Productivity Plus Reduce Risk and Improve Productivity

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Productivity PlusReduce Risk and Improve ProductivityContinuing Education CreditsNECA has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET) and is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.This session is eligible for 0.1 IACET CEUsTo earn these credits you must:Have your badge scanned in and out at the doorAttend 90% of this presentationFill out the online evaluation for this session

Learning Objectives Add Value to What You DoExplain the relationship between safety and productivity and why it is so important right now in our business.Define what types of injuries are most common and/or most costly, in our businessSummarize conditions that, if changed, will reduce risk and improve productivityCalculate the return on investment for a change that reduces risk and improves productivity and qualityTrue Cost of Injuries and Waste?GR8 ElectricRevenue15,000,000WC Hard Cost (medical + Indemnity) $60,000Soft Cost (5x Hard Cost)$300,000Impact of Injuries$360,000Hours208,000Burden of Injuries per Hour$1.73Typical Soft Costs Of InjuriesProject delaysInjury cleanupWages of other workersInvestigation costsAdministrative costsLegal costsProductivity lossesLoss of employee & customer goodwillFirst Aid CostsManagement timeSupervisor timeReplacement CostsRetraining costsProperty damagePremium increasesLost job opportunitiesDealing with OSHA & media

True Cost of Injuries and Waste?GR8 ElectricRevenue15,000,000WC Hard Cost (medical + Indemnity) $60,000Soft Cost (5x Hard Cost)$300,000Impact of Injuries$360,000Hours208,000Burden of Injuries per Hour$1.73True Cost of Injuries and Waste - Waste ModelGR8 ElectricAuto Claims $6,000General Liability Claims $1,000OSHA / EPA Fines (Est.) $0 Soft Costs (5x) $35,000Productivity Losses20 Min. per day of treasure hunting, wasted motion, material handling, rework, etc. @ $50 rate $433,000 Total $475,000Cost per Hour$2.29True Cost of Injuries and Waste - Waste ModelGR8 ElectricImpact of Safety Costs per Hour$1.73Impact of Other Losses per Hour $2.29Total Estimated Cost per Hour$4.02GR8 ElectricTotal WC, WL, GL and Productivity Cost Impact$835,000New Business Required to Offset these Losses (at a 10% Margin)$8,350,000History of Safety PerformanceSource: National Safety Council; Injury Facts 2011 Edition, and BLS Summary of Incidents in years noted.Why Has Safety Improved?InnovationAccountabilityInvestmentMeasurementManagement CommitmentIncreased Training

CompetitionCustomersCostIncentivesPlanningEmployee InvolvementRegulationHistory of Productivity ImprovementSource: US Bureau of Labor Statistics, US Department of Commerce

11Why has safety improved, particularly over the last 10-15 years?

Potential Answers:InvestmentStandard Measurements, AccountabilityResearchCultural ChangeLegislationTechnologyImproved TrainingIncreased Awareness, CommunicationIncentives, disincentivesImproved Management Planning

These are the same principles that will drive productivity.

Safety compliments productivity and productive practices eliminate hazards.

What Drives Productivity Improvement?InnovationAccountabilityInvestmentMeasurementManagement CommitmentIncreased Training

CompetitionCustomersCostIncentivesPlanningEmployee InvolvementWhat is Value?What is your definition of Productivity?Productive Work vs. WasteProductive WorkDirect Installation / ServicingPrefabrication (on or off site)Pre-AssemblyTesting & Commissioning WastesDefects and ReworkDelivery and Material HandlingUnnecessary MotionInefficient ProductionIneffective ActivitiesTreasure Hunting

A Relatively Young World in 2000Under 5%5% to 12.4%12.5% to 20%Above 20%Source: U.S. Census BureauPercent of Population Age 60+ in 2000

Rapidly Aging World by 2025Under 5%5% to 12.4%12.5% to 20%Above 20%Source: U.S. Census BureauPercent of Population Age 60+ in 2025Rapidly Aging World by 2025

Workforce Demographics[i] US Census Bureau, National Population Projections Released 2008 (Based on 2000 Census):

