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Professor N. KrishnamurthyConsultant: Safety, Structures, and

Computer Applications Website: www.profkrishna.com

31 October 2011

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Myth vs FactMYTH : Risk Management slows down productivity and

adds to cost

FACT:

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Risk Management does not affect productivity, and in fact may be used to promote productivity

“In fact, an effective safety and health program forms the basis of good worker protection and can save time

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the basis of good worker protection and can save time and money (about $4 for every dollar spent) and increase productivity and reduce worker injuries, illnesses and related workers' compensation costs.”

OSHA, “Personal Protective Equipment”, OSHA 3151-12R, 2003 (USA)

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Correlation betn. Safety & Productivity Foster Wheeler Energy UK Ltd demonstrated the inter-

relationships between four factors that affect the success of construction projects: Cost Ratio = Budget Cost / Actual cost

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ltan Schedule Ratio = Planned Duration / Actual Duration

Safety = Millions Man-hrs / No. of Lost Time Injuries Productivity Ratio = Budget Man-hrs/ Actual Man-hrs

All 6 possible interactions had positive associations [R2] Productivity-Schedule 0.83 Productivity-Safety 0 63

Quite strong l ti

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Productivity-Safety 0.63 Productivity-Cost 0.49 Schedule-Safety 0.43 Schedule-Cost 0.40 Cost-Safety 0.20

correlation between productivity and safety

http://www.behavioral-safety.com/articles/There_is_more_to_safety_than_avoiding_unplanned_costs.pdf

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Two Construction Projects : Halving AccidentsRaising Productivity by 12%

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http://www.behavioral-safety.com/articles/There_is_more_to_safety_than_avoiding_u

nplanned_costs.pdf

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Safety& Productivitymade foreachotherSafety Productivity

Address risks at source Find the root cause and resolve itBe proactive, not reactive Anticipate problems and plan ahead Be performance-oriented, not prescriptive

Take any steps necessary to save the bottom line : Productivity

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ltan not prescriptive the bottom line : Productivity

Distribute responsibility to all stakeholders

Must satisy all shareholders, team work very critical

Penalties for violations increased

Penalties immediate and harsh, a matter of survival

Same attitudes, techniques and methodsSame characteristics as regards supervision and inspection

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g p pSame management actions (planning, training, communication, measurement and control)

Same physical actions (housekeeping, site layout, traffic flow, and adequate access)

Same process of working out what could go wrong, and deter-mining its impact and measures to reduce its occurrence

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Reasons Safety improves ProductivityMany common elements between quality & productivity:Co-operation between management and employeesHigh-quality working environmentEmployees’ challenge, responsibility & job autonomy

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p y g p y j yDevelopment of new working methods & equipment

to improve ergonomics and decrease strainCost interaction between safety & productivity

Improving safety increases physical and psychological

well-being of the workforce

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well-being of the workforce reduces absenteeism and “presentee-

ism”, improves morale and employment relationships, & enhances employees‘ desire to work

directly raises human performance Productivity leads to higher profits. http://www.dol.govt.nz/publications/research/good-sense/good-sense_05.asp

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Safety Benefits Productivity Direct Benefits Reduced ins. and workers‘ compensation premiums Reduced litigation costs Reduced sick pay costs Less injury/illness costs Fewer production delays

http://www.dol.govt.nz/publications/research/good-sense/good-sense_05.asp

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Reduced product and material damage Improved production and productivity rates Fewer injuries mean that more people keep working; Designing safety into business increases innovation,

improved quality and improved efficiencies; and Safe workplaces enhance corporate reputations and

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Safe workplaces enhance corporate reputations and improve staff recruitment and retention.

Indirect Benefits Reduced absenteeism Reduced staff turnover Improved corporate image, chances of winning

contacts, job satisfaction/morale, etc.

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Poor H&S Leads to Poor Productivity Examples of poor workplace health and safety practices

that lead to poor productivity include: Unhealthy physical and/or mental stress Too few breaks

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Badly designed or outdated equipment Poor lighting or ventilation Uncomfortable seating Poor supervision Poor job design L k f k ti i ti

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Lack of worker participation

“It is rare to find an organisation with high levels of health and safety and low productivity.”

