Economic Implication of Safety - Policy on Manufacturing Safety Programme Performance

Abstract

The study presents a mathematical approach of safety policy in terms of safety target and budget implementation factor. System dynamics were used to develop a hybrid model of accident occurrence and preventions in terms of pre-safety programme accidents, budgeting factor, proportion of budget to be implemented, strategy effectiveness index, workforce, accident proneness factor, prevented accidents, accident reduction target, probability parameter and estimated cost of accident. Hence, a cost savings/loss model was derived in terms of the identified parameters. Proportion of budget to be implemented (P) and accident reduction target (T) are the input policy parameters. At proportion of planned budget below P = 0.6 showed that the budget would not be enough to reduce any accident nor save any cost. Thus, throughout the simulation period, a minimum monetary savings of N10.775 millions was achieved at P=1 and T=10% and highest monetary savings of N36.955millions was achieved at and T=25%.

Modelling the Performance of Occupational Safety and Health in a Tobacco Manufacturing Industry in Nigeria

“…However, from Table 5, year 2002 experienced the highest annual expenditure on safety program and Health related incidents. According to Adebiyi and Ajayeoba [15], the cost of accidents and health incidences were estimated. The costs of fatal, serious, minor, trivial wound estimated were N2,455,750, N221,275, N26,780, and N2,000, respectively, while the costs of hearing issue, back pain/ache, leg pain/ache, chest pain/ache, neck pain/ache, eye issue and headache estimated were N18,176, N22,987, N8,354, N17,296, N33,305, N14,432 and N12,842, respectively.…”

“…It is unarguable that Safety investments greatly reduce production costs and thus improve productivity. With an up-front investment in safety programs and safeguarding systems, the financial and employee impact of incidents that occur in the facility can be significantly diminished [11]. Having realized this huge capital investment on safety, evaluation and re-evaluation to justify this huge spending are necessary.…”

Safety Strategy Allocation Simulator for Accident Reduction and Cost Savings in Safety Management System

“…The required models for factory accidents (Xt), prevented accident (Yt), and the cost savings (SN) (as shown in Equations 1 -3 respectively), [19] were used in the simulator.…”

“…The number of accidents occurrence depend on the number of employee in an establishment. In this case, the hazardous condition is a function of man-hours of workforce, the accident proneness factor, and prevented accident [17,19]. Therefore, FC = f (q, f, Yt) From the principle of dimensional consistency…”

“…Experimentation was carried out using data collected in [19], a manufacturing company with a well-organized safety system. The proportion of available budget (P) and desired accident reduction target (T) control the mechanism of the simulator.…”