Direct cost and indirect cost

• An unplanned event which results in unacceptable consequences.

An undesirable event which interrupts normal activity.

Accident

• An unexpected, unplanned event in sequence of events that occurs through a combination of causes. It results an injury or disease to an individual, damage to property or equipment, a near miss, a loss or any combination of these events.

Accident

• Workers may say that the workplace is :• HAZARDOUS • UNSAFE • DANGEROUS • BADLY ORGANISED

Why do accidents happen?

Unsafe Acts

• Operating without clearance/failure to secure or warn.

• Operating or working at unsafe speed.

• Making safety devices inoperative.

• Unsafe loading, combing, placing, mixing etc.

• Failure to use safe attire or personal protective devices.

Unsafe Conditions

• Inadequately guarded.• Unsafely designed

machines, tools etc.• Unsafely arranged, poor

housekeeping, congestion, blocked exits etc.

• Inadequately lighted, sources of glare etc.

• Inadequately ventilated, impure air sources.

Unsafe Acts and Unsafe Conditions

Directly Involved

• Fatigue• Stress• Taking short cuts• Lack of experience• Lack of training• Lack of concentration• Using inappropriate tools.• Not wearing appropriate

PPE.• Not following work

practices.

Indirectly Involved

• Fault with the original design of piece of the equipment.

• Inappropriate purchasing decisions.

• Behavior of the fellow individuals in the workplace.

Cause of AccidentsHuman Factors

Immediate• Death• Injury• Pain • Disease• Damage • Loss• Fear

Short Term• Medical

treatment• Repairs• Replacement• Loss

production• Increased

cost• Discipline• Low morale

Long Term• Suffering• Loss income• Disability• Insurance• Compensation• Mistrust• Missed

targets• Profitability

Consequences

Victim and Dependents

Suffering

Continuing disability

Loss of earning

Extra Expenses

Effect on family

Effect on sports and hobbies

Cost of Accidents

Cost of AccidentsSupervisor

Worry

Loss prestige Recrimination

Report, extra work, training new staff

Cost of AccidentsSection or Department

Morale Capacityto produce

Cost of AccidentsFirm or Organization

Loss of earning

Loss in payingin legal actionDamage tothe equipmentand materials Lost of client

Compensation

Penalty

Extra Insurancepremium

Cost of AccidentsNation

Loss ofincome ina form of Inco me tax

Loss ofmorale

ACCIDENT COSTS ICEBERGINSUREDCOSTS (1)

THE HIDDENUNINSUREDCOSTS(8 – 36as much asinsured costs)

Medical (covering injury, ill health) Compensation Building damage Tool, equipment, material, product damage Production delays and interruptions Legal expenses Expenditure on emergency first aid supplies Interim equipment rentals Investigation time/clearing site Wages paid for time lost Costs hiring and/or training replacements Overtime working Extra supervisor time Loss of expertise/experience Decreased output of injured worker upon return Loss of business and goodwill

300

29

1

NON-INJURY

MINOR INJURIES

SERIOUS / FATAL

THE HEINRICH THEORY (USA-1931)

400

80

50

NON-INJURY / DAMAGE

PROPERTY DAMAGE

MINOR INJURIES (1 TO 3 DAYS MC)

THE TYE/PEARSON THEORY (UK-1974/75)

1 SERIOUS / FATAL

3

FIRST-AID INJURIES

600

30

10

NON-INJURY

PROPERTY DAMAGE

MINOR INJURIES

THE BIRD THEORY (USA-1969)

1 SERIOUS / FATAL

ACCIDENT RATIO STUDIES

UNSAFE ACTS OF PERSONS

88%

UNSAFE MECHANICAL OR PHYSICAL CONDITIONS

10%

INEXPLICABLE

2%

MAN FAILUREKnowledge, Attitude, Fitness, Ability

MANAGEMENTThrough Supervision

Controls

Which Causes or Permits

ACCIDENTS2% are unpreventable

50% are practically preventable98% are of a preventable type

Which Cause

THE ACCIDENT STUDIES

Questions?