But there are many in the other way.http://www.dol.govt.nz/publications

/research/good-sense/summary.asp

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Reasons Safety Benefits not recognised Employers typically underestimate the cost of an OHS

problem while overestimating the costs associated with its remedy.

Cause-effect relation is often not straightforward.

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g

This difficulty is complicated by the fact that typically, several initiatives will be implemented at the same time (not only health and safety actions, but also human resource actions), which makes it difficult to link a specific initiative to a specific outcome, such as increased productivity equals increased profits.

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as increased productivity equals increased profits.http://www.dol.govt.nz/publications/research/good-sense/good-sense_05.asp

People expect immediate results of their actions, but safety is an activity with delayed benefits.

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Characteristics of Safety Improvement

What we like and expect

What e

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actually get

Worsening or improvement

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improvement of normal

productivity drop and

rise are also possible

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How accidents affect productivity Best way to manage workplace hazards is to eliminate. Injuries and illness can affect employee morale,

production and quality, and also company’s profits. Sometimes use of PPE is only option to prevent

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ltan injury or illness and to protect workers from hazards.

Aver. US Workplace Safety & Ins Board claim is $11771 With other costs like lost productivity and staff repla-

cement, can cost as much as 4 times more, $59,000 With a profit margin of 5%, sales/services required

to cover the total cost of one injury ≈ $1.2 million

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http://healthandsafetyontario.ca/Resources/Topics/PPE.aspx

A March 2010 Liberty Mutual Insurance company report showed that the most disabling injuries (those involving six or more days away from work) cost American employers more than $53 billion a year – over $1 billion a week – in workers' compensation costs alone.

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Singapore Construction Productivity According to CIDB Construction Productivity Taskforce

Report, 1992, our productivity scene is complicated by:

Erosion of local skilled workforce

Large (80%), transient (mostly unskilled) pool of

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g ( %), ( y ) pforeign workers

Underdeveloped sub-contracting sector

Inadequate site management and application of management and automation operations

Potential areas of productivity improvement:

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More prefabrication of structural components

More mechanisation and standardisation, off-site

Reduction or elimination of on-site construction

Replacement of brick and plaster with precast

Greater use of internal drywall, semi-dry blocks

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Where does Risk Management come in?Accidents and incidents result in loss of money

& loss of time (= money)PRODUCTIVITY

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Safety measures eliminate or reduce

accidents and incidentsALSO

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Risk Management+ =

Risks are eliminated or

reduced by Risk Controls

Risk levels are determined by

Risk Assessment

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Risk Management of Productivity Factors

Some of the many factors affecting construction productivity in Singapore are as follows:

(i) Equipment, tools, and services

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( ) q p , ,

(ii) New technology and mechanisation

(iii) Labour force and training

(iv) New materials

(v) Management role

(vi) Time management

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( ) g

(vii) Communication

Every one of these factors is heavily risk oriented, and hence, addressing the risks would automatically improve productivity.

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Factor (i) : Equipment, tools, & services Inadequate equipment, ineffective tools, and inappro-

priate services can drastically cut into productivity.

With frequent breakdowns and long-term production losses, residual risk will shift from low to medium

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,and from medium to high, inevitably causing delays or stoppage of work, adversely affecting productivity.

Regular or on-demand risk assessment will catch these deviations in time, and productivity can be maintained.

In the long run, continuous evaluation and upgrading of eq ipment tools and ser ices ma red ce risk and

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equipment, tools and services may reduce risk and increase productivity, making effort and cost worthwhile.

Example: Change from 220v to 110v for power tools at site will reduce the risk levels (e.g. electrocution) and control costs, and thus improve productivity.

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New technology involves:

New materials

New equipment

Factor (ii) : New technology and mechanisation – a

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Complex processes

Fresh or updated training, requiring from workers

Higher level of technical expertise

Smarter and faster reaction

Each item above will increase the risk level and/or bring

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Each item above will increase the risk level, and/or bring in fresh risks which will affect productivity

These increased or new risks must be identified, assessed, and addressed properly before improvement in productivity can be ensured

This is, again, risk assessment and management

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Factor (ii) : New technology and mechanisation – b

Mechanisation of site activities such as screeding, rebar binding with wire, and concrete breaking will considerably enhance productivity.

rishn

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ltan But only if and when the risks of the new high-tech

equipment and the requirements for extra training and supervision are evaluated and managed.

