T for Total Loss of Control

This month we look at Total Loss Control which is a way of evaluating the real cost of an accident. This process was promoted by Joe Shakespeare who was the Head of Safety at Perkins Engines at Peterborough.  

Joe showed that when the true, total cost of an accident is established it is often significantly in excess of what might be initially estimated. This higher true cost of an accident justifies significantly greater investment of effort to achieve safe working.

An example of evaluating an accident is as follows:

Whilst preparing some wood on a saw the saw blade grabs the wood and the woodworker cuts his hand.  What might we estimate the cost to be? £5, £10, £20 or £50. If we use TLC to analyse the accident and its consequences the following costs are established:

Time Woodworker (casualty)

Loss of working time on day of accident to attend hospital 6hrs.  Loss of working time after accident because of inability to work 40hrs.  Loss of working time following accident to attend hospital 5hrs. Loss of working time following accident to attend doctor's 3 x 2hrs. Total time = 57hrs

Time Family or friend

Attend and transport casualty to hospital on day of accident 6hrs.  Attend and transport casualty to hospital after accident 6hrs.  Attend and transport casualty to doctor's after accident 3 x 3hrs.  Attend casualty's home to check and change dressings 7 x 1 hr.  Total time = 28hrs

Other considerations

Damage to equipment and cost of repair £50.  Damage to wood being machined/replacement £10, Damage to clothing £40.  Fuel costs for hospital and doctor's journeys £40.  Parking at hospital £10.  Bandages, dressings and medicinal supplies £10.  Total cost = £160

Click here for part 2