We all take risks daily, whether it’s by exceeding the speed limit or gambling at a casino. Some of those risks may trickle into your facility, through personal decision or through employee choices. Have you recently taken a look at your facility and your technicians? Are they gambling with their personal safety? Are they wearing their safety glasses? Are they lifting too much? What are the risks and whose money are they risking? Join Certified Safety Professional Zach Pucillo and tip the scales in favor of your facility by learning how to decrease the risks an employee takes on a daily basis and how to protect your facility. Zach will discuss loss control and how it can affect your bottom line as well as how you can decrease risks protect your facility, employees, and yourself in the future.
4. Questions?
If you have questions
during the presentation,
please submit them using
the “Questions” feature
Questions will be
answered at the end of
the webinar
5. Agenda
What is Loss Control
The Bottom Line (How do losses affect it)
Risk Management
Accident Investigation
Prevention Techniques
6. What is Loss Control
Loss control is defined as those measures
designed to eliminate and/ or reduce loss of
human, financial, or physical resources both
to the state and general public.
7. What is Loss Control
Loss control techniques or measure will include
some or all of the following:
• Risk management
• Accident Investigation
• Hazard Control
• Employee education
9. The Bottom Line
How do losses effect the bottom line
• Direct vs Indirect Costs
• Margins
• Insurance
10. The Bottom Line
Direct Costs
Medical Expenses
Workers Compensation Paid
__________________________________
Indirect Costs
Lost Productivity
Losses Due to Productivity Morale
Time Spent Due to Attention of Emergency
Damage to Tools, Equipment, Property
Losses Due to Return to Work
Lost Time on Idle Machines
Customer Losses Due to Time
Loss Time Spent Investigating the Cause
11. The Bottom Line*
U.S. Employers spend approximately $100
Billion per year for worker’s compensation
½ - Compensation Payment
¼ - Medical Care
¼ - Admin and for Safety, Legal, Health
Services provided by Insurers
15. The Bottom Line
Types of Insurance
• State Operated – We all pay in
• Ohio BWC
• Premium
• Private Policies
• Relies on insurance company
• Premium
• Self Insured – We pay for it
• Self Reserve
16. The Bottom Line
Premiums
• Calculation: Set Unit Dollars per $100 of
payroll
• NCCI - National Council on Compensation
Insurance
• Sets the unit price for most states
• Unit price is determined by NAICS
17. The Bottom Line
Manual Rate
• Dealership Technician Manual Rate $2.90
per $100 of payroll
• Your payroll for the year is $4,400,000
• Your Premium for the year =
$4,400,000 x $2.90/$100 = $127,600
18. The Bottom Line
Experience Modification Ratings
• Will allow insurance company to increase or
decrease premiums based on historical
performance
• Based on last 3 years
• The average dealership
has a rate of 1
19. The Bottom Line
• Experience Modifier Rates of 1.32, 1.04,
0.88
• Next Years Premiums $127,600 x 1.32 =
$168,432
• Premiums in 3 years $127,600 x 0.88 =
$112,288
Experience Modifier
Credible Actual Primary Loss + Credible Actual Excess Loss
Expected Loss
20. The Bottom Line
Okay, I Am Ready To Explore Loss Control So I
Can Save Some Money…. Now What?
22. Risk Management*
Risk is the product of frequency and severity of
potential losses
Loss Frequency x Loss Severity = Risk
23. Risk Management
• Loss control would be
• Risk management gives us guidance so we
do not go overboard
24. Risk Management*
• Risk Identification
• Risk Analysis
• Reducing or Eliminating Risk
• Financing Risk
• Administering the Risk Management Process
25. Risk Management*
Risk Identification
• What are we risking?
• Employee injuries
• Employee health
• The possibility of citations
• Financial losses
• Reputation losses
26. Risk Management*
Risk Identification – Employee Injuries
• Past loss claims
• Assessments
• Shop Equipment
• Processes
• Tire Rotations
• Chemical Inventory
• Age of workforce
• Our Techs Perform Multiple Tire Rotations Each
Day….
