CONSERVATION OF RESOURCES
Loss management is not simply another name for a safety program but is a deliberate and dramatic departure from the emotional approach to personal injuries toward a pragmatic systems approach to People, Equipment, Materials, and Environment. (PEME)
As part of an integrated managerial role the program ensures that operational decisions are taken with all pertinent factors considered. Loss management falls entirely within the line management function and may not be delegated to staff personnel.
SYSTEMS APPROACH
Management control activities for each task in each occupation may be summarized by the acronym ISMEC:
I Identification - identify the work to be done
S Standards - establish performance standards*
M Measurement - measure compliance to standards
E Evaluation - evaluate what needs to be done to meet standards
C Correction - correct substandard performance and commend desired performance
* Standards are established for each task considering the potential risk for injury, damage and loss to people, equipment, materials, and the environment, based on best practices, the opinions and experience of operating personnel, and in accordance with governing legislation and company policy.
Senior management interested in drastically reducing injury, damage, and loss rates demonstrates the difference between the two schools of thought; the progressive and the archaic; Loss Management versus Traditional Safety, showing efforts devoted to Loss Management principles give desired results.
Narrow Scope
For many years safety has been handled as a satellite function, mainly concerned with injuries and vehicle incidents. Treatment is aimed at addressing unsafe acts, unsafe conditions, and despite large expenditures of time, effort, and funding injury rates continue to remain at unacceptable levels.
Broad Scope
The word “Accident” is replaced by the word “Incident” since the Loss Management concept gained acceptance in the 1960’s when Frank E. Bird, John A. Fletcher, Hugh M. Douglas and W.C. Pope demonstrated beyond doubt that the underlying causes of loss and damage incidents were identical to the underlying causes of injury incidents and that if the major underlying systems causes of downgrading incidents were eliminated injury incidents would also be eliminated. The findings? All downgrading incidents were a direct result of a failure of a management system.
By analyzing a larger body of incident data proper preventive actions may be determined with a high degree of accuracy utilizing the “Standard” vs “Substandard” benchmark.
Loss Management is concerned with all areas of resource conservation and embraces all activities which are designed to preclude downgrading incidents or to minimize their adverse effects. The method to address this is through the systems approach.
LOSS MANAGEMENT
OBJECTIVE
Annual recordable injury rate below 1% of workforce
Losses below 25 cents per hour worked
No unnecessary resource waste No legislative fines No managers jailed (Bill C 45, Canada)
Complete compliance with legislative standards
Improved corporate image
Our professional assistance provided at key stages will ensure the achievements of set objectives and accomplishments of operating excellence. Program implementation is geared to your management style and completed within your time parameters.
Internationally accepted standards for industry cover:
Leadership and administration, management training, program evaluation system, purchasing and engineering controls, personal communications, planned inspections, task analysis and procedures, maintenance, incident investigations, incident analysis, task observations, emergency preparedness, organizational rules, employee training, personal protective equipment, health control and services, group meetings, general promotion, hiring
and placement, records and reports, IT Security, Plant Security, and off-the-job safety.