Using the Plan-Do-Check-Act (PDCA) model we discussed in Units I, II, and III, here you will address the “check” (C) and “act” (A) portion in this assignment. Continuing with the scenario pres

MOS 5525, Integrated Safety Management Systems 1 Cou rse Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to: 2. Explain the safety management systems approach to injury and illness prevention. 2.1 Evaluate post -accident findings to determine system compliance with Occupational Safety and Health Administration ( OSHA ) standards . 7. Evaluate risk -management tools related to system safety management. 7.1 Summarize the findings of a safety aud it. 7.2 Recommend measures to improve system safety performance . Course/Unit Learning Outcomes Learning Activity 2.1 Unit Lesson Chapter 6 Chapter 15 Unit VIII Scholarly Activity 7.1 Chapter 6 Unit VIII Scholarly Activity 7.2 Unit Lesson Chapter 15 Campbell Institute, Practical guide to leading indicators: Metrics, case studies and strategies Unit VIII Scholarly Activity Reading Assignment Chapter 6: Audit -driven Safety Management Systems Chapter 15: Measuring Performance In order to access the following resource, click the link below. The following resource, presented by the National Safety Council, has been developed to advance knowledge and prac tice regarding the use of leading indicators to improve environmental, health and safety (EHS) performance. National Safety Council , Campbell Institute . (2015). Practical guide to leading indicators: Metrics, case studies and strategies. Retrieved from http://www.nsc.org/CambpellInstituteandAwardDocuments/WP - PracticalGuidetoLI.pdf Unit Lesson Introduction We have reached the final lesson on safety management systems. The focus of this course has been the implementation of a safety management system based on the Plan -Do -Check -Act (PDCA) management model. Our previous two lessons have concentrated on the management systems used to prevent and control hazards in the workplace. In this final unit lesson, we will discuss the use of performance metrics as a means UNIT VIII STUDY GUIDE Performance Measurement and Integrating Safety Management System into the Organization MOS 5525, Integrated Safety Management Systems 2 UNIT x STUDY GUIDE Title of assessing the effectiveness of the safety management system. We will also explain how the safety management system can be integrated into the organizati on. Metrics of Performance The third cycle of the Plan -Do -Check -Act (PDCA) model for management systems focus es on performance monitoring and measurement to determine the extent to which the requirements of the system are being met (Pardy & Andrews , 2010 ). Although there is not a right way to assess the effectiveness of a safety management system, it is essential to evaluate the implementation and effectiveness of the processes established for controlling risk. Otherwise, how would an organization know if its safety efforts are really working? A key axiom of business suggest s that it is difficult to manage that which you cannot measure (Pardy & Andrews , 2010). Safety performance should be evaluated in an organization just as productivity, quality , and othe r aspects of the business. The primary objective of performance measurement is to accurately assess how well the organization is accomplishing the objectives, goals or other targets set forth in the safety management system. One of the most important aspects of performance measurement is deciding which elements to measure and identifying why the elements are important. Key performance indicators (KPIs) are the criteria by which the various aspects of a safety management system are rated. KPIs can be us ed to determine the overall effectiveness of a specific intervention, assess safety performance in comparison to other companies, identify potential impediments to safety success, and determine trends in accidents and losses. The most common key indicator used to track for safety performance is the number of accidents that have occurred during a predefined time frame. However, it is just as important to measure the incidents that were not actual accidents as the ones that became lost -time accidents. Other key indicators frequently used include lost workdays and repeat offenders . In general, safety performance indicators can be divided into two categories: leading indicators and lagging (or trailing) indicators. Lagging indicators measure an organization’s past occurrences or failures. Typical measures used to indicate the levels of safe performance include lost time injuries, frequency and severity, lost workdays , and worker’s compensation costs. Although these would appear to be good indicators of safety performance, especially if these numbers are relatively low, they are severely limited. Lagging indicators represent the bottom -line, overall effectiveness of safety efforts as they identify how many people were injured and how severely. However, they are r eactionary in nature because an incident of injury must occur in order to have an indication of performance. This makes them a poor gauge for prevention. In contrast, leading indicators are measures that precede accidents and are useful when assessing the effectiveness of activities undertaken to prevent and control injuries. Measures such as percentage of safety training completed versus expected , percentage of safety inspections completed versus the number scheduled , and the number of new or enhanced saf ety controls implemented are proactive and focus on safety performance and continuous improvement. Rather than simply assessing the bottom -line results of safety, leading indicators provide a gauge for