29 th Annual YPSW Section Conference. Critical EHS Measures- Relating to the Corner Office Or Speaking in the Language of the Customer ********************* Dr. Richard D. Fulwiler, CIH, CSHM President Technology Leadership Associates 513 941 1377 [email protected] Businesscase4.pt.ppt.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Jim Rock: Sustainability IN
Rick Fulwiler: Sustainability OF
is no where
is now here
1992: $145 Billion Injuries
$26 Billion Illnesses
at 7% profit margin additional sales required
$2.44 Trillion or
Source: Archives of Intern. Med., 7/1997.
“Managing safety is no easy task, but it makes bottom-line sense. There’s a direct payoff in savings on a company’s workers compensation insurance, whose premiums are based on the number of claims paid for job injuries. The indirect benefits are far larger, for safe plants tend to be well run in general and more productive.”
The Battle for Industrial Safety by Mary Connors, 8/4/97
Looks like we are striving for mediocrity.
***SLM = Senior Line Management
or “The Corner Office”
Senior Line Management
…and what are they focused on?
(Non profits hang in there)
Express H&S losses / savings as
SALES EQUIVALENT $$$$
Sales Equiv. $ =
$lossed/saved X 100%
profit margin as %
SE$ = $12,000 X 100%
SE$ = $1,200,000/7 = $171,428
Cincinnati – Suspected a significant financial drain, commissioned an initiative
Express H&S outputs as business outputs.Learn what the important business outputs are.
Mattson Lumber Co., Rhonda Wilson
The cost of being average.
What average is (manufacturing):
Being better than average provides a competitive advantage.
Direct: Medical and indemnity costs
2X: Archives of Intern. Med., July, 1997
Direct cost----------- $1.1 B
Indirect cost @ 2X---- $2.2 B
Total cost--------- $3.3 B
Source: National safety Council
EMF = Total Actual Losses X AF
Total Estimated Losses
SE$ = losses/savings in $ X 100%
profit margin in %
Co. Manual EMF Actual
A $500,000 .50 $250,000
B $500,000 1.0 $500,000
C $500,000 1.5 $750,000
Tree prunner 43.60
Oil/gas drilling 23.84
Auto manufacturing 5.40
Soap & detergent man 3.78
Traveling salespeople 0.62
Source: National Council of Comp. Insurance
H&S is a Technology Enabler
Without H&S, hazardous business building technologies could not exist.
Needs to be marketed, advertised and sold
Align/link H&S with the critical outputs of the enterprise
Corp.: Reduce price gap between P&G and store brands (1991)
Manuf.: Keep case costs flat – 4 yrs.
Safety: Keep WC costs flat – 4 yrs.
Yr. 91 92 93 94 95
WC$/$100 .56 .54 .54 .44 .44
Accum. $MM 3.3 8.2 14.7 23.6 31.6
Corp.: Get product improvements to the market fast.
Soap & Det. Div.: Speedy deployment of improved enzyme technology
IH: Global enzyme hygiene capability
Yr. 92 93 94
% Cap. 62% 84% 97%
No. Cap. 20/32 27/32 31/32