Safety and Hazard Analysis (CHE 1007)

Dr.A.Babu Ponnusami
Associate Professor
SCHEME

MODULE-2
LECTURE-3
Recap:
Major elements of a safety program
• An effective safety program will include the following four
elements

– Management commitment and employee involvement

– Worksite analysis

– Hazard prevention and control

– Safety and health training

 Benefits & Effectiveness of Effective Safety Program

• There are some expenses (and risks) in implementing a

safety program

─ Costs includes administrative side, trainings and

implementations

• In general, outcomes (in terms of cost savings and other

benefits) of an effective safety program is much better than
the invested cost for the program

• Benefits attained from an effective safety program kindle up

the management & employee for implementing successive
safety program
 Economic benefits

• Reduced insurance and liability costs

• Minimized operating costs

• Optimal Supply – Demand balance

• Improved employee performance & productivity

• Reduced costs from injuries and illnesses

• Improving Safety is usually a competitive advantage, because

of reduced overall costs
 Social benefits
• Positive employee impacts and protection of worker health

• Enhanced image within the company for employees, the

community, clients & customers and stakeholders

• Better employee relations within the company. Everyone is on

the same page with regard to safety

• Employee’s attitude inclined towards growth of company

• Creation of a progressive society

• Satisfaction of each employee’s family is ensured

• Contribution to National development

 Other benefits
• Safety ranking of the company / industry is boosted

• Similar industries may learn how they can do better too

• Compliance of safety standards is attained

• Improved relations with OSHA and other associated agencies

• Share & equity value would be increased resulting in greater

income for the company
Effectiveness of a safety program
• Accident and loss statistics are important measures of the
effectiveness of safety programs

• Many statistical methods are available to characterize accident

and loss performance

• All these methods are only averages and do not depend upon
the potential for single episodes involving substantial losses

• No single method is capable of measuring all required aspects

• The three most commonly used methods are

(i) OSHA incident rate
(ii) Fatal accident rate (FAR)
(iii) Fatality rate (deaths per person per year)
Effectiveness of a safety program
OSHA Incident rate
• OSHA stands for Occupation Safety and Health Administration

• OSHA is responsible for ensuring that workers are provided with a safe working
environment

• OSHA incidence rate is based on cases per 100 worker years. A worker year is
assumed to contain 2000 hours (50 work weeks / year X 40 hours / week). The
OSHA incidence rate is therefore based on 200,000 hours of worker exposure to a
hazard

Number of injuries & illness x 200,000

• OSHA Incident rate = ----------------------------------------------------
Total hours worked by all employees during
period covered
Effectiveness of a safety program
Fatal Accident rate (FAR)

• FAR is used by British & US chemical industries

• The FAR reports the number of fatalities based on 1000 employees working their
entire lifetime
• The employees are assumed to work a total of 50 years

• Thus the FAR is based on 108 working hours

(1000 Employees x 50 years x 40 hrs per week x 50 weeks per year = 100000000= 108 )

Number of Fatalities x 108

• FAR = ----------------------------------------------------

Total hours worked by all employees during period covered

Fatal Accident rate (FAR)

Ref: http://www.ogp.org.uk/pubs/434-12.pdf
Fatal Accident rate (FAR)

Ref: http://www.ogp.org.uk/pubs/434-12.pdf
Fatal Accident rate (FAR)

Ref: http://www.ogp.org.uk/pubs/434-12.pdf
Effectiveness of a safety program
Fatality rate
• This method gives the number of deaths per year

• This method is independent of the number of hours actually worked and reports only
the number of fatalities expected per person per year

Number of Fatalities per year

• Fatality rate = ----------------------------------------------------

Total number of people in the applicable population