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


INTRODUCTION

CASE STUDIES

BACKGROUND


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


RESOURCES


RESOURCES



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