Ergonomics is Good Business

1
Ergonomics is Good Business
TM 655 Ergonomics for Managers Summer 2006

• Carter J. Kerk, PhD, PE, CSP, CPE
• Associate Professor
• Industrial Engineering Department
• South Dakota Tech

2
Objective

• Learn about why and how ergonomics is good for
  business
• Good Ergonomics is Good Economics

3
Premises Concerning Ergonomics and Economics

1. Musculoskeletal and neurovascular disorders are
   significant by frequency and cost
2. Indirect costs are staggering
3. The Industrial Engineering approach has key
   advantages
4. Economic measurement tools are available
5. OSHA Impact The Good, The Bad, and The Ugly
6. There are ergonomics resources in South Dakota

4
Premise Number 1

• Musculoskeletal and neurovascular disorders are
  significant by frequency and cost

5
Occupational Injuries and Illnesses in 2001
(DHHS 2004, Fig 1-21)
522,528 Musculoskeletal Disorders (Includes
injuries and illnesses, includes Repeated Trauma
and Carpal Tunnel Syndrome) 26,794 Carpal Tunnel
Syndrome (Included in Repeated Trauma)
6
Number of MSD Cases by State in 2001
(DHHS 2004, Fig 2-37)
7
Rates of MSD Cases by State in 2001
(DHHS 2004, Fig 2-38)
8
?
Magnitude and Trend Numbers and types of
occupational illness cases between 1972 and 2001.
(DHHS 2004, Fig 1-22)
9
Nature of the Injury or Illness Nonfatal
injuries and illnesses distributed by nature of
injury or illness in 2001. (DHHS 2004, Fig 1-36)
10
Which injuries and illnesses accounted for the
most severe work loss in 2001. (DHHS 2004, Fig
1-37)
11
How nonfatal injuries and illnesses were
distributed by body part affected in 2001. (DHHS
2004, Fig 1-38)
12
The 6 Leading Causes of Workplace Injuries and
Direct Costs in 2002 ( in Billions)
1 Overexertion 13.2 26.6
2 Falls on same level 6.2 12.5
3 Bodily reaction 5.3 10.8
4 Falls to lower level 4.6 9.2
5 Struck by object 4.4 8.9
6 Repetitive motion 2.8 5.7
The 6 leading causes of serious (6 or more lost
workdays) workplace injuries account for 74 of
the 49.6 billion cost of serious workplace
injuries in 2002. (Liberty Mutual, 2004)
13
Premise Number 2

• Indirect Costs are Staggering and You May Be
  Ignoring Them!

14
What are Direct Costs?

• Workers Compensation payments to workers for
• Medical and rehabilitation expenses
• Wage replacement
• Repair and replacement damages

15
What are Indirect Costs? (1 of 2)

• Lost time of injured employee
• Time lost by other employees to assist injured
  co-worker, to see what is going on, and to
  discuss events
• Time lost by supervisor to assist injured worker,
  investigate accident, prepare reports, make
  adjustments in work and staffing
• Time spent by company first aid, medical, and
  safety staff on case
• Damage to tools, equipment, materials, property
• Increased WC premiums

16
What are Indirect Costs? (2 of 2)

• Losses due to late or unfilled orders, loss of
  bonuses, payment of penalties
• Payments made to injured employee under benefit
  programs
• Losses resulting from less than full productivity
  of injured worker upon return to work
• Loss of profit because of lost work time and idle
  machines
• Losses due to reductions in productivity of
  coworkers because of excitement or reduced morale
• Overhead costs that continue during lost work

17
2002
Direct cost of serious workplace injuries is
49.6 B

Indirect cost of serious workplace injuries is
estimated at 198.4 B

Total estimated cost of 248,000,000,000
18
Are You Considering Indirect Costs?

• If so, I am wasting your time
• If not,
• Try keeping track of them for a year and add the
  time you spend to your Indirect Costs
• Or compute your Direct Costs, then multiply by 5
  for Total Cost!

