Phase V:
Develop and Test the Overarching IH Value Strategy

Introduction

The purpose of Phase V of the Value of the Industrial Hygiene Profession study was to use data, information, products, and knowledge obtained during Phases I through IV of the study, to build an Overarching IH Value Strategy that would enable the determination and illustration of the business value of IH programs and activities. This Overarching IH Value Strategy effectively links the Qualitative and Quantitative Approaches. In addition, activities in Phase V included the organization, design and execution of a pilot-test of the Overarching IH Value Strategy. The results of this test are listed in section

Background

The study team recognized at the outset that, in addition to producing detailed financial and business metrics, a need existed for capturing value in situations that were hard to quantify. The Return on Health, Safety, and Environmental Investment (ROHSEI) Tool had addressed both quantitative and qualitative issues for more than a decade, but the focus had primarily been on cost reduction. As a result of study investigation and field pilot testing, new categories of value were identified and were incorporated into the Overarching IH Value Strategy, including: 1. the generation of new revenue; and 2. value contributions to other parts of the business. Value contributions were captured by aligning them with key business objectives.

Health professionals must view their IH programs in the context of these overall business objectives. How does industrial hygiene help deliver or support these business objectives and deliver overall value? Which IH programs have the biggest influence or potential to contribute to the overall success of the enterprise? How can IH efforts be best aligned with strategic business objectives? By carefully considering each of the key business objectives, the health professional can determine the contributions of IH programs. This in turn helps senior business leadership gain a full appreciation for the value of IH to the organization.

The Business Objectives Strategy was developed to assist health professionals in identifying how IH efforts deliver or can deliver strategic business values. The strategy incorporates six categories of major objectives that an organization may consider important functions of their business. Business objective categories are often interrelated. Specific strategic business values vary by company and reflect the industry, customer base, product lines, market spaces and a host of other factors. Each of these factors must be carefully evaluated to determine how IH plays or could play a role. Nevertheless, there are some generic key business objectives common to most organizations.

The Overarching IH Value Strategy enables managers and IH professionals to conduct business case analyses for the purposes of determining and illustrating the business value of IH programs and activities.

The Strategy has three categories of activity: preliminary investigation and study prioritization, value assessment, and value presentation. These categories include eight specific strategy components, and each component includes specific steps and approaches in a sequential construct.

A key issue that was addressed in completing the Strategy was the trade off between keeping it simple and user friendly and including enough detail for it to be credible. The solution was to develop a flexible approach that allows the user multiple entry points and allow them to substitute their own existing information whenever possible.

Problem Statement

Is there a way to provide a practical framework for demonstrating the value of IH programs or activities using a qualitative approach, a quantitative approach, or a combination of both qualitative and quantitative approaches?

Study Approach

As mentioned previously in this report, the concepts underpinning the Overarching IH Value Strategy start with ROHSEI tool, which addressed both quantitative and qualitative issues. But those concepts have been refined and significantly modified and expanded as a result of this study. The concepts of the Overarching Strategy were pilottested with approximately 12 participating ORC member companies offering 18 individual case studies. Questionnaires and site visits explored the existence and understanding of the quantitative and qualitative aspects of measuring the value that IH brings to the business. Pilot test and case study findings are provided later in this section of the report.

The final Overarching Strategy will be retested with these companies to ascertain their understanding of key concepts and to see if they feel the Strategy sufficiently captures the critical data needed to meet their needs. Companies will be provided with instructions, trained in the strategy, and then asked to apply the strategy and provide feedback through a questionnaire instrument on the strategys usefulness, effectiveness, and any potential issues for resolution.

General Study Findings

Significant knowledge was gained from the iterative and interrelated study process, where findings evolved and built upon other concurrent study work. For example, lessons emerged in testing the Quantitative Approach that also applied to the Qualitative Approach and vice versa. Several key findings that relate to the Overarching IH Value Strategy are:

Finding #1. Many study participants were eager to make an IH value assessment, but they had no idea of where to start. A key study finding was that the Value Strategy had to provide guidance in the initial stages, before the actual value assessment, so the industrial hygienists would not have to waste their time and effort on a value fishing expedition.

