IND 712_12 cost benefit biz case

IND 712_12 cost benefit biz case - How is Site recruitment...

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1 IND 712 Business Case for HF Copyright (c) 2012 P. Neumann, BSc, MSc, LicEng, PhD, LEL, Eur.Erg – This teaching material is not for resale or commercial use. Note that at ribution errors and missing acknowledgements may exist in this material; for which the author apologises • How is Site recruitment going? • Arguments FOR allowing a student group to do an HF improvement project? • Arguments Against? Can’t we ‘do’ ergonomics later? Miles & Swift 1998 R.W. Goggins et al. / Journal of Safety Research 39 (2008) 339–344 Why ergonomics? 1. 2. 3. 4. Rose, 2009 / KTH 5. 6. SCOPE OF HF ISSUE? (review)
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2 Scope of Problem 4-5% Gross World Product in work-related ill health (WHO:ILO 1998) ~40% Musculoskeletal Disorders $40-50 Billion in Canada $19 Billion in Ontario 2004 (MOL) 1996 USA: $60 Billion Comp Costs (GAO 1997 1996 USA: $60 Billion Comp Costs (GAO 1997) Work Days Lost 125 Mil. (USA) 600 Mil. (EU) (ill health) 1-2 Million work-related DEATHS /year Health Costs TOTAL (indirect +direct) 1992 US Costs: AIDS = $30 B Alzheimers = $67 B Circulatory Disease = $164 B Cancer = $170.7 B Occupational Disease = $171 B – Musculoskeletal = $149 B (Leigh & Markowitz 1997) Occupational Health Costs (US 1992) $67 $164 $171 $149 $60 $80 $100 $120 $140 $160 $180 t (U S $ B illio n s) (Leigh & Markowitz 1997) $30 $0 $20 $40 AIDS Alzheimers Circulatory Disease Cancer Occupational Diseases Musculoskeletal Total Cos MSDs by Body Part Scope of Problem 1996 USA: $60 Billion Comp Costs (GAO 1997) Work Days Lost 125 Mil. (USA) 600 Mil. (EU) (ill health) 3 Mil. (Ontario) 4-5% Gross World Product in ill health (WHO:ILO 1998) ~40% Musculoskeletal Disorders 1.1 Million work-related DEATHS /year
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3 Can’t we ‘do’ ergonomics later? Miles & Swift 1998 OHS COST ELEMENTS? 2 min breakout groups: Brainstorm specific costs arising from a work-related ill health (more is better) COST ELEMENTS Production stops related to WE problems Productivity Losses – Lost production at time of injury/accident – Lower productivity due to influence of poor WE – Reduced productivity from less Quality related losses (in house and customer side) Errors caused by pain, fatigue, boredom etc. Errors associated with working in poor postures Caused by new/replacement employee errors Scrap costs related to quality errors Warranty costs due to quality deficiencies caused by replacement experienced replacement employee – Lost Production due to quality errors – Lost efficiency due to poor WE (includes high noise, poor lighting, etc.) deficiencies caused by replacement workers Errors made while rushing to meet system speed demands Errors made due to other WE problems (poor job design, poor error correction systems) Costs related to increased turnover of personnel Administration & hiring costs Training costs Time taken from experienced worker to coach and support) More COST ELEMENTS Presenteeism Costs (worker is in pain but has not left the job as injured) Productivity losses Quality losses Morale effects Losses from other employees helping/supporting injured col eague Maintenance Costs
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IND 712_12 cost benefit biz case - How is Site recruitment...

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