Managing Motor Fleet Safety Programs: Training for the Safety Director Unit 2 – Safety is Good Business NATMI © 2014

North American Transportation Management Institute, 2013 Unit 2 Objectives Explain why safety is good business Recognize responsibilities of a safety director in managing effective safety programs and in acting as an advocate for safety in the company Explain the importance of a safety policy in making safety good business Identify the elements of an effective safety policy

North American Transportation Management Institute, 2013 Importance of Safety Increased productivity Reduced downtime Increased profits Compliance with regulations Moral and social responsibilities

North American Transportation Management Institute, 2013 Implications of Safety Which of the following might be avoided by the motor fleet industry taking a proactive approach to developing good safety programs? a. Public exposure to day-to-day operations b. Extensive government regulations c. Excessive labor costs d. Reduced downtime e.All of the above

North American Transportation Management Institute, 2013 Focus of Safety Programs Selection Training Supervision Accident investigation Compliance Prevention/reduction of losses

North American Transportation Management Institute, 2013 Implementing Safety Programs Set Standards Show How Keep Score Provide Recognition

North American Transportation Management Institute, 2013 Elements of Safety Programs A properly organized safety program will include a set of standards, evaluation of how well employees are meeting the standards, and recognition. What additional element is required? a. The approval of the American Trucking Associations b. A training process c. Involvement of local government agencies d. Involvement of federal government agencies

North American Transportation Management Institute, 2013 Principles of Safety Programs Consider the overall system Consider underlying causes Manage safety Assign safety accountability

North American Transportation Management Institute, 2013 Principles of Safety Programs Every accident can be traced to a single cause. a. True b. False

North American Transportation Management Institute, 2013 Principles of Safety Programs What person or group should be responsible for reaching safety objectives in a fleet organization? a. Line employees b. Line supervisors c. The Safety Director d. Upper management e. All of the above

North American Transportation Management Institute, 2013 Establishing Safety Programs What is the most effective way for a safety director to gain the support of upper management for establishing a safety program? a.Communicate in terms that managers understand b.Appeal to management’s sense of moral responsibility c.Warn management about potential monetary losses d.Point out how operations can be adversely affected if there is no safety program

Costs of Injuries Injury Required Revenue Based On Company Profit Margin: Cost 1% 2% 3% 4% $1,000$100,000$50,000$33,333$25,000 $5,000$500,000$250,000$166,666$125,000 $10,000$1,000,000$500,000$333,333$250,000 $15,000$1,500,000$750,000$500,000$375,000 $25,000$2,500,000$1,250,000$833,333$625,000 $50,000$5,000,000$2,500,000$1,666,666$1,250,000 $100,000$10,000,000$5,000,000$3,333,333$2,500,000

North American Transportation Management Institute, 2013 The Safety Department and Profitability Profit center status Appropriate support and responsibility Direct report to upper management

North American Transportation Management Institute, 2013 Know Your Costs Accidents Insurance premiums Compliance Vehicle maintenance Hiring and retaining drivers

North American Transportation Management Institute, 2013 Upper Management’s Role What is the primary responsibility of upper management in the establishment of an effective safety program? a. Providing required safety training b. Studying the need for a safety program c. Appointing a Safety Director d. Establishing safety policy

North American Transportation Management Institute, 2013 Emphasizing the Commitment to Safety Which of the following is the most effective way for upper management to emphasize their commitment to safety? a.Provide written policy and procedure b.Make the line supervisors accountable for meeting safety objectives c.Reward employees who reflect a good attitude toward safety d.Emphasize their commitment to safety personally to all employees

North American Transportation Management Institute, 2013 Communicating the Safety Policy Because safety is a wide-reaching matter, a safety policy should be disseminated differently from other policies and procedures. a. True b. False

North American Transportation Management Institute, 2013 Safety Policy - Management Support Authorized and signed by chief executive Communicated through multiple means Training on policy and employee responsibilities Active support from all levels of management

North American Transportation Management Institute, 2013 Safety Policy - Elements Protection of the public Employee safety and health Hazard identification and correction Ultimate priority to safety No compromise when safety is involved Employee compliance with company health and safety policies and procedures Employee compliance with safety, health, and environmental laws and regulations

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