1. MSHA “Spring Thaw Workshop” Hidden Cost of Accidents Monetary and/or Emotional Provided By: Paul McGehee, Oldcastle Materials SW Group 2/25/2003

2. Real and Hidden Costs What does an accident really cost? ?

3. Real and Hidden Costs What is the Medium-of exchange? What are costs based on? Quality of Life Health and Welfare $$$$$

4. Direct Costs Typically Insured Costs Medical Expenses Wage Compensation (indemnity) Legal Defense

5. Hidden Costs Uninsured Amounts Paid by the employer 3 to 5 times greater than direct costs Direct Costs $ Hidden Costs $$$$$

6. Hidden Costs Costs Of Lost Wages Paid To Injured Employee Includes medical treatment and time away from work not covered by insurance Sick leave Doctors visits

7. Hidden Costs Costs paid to other workers not injured Includes those employees that stopped work to watch, talk about or to assist injured. Those employees whose job is dependent on injured worker’s products or tasks to accomplish their work

8. Hidden Costs Costs of damage to material, property or equipment Repairs to any equipment or property damaged in the accident

9. Hidden Costs Costs of overtime necessitated by the accident Including costs to make up for lost production, additional supervision, and additional operating expenses

10. Hidden Costs Additional wages paid to supervision Involve caring for the injured person Transporting injured to medical facility Investigating accident Getting operation organized again

11. Hidden Costs Resuming to normal activities Instructing, training and repositioning employees May require hiring a replacement employee with all costs of hiring a new employee Diminished productivity

12. Hidden Costs Managerial or clerical personnel processing claims, forms and any related paper work Processing claims and related paper work Tending telephone calls and communications related to incident Conducting interviews and investigations Attending Hearings Uncovered legal costs

13. Hidden Costs Wages due to decreased productivity After employee returns to work, capacity is diminished because of restricted movement Employee is nervous and less confident Employee spends time discussing incident with other employees

14. Hidden Costs Reduced Competitive Position Caused by delays Increased operating costs Rework time on damaged products Increased cost of insurance (Mod Rate) Higher Labor Rate Unfavorable publicity Civil penalties, fines, legal fees and time involvement for violations

15. Intangible Factors Family Stress Mental and Emotional Strain Loss of Ability to Make a Living

16. Danger Signs! Indicators of Larger Problems Near misses Minor incidents Serious Incidents Property damage Product damage Equipment damage Employee injuries

17. Danger Signs! Production is not at optimum Profitability is reduced Employee moral is diminished Public image is damaged Getting set up for the “big one”

18. Dollars In Whose Pockets??? Revenues Needed To Cover Costs

19.  2 Unsafe Landings At O’Hare Airport Each Day  16,000 Lost Pieces Of Mail Per Hour  20,000 Incorrect Drug Prescriptions Per Year  50 Newborn Babies Dropped At Birth Each Day  32,000 Missed Heartbeats Per Person Each Year  2 M Books In The Next Year Will Have The Wrong Cover  900,000 Credit Cards Will Have Incorrect Information 99.9% Good Enough?

20. Inexperience = Accidents Employees Who Have Less Than 12 Months Experience at a Different or New Task, Account For 80% of ALL Accidents

21. CLASS SEVERITYONE EVERYHOURDAYWEEKYEAR TOTAL ALL DEATHS6 MINUTES112571,80093,800 INJURIES2 SECONDS2,20052,900371,20019,300,000 MOTOR-VEHICLE DEATHS12 MINUTES511883043,200 INJURIES15 SECONDS2606,30044,2002,300,000 WORK DEATHS105 MINUTES1141005,100 INJURIES9 SECONDS43010,40073,1003,800,000 While You Speak

22. Guard Against These Traps Time Pressure Vague Guidance After Wake-up or Meal First Time Evolution Over-confidence Distractive Environment High Work Load/Stress First Day After Time Off

23. Accident Investigation Tips ü 1. Secure 2.Treat 3. Investigate! ü Interview Witnesses ü Document ü Call In the Claim ASAP ü Don’t Wait! ü Facts Not Fault Finding ü Don’t Interrupt ü “In Their Words”

24. Accident Investigation Tips u What Accidents Do You Investigate? u Root AND Primary Causes Identified u Corrective Actions For Each u Committee Should Review u What Are You Doing Different Now To Prevent Recurrence? Serious Minor Near Misses 10 30 600 1 Fatality