SHARP: A S&H Management Tool 8/30/2016. In 1998 The Average Total Cost of an injury or illness in Oregon was approximately $28,200 per claim.

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1 SHARP: A Safety & Health Management Tool Presented by: Mark E. Hurliman, CSHM, Oregon OSHA Sr. Mgmt? Mid-Mgmt? Supervisors? Employees? Safety Duties? Other? Audience Speaker: Mark E. Hurliman, CSHM VPP/SHARP Program Coordinator Medford Oregon Mark.e.hurliman@oregon.gov Why Manage Safety & Health? SOME INJURY COSTS Equipment downtime Investigation Implementation Worker re-training Rehabilitation Increased workers compensation premiums SAFE $$ SAVINGS Safer workplace Fewer injuries Reduced workers compensation premiums Increased employee morale Increased employee productivity In 1998 The Average Total Cost of an injury or illness in Oregon was approximately $28,200 per claim. By 2003 The Average Total Cost of an injury or illness in Oregon had risen to almost $40,010 per claim. By 2008 The Average Total Cost of an injury or illness in Oregon had risen to about $51,450 per claim. By 2011 The Average Total Cost of an injury or illness in Oregon had risen to about $58,160 per claim. This material is for training use only What do accidents cost your company? Unseen costs can sink the ship! Direct - Insured Costs 1.Workers compensation premiums 2. Deductible $$ 3. Some medical expenses Ju st the tip of the iceberg Indirect - Uninsured, hidden Costs - Out of pocket Oregon estimated average = $18, Time lost from work by injured employee. 2. Lost time by fellow employees. 3. Loss of efficiency due to break-up of crew. 4. Lost time by supervisor. 5. Training costs for new/replacement workers. 6. Damage to tools and equipment. 7. Time damaged equipment is out of service. 8. Loss of production for remainder of the day. 9. Damage from accident: fire, water, chemical, explosives, etc. 10. Failure to fill orders/meet deadlines. 11. Overhead costs while work was disrupted. 12. Other miscellaneous costs (over 100 other items may impact the employer). 13. Others? Unknown Costs - Oregon average to close a claim = $10,000 Average direct and indirect accident costs No lost time injury: $7,000 Lost time injury: $28,000 Fatality: $910,000 Using National Safety Council average costs for 1998, includes both direct and indirect costs, excludes property damage. Direct to Indirect Accident Cost Ratios Direct cost of claim Ratio of indirect to direct costs $0-2, $3,000-4, $5,000-9, $10,000 or more 1.1 Studies show that the ratio of indirect to direct costs can vary widely, from a high of 20:1 to a low of 1:1. Source: Business Roundtable, Human Tragedy (pain & suffering) 2. Morale (productivity/quality) 3. Reputation (customer satisfaction) OR-OSHA S afety and Health Management 5 We can easily calculate the cost of workplace injuries to employers It is nearly impossible to measure the pain and suffering incurred by injured employees and their families Data from IMD Report: Average Temporary disability days and Claim Costs paid for for accepted disabling Claims Managing Safety and Health $$ Saved = $$ Made Money spent on an effective safety & health program is an investment, not an expense Time + Material + Dollars = Lower Costs & Higher Productivity The average injury cost in 2005 was $43,000 per claim. Using a 4% profit margin, the employer would have to recover $1,025, in new gross revenue to offset one injury. Effective Safety & Health Management structured A system of managing systems S&H Management System methodical systems doctrines Elements within the system Management Leadership / Employee Involvement Worksite Analysis Hazard Identification & Control Training to managing policies procedures established approach programs principles Intended to explain the arrangement or working of a whole 1

2 A Self-Sufficient Safety and Health Management System An occupational safety and health program Able to maintain itself without outside aid Capable of providing for itself, that which it needs to survive Continuous Improvement Mode Actively working to be better Not satisfied with where they are Mature, Pro-Active Culture Management Led, Employee Driven Making Employee Involvement Work Supported by management Trained & educated employees used to their potential Encourage Ownership Supported by policies Provide & document employee involvement avenues Enable employees to Continuously Improve Themselves (training, skills, productivity, teamwork) Conditions (hazard ID & control, problem resolution, flow) Process/Procedures (JSA, SOP, program review,) Quality (work, product, communication, feedback) Manage to Succeed! Creating a World-Class Safety Culture Good safety management programs go beyond OR-OSHA standards to protect employees. Employee Participation (Involvement) Management Leadership Planning & Evaluation The strongest safety programs are usually management led, but employee driven. Administration & Supervision Safety & Health Management SYSTEM (SHMS) Safety & Health Training History behind SHARP. Hazard Anticipation & Detection Hazard Prevention & Control Three Components of a SHMS Operational (Find/Fix, Field/Facility) Managerial (Programs/Policies/Procedures) Cultural (How We Do the Work) All three components are interrelated and together they transform safety and health into an organizational safety and health management system Every OSHA mandate program contains operational, managerial and cultural elements A safety and health system is much broader than all the mandated programs combined. Components of an Organizational Safety and Health System Operational Component Managerial Component Cultural Component Hazard Anticipation & Detection Finding and Fixing Hazard Prevention & Control Planning & Evaluation Administration Managing the & Supervision Work Safety & Health Training Management Leadership The Way We Do It Here Employee Participation 2