Example: Many high risks of in-situ concrete such as working at height and manual handling of heavy loads can be eliminated by precast components or entire

f b it hil i i d ti it

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prefab units, while improving productivity. But it also brings with it new risks such as

crane handling of very heavy loads. These may be addressed with re-

training of the work crew and stream-lining of many site operations. http://www.belfastvalley.com/services/index.html

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Factor (iii) : Labour force & training – a Singapore’s large immigrant workforce is necessary to

maintain productivity in the construction sector. But it is unavoidably accompanied by risks to

safety and hence reduction to productivity due to

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immigrant workers. In Singapore, the common method of protecting the

immigrant worker is to expect minimum understanding from him/her and over-protect him with extra PPE. This results in increased risk to the worker, and

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lowered productivity due to the extra PPE. Productivity Alternative:

(a) Evaluation of worker-dependent hazards; and,(b) Improved training, pro-active supervision, and

better communication.

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Factor (iii) : Labour force & training – b Example: Issue of PPE such as the body harness and

the ear plug is only the first step in protecting the individual worker.

Lateral issues become critical, like:

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(a) Whether the worker understands need for the PPE, and the manner it eliminates or reduces risk; Does the worker know why two

lanyards are given instead of one, and how exactly they should be used?

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(b) what, if any, increased or new risks are developed by the PPE, which may impede productivity; and,

(c) how these productivity blocks are eliminated or mitigated to protect the worker

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Factor (iv) : New materials New materials or novel uses of existing materials will

invariably improve productivity, but may sometimes introduce fresh risks which will in course of time affect productivity.

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A risk analysis before introduction of the new materials will alert the management to anticipate and control deterioration of productivity.

Examples:

Aluminium, being lighter, considerably reduces ergonomic risks but its storage and

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reduces ergonomic risks, but its storage and use need special care to avoid galvanic corrosion with steel.

Use of a faster-setting or stronger cement may raise fresh problems of skin diseases.

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Factor (v) : Management Role – a While management may play an enabling but relatively

passive role in risk management (RM), its impact on productivity through risk management can be very high.RM must not be treated as a paper exercise, merely

repeating past practice to satisfy codes & regulations

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ltan repeating past practice to satisfy codes & regulations

RM must be reviewed frequently, to determine if and how it affects productivity, findings communicated, and decisions implemented.

Interaction of safety measures and productivity improvements must be specifically studied

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Management responsibilities promoting productivity:Prompt and full incident reportingPrompt and proper – and continuous – RA & RCFollowing hierarchy of controls, instead of just

increasing PPE

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Factor (v) : Management Role – b Example-1: Short cuts in the risk management

process will hide fresh and worsening risks at the workplace, slowly and silently reducing productivity.

Not providing continuous supervision where neces-

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Example-2: Communication of risks and their control has been proved to be a catalyst for productivity, with the worker becoming a partner rather than a hireling carrying out instructions.

The risk of incomplete or wrong communication

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The risk of incomplete or wrong communication about site hazards can be more far-reaching than the risks from the original hazard …

… as with not educating the worker on the location and usage of properly designed anchorages for his lanyard.

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Factor (vi) : Time management Typical activities during

working time of workers [Canada]

Material organisation & t l i

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Looking for materials 12.2% Looking for tools 1.4% M i 9 0%

movement planning may save some of the 13.6% ‘Looking for materials and Tools’ time waste.

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Moving 9.0% Idle 10.5% [Apart from rest periods] Socializing 7.5% [Must allow some] Other 3.1% [Smoke, toilet, phone] A similar study may be done in Singapore to better

assess on-site productivity in construction.

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Factor (vii) : Communication About 80% of the interviewed workers in all construc-

tion sites mentioned lack of communication as a factor affecting their motivation to work. [JYR, 2003]

Workers were not aware of company goals and t t th t ld l b t d il k t t

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ltan targets: they were told only about daily work targets

when, in fact, they would have liked to know the overall scope of site activities and project

Singapore, already multi-lingual, has the added prob-lem of immigration from many Asian nations with different languages and safety cultural orientation.

