Sunday, August 10, 2008

OSH KPI

The competition among industries getting stiff and tough. To ensure the survival of the company, cost control is critical as part of the company strategies to be competitive. Whether service or product oriented industry, internal cost control is much easier to monitor since it within the company's scope. That's why most organization needs to control their expenses as part of their Key Performance Indicator (KPI). It's quantified and easy to monitor closely since most of the activities or processes need to spend money.

When we talking about Safety and Health, sometime it is difficult for Safety and Health Officer (SHO) to justify or convince to the top management on the cost benefit based on its activity/process. SHO must be able to quantify OSH activities so that it is easy for the top management to see OSH acvities from $$ point of view. Some of the KPI that can be used are
1. Cost incurred when an incident/accident occured e.g. medical claim, product/machine damage, production loss, demand loss, legal impact etc
2. The impact of the productivity and employee's morale when an accident occured
3. The interruption of the supply chain to produce the product when an incident happened.
etc.

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