Finding #2. Locating value in an IH setting requires an understanding of the intersection between IH risk and the business. A common framework for understanding the business is a census of key business objectives. A logical way to understand IH risk is to inventory common IH hazards.

Finding #3. The process of identifying and controlling risk is the principal component of the IH work. The industrial hygienist must anticipate, recognize, evaluate, prevent, and control workplace factors which could result in adverse health effects among workers. The IH professional must first fully understand the business process to anticipate risk and identify potential hazardous exposures. Properly implemented, the IH program will protect workers from biological, chemical, and physical hazards (including ergonomic, noise, and radiation hazards).

Finding #4. IH professionals need guidance in determining the most appropriate value approach to take. Quantitative assessments often provide the most credible information. But qualitative assessments are critical to capturing some of the most significant business contributions. In many instances, a complete IH program value assessment will require a combination of quantitative and qualitative approaches.

Finding #5. Qualitative and quantitative value assessments have the same basic steps. Both start with risk. They then capture changes in health, the IH risk management process, and other aspects of the business that result from the IH activity or program. These changes are further analyzed to determine the resulting impact on the business. The impacts are then valued. The values are then captured and catalogued for presentation.

Finding #6. Traditional value analysis focused on cost reduction significantly understates the value that industrial hygiene adds to the business. The pilot studies revealed significant IH value generation in the areas of new revenue and other business benefits.

Description of the Overarching IH Value Strategy

The Overarching IH Value Strategy provides an approach for determining and illustrating the business value of IH programs and activities. Many times the industrial hygienist is faced with designing and implementing an IH program or activity to mitigate a specific risk, exposure, or compliance issue and may not entirely appreciate the other values that the IH program or activity brings to the business. The Strategy helps guide the industrial hygienist in developing and presenting a more complete business value proposition for IH programs and activities.

The Overarching Strategy consists of 8 steps:

  1. Understand Business Objectives and IH Hazards
  2. Identify and Prioritize Value Opportunities
  3. Assess Risk Reduction
  4. Determine Value Approach: Qualitative or Quantitative
  5. Determine Changes
  6. Determine Impacts
  7. Determine Value
  8. Present Value Proposition.

 

The diagrams on the following three pages provide further description of each step in the Strategy (Figures V-2, V-3, and V-4).

Step 1: Understanding Business Objectives and IH Hazards

In the first step of the Strategy, the industrial hygienist completes an inventory of both business objectives and IH hazards.

Completing a business objectives inventory is important in order to have a broad perspective of how IH programs and activities have or could support attainment of overall business goals. The Strategy asks industrial hygienists to identify business objectives for their companies in the following broad areas: Operational, Growth, Product/Service, Reputational, Human Resources, and Other. The industrial hygienist needs to consider corporate, business, and local goals and objectives, as well as, mission statements, strategic plans, and annual operating plans. Along with business objectives, key performance indicators (KPIs) associated with each objective should be captured in the inventory.

Completing an IH hazards inventory is another important activity in this step of the Strategy. A process-by-process hazards inventory is prepared. The Strategy then asks the industrial hygienist to characterize hazards by their actual or potential business significance. Criteria for IH hazard business significance include actual illnesses, claims or allegations, known or suspected employee overexposures, known or suspected compliance issues, emerging regulatory issues, new or uncertain health impacts and special interests by the public, non-government organizations (NGOs), and other stakeholders. This approach of screening hazards by specific criteria helps the industrial hygienist narrow down which IH programs and activities are likely candidates to contribute value to the overall business.

Step 2: Identify and Prioritize Value Opportunities

In this step, the industrial hygienist identifies and prioritizes value opportunities that can be further evaluated.

Once the company-specific business objectives inventory is built in Step 1, the Strategy asks the user to evaluate how the IH program or activity under consideration influences those business objectiveseither favorably, unfavorably, or not at all. For example, an IH program of periodic monitoring employee exposures strongly supports and aligns with an overall Human Resource business objective of creating a great place to work.

 

 

By thoughtfully considering how an IH program or activity influences each business objective, the industrial hygienist begins to identify potential value streams to the overall enterprise. While this analysis can be completed by the industrial hygienist, it is recommended that a small cross-functional team of internal stakeholders work together to complete the influence ratings. A cross-functional team can help ensure full identification of value opportunities and a balanced approach. After the evaluation, the industrial hygienist makes plans to study more thoroughly those selected IH programs and activities with the strongest favorable influence on business objectives. In subsequent steps of the Strategy, risk reductions associated with these selected IH activities are studied as well as their qualitative and/or quantitative business value contributions.

