Page 108 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

107 Module 13: Property Damage and Waste Control Program Loss Control Management (LCM)

Example 5:
A heavy machinery manufacturing corporation
executive reported the total costs of accident (including

general property damage) to exceed 10 million dollars
during the year analyzed while not revealing the costs of
injuries, he indicated that they were less than 20% of the
total accident costs.

Property Damage and Waste Control

Experiences shared in PD & WC indicates that:

• Waste is often the result of long-unquestioned plant practices that upon analysis can be shown to
have no effect on employee performance or product
dependability.
• Energy used for heating represent about 18% of the
nation’s energy and approximately 40% of the
energy is wasted.

• Experiences shared in PD & WC indicates that:
• Energy requirement for cooling can be reduced by
30% with the little sacrifice to comfort.

• Energy utilized for illumination can be effectively reduced by 15% in most existing buildings by
turning off light when not needed.

At this point, there seems to be little doubt that the cost of waste in industry at least equal and
probably exceed, the cost of property damage.

Definitions

In management training program:
• Property Damage
- Is as near-accident or near miss accidents in practice and
- No-injury accident has been used extensively in referring to property damage accidents
other than those terminating in injury.
• Accidents
- Is an undeserved event that result in physical harm to a person or damage to property

- Usually results when a source of energy is above the threshold of the body or structures.
Example:
 Kinetic
 Chemical
 Thermal, etc.
- Interrupt work activity

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