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