Step 3: Assess Risk Reduction

In this step, the industrial hygienist identifies the actual or predicted risk reduction(s) associated with the implementation of an IH program, activity or intervention. The risk reduction(s) are part of the overall IH value proposition. The industrial hygienist conducts a pre-intervention or baseline risk assessment and follows it up with a post-intervention risk assessment. The health risk reduction that results from the IH program, activity or intervention becomes part of the overall value proposition. The Strategy references two risk assessment methods. The first risk assessment method is described in the American Industrial Hygiene Association (AIHA) publication A Strategy for Assessing and Managing Occupational Exposures, Third Edition. A second risk assessment method referenced is the general risk assessment method contained in American National Standard Institute (ANSI) Standard Z10, Occupational Health and Safety Management System.

In subsequent steps of the Strategy, other changes, impacts and benefits associated with the risk reduction are identified and incorporated into the value proposition. These changes, impacts and benefits may take many forms including more efficient operations, improved

Step 4: Determine Value Approach: Qualitative or Quantitative

Here the industrial hygienist evaluates the data available related to an IH program, activity or intervention and determines if the value approach is best made through a qualitative approach, a quantitative approach, or a combination of both.

The Overarching IH Value Strategy splits into two paths at this point, either a qualitative path or quantitative path. The Strategy guides the industrial hygienist in choosing between Qualitative or Quantitative Approaches. Important considerations include the level of leadership scrutiny and likelihood of project challenge, risk perception, compliance status, company policy on financial justifications, and time available to collect supporting data. In general, the industrial hygienist should make every effort to be as detailed as possible in defining the financial costs and benefits of the IH program, activity, or intervention.

Study findings have demonstrated that in addition to risk reduction many IH programs and interventions also provide direct and indirect financial benefits many times exceeding the costs of the intervention. In attempting to demonstrate value of an IH intervention a quantitative analysis with "hard numbers" is usually preferable to a qualitative approach that makes (albeit credible) estimation analysis. By developing a detailed business case for a program, activity, or intervention, the IH function is more likely to be viewed favorably as a business partner and the value of IH interventions can be more readily compared with competing financial opportunities within the organization.

Given the nature of the many intangible benefits associated with IH programs, activities and interventions; there will be activities that deny the accurate and comprehensive quantification of financial benefits. In these instances, the industrial hygienist should use the Qualitative Approach to fully capture and define the benefits to the organization.The Strategy is flexible in that the industrial hygienist may follow either the qualitative or quantitative path or choose to conduct the analyses contained in both paths and combine the analyses when making a final value determination and value presentation.

Step 5: Determine Changes

Following selection of the Qualitative or Quantitative Approach, the next step in each path is for the industrial hygienist to identify the changes or anticipated changes resulting from the IH program, activity, or intervention. The intent of this step is to simply identify or flag changes; the magnitude of each change is measured in the next step. In both the Qualitative and Quantitative Approaches, changes are categorized into three areas:

  • Health status
  • IH risk management process
  • Business process.

Identification of changes in these three areas helps to understand and build the value proposition for the IH program, activity, or intervention. In terms of changes in health status, the industrial hygienist identifies changes in mortality, morbidity (lost time, restricted, and medical treatment cases), and other employee health or functionality changes such as employee stress, absenteeism, or other factors. The Strategy allows the industrial hygienist to identify any confounding factors, for example, if there is some uncertainty as to whether or not a noted health status change occurred as a result of the IH program, activity, or intervention, or due to other factors. As an example of a confounding factor, consider the situation where the industrial hygienist believes that an ergonomics intervention has resulted in a net change (reduction) with respect to employee stress levels. It may also be possible that the change in stress levels was actually due to a more liberal employee absenteeism policy. The industrial hygienist can consider the confounding factor of the new absenteeism policy and provide an estimate on the likelihood that it was responsible for a noted health status change. Because changes and their causes and effects are often complex, it is useful to make careful consideration of the root causes of noted changes.

