Workplace Safety

Injury Risk Can Remain Even with Automation

Automation may help companies prevent common injuries, but it’s not time to ease diligence on safety.
By: | April 11, 2018 • 3 min read

Automation increasingly seems to be taking over in workplaces around the world. A 2017 report from PwC suggests that as many as 40 percent of U.S. workers could be replaced by robots by 2030. Many employers see automation as a solution for preventing various common workplace injuries.

Advertisement




But replacing people with machines is not a fail-safe or a one-size-fits-all solution, nor does it necessarily alleviate the risk of injuries.

While robots have been proven to be effective in certain areas, such as lifting heavy objects or engaging in extremely repetitive work, Scott Smith, director, ergonomics global risk consulting, Aon, said a thorough cost-benefit analysis needs to be conducted first.

“You need to take a look at the analytics,” he said. Companies often fail to conduct a detailed analysis with all stakeholders — including risk management, operations, health and safety, human resources if a union is involved, etc. — and evaluate all data from both a risk and loss perspective before considering a change, Smith added.

In some situations, automation could be a boon. For instance, a semi-automated system in a warehouse that allows an individual to use a robot to load boxes into trucks may not only potentially increase the speed at which the job is completed but may also significantly reduce workers’ comp claims for back and shoulder injuries.

Scott Smith, director of ergonomics global risk consulting, Aon

But Smith said he’s seen companies embrace the idea of automation too eagerly, believing they will transfer their workers’ comp risks to a machine. Smith relayed a situation where a plant replaced a person who loaded aluminum heads onto an assembly line with a $400,000 robot. However, an individual was still required to load the robot.

Smith said the homework needs to be done. Look at the number and expense of particular workers’ comp injuries technology is intended to save. Review how the economy and unemployment could affect future staffing. Find out if the automation would provide financial incentive.

Another consideration is how the technology will interact with individuals. David Langham, deputy chief judge, the Florida Office of Judges of Compensation Claims, said anyone who doesn’t see the potential for robots potentially causing damage to humans is “a little bit naïve.”

“What I’ve seen in the industry is machines built to be safe and humans who make poor decisions around those machines, resulting in injury,” he said. “There’s no such thing as the absolute right technological solution. Every solution you engage has the potential to create another problem.”

“There’s no such thing as the absolute right technological solution. Every solution you engage has the potential to create another problem.” — David Langham, deputy chief judge, the Florida Office of Judges of Compensation Claims

Smith said he has seen pinch and crush injuries occur when workers mix with robots. Pinch injuries can often occur during maintenance, because during the design and installation, the ergonomics of the design rarely take into account maintenance, he said, and those responsible for repairing the machine typically need to work in very cramped, awkward spaces.

Crush injuries are more likely to occur for robots with a bigger footprint that may need 360 degrees of freedom for movement, Smith noted, and often a physical barrier or a light curtain will be needed to prevent injury.

Advertisement




Langham noted that another potential safety issue with automation is when repairs are outsourced to another company or an independent contractor who is unfamiliar with the company’s equipment and set-up. Another issue is when companies cut back on time spent in safety meetings and awareness because of the addition of robots.

“I think there are going to be a lot of companies that are going to think robots decrease demand for those meetings, and I think that will very probably lead to injuries,” he said. “Employees need to be reminded.” &

Angela Childers is a Chicago-based writer specializing in health care and business management. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

2018 Risk All Stars

Stop Mitigating Risk. Start Conquering It Like These 2018 Risk All Stars

The concept of risk mastery and ownership, as displayed by the 2018 Risk All Stars, includes not simply seeking to control outcomes but taking full responsibility for them.
By: | September 14, 2018 • 3 min read

People talk a lot about how risk managers can get a seat at the table. The discussion implies that the risk manager is an outsider, striving to get the ear or the attention of an insider, the CEO or CFO.

Advertisement




But there are risk managers who go about things in a different way. And the 2018 Risk All Stars are prime examples of that.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Goodyear’s Craig Melnick had only been with the global tire maker a few months when Hurricane Harvey dumped a record amount of rainfall on Houston.

Brilliant communication between Melnick and his new teammates gave him timely and valuable updates on the condition of manufacturing locations. Melnick remained in Akron, mastering the situation by moving inventory out of the storm’s path and making sure remediation crews were lined up ahead of time to give Goodyear its best leg up once the storm passed and the flood waters receded.

Goodyear’s resiliency in the face of the storm gave it credibility when it went to the insurance markets later that year for renewals. And here is where we hear a key phrase, produced by Kevin Garvey, one of Goodyear’s brokers at Aon.

“The markets always appreciate a risk manager who demonstrates ownership,” Garvey said, in what may be something of an understatement.

These risk managers put in gear their passion, creativity and perseverance to become masters of a situation, pushing aside any notion that they are anything other than key players.

Dianne Howard, a 2018 Risk All Star and the director of benefits and risk management for the Palm Beach County School District, achieved ownership of $50 million in property storm exposures for the district.

With FEMA saying it wouldn’t pay again for district storm losses it had already paid for, Howard went to the London markets and was successful in getting coverage. She also hammered out a deal in London that would partially reimburse the district if it suffered a mass shooting and needed to demolish a building, like what happened at Sandy Hook in Connecticut.

2018 Risk All Star Jim Cunningham was well-versed enough to know what traditional risk management theories would say when hospitality workers were suffering too many kitchen cuts. “Put a cut-prevention plan in place,” is the traditional wisdom.

But Cunningham, the vice president of risk management for the gaming company Pinnacle Entertainment, wasn’t satisfied with what looked to him like a Band-Aid approach.

Advertisement




Instead, he used predictive analytics, depending on his own team to assemble company-specific data, to determine which safety measures should be used company wide. The result? Claims frequency at the company dropped 60 percent in the first year of his program.

Alumine Bellone, a 2018 Risk All Star and the vice president of risk management for Ardent Health Services, faced an overwhelming task: Create a uniform risk management program when her hospital group grew from 14 hospitals in three states to 31 hospitals in seven.

Bellone owned the situation by visiting each facility right before the acquisition and again right after, to make sure each caregiving population was ready to integrate into a standardized risk management system.

After consolidating insurance policies, Bellone achieved $893,000 in synergies.

In each of these cases, and in more on the following pages, we see examples of risk managers who weren’t just knocking on the door; they were owning the room. &

____________________

Risk All Stars stand out from their peers by overcoming challenges through exceptional problem solving, creativity, clarity of vision and passion.

See the complete list of 2018 Risk All Stars.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]