by Chason » Sat Dec 13, 2014 1:18 am
: Anwar, in finding any of the rates, you first need to calculate the hours worked. The way I would do that is as follows:
Management hours worked =(17 [employees] x 9 [hours per day] x 5 [days per week] x 48 [weeks per year] /12 [months per year])/17 [employees] = 180 hours per management employee per month.
Production hours worked = 50 [employees] x 8 [hours per day] x 6 [days per week] x 48 [weeks per year]/12 [months per year] = 192 hours per production employee per month.
Thus for a year – the total hours would be(180 x 17 x 12) +(192 x 50 x 12) = 151,920 hours worked per year on an average with no allowance made for sick leave, overtime, etc.
From that point you can begin to calculate the rates. The specific rate will depend on the criteria of what you are measuring:
Rate =(unit to be measured x proper formula constant) / hours worked. The constants depend on also on what you are measuring – the OSHA Incident Rate or OSHA Time Lost Incident Rate uses a constant of 200,000. The old National Safety Council rate for frequency, severity, etc. uses a constant of 1,000,000. The OSHA Incident Rate Constant is 200,000 and is based on the hours an average of 100 employees would work in a year. It stays the same regardless of how many employees are actually employed. You can have 10 employees – the OSHA constant is 200,000 or 100 employees. You can have 3,623 employees and the OSHA constant is 200.000 or 100 employees. The old National Safety Council constant was 1,000,000 or the equal of 500 employees. OSHA figured the smaller constant made more sense – like proclaiming the moon IS made of blue cheese! If you were calculating the OSHA Incident Rate and had 14 Recordable Injuries(injuries which met the OSHA criteria for being recordable) the calculations would be as follows:
OSHA Incident Rate =(14 Recordable Injuries x 200,000) / 151,920 hours worked = 18.43 Recordable Injuries per 100 Employees.
Other calculations take the same format – you furnish the numbers for what you want to measure. With our senior management, I used a process where I estimated costs per accident/injury and was able to give a cost per 100 employees. That was a figure our management could use and became a part of setting goals and calculating bonuses. So you can use the process as it best suits your needs and helps the company. I hope this covers your question and provides some useful information.
Michael Brown, CSP Retired