The second change category is change in IH risk management processes. The Strategy prompts the industrial hygienist to look at whether or not there were changes in overall IH duties and responsibilities, administrative load/recordkeeping, management of hierarchy of controls, management of monitoring/medical surveillance, or other IH risk management processes. Again, the Strategy allows the industrial hygienist to identify and evaluate potential confounding factors.

The third category for change is business process. Specific areas of change within this category include changes in process design, changes to inputs/equipment/materials, changes in how the process is managed, changes in process flow and pace and other business process changes. Confounding factors are also considered in this change category.

After completing the evaluation of changes in health status, IH risk management processes, and business processes, the industrial hygienist can proceed to evaluate the impacts of the identified changes.

Step 6: Determine Impacts

In this step of the Strategy, the industrial hygienist identifies impacts associated with identified changes in health status, IH risk management processes, and business processes. In the Quantitative Approach, impacts are entered into the Strategy as costs in dollars. In the Qualitative Strategy, impacts are categorized as high, moderate, or low and supplemented with reasonable cost estimates where available.

It is important in this step to capture as many impacts as possible associated with the changes from IH programs, activities, or interventions. Impacts may be positive or negative. From a health status viewpoint, impacts may include workers compensation and other costs of illnesses, as well as other impacts such as changes in absenteeism, presenteeism, insurance premiums, labor turnover, medical removal, job transfer, training/re-training, worker productivity and other factors. Where exact costs are not available, defensible estimates should be used. In the qualitative approach, impacts are captured as high, moderate, or low, with supporting rationale provided.

From an IH risk management viewpoint, costs are captured in the categories of IH duties and responsibilities, administrative load/recordkeeping, hierarchy of controls, monitoring/medical surveillance, and other IH risk management processes. For example, an IH intervention may reduce the need for personal protective equipment (PPE) and reduce downtime associated with donning and doffing PPE. These cost impacts can often be directly measured or estimated and then entered into the Quantitative Approach.Where a Qualitative Approach is chosen, the industrial hygienist will capture impacts as high, moderate, or low, with supporting rationale as well as any cost estimates in dollars.

From a business process point of view, impacts are measured across the previously identified change categories (process design, inputs/equipment/materials, management, flow/pace, and other business process changes). For example, if an IH intervention reduces or eliminates process steps, the costs savings in terms of improved cycle time can be measured or estimated and entered into the Quantitative Approach. Similarly, these savings can be characterized as high, moderate or low in the Qualitative Approach.

Step 7: Determine Value

In this step the industrial hygienist determines the overall value of the IH program, activity, or intervention. Considerations include the cost of the intervention (investment cost) and cost savings/avoidances, new revenue generation, and other benefits resulting from the intervention. Results are used to prepare a value presentation in the final step of the Strategy. A value equation appears in Figure V-5.

The Quantitative Approach of the Strategy focuses on guiding the user through a series of worksheets to define intervention costs and capture the costs before and costs after a particular IH program, activity, or intervention across the categories of health status, IH risk management process, and business process. In addition, the Quantitative Approach captures a number of parameters and business assumptions, such as depreciation,corporate tax rate, inflation rate, discount rate, loaded wages, and others. These data are used to calculate financial metrics such as Return on Investment, Payback Period, Internal Rate of Return, and Net Present Value in the Quantitative Approach.

The Quantitative Approach also captures other benefits such as any improvements in product ordering, time to market, protection of revenue/market share, utilization of people, employee morale, product and service reliability, and company reputation. While many of these parameters are difficult to quantify exactly, the industrial hygienist is asked to make credible estimates where possible.

In the Qualitative Approach, the value of the actual or proposed IH programs, activities, and interventions is based on estimates of several costs. These are often difficult to precisely calculate; however, the industrial hygienist can sometimes estimate these benefits and provide evidentiary value arguments.

The Qualitative Approach has built-in limitations, and caution must be used. Unlike a strict Quantitative Approach, the Qualitative Approach looks at very rough estimates of value over a short time-frame and provides an evidentiary rationale for conclusion made. Calculations of future year impacts, the impact of financial interest and discount rates, and the time-value of money are not factored into a Qualitative Approach, for example. This will cause inaccuracies. The Quantitative Approach makes these and other considerations and takes a much more data driven approach to the analysis. That Quantitative Approach allows calculation of financial Return on Investment (ROI), Net Present Value (NPV) and Payback Period. Nevertheless, with the Qualitative Approach, the industrial hygienist can make some defensible cost estimates and provide rationale that can be discussed with Management during a value presentation.

