Businesses in the U.S. spend more than $170 Billion per year on occupational injury and illness related costs that eat away at corporate earnings. In Manufacturing, the risk of severe injury or illness is higher than most other industry sectors. According to OSHA, implementing a Safety Management System (SMS) in the workplace can reduce injury and illness costs by 20 to 40 percent. The manufacturing industry is subject to changing operating environments, inherent hazards due to processes and heavy machinery, and reliance on temporary workers and contractors. The opportunity for improvement and cost savings is significant, meaning that effective safety management can add significantly to the bottom line.
According to the National Safety Council, $1 invested in an SMS returns anywhere between $2 and $6. This stems from direct and indirect costs, with savings of an additional $4 of indirect incident costs for every $1 in direct costs. These benefits are a result of management accountability, cultural safety impacts, and ultimately reduced workplace injuries and fatalities.
It’s important to understand the potential value that a safety management software solution can yield for an organization, both in terms of short and long-term gains. By doing this you can create a strong business case for why safety management software needs to be a top priority for the organization.
An approximate estimate of ROI for safety management software can be determined by evaluating direct and indirect savings opportunities, and incorporating those values into a final calculation. Some of the key areas to consider are:
- Collecting Safety Data and Reporting
Companies who don’t use software to manage safety tend to rely on a spreadsheets to collect and report on safety management. Safety managers and coordinators spend a significant portion of their time (30 to 40 per cent) manipulating spreadsheet data: pushing and pulling data to and from spreadsheets and other software. The time spent on these tasks could be spent much more effectively on the floor, observing processes and proactively seeking opportunities to create a safer working environment for employees.
A comprehensive software solution can enable safety personnel to focus on more valued-added activities. For example, safety management software should effectively send out notifications to Safety Managers to alert them to upcoming and overdue inspections. Sending upcoming inspections to a user’s Smart Phone or Tablet as they fall due, prompting the user to perform the inspections can have a significant improvement in compliance and safety. Using Smart phones to manage corrective actions and alerting managers when a corrective action has not been completed within the allowed timeframe – a significant issue in many organizations as unfortunately these often fall between the cracks.
- Lost Time Injury
By ensuring that near-misses/reportable incidents are properly documented and corrective actions are taken, many companies have demonstrated clear reductions (20% – 60%) in both lost time and alternative work. These results will depend on the current state of your organization’s SMS – for example if your company is currently not tracking near-misses and associated corrective actions at all, the reduction will be on the higher end.
- Avoid or reduce government inspections and enforcement activities
Types of violations that may be cited and the penalties that OSHA may propose:
Serious Violation – $1,500 to $7,000 depending on the gravity of the violation.
Other-Than-Serious Violation – $0 to $1,000 for each violation.
Willful Violation – $5,000 to $70,000 for each willful violation. An employer who is convicted in a criminal proceeding of a willful violation of a standard that has resulted in the death of an employee may be fined up to $250,000 (or $500,000 if the employer is a corporation) or imprisoned up to 6 months, or both. A second conviction doubles the possible term of imprisonment.
Repeated Violation – Up to $70,000 for each violation within the previous 3 years.
Failure-to-Abate – Failure to correct a prior violation may bring a civil penalty of up to $7,000 for each day that the violation continues beyond the prescribed abatement date.
OSHA Penalties are due to increase in August 2016, some by as much as 80%.
Safety Management is inevitable in manufacturing. By understanding how to successfully leverage your SMS with the help of effective safety management software, you hold the key to unlocking countless opportunities for increased efficiency, improved processes, and safer workplaces that will result in improved organizational performance and profitability.
IMEC Technologies provides Safety Management Software to increase worker safety and aid compliance. IMEC’s Safety Management Software will manage inspections and audits, provides hazard identification, incident reporting, management of corrective and preventative actions from generation to closure. IMEC provides lock out tag out software solutions that will allow users to create lockout tagout procedures using an intuitive Mobile App and Manage Lockout Tagout Procedures, also the Review and Execution of those Lockout Tagout Procedures using the Mobile App. Annual Lockout Tagout Procedures audits are conducted using a Mobile App. The Mobile Inspection App allow users to perform inspections and audits, for example the system can be used as a Fire Extinguisher Barcode Inspection Software system to manage monthly fire extinguisher inspections and general fire safety inspections and also to record safety observations and manage corrective actions, anywhere and anytime. The solution can be used as a fire extinguisher barcode inspection software system or life safety inspection system to aid compliance in Higher Education, Healthcare, Industrial and Commercial Organizations. Benefits from a Fire Extinguisher Barcode System include the elimination of paperwork and reducing the burden of compliance with regulations such as NFPA, The Joint Commission. The Incident Reporting App allows users to easily and quickly report incidents, hazards and near-misses, these are then sent to the appropriate people for action and are managed to closure. Web Apps provide features such as, setup, management, scheduling tools, analysis, reporting and dashboards etc with the ability to report incidents to government bodies such as OSHA and RIDDOR. HazMat T&T is a hazardous waste management software solution designed for Environmental Service Companies and companies who generate a large quantity of hazardous waste. The solution tracks hazardous waste from cradle to grave aiding compliance, providing accurate waste inventory, increasing waste handling efficiency, reducing risk and also helps manage waste costs. HazMat T&T Hazardous Waste Management Software can be deployed in a number of deployment scenarios, from Large Hazardous Waste Generators, tracking their hazardous waste at their site to Environmental Service and Waste Management Companies using it track and manage hazardous waste at transfer and disposal sites. For more information visit our website www.imectechnologies.com