This document discusses how implementing safety measures is economically beneficial for companies, despite initial costs. It provides an example of Anglo American Mining Company, which suffered many fatalities until CEO Cynthia Carroll shut down mines for safety training. This led to losses in the short term but increased profits and reduced fatalities in subsequent years. The document argues that money spent on safety is minimal compared to costs of liabilities, lost labor, and worker benefits from accidents. Strict safety adherence can boost long-term profits and productivity while saving lives.

1. SAFETY ENGINEERING AND ECONOMY
DINESH SIVARAM M

2. INTRODUCTION
 It is a common assumption that implementing
safety norms or following safety rules is
expensive and not economical.
 But it has been proved in the recent past that
following safety norms and implementing
them is actually economic
 Though putting safety precautions in place
can be an annoyance and an extra expense for
an employer, the financial benefits can
drastically outweigh the costs.

3. seriousness
 The International Labour Organization
estimates there were 47,000 deaths from
occupational accidents in India in 2003, the
latest year for which figures are available, an
increase of 17% from a year earlier

4. Objective
 To bring awareness about the importance of
safety engineering
Prove the fact that implementation and strict
following of safety rules will boost the
economy of the firm by increasing the profit

5. Hypothesis
 Money spent or invested on implementation
and adherence to safety norms is ignorable or
minimal when come pared to the revenue
generated because of it.

6. SAFETY ENGINEERING
 Safety engineering is a field that focuses on
preventing accidents and lessening
opportunities for human error in engineered
environments or in engineering design.
 Applied to many disciplines, including
construction, aerospace, and
manufacturing, public works, and product
etc…

7. ECONOMICS
 Economics is the social science that analyzes
the production, distribution, and consumption
of goods and services .

8. MISUNDERSTANDING
 TIME-CONSUMING
 NOT ECONOMIC

9. Liabilities
serious injury
file a civil suit
employer may have to pay

10. Lost Labor
 SKILLED LABOURS (training)
training
higher costs and lower efficiency.

11. Worker Benefits
 WORKERS (health plans ) INJURED
Pay out (injuries and the hospital bills)

12. CASE STUDY - ANGLO AMERICAN
MINING COMPANY
 ANGLOW AMERICAN Is the worlds most
diversified mining company
 commodity mix Like platinum group
metals, diamonds, copper, nickel, iron
ore, metallurgical and thermal coal are mined
 They operate on six continents with 150000
permanent and contract employees.

13. Cynthia Carroll
 Between the years 2002 to 2007 ANGLO
AMERICAN SUFFERED CLOSE TO 200
FATALITIES
 In the year 2007 Cynthia Carroll became the
CEO of the ANGLO AMERICAN COMPANY
 She was dissatisfied with the safety
knowledge of the supervisors and the
managers

14. ACTIONS
 She fundamentally rejected the assumption
by some veterans that death is inevitable at
such mining company because of the dangers
involved in the business.
 Visited mines and did a research
 A decision was made and the company was
shut down and was planed that after a
perfunctory safety check would resume
production as soon as possible

15. Losses
 Company suffered not only due to shut down
but also due to expenses incurred in training
the skilled and unskilled workers, supervisors,
managers etc…,

16. RESULT - Below are some of the data’s
got from HARVARD BUSINESS REVIEW
 YEARS Operating Income Revenue
 2006 7874 29404
 2007 8272 30559
 2008 6850 32964
 2009 4957 24637
 2010 9763 32929
 2011 11095 36548

17. GRAPHICAL REPRESENTATION
40000
35000
30000
25000
OPERATING INCOME IN
20000 $ US MILLIONS
REVENUE IN $ US
15000
MILLIONS
10000
5000
0
2006 2007 2008 2009 2010 2011

18. FINDINGS
 As per the above strategies not only the profit
went up but also the life of precious human
was saved
 In the year 2011, 17 employees lost their life
due to accidents which is far less when
compared to the year 2006 where there was a
loss of 44 employees
 That is a reduction of 62%.Time lost due to
injuries came down by 50%. Thus ensuring
more active productive hours.

19. Morale
 Morale is very important in construction because
employees have to work quickly and efficiently to
meet deadlines
 While safety considerations may hamper work
speed, they can also increase work speed
 For instance, a worker who does not have
adequate protection equipment may work more
slowly than one who does because making a
mistake has such a higher chance of causing him
injury.

20. SUGESTION AND CONCLUSSION
 Thus It is evident that thought the is a initial
cost incurred in the(SAFETY MANAGING)
training of employees, purchase of safety
equipment but the in the long run it actually
helped not only to save the precious life of
human but also for the economic growth of
the organization.

21. THANK YOU