Man managers simpl gi e the orker a job e plain

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Many managers simply give the worker a job, explain the minimum, and let him fend for himself as best as he can – resulting in more risk and less productivity.

Management must ensure two-way communication of all safety matters between supervisors and workers. Every one of these points will improve productivity.

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Interaction of Risk Mgmt.& Productivity Risk management required by the WSH Act, consists

of hazard identification, risk assessment, & risk control. Productivity is affected at each stage

Risk assessment is more than a form-filling exercise. Ri k t i i i l t ti f t t f

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not only safety of job, but also status of productivity, as more risky a job, higher potential for mishaps

Thus, risk assessment (RA) & risk matrix can be used as a decision-making tool for improving productivity.

Many risk controls may have adverse consequences: E l E l d B d h th

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Examples: Ear plugs, and Body harness – these will affect productivity even while improving safety.

Regular review of productivity effects of safety mea-sures will assist in better productivity management.

When productivity improvements are made, RA will highlight any changes in risk levels of various tasks.

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Risk matrix as status and road map

Step

No

Likeli-

hood

Seve-

rity

Risk

category

Table – Risk analysis example

Consider a job which has 9 activities or steps.

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ltan No. hood rity category

1 L L Very Low

2 L M Low

3 M M Medium

4 M H Medium

5 H H Very High

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6 M M Medium

7 H L Medium

8 H H Very High

9 L L Very Low

L = Low, M = Medium, H = High

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Productivity& Risk Control-1:Elimination As item is removed from

risk assessment, generally no effect on productivity. Temporary effects possible.

If li i ti i b h f

RISK CONTROLS (RC)ris

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Saf

ety

Con

sulta

n If elimination is by change of product/process, productivity will be reduced in: Retraining and adjustment to new

product or process Investment in new product or process Slow learning curve Increased supervision

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Slow learning curve Increased supervision If by sub-contracting to specialist productivity reduced in Reliance on an external management Reduction in profit

But once ROI achieved, and staff familiar with product or process, productivity will recover with better safety.

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Productivity and RC-2 : Substitution Substitution is generally not only safer, but also less

stressful on worker due to: Demanding less physical and mental stress in tasks Requiring less use of PPE

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More relaxed environment, improving ability to focus Risk will be reduced, but productivity also may be

reduced, at least temporarily. Dividing heavy load into parts will involve more

manpower and time. Water-based paint will need more frequent

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Water based paint will need more frequent repainting than solvent-based paint.

Reducing speed will require more time. Safer processes may often be slower

BUT, if properly managed, can increase productivity in the long run, due to improved safety culture.

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Productivity and RC-3 : Engrg. Controls Most increase productivity, directly and promptly,

inspiring confidence on workplace safety and improving comfort at the workplace. Guard-rails, toe-boards, etc. are visible reminders of

f t d h i l b i i t h d

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ltan safety and physical barriers against hazards.

Noise barriers remove constant source of irritation. Fire extinguishers, automatic sprinklers, machine

guards, etc. are also visible implementation of safe zone of work.

Ventilation systems, adequate lighting, etc. are i di t f h i l ll b i

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immediate source of physical well-being. As they demand little from individual workers, they do

not hinder productivity Every ergonomic risk control measure will positively

improve productivity to a considerable extent Mostly positive effect, rarely negative effects

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Productivity and RC-4 : Admin. Controls If handled well, most improve productivity directly and

promptly. Good SWP, training, supervision, posters and

manuals, notices, tool box meetings, worker rotation, d t t d ti it iti l

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ltan awards, etc. promote productivity positively

If mishandled, will reduce productivity. Insufficient or inconsiderate communication,

stressing behaviour, unsafe or uncomfortable working conditions, sloppy administrative practices such as no SWP, careless risk asssessment and control and implementation etc will:

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control and implementation, etc., will: lower morale, reduce productivity, and invite prosecution leading to stop work, remedial

measure slow-down, fines decreasing profits etc. Can be put to positive use as a productivity tool.