19
Premise Number 3

• The Industrial Engineering Approach has Key
  Advantages

20
The Industrial Engineering Approach

• Every perceived problem presents an opportunity
  for improvement
• Take a systems approach
• Dont just look at ergonomics
• Consider all the costs and benefits
• Adopt the Kaizen Philosophy
• Continuous Improvement
• Never totally satisfied

21
Identify and Evaluate All Hazards

• Perform a complete hazard evaluation of your
  facility
• Evaluate each hazard for frequency and severity
• Rank order your challenges
• Attack with Systems Approach
• Low Hanging Fruit
• High ranking items

22
The IE Systems Approach

• Look at the big picture
• Evaluate the work methods
• Find the Best Way
• Perform comprehensive ergonomics evaluations
• Evaluate production alternatives
• Study quality aspects

23
Work Methods ImprovementsPaying Attention to
the Details

1. Elemental Analysis
2. The Best Method
3. Principles of Motion Economy
4. Humans versus Machines Analysis

24
Definition of Ergonomics

• The science of adapting the environment,
  materials, tools, and machines to fit the human
  so as to prevent injury, while boosting
  productivity
• This science uses concepts from physics,
  engineering, math, anthropometry, psychology,
  anatomy, physiology, and management

25
The System
Human
Machines/Tools
Materials
The Environment
26
Ergonomics Can Prevent Injuries

• Musculoskeletal Disorders (MSD)
• Cumulative Trauma Disorders (CTD)
• Repetitive Trauma Disorders (RTD)
• Neurovascular Disorders

27
Musculoskeletal Disorders (MSD) Cumulative Trauma
Disorders (CTD) Repetitive Trauma Disorders
(RTD) Neurovascular Disorders
28
The Risk Factor Model for the Potential
Development of MSDs
Lack of Rest
Work/Rest Ratio
Shift Length
Environment
Sustained
Repetition
Occupational
Vibration
Non-Occupational
Temperature
Posture
Physical Temporal Risk Factors
Force
Personal
Psychosocial
Compounding Risk Factors
29
Implementation Challenges

• When changes are recommended, the workers and
  managers must buy-in for implementation to be
  successful
• Implementing change can sometimes be the most
  difficult aspect more difficult than developing
  improvements
• People are naturally resistant to change

30
Overcoming Resistance to Change

• Explain the need for the change
• Explain the nature of the change
• Facilitate participation in the formulation of
  the changes
• Consult all parties
• Emphasize the personal benefits
• Good communications are a key!

31
Premise Number 4

• Economic Measurement Tools
• are Available

32
Economic Measurement Approaches

• Get your accountant involved
• Implement principles of Engineering Economics
• Specific Tools

33
Get Your Accountant Involved

• Make departments / units accountable for costs
• Start identifying those indirect cost categories
• At a minimum, multiply your direct costs by 5 for
  Total Cost!

34
Implement Engineering Economics

• Take into account the time value of money
• Example) You implement changes that save 10000
  per year indefinitely (money is worth 8 to you)
• P A/I 10000 / (.08) 125,000
• Or look at the lost opportunity of not making
  those money saving changes

35
Increasing Productivity and Profit Through Health
Safety

• The Financial Returns from a Safe Working
  Environment
• Maurice Oxenburgh, et al.
• Hardcover, CRC Press, 2nd Ed, June 2004
• ISBN 0415243319
• 85

36
The Goal

• A Process of Ongoing Improvement
• By Eliyahu Goldratt Jeff Cox
• North River Press, 3rd ed, July 2004
• ISBN 0884270610
• 25

37
OSHA Ergonomics E-Tools

• http//www.osha.gov/SLTC/ergonomics/outreach.html
  etools
• Ergonomics E-Tools
• Plus Case Studies, Success Stories, Alliances,
  SHARP, VPP, Training (Course 2250)

38
Good Ergonomics is Good Economics

• By Hal Hendrick
• Contains illustrated case studies of how the
  application of ergonomics principles has resulted
  in cost savings and injury reduction for several
  companies
• Human Factors Ergonomics Society
• www.hfes.org
• Free download, 16 pages, 1996

39
Premise Number 5

• OSHAs Impact The Good, The Bad, and The Ugly

40
OSHA and ErgonomicsThe Good (www.osha.gov)

• Four-pronged approach Guidelines, Enforcement,
  Outreach/Assistance, NACE
• Cooperative Programs Alliances (72),
  Partnerships (18), Consultation, SHARP, VPP
• Compliance Assistance eTools (8), Grants,
  Hispanic, Downloads, Quick Start, Small Business,
  Training
• Success Stories (46), Case Studies (4)
• Making positive efforts with NIOSH
• Guidelines

