Environmental

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Course Learning Outcomes for Unit V

Upon completion of this unit, students should be able to:

4. Examine the components of an effective hazard prevention and control system. 4.1 Explain a decision hierarchy when evaluating workplace hazard control measures. 4.2 Explore current trends in hazard prevention and control.

6. Relate continuous improvement principles to safety management concepts. 6.1 Identify advantages for improving workplace safety through advocacy of appropriate hazard

controls.

7. Examine management tools necessary to implement effective safety management systems. 7.1 Apply financial tools to safety-related decision making.

Reading Assignment

Chapter 14: Hierarchy of Controls: Section 5.1.2 of Z10

Unit Lesson

Following the hazard analyses and risk assessments we discussed in Unit IV, the next step is to select the controls that will reduce the risk to our defined acceptable level. As we noted in previous units, zero risk is not possible or practical. For most organizations, cost is another significant limiting factor when selecting risk controls. Unfortunately, many organizations simply select the least costly option rather than evaluating all available options.

Where do we start? It would be helpful to have a list of control strategies, ordered from most effective to least effective. Fortunately, there are many of these lists available to the safety practitioner. The most common, and a good place to start, is the three-strategy list found in many safety management publications:

1. Eliminate the hazard. 2. Use engineering controls. 3. Use administrative practices.

By itself, this list does not provide quite enough information and guidance, so it is helpful to break it down further. Eliminating the hazard can be done by not creating the hazard in the first place or removing an existing hazard (Jensen, 2012). For example, when designing a warehouse operation, we can avoid introducing a carbon monoxide hazard through the use of electric forklifts rather than gasoline-powered ones. Similarly, we can remove the hazard in an existing warehouse by replacing gasoline lifts with electric lifts.

UNIT V STUDY GUIDE

Controlling Hazards and Risks

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UNIT x STUDY GUIDE

Title Engineering controls can be divided into at least five strategies (Jensen, 2012). The table below shows how these strategies could be applied to various hazards:

STRATEGY TACTIC EXAMPLE

1. Moderate the hazard. Use a less hazardous material.

2. Avoid releasing the hazard. Lock out a potential source of energy release.

3. Modify release of the hazard. Use a ventilation system to remove welding fumes.

4. Separate the hazard from that needing protection.

Place a barrier between the hazard and the workers.

5. Improve resistance of that needing protection.

Vaccinate healthcare workers against hepatitis.

Similarly, administrative practices can be divided into strategies (Jensen 2012):

STRATEGY TACTIC EXAMPLE

1. Help people perform safely. Provide visual and auditory warnings, training in safe work practices.

2. Use PPE. Require the use of hearing protection.

3. Expedite recovery. Provide effective on-scene medical care.

For many hazards and risks, requiring the use of personal protective equipment (PPE) is among the least costly and easiest to implement. All that is needed is to buy a bunch of earplugs, hard hats, and safety glasses and hand them out. It does not take a seasoned safety professional to recognize that this may not be the most effective option. For PPE to be an effective control, continuous education, enforcement, and enticement on the part of management are required. In other words, it takes a lot of effort on the part of management and the safety staff.

Decision hierarchies provide us with a means to evaluate controls based on effectiveness. These hierarchies are not new but have evolved significantly in recent years. The hierarchy of controls recommended by ANSI Z10 and endorsed by Manuele (2014) has six levels: elimination, substitution, engineering controls, warnings, administrative controls, and personal protective equipment. The hierarchy can be applied to the severity of a hazard or the probability of the risk. While the top level, elimination of the hazard, is always the preferred choice, selecting from the other levels may be necessary due to practical or monetary constraints. The safety management system should ensure that there is a process in place. This process should use the hierarchy to inform risk control decisions.

Hierarchy of controls (Manuele, 2014)

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Title

The Language of Business:

One important aspect of managing any safety and health endeavor is being able to speak the language of business. Speaking the language is important in order to be able to communicate with organizational decision makers who frequently tend to view a given investment in terms of how it will add to the bottom line. This concern for the bottom line is particularly important when it comes to a significant investment that a corporation might have make to properly address an occupational safety and health issue.

Consider, for example, a situation where an employer needs to guard several new mechanical power presses in order to comply with OSHA standards and has to make a decision with respect to which machine guarding approach to use: two hand controls, a cage guard, pull backs, hold backs, or a light curtain.

There are pros and cons to all of these approaches, but you and the supervisor believe that the light curtain approach will provide the best balance with respect to productivity and safety. Unfortunately, the light curtain approach is the most expensive and requires a loan from the bank. How do you convince management that it is worth the investment?

In the business world, there are a number of tools that are frequently used by finance-savvy managers to help make decisions like this. One of these tools that you have likely heard from time to time is known as return on investment, or ROI. Basically, this tool simply allows one to determine what the return will be, typically in dollars in the U.S., for an investment that has been made.