Today the majority of the US workforce is over 40As We AgeMaximal StrengthMuscle MassBone densityVisual and Auditory AcuityFitnessAerobic CapacityCognitive Speed/Function

ObesityArthritisHigh BPDiabetesDepressionHeart Disease Wisdom & Experience

Aging WorkforceAverage Days Lost By Age Per Injury*

*Nationwide Data All Industries, 2007The longer your employee is out of work the more unlikely they will ever return to work12 weeks, only 50% will return 26 weeks, only 25% will returnCurrent Worker PopulationFive people leave the construction industry for every one person enteringOnly 33% of employers report that their organization have made projections about retirement rates of their workersThe National Electrical Benefit Fund (NEBF) Shows:In 1947 there were 47 workers for every retireeIn 2001 there were 2 workers for every retireeIn 2003 there was 1 worker for every retiree

Objective 1: Why Safety = ProductivityInjuries and waste both increase labor cost, reducing our competitivenessThe principles that we have successfully used to reduce injuries also improve productivity and qualityWorkforce demographics demand improved safety performance as the workforce grows older and younger workers grow more scarce. Claims and Costs

Average Cost per Claim 2009-2012: $20,000Source: EMCOR Group, Inc. Claim cost summary 2009-2012, CNA verified 02/21/14 (Adjusted to exclude extreme outliers from 2012)

Contributory Causes of Injury & Their Contributory Cause FactorsInjury or Improved ProductivityWork MethodsPPETools & EquipmentEnvironmentInstructionUnsuitableNot Trained in UseNot IssuedNot UsedNot AdequateHazards Not IdentifiedHazards Not MitigatedNot Trained to Deal with HazardsNot Trained in UseUnavailableDefectiveAccepted PracticeBad PracticeJSA Not UndertakenWorking Outside CapabilitiesNot Specific EnoughNot ProvidedWhat you put in is what you get out Lack of StandardsHuman FactorsPhysical LimitationsAge / ExperienceDistracted WorkerRoot Cause of Injury? Management and Safety CultureCauses of EMCOR Recordable Injuries 09-12

Poor Work PracticeWork Methods39%Not Dealing with Hazards28%PPE9%Tools & Equip.7%Instruction2%Total85%Relationship Between Injuries & Other ClaimsMillions of Instances of POOR WORK PRACTICETens of Thousands of Near HitsThousands of First Aid CasesHundreds Of Recordable Injuries1 FatalityWorkers CompensationTens of Thousands of Near HitsThousands of Minor EventsHundreds Of Auto Claims1 Serious EventAuto Liability ClaimsTens of Thousands of Near HitsThousands of Minor EventsHundreds Of Damage Claims1 Serious EventGeneral LiabilityObjective 2: The Most Common and Costly InjuriesOverexertion Injuries those related to wear and tear on the bodySlip, Trip, Falls Correlated to some of the physiological effects of agingFalls from Elevation Also correlated to ageCuts Unique to electriciansThe CHALLENGE to you Observe, Measure, Change, ImproveChanging the Way We WorkMaking a change begins with OBSERVATION of the worker and the processChanging the Way We WorkWhat 2 Questions Do YOU Need to Ask?

-- Why Are We Doing It That Way? -- Is There A Better Way To Do It?Working at Floor Level

Best Practices StagingNot So Good Example

Best Practices - StagingGood Examples

Vehicle Inventory - HousekeepingI cut my hand while reaching for PPE in the back of my truck Actual Incident Report

Products for Working Smarter

NECA 2014The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., etc.

WalkingBendingCarryingPushingPullingLifting

The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., etc.

WalkingBendingCarryingPushingPullingLifting

The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., etc.

WalkingBendingCarryingPushingPullingLifting

The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., etc.

WalkingBendingCarryingPushingPullingLifting

The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., etc.

WalkingBendingCarryingPushingPullingLifting

The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., etc.

WalkingBendingCarryingPushingPullingLifting

The art of observing human beings as they are:

and questioning why work is being done that wayChange Human Factors to Reduce Fatigue and Waste

ClimbingDescendingTwistingReachingImprovisingEtc., etc., et