3 Safety and Health Achievement Recognition Program A Safety and Health Management Tool A process guided by a series of consultative visits Acknowledging compliance Adopting Best Practices A voluntary Injury and Illness Prevention Program SHARP Background 1994 OSHCON Meeting 1995 Oregon 1996 Nationally Nationwide Program Systems Approach (>SHMS<) Differences in State Plans Pre-SHARP SHARP Exemptions Ongoing Assessments Graduation 1604 SHARP sites nation-wide (as of 3/15/2016) 0 (1, 4) DC, GU, MT, MP, VI 1-25 (27, 1) AL, AZ, AK, CN, DE, GA, HI, ID, IA, KY, LA, MD, MA, NH, NJ, NM, OK, PR, RI, SC, SD, IN, UT, VT, VA, WA, WV, WI (18) AR, CA, CO, FL, IL, IN, MI, MN, MS, MO, NE, NV, NY, ND, OH, PA, TX, WY (2) ME, NC 151+ (2) KS, OR Program Differences Current SHARP numbers 450 Oregon Companies in Database (as of 7/31/2016) Federal Exemptions Pre-SHARP, ongoing 2+ on 50 items II rates below industry averages Pre-SHARP 18 months, renewable 18 month terms, employer submission In perpetuity Termination w/appeal process Allows for Pilots to expand Oregon Exemptions 2 nd +, +3 on graduation 2+ on 58 DART rates below industry averages Working Toward until achieved 12 month term, employer submission Graduation Conditional Portland Pilot (allows for a downward trend in rates) Graduation Pilot (allows graduation after 5 years) 223 Oregon Companies currently participating in the SHARP process. 159 SHARP Graduates (12 to VPP) 23 Current SHARP employers 29 Employers working toward SHARP 215 companies no longer participating. 157 Employers no longer working toward SHARP (They started, then quit) 58 Former SHARP employers (They achieved SHARP then quit before graduating) GRADUATE 3

4 SHARP: A Process Encourages work toward self-sufficiency Utilize OR-OSHA consultation staff Initially Recognition program Aimed at smaller companies that need more help VPP Level SHARP Level Majority of Oregon Employers Targeted by Enforcement Employee Participation Employers must be committed to: Working to develop a comprehensive, operational plan That meaningfully involves employees In significant ways that affect their safety and health. Employees must be involved in decisions affecting their safety & health. SHARP Commitment Letter Employer must agree in writing To a comprehensive survey of all operations To involve employees in the process To work to correct hazards with written verification To develop, implement & improve all 7 elements And maintain LWDCIR below statewide average To develop & maintain a written S&H program To achieve an acceptable assessment rating To inform FCM of changes that could introduce hazards To notify FCM when ready for follow-up Comprehensive Consultation (S-H-E, all operations) Records review Program review Safety committee evaluation Hazard assessment Safety and health program assessment Action Planning (Goal Setting) Essential to SHARP Moving from where you are to where you want to be Plan Do Check Act W. Edwards Demming 1950 s ADJUST Action Plans Must Include: Goals Action steps Person responsible Target date A job well planned is a job well done! Plan the Work, Work the Plan Status 4

5 Discuss the assessment Coaching Consultants Role in Action Planning Assist employer in prioritizing action items Employers Role in Action Planning Writes the action plan Sets achievable action steps Implements the action plan Ensures completion of action steps Calls consultant if help is needed or when the action items are completed Company requests initial SHARP assessment intake SHARP completed Process / consultation Flowchart scheduled Initial comprehensive consultation with program assessment, completed and sent Qualified for SHARP Action plan developed Action plan implemented Not qualified for SHARP Company requests follow-up assessment Follow-up comprehensive consultation with program assessment, completed and sent Renewing Sharp SHARP company requests annual renewal Consultant(s) will conduct a comprehensive assessment If verified as operating effectively, employer is renewed as SHARP participant. If not operating effectively, or significant backslide: Termination or Conditional year Qualified for SHARP Not qualified for SHARP First year SHARP awarded Graduating from SHARP (Oregon only) Eligible after completion of 4th year in SHARP May use one-year conditional approval if consultant feels they are not qualified/ready to graduate Consultant(s) conducts a Comprehensive Assessment; and if verified as operating effectively, employer is renewed as SHARP participant. Graduation Ceremony Plaque and Flag OR-OSHA Expectations for a SHARP Employer Understands compliance is the minimum acceptable standard Has and uses mandatory written programs Has a system for identifying and correcting hazards Management and employees have ownership in the company s Safety and Health program Employees and management are trained in safety, health and ergonomic issues Program and trends are evaluated Incentive Programs (if any) Positive and promote safety awareness and worker participation in safety-related activities. Must not discourage injury, illness and hazard reporting in any way. 5

