Manufacturing companies working in any field, know that cleaning activities are very common in different phases of their production processes. Operation manager all over the world knows that these activities are usually critical due to use of specific chemicals, solvents or water, and are constantly monitoring cost of safety related activities.
There is no ultimate or definitive list of cost factors to be included in an assessment of economic costs of cleaning operation; but the list of possible items able to affect safety-related costs for the company, basically includes (as arise from practical and theoretical studies):
The number of workers employed in cleaning operations
The actual number of accidents incurred
The severity of the accidents
The cleaning media used for cleaning operations
The cleaning work performed and his relevance
The actual task of injured people
The value of products/services produced
Size and economic conditions of the company
Some example of costs are summarized below in the article, where it is possible to observe the wide variability of costs, including short term or long term issues (e.g. lost production vs. negative public image), as well as monetary and non-monetary ones (e.g. lost workdays vs. pain and suffering).
Cleaning operations are also defined by the impact of their cost: Direct - the cost that directly generated by cleaning activities; Indirect - the cost that may be a consequence of cleaning operations.
A) Direct Costs of Cleaning
PPE - Personal Protection Equipment
Body protection (gloves, helmets, shoes)
Respiratori protection
Eye Protection
Tools for ergonomical cleaning
Brushes
Clothes
Handling tools
Specific tools
Hazardous gases and liquids
Detection sensors
Mesuring equipment
Compliance with laws and regulations
Country regulations
International regulations
ATEX EX
ISO 9001 and 14001
B) Indirect costs of cleaning
Wages and salary
Lost workdays due to people involved in accidents, injuries or illness
Wage incrementations for accident/injuries/illness risk
Overtime/temporary employees needed to replace injured or ill employees
Organization / Management
Safety management system organization
Vulnerability of productive process
Damage to company organization process
Administrative cost for processing claim
Absenteeism / turnover
Recruitment, training and staff turnover cost
Production
Damage to company brand
Delayed delivery
Reorder costs
Rush order replacements
Lost production
Loss of current and future earnings
Impaired product quality
Others
Experience rated insurance premiums
Workers’ compensation claim cost
Medical and rehabilitation costs
Investigation costs
Legal fines and penalties
Angry Customers
Negative Public Image
Less employee motivation
Loss of quality of working life
Pain and suffering
Useful links:
European Agency for Safety and Health at Work, 2002, Inventory of socioeconomic costs of work accidents
European Agency for Safety and Health at Work , 1999, Magazine of the European Agency for Safety and Health at Work EU, n.1, Health and safety at work. A question of costs and benefits?
H.W. Heinrich, 1959, Industrial Accident Prevention. A Scientific Approach, 4th ed. McGraw Hill, New York
NOHSC, Australian Government, 2004, The Cost of Work-related Injury and Illness for Australian Employers, Workers and the Community
M.S. Rauner, P. Harper, A. Shahani, B. Schwarz, 2005, Safety science monitor, vol. 9, issue 1, art. 3, Economic impact of occupational accidents: resource allocation for AUVA’s prevention programs
Links. Rikhardsson, M. Impgaard, 2004, Accident Analysis and Prevention, 36, Corporate cost of occupational accidents: an activity-based analysis, p.173-182 7. www.hse.gov.uk