Building the Business Case for Industrial Hygiene Programs

Enterprise EHS Software Solutions

BUILDING THE BUSINESS CASE FOR INDUSTRIAL HYGIENE PROGRAMS


INTRODUCTION

CASE STUDIES

BACKGROUND

BUSINESS CASE DEVELOPMENT

AGENDA


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WRITTEN BY MONICA MELKONIAN, MS, CIH

• Over 20 years of industrial hygiene experience within the government and private sector

• Ten of those years as an industrial hygiene software product manager and consultant for global clients across a broad range of industries


INTRODUCTION

CASE STUDIES


AGENDA

BACKGROUND


IMPORTANCE OF BUILDING A BUSINESS CASE

• EHS professionals are under increasing pressure to prove the value of their programs and the controls they recommend.


TRADITIONAL BUSINESS CASE

• 2016 Liberty Mutual Workplace Safety Index


INTRODUCTION

CASE STUDIES

AGENDA

BACKGROUND



BUILDING A BROADER BUSINESS CASE

Traditional Impacts

Impacts to Overall Business


WORKER HEALTH & CORPORATE PERFORMANCE

• Companies with high performing health programs for employees out performed the Standard and Poor’s index on average by 7%-16% per year.


WORKER HEALTH & CORPORATE PERFORMANCE

• Health Metrics Working Group

Develop a standard, verifiable measure of employee health

Released report and sample scorecards at 2016 World Economic Forum in Davos


BUILDING A BROADER BUSINESS CASE

• Industrial hygienists have a unique set of skills that can help organizations succeed.

Elimination

Substitution

Engineering Controls

Administrative Controls

PPE

Most effective

Highest ROI

Leasteffective

LowestROI


AIHA VALUE STRATEGY Prelim

inary

investigation/

prioritization 1

Identify Key Business Objectives & Hazards

2Conduct Risk Assessment

Valueassessmen

t

3Align Value Opportunities

4Identify Impacts

5Measure Impacts

6Determine Value

Report

7Value Proposition


AIHA VALUE STRATEGY

FinancialNon-

Financial

Prelim

inary

investigation/

prioritization

1Identify Key Business Objectives & Hazards


Valueassessment


4Identify Impacts

5Measure Impacts

6Determine Value

Report

7Value Proposition


AIHA VALUE STRATEGY

Quantitative Qualitative

Prelim

inary

investigation/

prioritization

1Identify Key Business Objectives & Hazards


Valueassessment


4Identify Impacts

5Measure Impacts

6Determine Value

Report

7Value Proposition


PRELIMINARY INVESTIGATION

• Identify Key Business Objectives and Hazards

EHS Program

Business Sustainability

Excellence in EHS

Retain Talented

Employees

Respect for the

Individual

Growth: Increase Profits

Increased Market Share


PRELIMINARY INVESTIGATION

• Conduct Risk Assessment


VALUE ASSESSMENT

• Align Value Opportunities

EHS Program

Business Sustainability

Excellence in EHS

Retain Talented

Employees

Respect for the Individual

Growth: Increase Profits

Increased Market Share


VALUE ASSESSMENT

• Identify & Measure Impacts

Health Status

Risk Management

Business Process


VALUE ASSESSMENT

• Determine Value

Financial AnalysisCost of Program/Activity

Net Savings/Cost Avoidance

New Revenue

Other Financial Benefits


REPORT/PRESENTATION

• Value Proposition • Value Business Objectives

• EHS Hazards

• Risk Assessment

• Risk Prioritization

• Problem Statement

• How was the Value Opportunity planned

• Impacts

• Impact Measurement

• Value

• Sensitivity Analysis

• Value Proposition

• Project Implementation Plan, Timeline, Strategy


INTRODUCTION

CASE STUDIES

AGENDA

BACKGROUND



SUCCESS STORY

• Eliminate lead from a material stream that saved tens of thousands of dollars in operating costs and kept facility from closing


SUCCESS STORY

• Substituted a less toxic material for a chromate primer that saved an aircraft company almost $500,000 in processing costs and added capacity to build another aircraft each year, increasing revenue stream several million dollars


SUCCESS STORY

• Install engineering controls at a small company to control exposure to nanoparticles that resulted in a tenfold increase in production capacity


SUCCESS STORY

• Transportation company implemented an automated EHS management software solution which resulted in reduced annual program costs from $1.2 million to $700,000

EHS Benefits

Cost Savings

Productivity


RESOURCES


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Building the Business Case for Industrial Hygiene Programs

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