Step 8: Value Presentation

In the final step of the Strategy, the industrial hygienist pulls together an executive summary presentation that describes the value of the IH program or activity. Areas of focus include quantitative and qualitative analyses that address cost savings/avoidance, new business revenue and other benefits.

The executive summary value presentation is a critical termination of both the underlying Quantitative and Qualitative Approaches within the Overarching IH Value Strategy. Key components of the presentation are:

  • IH program or activity description
  • IH hazard and risk reduction
  • IH opportunity
  • Changes and impacts
  • Costs of IH program or activity
  • Value determination and financial metrics
    • Cost savings/avoidance
    • New revenue
    • Other benefits
  • Summary statement and recommendations.

Strategy Application and Pilot Test

Because of its flexibility, the Overarching IH Value Strategy can be applied and integrated into a host of business processes, including but not limited to capital appropriation projects, plant and facility expansions and modifications, due diligence reviews for acquisitions and divestitures, changes in hierarchy of controls, supplier evaluations, contractor selections, outsourcing decisions, and customer interactions.

The Strategy can be used retrospectively or prospectively to determine value of IH programs, activities, or interventions. For example, on the retrospective side, consider an existing respiratory protection program. The industrial hygienist can demonstrate value by considering the changes and impacts that would have occurred if the respirator program was not in place. On the prospective side, the industrial hygienist can assess the value of IH interventions to be implemented. For example, consider the design of a new paint booth. The value of IH interventions such as ventilation controls built into the design can be measured and valued before implementation through the Strategy.

The following Case Studies illustrate the findings from pilot testing the concepts contained in the Overarching IH Value Strategy. In several instances the Strategy and Approach components were refined after the case study visit. The study team will retest the completed version of the Strategy and Approach components with the case study participants and with additional ORC member companies.

Case Study 1: Pharmaceutical Powder Exposure Reduction

Background

The following case study involves a company with operations in pharmaceutical manufacturing. To control IH risk, the company uses a control banding process that specifies what employee protection measures are appropriate based on where a specific compound falls within a predetermined airborne exposure range. The control band is ranked from 1-5 with range 1 being the most potent and 5 being the least potent.

Hazard Identification

The hazard identified within this particular chemical manufacturing operation involved exposure to highly potent active pharmaceutical powders. Pharmaceutical powders at varying exposure levels can be extremely hazardous to workers who handle or work near them. These powders have many exposure routes including inhalation, skin contact, skin absorption, or ingestion.

Hazard Intervention

The company identified the hazard as a chemical exposure to employees. The abatement approach involved a change in the engineering controls to eliminate the need for operator use of powered air purifying respirators (PAPRs) in the hazard ranges from 2-5. The capability of containment bags to prevent release of powder into the work environment was augmented.

Impacts of the IH Activity

Many positive health, business, and risk management benefits resulted from the implementation of the engineering control and containment modifications. Health improvements resulted from the intervention because employees were not directly exposed to the pharmaceutical powders. Operator exposure rates were significantly reduced. The business process was improved because savings in the amount of $172,800 per year resulted from reduced PPE usage; employee time to put on PPE was also reduced resulting in a savings of $78,000 per year. The intervention allowed for a 40% reduction in non-hazardous waste generation. Since less waste was generated, less waste required disposal. Less IH sampling was needed to verify an adequate level of employee protection. Savings from reduced IH sampling were $30,000 per year. Positive risk management changes included assurance of regulatory compliance, potential FDA/EMEA benefits for contained processing, and less processing area to be cleaned.

Financial Metrics

After entering the data into the ROHSEI software the intervention resulted in a positive net present value (NPV) of $76,668. The internal rate of return (IRR) was 16% while the return on investment (ROI) was 7%. The discounted payback period (DPP) was 4.2 years.

Lessons Learned

This case study demonstrated that the use of PPE versus containment is not always the best business practice or best way to reduce costs. Many cost savings resulted from the elimination of the hazard (containment) and the elimination of PPE usage.

