Introduction to Total Loss Control

Introduction to Total Loss Control

S MUCHEMEDZI

Training objectives Define total loss control w Explain the evolution of loss control w Explain the domino sequence theory w Accident ratios w Analyse loss producing events- Iceberg theory w Total loss control programmes w

Total loss control defined The application of professional management techniques through programmed activities directed at the prevention / reduction of   pure risks of business w Systems for dealing with all business losses arising from company operations w

Evolution of loss control Injury prevention w Total accident control w Total loss control w

1. Injury prevention Concerned with the humanitarian aspects of  employee safety and compensation w legislation on health and safety and compensation w The care for one another baring in mind the outcomes of injury and deaths w

Total damage control Developed after the injury prevention had failed to prevent all accidents in the 1950s w Increased awareness of losses not only arising from injuries but from damage to materials/ equipment and machinery w Programme covered all accidents,  personnel injury, damage to facilities, & materials w

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Total loss control Accident control failed to reduce business costs as it only concentrated on accidents and not operational systems deficiencies. w There was then need to develop programmes that were responsive to all areas where losses could be realised and provide mitigatory systems w New business initiatives by Loss Gurus gave the birth of TOTAL LOSS CONTROL w

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Total loss control cont---

Concepts covered under TLC include

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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

Domino sequence in accident causation L a c k o

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Domino 1. Lack of management control lack of policies w Lack of / or goals not clear  w Lack of effective delegation of authority, responsibility and accountability w Lack of programmes/systems w No rules and regulations w

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Domino 2.Basic causes Personal factorsw Inadequate physical/ mental capabilities How much do we know th w Occupational hazards How much do we spend o w Lack of skill, knowledge, and attitudes w Improper development Job factors w Inadequate leadership w Inadequate engineering How often do change, maintain these profit ma w Inadequate work standards w Inadequate purchasing w Wear and tear  

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Domino 3. Immediate causes Unsafe Conditions 4%

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 Cont......... Substandard Acts- violation of an accepted safe procedure which may lead to an accident E.g. Failure to follow procedure etc w Substandard Condition- hazardous environments which could directly permit the occurrence of an accident E.g. Poor engineering designs etc w

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Domino 4. Incidents/accidents Substandard practices add substandard conditions will always they result in incidents and accidents w The resultant outcome is substandard acts x substandard acts = injury = death = property damage/ = business interruptions w

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ACCIDENT RATIOS e vi t c ae R

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1

Fatality

30

Lost Time, Restricted Duty

300

Medical Treatment

3,000

30,000

First Aid Near misses

Unsafe Conditions Unsafe Acts Hazards Risks

Domino 6. Loss Iceberg theory DIRECT COST [$ 1-5][ INSURED] Medical cost

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Compensation costs SEA LEVEL

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SEA LEVEL

INDIRECT COSTS [$5-50] [UNINSURED] Building damage

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Damaged tools/equipment/products

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Production delays/interruptions

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Training of replacements

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Fines and other costs etc

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BUILDING A TLC CULTURE MISSION /VISION VALUES

PROCESS

BEHAVIOUR  RESULTS Business Excellency

TLC SYSTEM OVERVIEW

COMPANY VISION &MISSION

Behaviour Vision Mission rategic objectives Values Tasks

SUBSTANDARD PERFORMANCE INCIDENTS & ACCIDENTS

 P   R O F   I  T 

WAY TO GOAL ATTAINMENT A “zero mindset” culture takes a step change in beliefs

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We 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

Required Thinking

Current Thinking

Accidents are caused. Safety performance can be managed. 

When we do not manage , things are bound to go wrong and accidents happen.

Drive towards excellence! Zero injuries Zero spills. Zero wrong financial transactions. Zero …..

Paradigm Shift in Belief systems 

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.

Understand root causes! Of accidents. Of productivity problems. Of complaints Of motivation & commitment

Paradigm Shift in Belief systems

Employees must be supervised so that they comply.    

Employees must be educated and empowered so that they perform effectively & efficiently.

Focus on people!

Learning organizations. Tap the capabilities of all employees. Empower people Competitive urge is built on human capital……..

Paradigm Shift in Belief systems

SHE performance is a question of luck.

Safety performance can be managed and results are attainable

From reaction to prevention! Initiative, innovative Operational discipline Personal responsibility and commitment……….

Total Loss Control Programmes fundamentals Based on

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 business commitment to succeed (POLICIES) effective sustainable teamwork  Equipment and human capital value quality of working life for staff members sustainable business growth Mosaic leadership philosophy and business Excellency n

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Advantages of TLC w w

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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