determining how well an organization is doing at preve nting accidents and incidents. Both lagging and leading indicators are essential for assessing the effectiveness of workplace safety efforts. Organizations dedicated to safety excellence should use a mix of both leading and lagging indicators , but should focus on leading indicators to drive continuous improvement. Lagging indicators measure the effectiveness of a safety program after the facts and represent a measure of system failure (Pardy & Andrews , 2010) , while leading indicators are aimed at preventing adverse events before they happen and measure system performance! Although there are many items that can be used to measure safety performance, incident rates are generally the primary indicator of safety for many organizations. Incident rat es represent the number and severity of incidents that have occurred and provide a standardized method of measuring an organization’s safety performance. There are five major types of incident rates commonly used in industry. A brief overview of each incid ent rate is listed below:  OSHA recordable incident rate (commonly called either the total case incident rate or just the incident rate [IR]), is the most well known and the one most commonly used for comparison ). The incident rate MOS 5525, Integrated Safety Management Systems 3 UNIT x STUDY GUIDE Title can be used to determine the number of employees per 100 employees who have been injured or experienced an illness that had to be documented under the OSHA recording rules (NMMCC, n.d.).  The lost time case (LTC) r ate is the second most commonly used formula . It is similar to the OSHA recordable incident rate but considers only incidents where workdays were lost. Here again, you multiply your number of lost time cases by 200,000, and divide the result by the total number of hours worked by your employees. Once again, the result tel ls you how many employees lost time pe r 100 employees on your payroll (NMMCC, n.d.).  The lost workday (LWD) rate and severity rate (SR) are primarily used only in larger companies that have a larger number of lost -time cases. The LWD rate looks at the number of lost workdays per 100 full -time em ployees in any given time frame (NMMCC, n.d.).  The severity rate looks at incidents in terms of the actual number of days that were lost on average and is calculated by dividing the number of lost workdays by the number of recordable incidents (NMMCC, n.d.).  The days away/ restricted or transfer (DART) r ate looks at the amount of time an injured employee is away from his or her regular job. The DART rate is computed by multiplying the number of DART incidents time s 200,000, and dividing by t he company’s total labor hours (NMMCC, n.d.). Incident rates provide a standardized method of measuring an organization’s performance , both historically and in comparison to similar industries. However, incident rates are laggi ng indicators as they measure only past performance and are not indicative of an organization’s future performance (leading indicators). In spite of this, for many companies, incident rates remain the primary indicator of safety performance measurement.

Th is is primarily because they can be computed relatively easy and can be used to compare an organization’s safety history with national averages for other similar industries. Rates can also be used by agencies such as OSHA as well as by insurance companies to evaluate an organization’s safety performance. Often , when an organization wants to assess how well its safety management system is performing, it will use audits or inspections to make this determination. Audits and inspections are core safety managem ent activities that are useful in identifying potential problems before they affect system safety. Audit and inspection findings provide a means for evaluating whether safety and health goals are being achieved or if new goals need to be established. Both audits and inspections are important components of a safety management system, but they are distinctly different functions. An inspection is conducted to identify hazards, risks , and other conditions that may impact the safe operation of an organization. In contrast, an audit is conducted to evaluate how well programs and strategies align with an organization’s goals and objectives. Using the Plan -Do -Check -Act (PDCA) cycle to differentiate between audits and inspections, inspections are a “do” and audits are a “check”. Therefore , while an inspection is typically done as a compliance obligation, an audit verifies that the compliance obligations have been met. For example, 29 CFR 1910.147 (lockout/tagout standard) mandates a periodic inspections of an employ er’s energy control procedures. The employer may then conduct an annual audit to check compliance with the requirement to perform the inspections (OSHA, n.d.) . Organizations often perform audits and inspections to evaluate compliance with legal and other governing requirements. Although the findings generated from audits and inspections will identify errors, hazards , and deficiencies in the system, they will not identify the action(s) necessary to improve the effectiveness of the organizational controls. It is up to the company management to address the findings of the audits and correct the deficiencies within the management system. Thus, the final step in the PDCA cycle involves taking action based on findings during the check stage of the cycle. Performance reviewing is the process of evaluating the adequacy of safety performance and making decisions about the nature and timing of the actions necessary to remedy deficiencies based on