Introduction to Total Loss
Introduction to Total Loss
Control
Control
S MUCHEMEDZI
Training objectives
Training objectives
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w Define total loss controlDefine total loss control
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w Explain the evolution of loss controlExplain the evolution of loss control
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w Explain the domino sequence theoryExplain the domino sequence theory
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w Accident ratiosAccident ratios
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w Analyse loss producing events- IcebergAnalyse loss producing events- Iceberg
theory
theory
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Total loss control defined
w The application of professional management
techniques through programmed activities directed at the prevention / reduction of pure risks of business
w Systems for dealing with all business losses
Evolution of loss control
w Injury prevention
w Total accident control w Total loss control
1. Injury prevention
w Concerned with the humanitarian aspects of
employee safety and compensation
w legislation on health and safety and
compensation
w The care for one another baring in mind the
Total damage control
w Developed after the injury prevention had
failed to prevent all accidents in the 1950s
w Increased awareness of losses not only
arising from injuries but from damage to materials/ equipment and machinery
w Programme covered all accidents,
personnel injury, damage to facilities, & materials
Total loss control
w Accident control failed to reduce business
costs as it only concentrated on accidents and not operational systems deficiencies.
w There was then need to develop programmes
that were responsive to all areas where losses could be realised and provide
mitigatory systems
w New business initiatives by Loss Gurus gave
the birth of TOTAL LOSS CONTROL
Total loss control
cont---- Concepts covered under TLC include
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w Off the job safety...why off the job ??
w Shrinkage , theft, burglary, vandalism... How, how much??? w Fire related losses,.. How many , @ what costs??
w General liability claims... What are they , what impacts ??? w Absenteeism costs... How is business affected, how much? w On the job illness... How many, what are causes & impacts? w Family injuries/illness.. . Do they affect business, how , much? w Drug and alcohol abuse... Is it business risks, how much??
w Environmental liabilities... Impacts, future costs???
w Product liabilities... What are risks, how much , impacts?? w Reputational liabilities... Is it real, @what cost???
Domino sequence in accident
causation
B a sic c a u se s L a c k o f m a n a g e m e n t c o n tr o l Im m e d ia te c a u se s In c id e n t/a c c id e n t I n j u r y / d a m a g e / b u s i n e s s i n t e r r u p t i o n L o ssDomino 1. Lack of management
control
w lack of policies
w Lack of / or goals not clear
w Lack of effective delegation of authority,
responsibility and accountability
w Lack of programmes/systems w No rules and regulations
Domino 2.Basic causes
Personal
factors-w Inadequate physical/ mental capabilities w Occupational hazards
w Lack of skill, knowledge, and attitudes w Improper development
Job factors
w Inadequate leadership w Inadequate engineering
w Inadequate work standards w Inadequate purchasing
w Wear and tear
How much do we know th How much do we spend o
Unsafe Conditions 4%
96%
Unsafe Acts
“All things are hidden,remain obscure, and debatable if the
cause of the phenomena be unknown, but everything is clear if this cause be known”- Louis Pastuer
Domino 3. Immediate causes
Cont...
w Substandard Acts- violation of an accepted
safe procedure which may lead to an accident
E.g. Failure to follow procedure etc
w Substandard Condition- hazardous
environments which could directly permit the occurrence of an accident
Domino 4. Incidents/accidents
w Substandard practices add substandard
conditions will always they result in incidents and accidents
w The resultant outcome is substandard acts x
substandard acts = injury
= death
= property damage/
30
300
Fatality
Lost Time, Restricted Duty Medical Treatment
First Aid Near misses
R e-a ct iv e In ci d en t in v es ti gati o n 1 3,000 Unsafe Conditions
Unsafe Acts Hazards Risks P ro -act iv e 30,000
ACCIDENT RATIOS
Domino 6. Loss Iceberg theory
SEA LEVEL
DIRECT COST [$ 1-5][ INSURED]
•Medical cost •Compensation costs INDIRECT COSTS [$5-50] [UNINSURED] •Building damage •Damaged tools/equipment/products •Production delays/interruptions •Training of replacements
•Fines and other costs etc
BUILDING A TLC CULTURE MISSION /VISION PROCESS VALUES
BEHAVIOUR
RESULTS Business ExcellencyP R O F I T
COMPANY
VISION
&MISSION
Vision Vision Mission Mission rategic objectives rategic objectives Values Values Tasks Tasks & & FATALITIESATALITIES INJURIESNJURIES EXCELLENCEXCELLENCE ACCIDENTS ACCIDENTS INCIDENTS INCIDENTS SUBSTANDARD PERFORMANCE SUBSTANDARD PERFORMANCEBehaviour
Behaviour
WAY TO GOAL ATTAINMENT
A “zero mindset” culture
takes a step change in beliefs
We cant solve a problem
by using the same
mentality we used for creating it. (Albert Einstein)
OTHERWISE- “If you do what you’ve always done, you’ll always get what you always got!” (W Edwards Deming)
Paradigm Shift in Belief systems
Drive towards excellence!
Zero injuries Zero spills.
Zero wrong financial transactions. Zero …..
When we do not
manage , things are bound to go wrong and accidents
happen.
Accidents are caused. Safety performance can
be managed.
Paradigm Shift in Belief systems
Understand root causes!
Of accidents.
Of productivity problems. Of complaints
Of motivation & commitment Fatalities and
serious injuries are investigated
because it is
required by law.
All accidents and
incidents are
investigated because we want to learn from them.
Paradigm Shift in Belief systems
Focus on people!
Learning organizations.
Tap the capabilities of all employees. Empower people
Competitive urge is built on human
capital…….. Employees must be supervised so that they comply. Employees must be educated and empowered so that they perform effectively & efficiently.
Paradigm Shift in Belief systems
From reaction to prevention!
Initiative, innovative Operational discipline
Personal responsibility and commitment……….
SHE performance is a question of luck.
Safety performance can be managed
and results are attainable
Total Loss Control Programmes
fundamentals
Based on
n business commitment to succeed (POLICIES) n effective sustainable teamwork
n Equipment and human capital value
n quality of working life for staff members n sustainable business growth
Mosaic leadership philosophy and business
Advantages of TLC
w Uses the dollar to motivate decisions
w Instils equipment and human resources value
awareness
w Better machine, equipment, and human resource
utilisation
w Reduced labour cost, absenteeism and turnover w Increased profits