Page 77 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

76 Module 8: Management Control of Loss Loss Control Management (LCM)

translate into fewer accidents. If the supervisor controls his/her operations, losses will be
controlled.

Language of Loss Control

• A loss is a sudden & destructive event. A LOSS EXPOSURE is a possibility of a loss.
• Loss prevention aims to reduce the frequency or likelihood of a particular loss.
• Loss reduction aims to reduce the severity of a particular loss.

• Together, loss prevention plus loss reduction equal loss control.
• An operational problem, or job hindrance, is any condition or event that interrupts or interferes
with the normal process of the job (in other words, anything that hinders the supervisor’s overall
job performance or efficiency). Examples can include damaged equipment, delays, rejects &
reworks, damaged materials, shortages, people problems, and injuries. Accidents certainly
interrupt or interfere with the orderly progress of the job. An accident is a major job hindrance.
• Similar to an accident is an incident. An incident is an accident-like occurrence, but without harm

to persons or damage to property. An incident is sometimes referred to as a “near-miss”.
Incidents are job hindrances.
• OPERATIONS CONTROL includes controlling JOB HINDRANCES. The supervisor who is
properly controlling operations is reducing & eliminating job hindrances, including accidents &
incidents.
• A RESPONSIBLE CONDITION is a condition that, if eliminated, would result in no further

repetition of the particular loss or accident, under the same set of circumstances. In other words,
the responsible condition is the crux of the matter, the underlying condition that allowed the loss
to occur. Identifying & correcting responsible conditions to prevent recurrence is the primary
responsibility of the supervisor. It is the purpose & goal of accident prevention.

Management of Loss Control (Equipment/Materials/People)

• MATERIAL refers to all elements that become part of or are used to create the product or service
of the business. Examples of material include raw materials, as well as processed chemicals,
paper, and electricity.

• PEOPLE includes all those who design, oversee, or produce the product or service. People
means managers, service technicians and assemblers.

• E/M/P encompasses all the elements that exist within a given enterprise. But more than being
merely a system for categorization, E/M/P is shorthand for a highly successful method of analysis

basic to effective operations control.

• Whenever an operational problem is encountered, the E/M/P categories can be used to isolate
the factors involved. Once these elements have been targeted, a review of each one is made by

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