information from the management system. The organization’s safet y management system should be reviewed periodically to ensure it is effective and to identify changes that may be warranted . The information evaluated during management review drives improvement activities and is used to plan the next PDCA cycle. Therefore, management review is the most essential element of any management system as the PDCA cycle starts and ends with management review. MOS 5525, Integrated Safety Management Systems 4 UNIT x STUDY GUIDE Title Integrating Safety Management System into the Organization Performance measurement is an important part of any s afety management system because it provides the basis for continuous improvement efforts. Performance standards are the roadmap that provide direction and establish expectations for the safety management system as they identify what must be done, who must do it, and by when and how often it must be done. The author refers to safety standards as “measurable management performances” (McKinnon, 2017, p. 199). Holding people accountable to do the things that create a safe work environment makes it much more lik ely the objectives set forth during the planning phase will be successful. After all , what get s measured gets done, right? The fundamental reason that some companies fail to get the safety results they desire is that they fail to establish a system of acc ountability. The establishment of responsibility for the safety management system at each level of management establishes a chain of accountability that extends from the chief executive officer of the organization down to the first -line supervisor. This ac countability must also be extended in direct line through the operatin g departments to the employees. It is important that everyone understand his or her responsibilities for workplace health and safety. The employers hold the ultimate responsibility and are legally and morally responsible for what happens on their work sites. Supervisors have the administrative responsibility and must ensure that required training, supervision, and enforcement are maintained and the desired results are achieved. W orkers h ave the immediate responsibility to take the required training, use the assigned controls, follow all rules, and participate where required in the health and safety efforts. Failure to hold people accountable for doing the wrong things can result in injur ies, illnesses, and even death. The management’s work of setting standards of accountability is of utmost importance to the success of the organization and is likewise paramount to the successful implementation of an effective safety management system (McK innon, 2017). Summary The focus of this course has been the implementation of a safety management system based on the PDCA management model. In Unit I, we established an understanding of the systems -based approach to safety management. In Unit II, we shi fted our focus to the implementation process and highlighted the core activities of most safety management systems , which include policy development, planning, implementation, checking, and management review. In Unit III, we began incorporating the core el ements of a safety management system into the implementation process. The role of management leadership and commitment (discussed in Unit III), the importance of employee involvement and training ( Unit IV) , and hazard analysis ( Unit V) were the focus on th e “plan ” (P) cycle of the implementation process. Hazard identification , control , and prevention (Units VI and VII) were the focus of the “do ” (D) cycle of the implementation process. In this final unit lesson, our focus has been both the “check ” (C) and the “act ” (A) cycles of the implementation process. We discussed the use of performance metrics to evaluate the effectiveness of safety management systems , and we explained the integration the safety management system into the overall organization al management system. It is our hope that this course has enhanced your understanding of not only safety management systems , but also the PDCA management model. References McKinnon, R. C. (2017). Risk -based, management -led, audit -driven , safety manageme nt systems . Boca Raton, FL: CRC Press. New Mexico Mutual Casualty Company. (n.d.). Formulas for calculating rates : OSHA recordable incident rates. Retrieved from https://www.nmmcc.com/wp - content/uploads/FORMULAS_for_CALCULATING_RATES1.pdf Occupational Safety and Health Administration. (n.d.). Regulations (Standards -29 CFR 1904). Retrieved from https://www.osha.gov/pls/oshaweb/owastand.display_standard_group?p_toc_level=1&p_part_numbe r=1904 MOS 5525, Integrated Safety Management Systems 5 UNIT x STUDY GUIDE Title Pardy, W., & Andrews, T. (2010). Integrated manage ment systems: Leading strategies and solutions . Plymouth, United Kingdom: Government Institutes. Suggested Reading In order to access the following resource, click the link below. The following resource , developed by the Bureau of Labor Statistics , is suggested to assist you in computing incident rates. You are encouraged to visit the information at the provided link below and practice using the incident rate calculator. Bureau of Labor Statistics . (200 5). Injuries , illnesses , and fatalities. Retrieved from https://www.bls.gov/iif/ Learning Activities (Nong raded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact y our instructor for further guidance and information. Practice computing incidence rates by using the calculators contained at the link below. Bureau of Labor Statistics. (n.d.). Injuries, illnesses, and fatalities. Retrieved from https://data.bls.gov/iirc/