OHS Economic Costs Direct Indirect

OHS Economic Costs - Excerpt from Forthcoming Paper Rose L Orrenius U.E and Neumann W.P Working Paper Work environment and the bottom line Survey

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Unformatted text preview: Excerpt from Forthcoming Paper: Rose, L., Orrenius, U.E. and Neumann, W.P., Working Paper. Work environment and the bottom line Survey of tools relating work environment to business results. in Human Factors and Ergonomics in Manufacturing & Service Industries Text Box 1: Examples of the costs related to WE. These example costs are interconnected and the cost-profile will vary with sector and legislative contexts. Direct costs are marked in bold (1 item). Production stoppages related to WE problems Productivity losses o Lost production at time of injury/accident o Lower productivity due to influence of poor WE o Reduced productivity from less experienced replacement employee o Lost Production due to quality errors o Lost efficiency due to poor WE (includes high noise, poor lighting, etc.) Quality‐related losses (in‐house and customer side) o Errors caused by pain, fatigue, boredom etc. o Errors associated with working in poor postures o Caused by new/replacement employee errors o Scrap costs related to quality errors o Warranty costs due to quality deficiencies caused by replacement workers o Errors made while rushing to meet system speed demands o Errors made due to other WE problems (poor job design, poor error correction systems) Costs related to increased turnover of personnel o Administration & hiring costs o Training costs o Time taken from experienced worker to coach and support Absenteeism Costs o sick leave, insurance and medical costs o lost productivity during rehabilitation periods o reduced productivity of replacement employee o time spent at and on the way to and from health care o Costs for maintaining extra pool of employees to cover absenteeism Lost opportunity costs related to reduced managerial focus o Mangers spend time covering WE‐related paperwork o Time spent on accident investigations o Time spent reporting and discussing employee injuries and ill health o Time spent managing related quality and productivity losses Presenteeism costs (reduced performance while still at work, pre‐absence) o Productivity losses o Quality losses o Morale effects o Losses from other employees helping/supporting injured colleague Maintenance Costs o Costs for repairs to equipment damaged in accidents o Costs for retrofitting solutions to WE problems in existing systems o Repair costs due to inadequate maintenance of machinery Costs for loss of brand image o Quality and delivery precision reputation suffers o Company image suffers o Corporate Social Responsibility efforts lose credibility 10 ...
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This note was uploaded on 03/07/2012 for the course IND IND712 taught by Professor Dr.patrickneumann during the Winter '12 term at Ryerson.

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