1. January 16, 2014 Understanding Motion is Money and How You Can Improve Your Companies Safety Process and Productivity

2. Disclaimer The information, examples and suggestions presented in this material have been developed from sources believed to be reliable, but they should not be construed as legal or other professional advice. CNA accepts no responsibility for the accuracy or completeness of this material and recommends the consultation with competent legal counsel and/or other professional advisors before applying this material in any particular factual situations. This material is for illustrative purposes and is not intended to constitute a contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2014 CNA. All rights reserved.

3. OBJECTIVES To recognize the correlation of the Motion is Money process with your workforce and how it affects your business operations. To better understand how you can improve your companies safety and efficiency through pre- planning and lean concepts. Better understand the causal factors that can contribute worker injury, fatigue or low production levels Discuss areas of focus that you can incorporate into your operations.

4. CNA “MOTION IS MONEY” PHILOSOPHY We cannot eliminate 100% of the risk factors. However, we can reduce or effect 10%, 15%, or even 30% of the risk factors for a job task. Source-NIOSH-Elements of Ergonomics Programs

5. Why We Need to Reduce Risk Factors….. Soft Tissue Injuries/Musculoskeletal Strains are a key AGC loss driver. Profit margins are thinner then ever. Increasing competition Medical, Indemnity, Benefit and Insurance costs are increasing It is very likely that your average workforce age is increasing. The more risk factors you have; the more our countries demographics will likely adversely affect your company. The more risk factors you have, the more inefficiency you create.

6. Question ? Beside the economy; What two issues will have the most impact on AGC in the next 10 years? Aging Work Force Obesity

7. Source: Based in part on “Meeting the Challenges of Tomorrow's Workplace,” CEO Magazine, 2005 Four generations (cultures) are being asked to coexist in the early 21 st century workplace “ Multi-Generational” Workforce TraditionalistBoomerGeneration XGeneration Y Born: 1928-1945Born: 1946-1964 Born: 1965-1980 Born: 1980-2000

8. Under 5% 5% to 12.4% 12.5% to 20%Above 20% Source: U.S. Census Bureau Percent of Population Age 60+ in 2000 In 2000, A Fairly “Young” World...

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

10. CURRENT POPULATION More than 40% of Construction workers are Baby Boomers. By 2015 – 55 million workers 45 or older 14 to 15 million people will be 65-69 in 2015 Those between ages 24 and 54 will only increase 5 percent. These demographics predict an exodus of experienced workers from this industry.

11. ... Age of Workers Percent Growth in U.S. Workforce by Age: 2000-2020 Source: U.S. Census Bureau

12. Physical Changes as We Age!! Maximal Strength Muscle Mass Bone density Visual and Auditory Acuity Fitness Aerobic Capacity Cognitive Speed/ Function Obesity Arthritis High BP Diabetes Depression/Heart Disease Menopausal/Post Menopausal Issues

13. Our Demographics - The Countries Obesity Epidemic … The most obese workers file twice as many claims. The most obese have 13 times more lost workdays than healthy weight workers. WC Medical costs are 6.8 timers higher for the most obese workers. Indemnity costs are 11 x higher.

14. Percent of Obese (BMI > 30) in U.S. Adults 1990 No Data <10% 10%–14%

15. Percent of Obese (BMI > 30) in U.S. Adults 1999 No Data <10% 10%–14% 15%–19% 20%–24%

16. Percent of Obese (BMI > 30) in U.S. Adults

20. So with this in mind here are the key questions….. Is your workforce physically capable of doing their job now? Will your workforce be physically capable of doing their job 10 years from now? How many more bends, twists and lifts do they have? What effect is this having on my company besides safety?