Case Study 2: Reduction of Exposure to Chromate-Based Paint Primer

Background

The manufacturing process evaluated was a rework operation that involved sanding of chromium-based paint primers to achieve adequate surface characteristics for subsequent painting steps. Parts received from subcontractors had surfaces that were not uniform and had chips that had to receive additional sanding prior to being assembled or receiving the final surface painting. Failure to address the inadequacy of the primer coat could result in quality issues in the finished products resulting in further and more costly rework later in the manufacturing process or, potentially, after receipt by the customer.

Hazard Identification

The imperfections in the primer coat had to be hand-sanded by manufacturing operators, resulting in additional in-process rework and potential chromate exposures to employees. The danger of chromate dust exposure was well-recognized by the company and adequate steps were taken to provide and use personal protective equipment to ensure worker safety. Previous sampling exposure monitoring determined that unprotected worker exposure to airborne hexavalent chromium was five times the permissible exposure limit (PEL) when spraying the primer, and two times the PEL during vacuum sanding. In addition, OSHA had recently issued a new standard revising the current PEL downward (to 1 microgram per cubic meter of air as an 8-hour time-weighted average), thus putting additional focus on the chromium exposures at the facility.

Hazard Intervention

The company had long recognized the hazard associated with chromate-based paints. However, in complex operations many priorities compete for managements time and focus. Since employees were receiving adequate protection from local exhaust ventilation and PPE, there was no sense of urgency to find options to eliminate the use of chromate-based primers.

The IH-generated project provided impetus to the re-evaluation of the requirement to use chromate-based primers in the aircraft manufacturing process. The project required both time and resources from the production and engineering staffs to demonstrate that nonchromate based primers would be adequate substitutes to ensure a high level of both product quality and employee protection. Once the testing was satisfactorily completed, additional costs were incurred to make the design change to the product specifications and communicate the changes to the appropriate sub-contractor.

Impacts of the Intervention

The new priming material reduced paint chipping, which resulted in improved quality of the primer-coated parts. Along with a concurrent project to address the quality of vendor-produced parts, eliminating the need to rework chromate-primed parts resulted in a significant labor productivity savings.

The intervention eliminated worker exposure to chromate dusts from rework sanding. Employees were still exposed to non-chromate dust, but as a result of the intervention the level of respiratory protective equipment required could be reduced from full-face powered air-purifying respirators (PAPRs) to half-face air-purifying respirators. As a result of the elimination of chromate dust, the company was also able to avoid implementing costly changes to the facilitys exhaust ventilation systems. The new hexavalent chromium standard would have required a more robust ventilation design to comply with the 2010 compliance date for the new OSHA PEL. Without the need to comply with more stringent requirements, existing exhaust ventilation systems were deemed acceptable or would require significantly fewer design upgrades to meet company IH standards.

Other benefits of the intervention included:

  1. Increased customer satisfaction due to product deliveries that required less followup surface rework
  2. Elimination of chromate primers improved a corporate social responsibility metric associated with corporate Materials of Concern (MOC)
  3. Increased employee morale due to the elimination of chemical exposures greater than the companys occupational exposure limit (OEL)
  4. Decreased regulatory risk due to the elimination of hexavalent chromium in this operation
  5. Lessons learned from the project have the potential to be transferred to other products and facilities within the corporation.

Financial Metrics

A ROHSEI analysis was conducted on the benefits and costs associated with the intervention. The analysis showed that the substitution of non-chromate priers resulted in an after-tax net present value savings of $504,694 over the 5-year duration of the project evaluation. This represented profit that could be attributed to an additional unit of production per year. In addition, the substitution resulted in significant productivity gains.

Lessons Learned

A key lesson learned for the project was that in some cases management is aware of the need for certain actions but is distracted by a multitude of other issues associated with operating the business or organization. In addition, even in highly responsible organizations management may delay taking action if they have the perception that employees are adequately protected by PPE. In this case management knew the right thing to do and the project should have proceeded on its own merit; however, the project did not rise up the companys priority list until the proper management focus was created by IH professionals.

IH professionals can be catalysts to enable organizations to make process or business changes that not only protect employees but also result in significant business improvements that can save money and contribute to an organizations competitive advantage.

