident.
Example:
DC for Year 1996: P10,000.
DC for Year 1997: P30,000.
DC for Year 1998: P20,000.
DC for Year 1999: P40,000.
DC for Year 2000: P50,000.

Year Average (from 1996 to 2000)


of DIRECT COST = P30,000.00
• Yearly Average DC = P30,000
• Indirect Cost (IC) = 8 x DC
• Indirect Cost = 8 x P30,000 = P240,000
• Total Cost (TC) = Indirect Cost + Direct
Cost
• Total Cost (TC) = P240,000 + P30,000 =
P270,000.
• Total Cost/Day (TCD) = TC/365
• TCD = P270,000/365
TCD = P758.42
• Total Cost/Hour (TCH) = TCD/8
• TCH = P758.42/8
TCH = P94.80
• Estimated TOTAL SAVINGS by the
facility for achieving 1M man hours
continuous facility operation without
disabling injury is P94.8M
 The annual cost of injuries & illnesses
in many industries dwarfs the total
profits picture.
 This is a reality that almost any top
manager will want to consider.
Although it is true that many of these
costs are SUBTLE & VERY DIFFICULT
TO ESTIMATE, the existence of these
costs is in no way diminished by this
fact.

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