ewa lidén kassel project no. 030300-2 presentation 2009 tool 2 cost/benefit check

Presentation 2009Ewa LidénKassel

Project No. 030300-2

Tool 2

Cost/Benefit Check



Tool 1:Health

&Performance

Tool 2:Cost/Benefit

Tool 3:WORX for SMes

Tool 4:Skills

(contractor)

Tool 5:Skills

(operator)

Tool 6:Ergo-Check

Tool 7:Sitting-Check

COMFOR educative packages



Tool 2: Cost/Benefit Check

The tool helps you to monitor and estimate

• hidden costs related to ill health

• benefits from ill health prevention

This is necessary to

• decide and

• invest in

appropriate preventive measures.



SME voices about c/b-check

– the illness costs become clear

– good to show and discuss with the employees

– useful to raise awareness of these costs

– enables to quantify what could be saved thanks to appropriate measures/improvements

– offers easy calculations for price negotiations

– this information is essential for determining financial result of my enterprise

– Money talks! Real Euros are interesting!



Structure of tool

1. Input data from the company

2. Illness costs

3. Scope for investments

The tool consists of three parts:



Limitations

The effort was to keep tool

• simple• general

therefore …



… therefore

• have items of limited relevance been left out

• is net production value used

• are logistic losses beyond the reduced performance of one machine not considered

cost estimates are rather too low than too large



Four sickness cases

1. Operator working though feeling ill reduced performance

2. Operator on sick leave, no replacement machine stand still

3. Operator on sick leave, with replacement extra costs and reduced performance

4. Operator have to quit forestry new recruitment



Further consequences

Illness during very busy periods may result in

• loss of contracts

• drastically reduced profits



Instructions

1. Save a working copy of tool

2. Replace default values with company data in blue fields

3. Additional information in cells with

4. Automatically calculated costs appear in red fields



COMPANY DATA

1. Salary costs • Harvester

• Forwarder

2. Output per hour (m3 or ton)

3. Price per m3 or ton

4. Variable costs • Harvester

• Forwarder

5. Recruitment costs



Default values

Much better to use data from contractors own company!

For guidance:

Illustrative values from Finnish forestry

Where find this input data?



Data to enter

1. Days with reduced performance• % of performance reduction

2. Days without production

3. Days with replacement• salary for replacement

• % of performance reduction

4. % of recruitment costs caused by illness

For harvester and forwarder operators:

… for cases occurred during last year!



COMPANY ILLNESS COSTS

• Results from Tool 1: Health & Performance Check• Company’s own files on sick leave• Your advanced estimations• …

Sources of input data:



TOTAL COSTS

A summary of the costs last year in the4 cases:

Total illness cost € 12.746

Which costs may be reduced?



PREVENTABLE COSTS

1. Change figures in blue fields

The corresponding benefits appear automatically in the red fields



BENEFIT CHECK

Scope for annual investments in preventive measures

Specification of ’benefits’

What measures are promising?



Identification of measures

1. Question 10 in Tool 1: Health & Performance Check

2. Discussions with operators

3. Guidance from OSH-services

4. Own experiences

New seat?

Work scheduling?

Job rotation?

Pause exercises?



Decisions table

After discussion, specify for each measure:

1. Costs

2. Goal

3. Indicators

4. Responsible person

5. Involved persons

6. Starting date

7. Finishing date

8. Follow up and close

NOTE: Total available scope is displayed!



Tool 2: Cost/Benefit – Check

Field of application Estimating scope for ergonomic investments

Type of tool Calculation tool, basis for decisions

Documents Excel file

Frequency (recommended)

Yearly, or when following up investments

ewa lidén kassel project no. 030300-2 presentation 2009 tool 2 cost/benefit check

Documents

ewa lidn kassel project

check tool

costbenefit tool

costbenefit check slide

health performance tool

large slide

smes tool

recruitment costs