It's something everyone's for but few support; it's a program that's continuously "sold" but few "buy." This confusing illusory commodity is-safety!

But there is one sure, certain thing about safety: it demands our serious thought right now! We can't afford to put this off much longer, for there may not be anyone left to save! Far-fetched? Not when one considers the National Safety Council's annual accident statistics.  These show 55,200 fatalities plus 2,000,000 injuries which disabled beyond the day of the accident, for a total cost of $11,300,000,000 during 1968. And no projections issued so far hold much promise for improvement next year - or the year after! In fact, we're barely holding the line.

Those of us in fleet management should be in the forefront of those promoting safety. We have an unusual opportunity to influence vast numbers of vehicle operators - many, many more than those who operate our fleet vehicles.

It has been said that each of us have a direct influence through our families and close friends on at least eight people. In addition there are at least ten others for the businessmen who come within his sphere of influence and who represent normal business and daily contacts. For the purpose of projection then we can say that through each individual, in a responsible position in business, 18 others can be reached. Imagine, then, the number of people a fleet administrator can reach with a safety message!

The point of this projection is that we fleet administrators can do a great deal more than we may have imagined. The message of safety could be almost universally sold by us, when one considers this pyramiding effect our influence could have, providing we sell it properly and with continued effort. There are many reasons, I'm sure, why its been so difficult to sell safety. From a fleet point of view, however, I feel that two reasons stand out. The first is our general inability to impress management with our need for a formal safe driving program which requires their full support. The second is due to our inability to convince the person behind the wheel that he might be the one we're talking about when we discuss accident statistics.

How can one go about establishing an effective program? Admittedly, there's no such thing as a sure-fire formula for everyone. One should use an approach that fits one's particular needs. Yet, there are two musts for everyone: the complete backing and support of management and a complete, effective and workable safe driving package document in detail.

Before anything else one must establish and document the need for such a program, in order to get managements' support. For this all the facts and figures must be available which will prove to management that they're a high price for accidents in terms of expense and lost profits. A first step might be the enlisting of the aid of the National Safety Council by ordering their latest copy of "additional facts" and other available material both statistical and educational. Next, compile the facts and figures of your own fleet in order to show:

1.      Present accident frequency

(# of accidents x 1,000,000)

        Total fleet mileage

2.      Number of preventable accidents

3.      Average cost per accident which includes among other things:

A.    The average loss of wages per accident (average time lost per accidents in days x operators average daily wage.)

B.     Average repair cost of vehicle per accident.

C.     Insurance administrative and claim settlement costs (difference between premium and claims paid.)

D.    Medical and hospital expenses.

4.      Average "production" per operator per day in dollars.

5.      Company's net profit margin.

The combination of these figures will enable you to forcefully drive home the actual cost of accidents. With them you'll be able to show not only that accidents can be prevented (by citing the number which are classified as "preventable"), but also that accidents eat up hard earned profit.

As a graphic example of how effective this can be (using conservative estimates) let us assume that 60% of all accidents are preventable and that the cost per accident amounts to $450. Now suppose your fleet had 100 accidents with an average of 2 days lost time per accident.

Let us also assume that your operators produce $1000 in sales each 5 days or $200 each day and that your company's net profit margin is 3% (or 4%, 5%, whatever it may be).

It can easily be shown on the basis of these figures that the direct cost per accident ($450 x 100 accidents) is $45,000, that "lost" income (100 accidents x 2 days x $200 x 3%) is $1,200, and that the total cost is $46,200; while there may well be other fringe or indirect costs, these are the more obvious ones and are used for this example.

Since an average of 60% of all accidents are considered preventable, let's deal with only that amount. Sixty percent of $46,200 is $27,720. This figure represents both the cost of accidents that should never have occurred and those which can be eliminated.

Now let's look at the cost of accidents in terms of gross sales volume. On the basis of a net profit margin of 3%, the profit on a total of roughly $923,000 in sales volume has been dissipated. Looking at this cost another way your company will need an additional $923,000 in sales to just break even. Further, it would take a total of $1,846,152 in sales for the same profit you would have had on $983,000 in sales-without the preventable accidents.

Another tool that can be used to convince management of the importance of a safety program is to establish the accident frequency of your fleet in terms of the number of accidents per 1,000,000 miles of operation the basis used by the National Safety Council). To do this, the yearly total of all accidents is used, regardless of their severity or preventability. This total is multiplied by 1,000,000 miles and divided by your total annual fleet mileage. For example, if your fleet suffered 200 accidents over a period of a year and your total annual fleet mileage was 40 million miles, your frequency is 5 accidents per million miles traveled. This figure can then be compared to the average frequency reported by the National Safety Council. And a still closer comparison is possible when your fleet is compared with the frequency rate for the industry category in which your fleet belongs.

The final step in showing management that safety pays, is the presentation of a complete safe driving program. Once again, there's no magic formula involved. Just a few basic guidelines will apply in every case:

1.      Weed out potential problem drivers by effective pre-employment testing for both knowledge and driving skills and by checking previous driving history for valid license.

2.      Provide for detailed reporting and analysis of all accidents.

3.      Form a safe driving committee and accident review board with representation from fleet, insurance and management.

4.      Develop clear cut guidelines for the classification of preventable accidents

5.      Maintain accident statistics by cause, severity, repair cost, preventability, mileage and frequency.

6.      Develop a continuing educational program that can be regularly scheduled and which includes safety films and talks, bulletins, defensive driving training course (N.S.C. approved course), regular reports on accident frequency and cost, and time for safety at all scheduled staff meetings.

7.      Institute a program for motivation and recognition, which can include such things as awards (certificates, plaques, etc.), incentives (cash, merchandise, etc.), recognition (articles and pictures in house organs and hometown papers), and penalties (share in repair costs, loss of personal use, etc.).

To insure your program's acceptance, make certain that it is worked out in detail, includes copies of all required forms, and is ready to go. But do this before you present it. Include any anticipated expense and an outline on how it should be announced and implemented. And remember, while one can't guarantee specific savings, one can spell out what accidents are presently costing and what can be saved. The presentation should also make clear that the implementation of the safety program will not result in instant accident reduction. It takes time, at least one year, to produce measurable results. It is important that management doesn't expect sudden changes!

Once management has been convinced, announcement of the program should be made by the president or chief executive officer. There's nothing quite so effective in assuring the program's success in the field than the knowledge that top management wants it to work. To supplement the announcement, a copy of the entire program, accompanied by applicable procedures, should be distributed. At the same time full publicity should be given its announcement in your house organ.

Equally important to getting such a program implemented is the follow-up it is given. Maintain interest, make safety a household word, and keep selling! It may take a great deal of work and effort to develop, sell and maintain a safe driving program, but it's good business. And all things considered it will increase production and will save money and lives. When you look at safety from that standpoint no company can afford to be without a program that promotes it.

 

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