27. Risk Management*
Risk Analysis – Quantitative
• 6 Tire rotation back injury related claims in one
year
• Dealership performed 1,500 tire rotations in one
year
• Average tech performs 100 tire rotations in one
year
Probability = (6 x 100)/1500= 0.4
The employee has a 40% chance of receiving a
back injury during a tire rotation each year
29. Risk Management*
Reducing or Eliminating the Risk
• Prioritize the risk
• Refer to the Risk Matrix
• Refer to the Hazard Control Hierarchy
• Hazard Elimination
• Substitution
• Engineering Controls
• Administrative Controls
• PPE
30. Risk Management*
Financing Risk
• Some Risks will require money invested
to eliminate the risk
• Ex: Aluminum Work in Body Shops
• Aluminum repair means you accept risk
• Risk cannot be eliminated so it must be
reduced
31. Risk Management*
Administering the Process
• What will be our acceptable level of risk?
• 40% Probability is too high for back injuries
• 0% probability is unrealistic so our acceptable
level will be 5%
• Now we can install our controls with acceptable
levels of risk
34. Risk Management*
Air Hoses on the Floor
• Consequence = 15
• Exposure = 10
• Probability = 3
• C x E x P = R = 450
35. Accident Investigation*
• Accidents vs Incidents
• Accidents – An unexpected, unforeseen, or
unintended single or multiple event sequence that
is caused by unsafe acts, unsafe conditions, or
both and may result in immediate or delayed
undesirable effects.
• Incidents – any unplanned event or event
sequence, whether it results in loss, injury, illness,
disease, death, or none of these.
• We don’t like surprises of any kind
38. Accident Investigation*
H W Henrich
• Assistant Superintendent of the Engineering
and Inspection Division of Travelers
Insurance Company
• Industrial Accident Prevention, A Scientific
Approach -1931
• Behavior-based safety
39. Accident Investigation*
Henrich 88:10:2
• Analyzed 75,000 accidents
• 88% - Unsafe Acts
• 10% - Unsafe Conditions
• 2% - Unpreventable Causes
Yeah, but we don’t know these unsafe acts
were happening….
40. Accident Investigation*
Henrich - 300:29:1 Ratio
Analyzed 330 accidents of the same type
300 – Resulted in report but no injury
29 – Resulted in minor injuries
1 – Resulted in major lost time injury
There are many opportunities to implement a
control before minor or serious injuries occur
42. •First Aid vs. 911
•Eliminate dangerous
conditions
•Initial Paperwork
•Document ASAP
•Managers should
understand
consequences of
not reporting
•Delayed
notification
increases suspicion
•Work with
Insurance Company
Initial
Notification
•Use proper accident
investigation form
•Determine witnesses
•Write down their
account
•Take pictures
•Take note of
equipment, PPE,
floor condition…
•Document only facts
•Determine sequence
of events
Investigate the
Scene •Complete in SCM
•Employees from all
levels
•Eliminate bias
•Corrective action
•Establish
accountability
•Root cause
•Fishbone Diagram
Accident
Analysis
•Analyze the Risk
•Eliminate the hazard
•Reduce the hazard
level
•Provide safety
devices
•Provide warnings
•Provide safety
procedures & PPE
Prioritize Risk
•Incentive Programs?
•Signage
•Safety Committee
involvement
•Invest money in
facility
•Inspections
•PPE
Prevention
Accident Investigation
43. Accident Investigation
Use the 5 Why’s? to determine the Root Cause
• Joe slipped and fell at a service entrance
• Why? –Because the floor was wet
• Why? –Because people have tracked in snow
from the lot
• Why?-Because there is no place for them to wipe
their feet
• We need a slip resistant mat at the doorway
44. Prevention
• In house inspections
• Collect a group
• Come up with a check list
• Set a time and date
48. KPA study
• ROI of Safety
• Sampled Mod Rates in FL and CA
• After 3 years of KPA service Ex Mod dropped
from 1.01 to .90
http://www.kpaonline.com/solutions/safety/safet
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