Development of Direct to Indirect Cost Ratio of Occupational Accident for Manufacturing Industry

Abstract

Occupational injury would certainly give an impact not just to the victim but also to the organization and society at large. The impact would be in term of victim suffering, bad company reputation, low working moral among fellow workers and economic costs to the company. However, most of the aspects are difficult to quantify except for economics costs. The objective of this paper is to validate relationship accident direct cost model towards its observable cost components. Besides, this paper also proposes direct to indirect cost ratio based on accident cost range, accident scenario and impact of accident. Basically, accident cost can be categorized into two distinct categories which are direct and indirect cost. A total of 342 cases have been acquired for this study and recorded cases only cover temporary disability with more than one day of MC. Data is gathered from six types of sectors from manufacturing industry in Malaysia by using local specific method. The validity of direct cost model is tested by using confirmatory factor analysis (CFA) while indirect to indirect cost ratio is developed based on following aspects: (1) Accident cost range; (2) Accident scenario; and (3) Impact of accident. Proven direct cost model and direct to indirect cost ratio proposed would give a better insight to the relevant stakeholder in quantifying the occupational accident cost which may assist them in making necessary changes in order to avoid occurrence of similar accident in the future.

Financial costs of pediatric cancer management in Africa: systematic review

“…We performed a systematic review of studies reporting direct cost on Heinrich’s operational definitions ( 8 – 10 ). Studies aimed at improving outcomes for patients with cancers, particularly pediatric cancer should be measured not only in terms of epidemiological or clinical parameters, but also in terms of economic impact especially the impact felt by the household.…”

“…Several studies have underestimated the impact of non-medical indirect costs ( 8 – 10 ), in calculating the total cost of childhood cancer care. Only 2 ( n = 2) out of 17 articles included ( 15 , 20 ) have addressed both the notion of indirect and direct costs.…”

“…This is a systematic review, the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) guidelines ( 11 ), were adopted and the PRISMA checklist followed. The study was based on the operational definitions of Heinrich ( 8 – 10 ), who defines direct costs (DC) as current financial burdens attributable to disease acts, including hospitalization costs, medical care and laboratory costs, while indirect costs (CI) represent costs in terms of time and other resources (time paid and not by work, time lost, damage caused, interruption of production, social charges, loss of profits, housing).…”

“…According to the Global Task Force on Expanded Access to Cancer Care and Control, only 5% of global cancer resources are spent in developing countries, and each country must develop its own multi-year cancer control plans adapted to their own socio-economic situation ( 7 ). Thus, our objective with this study was to help with estimating the financial costs of pediatric cancers in Sub-Saharan Africa based on the operational definitions of Heinrich ( 8 – 10 ).…”

Non-safety costs: A novel methodology for an ex-ante evaluation

“…As a matter of fact, safety and health management contributes in different ways to the success of firms, as not caring about safety and health may lead to costs related to loss of profit, productivity, efficiency, the firm's image and competitiveness (Akcay et al, 2018;Mossink and Greef, 2002). The hidden and indirect aspects must be expressed in monetary terms so to be understood by industrial decisionmakers (Jallon et al, 2011;Tappura et al, 2015) but these aspects are difficult to be quantified (Jung and Baek, 2017;Rohani et al, 2015b): tracking the costs of work-related accidents is therefore fundamental for being able to quantify the non-safety costs (Rohani et al, 2015a). However, quantifying economic impact requires resources for the collection of reliable and significant historical data related to past events (López-Alonso et al, 2016), and industrial decision-makers face several barriers to this process (Biddle et al, 2005).…”