Payback period is often calculated with the following formula:

P=F(1 + i)-n

Where

P = principal, the present value of the money

F = the F comes from future worth or value of money, but the best way to think about this is savings. That is, how much will this save you per year?

i = the annual interest rate in decimal format. For instance, 12% interest would be represented as 0.12.

n = interest compounding period, typically equal to the number of years being considered.

Looking at our light curtain scenario, let’s say that the purchase and installation of three light curtains will cost $30,000 but will save $10,000 in labor every year due to the ease of use of the light curtain compared to the second place alternative.

Looking at this, it seems one would simply conclude that if there is a $10,000 savings every year, it would take three years for payback. However, this does not take into account that there is a bank loan and an annual, compounded interest.

To make this calculation one must do so for each period, 1 year, and the principle sums are totaled.

Year 1 P= $10,000(1+0.12)-1(year)

P= $10,000(1.12)-1(year)

P= $8928.57

Year 2 P= $10,000(1+0.12)-2(year) P= $10,000(1.12)-2(year) P= $7971.94

Running Total: Year 1 $8928.57

Year 2 $16,900.51

Year 3 $24,018.31

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UNIT x STUDY GUIDE

Title Year 3 P= $10,000(1+0.12)-3(year) P= $10,000(1.12)-3(year) P= $7117.80

Year 4 P= $10,000(1+0.12)-4(year) P= $10,000(1.12)-4(year) P= $6255.18

Year 4 $30,273.49

Based on this series of calculations, it appears that the light curtains will essentially pay for themselves over a period of four years as a result of the efficiency inherent in using the light curtains versus other more cumbersome guarding options.

Given the scenario above, it is clear that financial tools can be very useful in helping to make decisions related to safety and health. Indeed, such tools are commonly used to determine the present and future cost of capital items or investments. Here is another example of how the formula can be algebraically rearranged to determine the future value of a given amount of money over a number of years considering compounded interest:

F=P(1 + i)n

Consider a case, for instance, in a situation where one wants to know how much $100,000 today will be worth in 10 years with annual compounded interest rate of 8%.

F = $100,000 x 1.08^10 = $215,900

Thus, if you were to invest $100,000 in the bank today and earn 8%, you will end up with $215,900 in 10 years. Why would a safety professional need to know this? Knowing the future value of money is important for comparison purposes. Investing $100,000 in a safety related capital project, for instance, may have its own return on investment over a period of 10 years, and this number may be compared against the future value of money to help in making a given business decision.

There are other applications of the general formulas indicated above that are commonly used, and you may end up facing some questions like this on future professional certification exams. Again, it is important to be able to utilize financial tools in order to compare the costs of various acceptable options. Understanding concepts like pay-back period and the future value of money can be useful for making a case for safety in presenting to organizational decision makers. As a safety manager, it is important to know how to use the language of business, which frequently includes consideration of the bottom line.

Course Project

As in previous units, the non-graded learning activity in this unit is an exercise designed to help you with sections of the course project that will be due in Unit VIII. By completing this activity and similar ones in other units, you will have data and analysis to aid you in putting together a high-quality report to management on the state of the safety management program.

References

Jensen, R. C. (2012). Risk-reduction methods for occupational safety and health. Hoboken, NJ: Wiley.

Manuele, F. A. (2014). Advanced safety management: Focusing on Z10 and serious injury prevention (2nd ed.). Hoboken, NJ: Wiley.

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Title Suggested Reading

In order to access the following resources, click the links below.

The suggested readings below provide additional content on developing preventive and risk reduction strategies for occupational health and safety:

Alli, B. O. (2008). Preventive and protective measures. In Fundamental principles of occupational health and safety (2nd ed.) [ebrary version]. Retrieved from https://libraryresources.waldorf.edu/login?auth=CAS&url=http://site.ebrary.com.libraryresources.wald orf.edu/lib/waldorf/detail.action?docID=10512156&p00=preventive+protective+measures

Jensen, R. C. (2012). Risk-reduction strategies. In Risk-reduction methods for occupational safety and health [ebrary version]. Retrieved from https://libraryresources.waldorf.edu/login?auth=CAS&URL=http://site.ebrary.com.libraryresources.wal dorf.edu/lib/waldorf/detail.action?docID=10542524&p00=risk-reduction+strategies

Learning Activities (Non-Graded)

Non-graded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information.

Evaluating Hazard Identification and Control

Note: This activity can be used as one of the building blocks of the Unit VIII Project.

Using the readings in this unit as guides, evaluate how the hierarchy of controls is used at your current organization or an organization with which you are familiar. For objective evidence to support your evaluation, look for organizational documents such as safety manuals and instructions, safe operating procedures, job hazard analyses, OSHA citations, and inspection reports. Interview management personnel, supervisors, and employees, and walk through some workplaces to observe conditions for yourself.

Prepare a report to management that summarizes the positive and negative results of the evaluation and provides recommendations for improvement.