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80  Module 9: Measurement Tools for Management                                            Loss Control Management (LCM)


                               Module 9: Measurement Tools for Management

               Objective

               This session will assist the participants in the selection and use of measurement techniques toward a
               better understanding of the role various measurements can play in their loss control programs.

                  “Measurements are means by which management can determine the status of safety
                                                    within a company.”

               Characteristics of a Good Measurement Tool
                   1.  It should be administratively practical.

                   2.  The measurement criterion should be quantifiable.
                   3.  It should be a valid measurement of what it is supposed to represent.

                   4.  It should be as objective and error-free as possible.

                   5.  A good measurement system should be understandable.
                   6.  It should be sensitive to change.

               Measurements

               ACTUAL LOSS MEASUREMENT (INJURIES)
                   •    Disabling Injury Frequency Rate (FR)

                   •    Disabling Injury Severity Rate (SR)

               Disabling Injury Frequency Rate
                   FR =       # of disabling injuries x 1,000,000

                                 Employee hours of exposure

               Disabling Injury Severity Rate
                   SR =       Total Days Charged x 1,000,000

                                 Employee hours of exposure

               Standard Cause Measurement
               Example:

               A forklift truck went out of control when one wheel struck
               a piece of stock lumber which projected into the aisle. It
               ran out of the aisle and struck a machine operator,
               breaking his leg between the ankle and knee.






                                                    PETROSPHERE INC.
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