Page 64 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0
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63 Module 6: Economics in Loss Control Loss Control Management (LCM)
Example:
• JSA/procedure program, provides an opportunity to uncover inefficient practices and methods
that when properly changed, often result in substantial cost reduction.
Principles of Future Characteristics
“The past performance of an
organization or unit tends to
foreshadow its future characteristics”.
“The value here is to use past
cost information as a guide to
professional management action that
will prevent history from repeating
itself.”
Example:
• Past history of costs on machines or equipment, production maintenance, downtime and related
damages are all used as a base line for many types of comparisons.
Principles of Application
“The more often a manager communicates a message, the more certain he can be that is
understood and will be retained”.
“Accidents and other undesired events have an enormous effect upon an organization’s profit, or
the attainment of its established budget.”
Example:
• Circulate select articles on related costs from external
publications to key members of management.
• Circulate select photographs of specific accidents involving
property damage, with a brief explanation of estimated costs.
• Circulate reports of individual large courts awards or
settlements involved with familiar circumstances.
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