Introduction to Total Loss

Control

S MUCHEMEDZI
 Training objectives

w Define total loss control

w Explain the evolution of loss control
w Explain the domino sequence theory
w Accident ratios
w Analyse loss producing events- Iceberg
theory
w Total loss control programmes
 Total loss control defined

w The application of professional management

techniques through programmed activities
directed at the prevention / reduction of
pure risks of business
w Systems for dealing with all business losses
arising from company operations
 Evolution of loss control

w Injury prevention
w Total accident control
w Total loss control
 1. Injury prevention

w Concerned with the humanitarian aspects of

employee safety and compensation
w legislation on health and safety and
compensation
w The care for one another baring in mind the
outcomes of injury and deaths
Total damage control
w Developed after the injury prevention had
failed to prevent all accidents in the
1950s
w Increased awareness of losses not only
arising from injuries but from damage to
materials/ equipment and machinery
w Programme covered all accidents,
personnel injury, damage to facilities,
& materials
w
 Total loss control
w Accident control failed to reduce business
costs as it only concentrated on accidents
and not operational systems deficiencies.
w There was then need to develop programmes
that were responsive to all areas where
losses could be realised and provide
mitigatory systems
w New business initiatives by Loss Gurus gave
the birth of TOTAL LOSS CONTROL
w
 Total loss control cont----
 Concepts covered under TLC include
w
w Off the job safety..........why off the job ??
w Shrinkage , theft, burglary, vandalism... How, how much???
w Fire related losses,.. How many , @ what costs??
w General liability claims... What are they , what impacts ???
w Absenteeism costs..... How is business affected, how much?
w On the job illness..... How many, what are causes & impacts?
w Family injuries/illness.. . Do they affect business, how , much?
w Drug and alcohol abuse... Is it business risks, how much??
w Environmental liabilities... Impacts, future costs???
w Product liabilities... What are risks, how much , impacts??
w Reputational liabilities... Is it real, @what cost???
Accident defined
 Loss
Domino sequence in accident

Injury/damage/ business interruption

Incident/accident
Immediate causes
Basic causes
causation
Lack of management control
Domino 1. Lack of management
control
w lack of policies
w Lack of / or goals not clear
w Lack of effective delegation of authority,
responsibility and accountability
w Lack of programmes/systems
w No rules and regulations
w
 Domino 2.Basic causes
Personal factors-
w Inadequate physical/ mental capabilities
How much do we know the
w Occupational hazards How much do we spend on
w Lack of skill, knowledge, and attitudes
w Improper development
Job factors

w Inadequate leadership
w Inadequate engineering
w Inadequate workHow often do change, maintain these profit mak
standards
w Inadequate purchasing
w Wear and tear
 Domino 3. Immediate causes

Unsafe Conditions
4%

96%
Unsafe Acts

“All things are hidden,remain obscure, and debatable if the

cause of the phenomena be unknown, but everything is clear if
this cause be known”- Louis Pastuer
 Domino 3. Immediate causes
Cont.........
w Substandard Acts- violation of an accepted
safe procedure which may lead to an
accident
 E.g. Failure to follow procedure etc
w Substandard Condition- hazardous
environments which could directly permit
the occurrence of an accident
 E.g. Poor engineering designs etc
 Domino 4. Incidents/accidents

w Substandard practices add substandard

conditions will always they result in
incidents and accidents
w The resultant outcome is substandard acts x
substandard acts = injury
 = death
 = property damage/
 = business interruptions
 investigation
ACCIDENT RATIOS
Re-active
Incident

1
Fatality
30 Lost Time, Restricted Duty

300 Medical Treatment

3,000 First Aid Near misses

Pro-active

30,000 Unsafe Conditions

Unsafe Acts Hazards
Risks
 Domino 6. Loss Iceberg theory

DIRECT COST [$ 1-5][ INSURED]

•Medical cost
•Compensation
SEA LEVEL costs
INDIRECT COSTS [$5-50]
SEA LEVEL [UNINSURED]
•Building damage
•Damaged tools/equipment/products
•Production delays/interruptions
•Training of replacements

•Fines and other costs etc

 BUILDING A TLC CULTURE
MISSION /VISION

PROCESS VALUES

BEHAVIOUR
RESULTS
Business Excellency
TLC SYSTEM OVERVIEW
 FATALITIES
INJURIES COMPANY
DAMAGE TO PROPERTY
LOST TIME INCIDENTS
LACK OF PERFORMANCE
VISION
EXCELLENCE &MISSION
Behaviour
Vision
Mission
rategic objectives
trategic SUBSTANDARD PERFORMANCE P
R
INCIDENTS & ACCIDENTS
Values O
F
Tasks I
T
WAY TO GOAL ATTAINMENT
A “zero mindset” culture
takes a step change in beliefs



We cant solve a problem
by using the same
mentality we used for
creating it. (Albert
Einstein)

OTHERWISE- “If you do what

you’ve always done, you’ll
always get what you always
got!” (W Edwards Deming)
WHOSE RESPONSIBILITY?
 Paradigm Shift in Belief systems

Required Thinking
Current Thinking
Accidents are caused.
Safety performance can
When we do not be managed.
manage , things are
bound to go wrong
and accidents Drive towards excellence!
happen.
Zero injuries
Zero spills.
Zero wrong financial transactions.
Zero …..
Paradigm Shift in Belief systems

All accidents and

incidents are
Fatalities and investigated because
serious injuries are we want to learn from
investigated them.
because it is
required by law.
Understand root causes!
Of accidents.
Of productivity problems.
Of complaints
Of motivation & commitment
Paradigm Shift in Belief systems

Employees must be
educated and
empowered so that
they perform
effectively &
Employees must be
efficiently.
supervised so that
they comply.
Focus on people!
 Learning organizations.
 Tap the capabilities of all employees.
 Empower people
 Competitive urge is built on human
capital……..
 Paradigm Shift in Belief systems

Safety performance
can be managed
and results are
SHE performance is attainable
a question of luck.

From reaction to prevention!

Initiative, innovative
Operational discipline
Personal responsibility and
commitment……….
 Total Loss Control Programmes
fundamentals
Based on


n business commitment to succeed (POLICIES)

n effective sustainable teamwork

n Equipment and human capital value

n quality of working life for staff members

n sustainable business growth

 Mosaic leadership philosophy and business

Excellency
 Advantages of TLC

w Uses the dollar to motivate decisions

w Instils equipment and human resources value
awareness
w Better machine, equipment, and human resource
utilisation
w Reduced labour cost, absenteeism and turnover
w Increased profits