Introduction to Total Loss Control
S MUCHEMEDZI
Training objectives
Define total loss control Explain the evolution of loss control Explain the domino sequence theory Accident ratios Analyse loss producing events- Iceberg
theory Total loss control programmes
Total loss control defined
The application of professional management techniques through programmed activities directed at the prevention / reduction of pure risks of business
Systems for dealing with all business losses arising from company operations
Evolution of loss control
Injury prevention Total accident control Total loss control
1. Injury prevention
Concerned with the humanitarian aspects of employee safety and compensation
legislation on health and safety and compensation
The care for one another baring in mind the outcomes of injury and deaths
Total damage control
Developed after the injury prevention had failed to prevent all accidents in the 1950s
Increased awareness of losses not only arising from injuries but from damage to materials/ equipment and machinery
Programme covered all accidents, personnel injury, damage to facilities, & materials
Total loss control
Accident control failed to reduce business costs as it only concentrated on accidents and not operational systems deficiencies.
There was then need to develop programmes that were responsive to all areas where losses could be realised and provide mitigatory systems
New business initiatives by Loss Gurus gave the birth of TOTAL LOSS CONTROL
Total loss control cont---- Concepts covered under TLC include
Off the job safety..........why off the job ?? Shrinkage , theft, burglary, vandalism... How, how much??? Fire related losses,.. How many , @ what costs?? General liability claims... What are they , what impacts ??? Absenteeism costs..... How is business affected, how much? On the job illness..... How many, what are causes & impacts? Family injuries/illness.. . Do they affect business, how , much? Drug and alcohol abuse... Is it business risks, how much?? Environmental liabilities... Impacts, future costs??? Product liabilities... What are risks, how much , impacts?? Reputational liabilities... Is it real, @what cost???
Accident defined
•An Unexpected, Unforeseen, or unplanned and Uncontrolled event that downgrade business effectiveness and efficiency that is caused and can be controlled .
•How do you say ? “UNFORESEEN, UNEXPECTED, UNPLANNED AND UNCONTROLLED”
•When no visible TLC programmes is in place manage business risks and subsequently loses??
Domino sequence in accident causation
Domino 1. Lack of management control lack of policies Lack of / or goals not clear Lack of effective delegation of authority,
responsibility and accountability Lack of programmes/systems No rules and regulations
Domino 2.Basic causesPersonal factors- Inadequate physical/ mental capabilities Occupational hazards Lack of skill, knowledge, and attitudes Improper developmentJob factors Inadequate leadership Inadequate engineering Inadequate work standards Inadequate purchasing Wear and tear
How much do we know them? How much do we spend on them ??
How often do change, maintain these profit making assets/systems??
Unsafe Conditions4%
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
Domino 3. Immediate causes Cont.........
Substandard Acts- violation of an accepted safe procedure which may lead to an accident
E.g. Failure to follow procedure etc Substandard Condition- hazardous
environments which could directly permit the occurrence of an accident
E.g. Poor engineering designs etc
Domino 4. Incidents/accidents
Substandard practices add substandard conditions will always they result in incidents and accidents
The resultant outcome is substandard acts x substandard acts = injury
= death = property damage/ = business interruptions
30
300
Fatality
Lost Time, Restricted Duty
Medical TreatmentFirst Aid Near misses
Re-
activ
e In
cide
nt
inve
stig
atio
n
1
3,000
Unsafe Conditions Unsafe Acts Hazards RisksPr
o-ac
tive
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
SEA LEVEL
BUILDING A TLC CULTURE
MISSION /VISION
PROCESS VALUES
BEHAVIOURRESULTS
Business Excellency
TLC SYSTEM OVERVIEW
AUDIT
ASSIST
ADVISE
ImplementMonitor
Evaluate the impact
Develop control strategy
Identify loss exposure areas
PROFIT
COMPANY VISION
&MISSION
VisionMission
Strategic objectivesValuesTasks
FATALITIESINJURIES
DAMAGE TO PROPERTYLOST TIME INCIDENTS
LACK OF PERFORMANCE EXCELLENCE
& ACCIDENTSINCIDENTSSUBSTANDARD PERFORMANCE
Behaviour
WAY TO GOAL ATTAINMENTA “zero mindset” culturetakes a step change in beliefsWe 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)
WHOSE RESPONSIBILITY?
Paradigm Shift in Belief systems
Drive towards excellence!Zero injuriesZero 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.
Current ThinkingRequired Thinking
Paradigm Shift in Belief systems
Understand root causes!Of accidents.Of productivity problems.Of complaintsOf 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, innovativeOperational disciplinePersonal responsibility and commitment……….
SHE performance is a question of luck.
Safety performance can be managed and results are attainable
Total Loss Control Programmesfundamentals
Based on business commitment to succeed (POLICIES) effective sustainable teamwork Equipment and human capital value quality of working life for staff members sustainable business growthMosaic leadership philosophy and business
Excellency
Advantages of TLC
Uses the dollar to motivate decisions Instils equipment and human resources value
awareness Better machine, equipment, and human resource
utilisation Reduced labour cost, absenteeism and turnover Increased profits
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