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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.
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