### HOW MUCH DOES A NEAR MISS INCIDENT COST?

In 'ACCIDENT IS MONEY DOWN THE DRAIN', we tried illustrating  how a NOTHING HAPPENED near miss incident of a hammer accidentally slipping off a technician's grasp, falling through a considerable height and landing safely between two busy foremen, with no damage to property or injury to anyone on site resulted in so much useful production time loss. A conservative computation of the time-cost estimate showed what seemed to be a 'harmless' incident costing the site company management a hefty 3.4 Man-Days lost time in direct costs! The exercise ended without considering the 'POTENTIAL' of the occurrence.

'POTENTIAL' simply refers to the probability of a much more consequential outcome by chance or slightly altered circumstances given the number of people exposed to the threat at the time. This is usually what constitutes the difference between a 'NOTHING HAPPENED' incident, a disabling/ serious property damage one or a fatality. That the people on site escaped apparently scot-free is a matter of chance. On another day, things may have turned out horribly different because this was a HiPo e.g. a High Potential near miss incident. If you don't believe it, consider the following probabilities:

In falling and travelling through that height, the hammer could have:
• Struck employees on the levels below on its way down
• It could have struck either one of the foremen causing serious injuries
• It could have struck and damaged expensive materials stacked in the open yard below
• It could have struck any employee on the ground level causing injuries, etc.
So if it weren't for pure chance at the material time, this so-called Near-Miss incident had a high potential to cause serious damage, injury or even a fatality! Then the story would have been vastly different with all manner of direct and indirect costs thrown in to everyone's discomfort.

The site management team would have had to deal with:
1. Medical bills
2. Ambulance callout cost
3. External regulator issues
4. Employee low morale
5. Increase insurance premium next due renewal date
6. Employee compensation
7. Employee replacement/training costs
8. Sick-off pay
9. Employee family issues while out injured/damaging gossip
10. Possible retraining/reassignment costs
11. Replacement material costs
12. Dented Company public image
13. Extended milestone deliveries
14. Customer dissatisfaction
15. QA/QC issues
16. Possible Union troubles, etc. and so on.
It just goes to show for a fact that no accident is free of charge. Keep them out before they extract a heavy toll from you.

### THAT 5-MINUTE PEP TALK BEFORE THE JOB

There are pep talks and there are pep talks.

Over the years, I've had the privilege of observing pep talks all day long on seismic crews, construction sites, production platforms, processing plants, wire line, drilling operations, rig moves and so on. But not once have I left not feeling maybe the crew could have done better with the shape and content of the core messages thereof. This is because I am of the view that safety messages are only helpful if they are clear and to the point, with little or no ambiguity, if any at all. Unfortunately, this is not always the case.

Now 5-minutes is not a great deal of time for even the most gifted and skillful of speakers to nail  home  the key safety dos and don'ts of the job soon to commence. So most of these talks frequently average out to be sing songs and prayerful affairs in the end, with generalized 'messages' like be 'your brother's keeper', 'safety is everybody's business', 'you all know what…

### How Much of Your Opex Do You Save Cutting Corners?

What % of your operating budget do you save when you look the other way while unauthorized changes and deviations are a norm in the workplace under your supervision? Would you 5, 10, 15 or maybe 30%? You are not too sure how much, if anything at all?

Well, it is highly unlikely that you will ever save on your Opex if employees are free to make up their own rules as they go along or can decide which step on the job comes next instead of what the approved procedures say. In fact working with scant regards for the Right Way of doing things condemns you to an ever spiraling  operating budget spend. Because you'll find that you are constantly grappling with 'digging a hole to fill a hole' throughout the life of  the project.

In the end, there are no prizes for guessing that your project will come in grossly over budget and way outside the delivery schedule because of all the issues of rework, unplanned stoppages, delayed logistics, repairs and replacements, backtracking, clea…