6 A SHARP Employer Is. An employer who has successfully incorporated safety and health management principles into their workplace What We Expect from the Employer Agree to an in-depth evaluation Determine strengths and weaknesses Provide access to people and information To better understand your systems Develop and implement an action plan To improve deficiencies and control hazards Correct the hazards that are identified Following a control hierarchy HIERARCHY OF CONTROLS What the Employer Can Expect A comprehensive consultation and assessment A detailed report Guidance in developing the action plans Role Transition In the beginning, Consultant is the expert There is a very steep learning curve as the employer begins the process We take the leadership role Consultant transitions to a coach and mentor As the learning curve flattens out, the employer takes a more and more active role in the evaluation process We begin to share the leadership role with them In the final assessment consultant can (should) be a spectator If we have done our jobs right, they will know how to use our tools to assess themselves They take on and maintain the leadership role Inspection Exemptions (Exemption from scheduled inspections only, not iminent danger, fatality/catastrophe, accidents, complaints or referrals) Consultation Exemption Consultative visits are considered in progress from 7 days prior to the opening meeting through 60 days (30 days for mobile worksites) after the report is issued. A consultation in progress has priority over scheduled compliance inspections. SHARP Exemption Employers who achieve second and subsequent SHARP approval may be deferred annually from scheduled OR-OSHA inspections. 6

7 Resources Oregon OSHA Oregon SHARP Companies OSHA Oregon SHARP Alliance SHARP Alliance Activities Promoting SHARP Promoting Alliance membership Mentoring Networking Training Input to Oregon-OSHA Assist new sites working toward SHARP 7

8 SHARP Benefits Comparison Improved safety and health management systems and performance Decline in injury, illness, days away and days restricted Increased program efficiency Enhances labor and management relations Higher morale, increased ownership, stronger safety culture, improved communications, all on the same team Creates economic benefits Reduction in: workplace injuries; insurance premiums; compensation costs; re-work and customer loss; absenteeism rates; Improvements in: productivity; teamwork, quality; communication; and understanding SHARP Management Leadership Employee Involvement Hazard Anticipation & Detection Hazard Prevention & Control Administration & Supervision Planning & Evaluation S&H Training VPP Management Leadership / Employee Involvement Worksite Analysis Hazard Identification & Control Training Since 1982 National then Oregon Roadmap Exclusive 22 Oregon Sites 12 from SHARP You get yourself there Submit Application Onsite Evaluation Annual Self Evaluation (self-critical w/recommendations) Comparison Since 1995 Oregon then National Process Inclusive 203 Oregon sites 12 to VPP We help you get there Request Consultation Consultative Visits Annual Renewal (annual action plans) Similar Purposes Both are about MANAGING safety and health in the workplace Being PROACTIVE instead of REACTIVE Making change to prevent accidents rather than making change in response to accidents Bottom Line SHARP works because: Techniques learned are successful Successful techniques are repeated Repeated techniques become habit Positive Culture Change is Inevitable Success breeds success Safety improvements foster improvements in production, quality, teamwork, communication, and satisfaction Questions? Comments? Concerns? 8

9 What have these companies gained? Willamette Landscape Services (60 employees) During the five years leading to their SHARP designation, reduced the number of lost-time workplace injuries and illnesses by 75% Achieved a DART rate that is 55% below statewide industry average. SHARP has helped us become a better company. We are a more conscientous employer now, and I feel great knowing that we can offer safe and productive employment to anybody who would like to work with us Matt Triplett, VP Quotes from 2 SHARP Graduates "The service from Oregon OSHA's Consultation Services' is outstanding! Our savings on claims costs have been enormous. Annual claims costs have dropped 64 percent and lost workdays have fallen 79 percent." City of Portland, Columbia Wastewater Treatment Plant Our Oregon OSHA consultants were wonderful!! They never pushed, only encouraged. Never criticized, only motivated. They were our cheerleaders as well as our coaches. Our Lost Workday Cases Incident Rate went from in 2000 to 0.00 in 2002." Mid-Valley Healthcare SHARP since 2003 Doing 10 times the volume of business, experiencing ½ the number of injuries Estimated cost = $10,000 Retro refunds = $108, EMR 02 = = = = = years without a lost time accident 2004 Million Man Hours OSHA incidence rate 72% below industry average Workers Compensation Cost Decreased by 80% Employee involvement Up 30% Philomath Operations What has SHARP done for us: Given us the focus we didn t have Provided a road map for improvement Helped us establish a baseline of which we could measure that improvement Helped to give all our employees a piece of the action Sustained Improvement possible with Culture Change ,367 Time Loss Days $224,171 Claim Costs recordable injuries $129,795 Claim costs Product Quality 10% Site DART Industry Time Loss Days $40,980 Claim Costs recordable injuries $12,193 Claim Costs Product quality 1.2% Working SHARP VPP 9

10 Knife River Materials RESULTS: 2002, prior to SHARP Recordable Injury Rate Workers Comp. Outlook $0.96 per man hour 2010, after Graduating SHARP Recordable Injury Rate < 2.11 Workers Comp. Outlook $0.04 per man hour Safety is generally now intrinsic 10