41
The Good Guidelines

• Ergonomics Program Management Guidelines for
  Meatpacking Plants (OSHA 3123, 1993)
• Ergonomics Guidelines for
• Nursing Homes (OSHA 3182, 2003)
• Retail Grocery Stores (OSHA 3192-06N, 2004)
• Poultry Processing (OSHA 3213-09N, 2004)
• Shipyards??
• Industry-Developed Guidelines (3)
• Apparel/Footwear, Furniture, Telecommunications

42
OSHA The Bad - Enforcement

• The General Duty Clause Situation
• Top 10 most violated OSHA standards
• Scaffolding, Haz Comm, Fall Protection,
  Respiratory Protection, LOTO, Powered Industrial
  Trucks, Electrical Wiring, Machine Guarding,
  Electrical (general), Ladders
• Compare this list to earlier slide
• The 6 Leading Causes of Workplace Injuries
• Are the workers protected?

43
OSHA The Ugly - Politics

• Ergonomics Regulation?
• Political hot potato since at least 1992
• In March 2001, the Congress voted to rescind the
  short-lived OSHA Ergonomics Standard
• And prohibited it from being reissued in
  substantially the same form

44
OSHA The Ugly and the Beauty

• The Ugly
• Because of OSHAs inability to enact a standard,
  many companies will ignore the value of
  ergonomics
• The Beauty
• Because ergonomics is good for business, enact
  your own sound ergonomics program and reap the
  benefits and gain a competitive advantage over
  your rivals

45
Premise Number 6

• There are Ergonomics Resources in South Dakota

46
SD Ergonomics Resources

• South Dakota Safety Council
• State Department of Labor
• SDSU
• USD
• South Dakota Tech

47
South Dakota Safety Council

• Sponsors workshops, conferences, training
• Low cost
• Several offerings per year
• Many locations across the state
• Ergonomics expertise

48
SD Department of Labor

• Administers the states Workers Compensation
  Program
• Encourages and promotes workplace safety

49
South Dakota State University

• Administers the OSHA Consultation Program
• Offers a degree in Safety Management

50
University of South Dakota

• Psychology Department
• Offers undergraduate courses in safety
• Offers a PhD in Human Factors
• Coursework and Research
• Student Chapter
• Human Factors Ergonomics Society

51
South Dakota Tech(http//ie.sdsmt.edu)

• Industrial Engineering Department
• Required courses in Ergonomics and Safety
  Engineering or Industrial Hygiene
• Minor in Occupational Safety
• Available to any BS engineering/science student
• http//webpages.sdsmt.edu/ckerk/osminor.htm
• Graduate Courses (Distance Delivery)
• Ergonomics for Managers (TM 655)
• Safety Management (TM 650)
• Summer Interns, Co-Op Students, Graduates
• Course Projects, Senior Design Projects,
  Consulting

52
Conclusion

• Implement or improve your Ergonomics Program and
  reap the economic benefits!

53
Key References

• Brauer RL, Safety and Health for Engineers, John
  Wiley Sons, NY, 1994.
• DHHS (NIOSH) Publication No. 2004-146.
• Kerk CJ, Ergonomics, Book Chapter in
  Occupational Medicine State of the Art Reviews.
  V13, No. 3, June 1998.
• Konz S and Johnson S. Work Design Occupational
  Ergonomics. Holcomb Hathaway, Scottsdale, AZ,
  2004.
• Liberty Mutual Workplace Safety Index, 2004.
• National Institute for Occupational Safety and
  Health, Does It Really Work? How to Evaluate
  Safety and Health Changes in the Workplace, NIOSH
  Publication No. 2004-135.
• National Research Council, Work-Related
  Musculoskeletal Disorders Report, Workshop
  Summary, and Workshop Papers, National Academy
  Press, Washington, DC, 1999.
• National Research Council and Institute of
  Medicine, Musculoskeletal Disorders and the
  Workplace Low Back and Upper Extremities,
  National Academy Press, Washington, DC, 2001.
• OSHA Website, www.osha.gov

54
For More Information

• Please contact
• Carter J. Kerk, PhD, PE, CSP, CPE
• Associate Professor
• Industrial Engineering Department
• South Dakota Tech
• [phone]
• Carter.Kerk_at_sdsmt.edu