7.Ashraf Samah - Real Cost

8/18/2019 7.Ashraf Samah - Real Cost

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By: Ashraf Sameh

CMIOSH, IRCA, QHSE Manager

Renaissance Services

Real Cost of an ccident

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• Renaissance Services is Oman based multinational company established in

1986 and listed on the Muscat Securities Market.

• It employs over 11,000 of staff operating in 16 countries.

• It owns and operates a modern fleet of 100+

Offshore Support Vessels providing supply and

support services to oil & gas Offshore Companies.

• It works for Onshore and Offshore fabrication & construction, Ship Building,

Marine Repair and Maintenance Services.

• It owns and operates 6 Permanent Accommodation for Contractors (PAC)located in the interior region of Oman servicing oil fields. It accommodates

around 8,000 of contractors staff with full services.

• 75% of business in services to oil & gas and 25% of business in home market

of Oman


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• Personal Injury;

• Delay in Performing Jobs;

• Damage to Equipment;

•

Excessive Wear and Tear on Equipment;• Unnecessary Maintenance Costs.

Accident Related Factors

Real Cost of an ccident


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Accident Cost

Direct Cost

Indirect Cost

Hidden Cost


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Direct Cost

Inferred Cost

Indirect Cost Hidden Cost

Injury Compensation

Equipment replacementRepairing cost

Administrative cost

Production down time

Insurance cost

Performance penaltyReduced efficiency

Reduced productivity

Hiring and training

Company Reputation

Moral and loyalty


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After someone has an accident or gets ill at

work, how much time does your business waste?

• Sorting treatment out.

• Getting back to business as usual, from

repairing or replacing equipment torescheduling or redoing work.

• Reporting and investigating what’s happened.

•

Meeting with insurers or inspectors.• Recruiting new staff to replace injured or sick

staff.


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•

Training new staff to take on the job to theright standards.

• Convincing colleagues, customers and clients

that you are doing a great job.

Finding out how long this all takes, and doing

some simple calculations based on salaries, can

be an eye-opener, even if you’re only dealingwith small scale.


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ccident Cost Calculation

Initial Costs:Time to provide first aid

Time for transportation to hospital/clinic/home

Lost productivity of all affected workers

Time to make area safe

Cost of first aid supplies and equipment used

Cost of ambulance

Other Costs


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Time to investigate the accidentTime spent to complete the report

Time to complete related paperwork for your

company (e.g. company records, payroll records,company report forms, etc)

Time to complete related Regulatory paperwork

for Ministry (for Injury or Occupational Disease)Follow-up meetings to discuss accident

Other Costs

Investigation Costs:


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Damage Cost

Replacement Cost

Productivity Cost

Total Cost

Recovery Cost


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Case Study from Oman

Plant operator asked an experienced labor to clean

the Screw Conveyor of Filter Belt Press. At that time

the Conveyor was OFF. The labor cleaned the

Conveyor and switch it on. He noticed some debrisstill caught inside the Conveyor. He started cleaning

the caught debris using his hand while the Conveyor

was running. The hand glove that he was wearing was

caught by the screw which pulled-in his hand andeventually cut off two fingers (thumb and pointing

finger).


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The victim was transferred to the hospital with the cut

fingers in a freezing container, but unfortunately the

surgeons’ efforts to fix the fingers failed.


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THE BILL• Wages for injured worker: OMR 2100 (covered by insurance)

• Loss of production/remedial work: OMR 1750

• Overtime to cover lost production: OMR 600

•

Wages for replacement worker: OMR 1500

• Loss of time for manager and managing director

involved in the investigation OMR 750

• Legal expenses, fines and court costs OMR 1350

• Rise in Liability Insurance Premiums OMR 1150


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Revenue Required =

Total Cost / Profit Margin %


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[email protected]

Documents

7.Ashraf Samah - Real Cost