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Productivity and RC-5 : PPE – a Least effective risk control Has the most adverse impact on productivity

Ease with which PPE can be supplied to workers makes it deceptively attractive as a risk control measure

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Every single item of PPE adds some stress to workers, impeding his work and increasing his discomfort with continuous and long-time use: Helmet is not a hat protecting worker from sun – it is

a cooker that fries brain; chin strap adds to problem Ear-plug reduces noise-induced deafness – it is an

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p girritant, increases risk due to not hearing warnings

Gloves protect the hands – but they reduce the feel and reduce productivity

Masks and respirators protect the lungs – but they make breathing an effort and a distraction

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Productivity and RC-5 : PPE – bMost PPEs are required by

regulations and good practice, and the loss in productivity must be accepted

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Some PPEs are used when uncalled for, and in such cases, the reduction in productivity is a direct result of PPE

Such loss is entirely unnecessary and deserves immediate attention

One prime example is the

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One prime example is the misplaced use and misuse of the safety harness

Review will help identify unneces-sary or excessive use of PPE and cut down on the waste

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Productivity and PPE – ExampleUse of body harness to work at heightSafety impacts:Due to hazards requiring use of body

harness, risk level may at best be med.P d ti it i t

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ltan Productivity impacts:

Much discomfort in regular useDelay to wear and removeIncreased cost Supervisor checks, lead to delay, costDanger of not wearing it snug tight I ffi i t f ll h i ht

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Insufficient fall height Inadequate anchor Suspension trauma from delayed rescue

Productivity Improvement Alternatives:Travel restraint instead of body harness. Safety net or cushion, collective control

New Technology

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Risk Control & Productivity Examples - a Example 1: Substituting precast concrete

for cast-in-situ work more productive, and more economical. No formwork hazards. But new risks such as lifting & handling

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ltan heavy precast components will arise.

Example 2: Beyond a certain depth, and for certain materials, tunnelling will be cheaper and faster than open-cut excavation. But tunnelling will bring confined space & other risks

Example 3: More workers from different sources may d k b t d fi it l i i k

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speed up work, but definitely increase risk. However, new technology such as mechanisation

will help reduce the risk and increase productivity. Example 4: New materials such as plastic formwork

will improve productivity due to lightness and versatility. Risk of mishandling, high initial costfs

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Risk Control & Productivity Examples - b Example 5: New mechanical aids

such as automated rebar binders will certainly improve productivity, increasing speed and efficiency. Hi h i iti l t d f

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ltan High initial cost, need for

training, and closer supervision Example 6: When RA is used to

improve productivity, it is important not to borrow someone else’s RA or repeat last year’s RA.

Each check & improvement to be specific to the job.

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Example 7: Mechanical aids for manual handling.

Increase in mechanical risks, and misuse.

Example 8: Supervision will become more critical for improving productivity. Best equipment & materials will not improve productivity unless they are used correctly.

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Risk Control & Productivity Examples – c

Control Item Productivity Impact Improve Productivity

Respirators in che-mical factory

Visual, manualSlowing down, delays

Reduce toxic gas at source

Ear plugs in cons- Discomfort not hear- Cover noise source

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truction siteDiscomfort, not hear-

ing inst. or warningsNeed for checks

Cover noise sourceLess noisy machineFilter type of muff

Scaffolds with guard rails (short-term)

Scaffold erection time Use boom hoist, scissor lift

Scaffolds with guard rails (long-term)

Scaffold erection timeClimbing steps

Mast tower

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rails (long term) Climbing steps

Gloves for toxic or rough material

Loss of dexteritySlowing down

Change materialThinner gloves

UNCONTROLLED manual handling

Low back pain if >25kg on regular basis, or wrong posture

Smaller packages or split/raise loads

Helper & mech. aid

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How Safety Promotes Productivity – 1 Pallet lift as ergo-

nomic improvement for safety Cut down risk

effects and con

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sequent losses Reduced time by

16%

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http://www.danmacleod.com/Articles/PDFs/Case%20Examples%20Ergo%20Productivity%20and%20Safety.pdf

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How Safety Promotes Productivity – 2Mechani-

cal flipper as ergo-nomic improve

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ment for safetyElimi-

nated risk ef-fects &

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fects & losses

Increased output 300%

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My Paper on Manual Handling http://www.profkrishna.com/ProfK-Assets/IES-SE-

Sept2006.pdf [OR: www.profkrishna.com, Click on Publications]

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Thank YouTHE END

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