21. Productivity Work Process Input Labor Tools / Equip. Material Management Process Value Output Completed Installation Productivity = Input Output

22. Process Model Identify Problems Baseline Measurements Identify Movements and Hazards Develop Business Solutions Implement, Follow-up, and Measure Changes Continuous Improvement

23. Is there Waste on Construction Sites? Manufacturing Construction

24. Consider these Productivity Studies…. Ontario, Canada study noted Construction workers only spending, on an average day, 32% of their day performing fully productive work. University of TX study (> 1,600 job sites) noted Construction workers only spending, on an average day, 34% of their day performing fully productive work. What waste do you typically see on your jobs?

25. What is Waste? Any process, activity, motion, measurement, etc. that does not add value to the final product or service – according to the customer.

26. Typical Waste On Job Sites Walking Searching Bending Carrying Improper materials/excess inventory Using the wrong tool for the job Twisting Rework/Errors Driving Other non productive tasks So the question becomes how do we improve our job sites so we can increase productivity and reduce waste?

27. Motion is Money We have to look at movement in the work place. Movement is productivity and efficiency! Observe employees: reaching, bending, twisting, and walking. There are risk factors involved and we don’t want to lose sight of these, but we have to begin to see these as productivity and efficiency issues.

28. Motion is Money Figure out how many times a person bends over, how long they walk, # person doing job, wages, production levels, if they have a production drop in the day etc.. Start putting numbers together to see what they look like.

29. DISTANCE TO POTTY

30. Waiting or Treasure Hunts

31. Motion is Money VERY IMPORTANT POINT! WE MUST ANNUALIZE ALL THE MEASUREMENTS. Many times contractors do not see or understand how unnecessary movements, when annualized really start to add up.

32. Goal - Reduce Walking, Searching and Bending Costs Number of minutes walking/searching per day -30 Number of workdays -250 30 minutes X 250 days=7500min/60 =125 labor hours Total number of affected employees – 90 125 Hours X 90 employees =11,250 labor hours 11,250 hours X ____ hourly wage with benefits = Somewhere between $200,000-$500,000 Enough to pay for the solution, plus its safer…

33. Motion is $ Job Site Opportunities We can focus on several areas: Staging Manual Material Handling Methods Upper Extremity Movements Work Method Techniques

34. Job Improvement Opportunities - Staging Where are materials & products stored? Distances/Walking Needed Tools and Inventory Levels Positioning in Relation to Installation

35. Job Improvement Opportunities – Manual Handling What are we manually lifting? What should we require not be handled manually? What are we carrying, pushing, lifting that can be handled more efficiently? What are we picking off the ground How accessible is it? and what can we improve?

36. Other Basic Tools & Techniques 5S’s Process Mapping/Analysis (Value Stream) Spaghetti Chart (T&M) Kaizen Event

37. The Five S’s Lean Construction is Characterized by: –Sort –Shine –Set in Order –Standard –Sustain

38. The Five S’s Sort – Sort through the items on your jobsite. Reduce the number of items in your immediate work area to what you actually need. Shine – Clean your work area of debris, excess materials, and unwanted items. Good time to inspect equipment for wear or conditions that might lead to equipment breakdown. Set in Order – Evaluate and improve efficiency of your job task (workflow), the steps employees must take to perform their work task.

39. The Five S’s Standardize – Establish standard procedures, methods, and processes on job task to allow better organization and efficiency. Sustain – This is the most difficult step as you must sustain the previous four steps. Your new procedures, methods and process become part of the “daily” business operation.

40. Value Stream Mapping Analyzing all the steps in “job task” to determine which ones actually add value. If an action does not add value, you should consider changing it from the process.

41. Spaghetti Chart Material Installation Point Tools Gang Box Plans 100 ft. Elapsed Time: 30 min.

42. Visual Controls

43. ( Visual Control) Conex Box or Storage Trailer

44. Goals of Motion is Money Process Increase in productivity Improvement in quality Enhanced efficiency Reduction in discomfort Reduction in absenteeism and turnover Reduction in the frequency and severity of injuries.

45. Remember the Motion is Money Process is a journey not a destination. 1% or 2 % this year 2% or 3% next year

46. Questions?