Case Study 3: Hearing Conservation Case Study

This small company has one forge plant with approximately 68 employees who produce custom-ordered parts manufactured in a hot forged and trimming process. Forging operations at the plant consist of heating various steel and bronze materials to high temperature (2,300 degrees F), placing the parts between tool steel dies, and striking them repeatedly to form predetermined shapes.

Hazard Identification

Hammer forges generate loud noise due to the multiple impacts required to form each part from preheated metal stock. Employees are required to handle the parts with tongs and continuously insert the parts into multiple dies where there is metal-to-metal contact as the parts are struck repeatedly by the hammer forge. The operators are thus exposed to frequent loud impact noise. The operators for the manual forging presses are within 3 to 15 feet of the source of very high noise levels. Over a typical 10-hour shift workers were routinely exposed to Time Weighted Average (TWA) exposures of 110-115 dBA, which far exceeded the OSHA 8-hour TWA permissible exposure limit (PEL) for noise of 90 dBA.

Hazard Intervention

The company had long recognized the potential risk of the loud noise exposure to employees. A hearing conservation program was in place and employees wore hearing protection of their choice. Audiometric testing was conducted to screen for audiometric threshold shifts, and several shifts were noted during each annual testing program. However, follow-up testing and medical evaluation demonstrated that only one permanent threshold shift had occurred. In 2005, the company was inspected by the Tennessee Division of Occupational Safety and Health (TOSHA) and was issued a citation for failure to provide hearing protection that attenuates employees exposure to below the OSHA PEL. After the inspection, the company began requiring exposed employees to wear double hearing protection (ear plugs covered by ear muffs) when the forging operation was in progress. However, using the published criteria for estimating actual Noise Reduction Ratings (NRR), the double hearing protection could only reduce the noise exposure to the employees ears to an equivalent 8-hour TWA of 92 dBA and thus still exceeded the OSHA PEL.

The company had already implemented a series of engineering controls which provided some noise reduction. However, given the inherent loud noise levels associated with the hammer forging process it was felt that the incremental progress made was not sufficient to provide employee protection in the short run. Administrative controls were also considered but the maximum employee exposure to levels of 92 dBA would only be 6 hours per day which would cause serious problems with the facilitys 10-hour schedule and the incentive pay structure for hammer mill operators. Replacement of the hammer mills with mechanical screw presses was evaluated, but the capital cost of the presses would be prohibitively expensive to the point of making the facility non-competitive in the marketplace.

The company contracted with a speech and hearing center to test subjects in a controlled setting to determine the maximum effectiveness using the combined hearing protection. The center found that an attenuation of 41.5 dBA was possible which meant that an effective noise exposure to the employees ears could be less than a TWA of 80dBA. However, it has long been known that laboratory testing does not equate to real world experience, therefore the company retained a consulting firm that had developed technology to measure the noise dose to the ear during actual workplace operations. By embarking on a detailed sampling and monitoring program using the contractors technology, the company was able to demonstrate that, with proper training and supervision in the use of the dual hearing protectors, employees were protected to an average TWA of 79.6 dBA, thus reducing employee exposures to below both the OSHA action and compliance levels.

Impacts of the Intervention

As a result of the intervention the company was able to demonstrate to TOSHA that its employees were receiving an adequate level of hearing protection despite the published NRR calculation formulas. TOSHA accepted the intervention as proof that employees were not overexposed to damaging noise levels, in violation of the OSHA PEL. The intervention also provided additional assurance to both management and employees that the dual hearing protection was protecting their hearing. The intervention also demonstrated that the employee who had been removed from high noise exposure due to a permanent threshold shift could return to his former (and higher paying job) as a hammer forge operator.

Financial Metrics

No formal value proposition associated with the intervention was initially developed, as it was determined that other options would likely make the facility non-viable. Therefore, as part of the IH Value Study, a retrospective analysis was conducted of three possible strategies to achieve compliance: 1) use administrative controls, 2) purchase a mechanical screw press, and 3) use the hearing dose measuring technology to demonstrate an effective level of protection for employees. The following net present values (NPVs) for each of the projects was calculated for a project length of 5 years:

Intervention Evaluated Net Present Value ( ) = negative


Intervention Evaluated
Net Present Value ( ) = negative
Administrative Controls
$1,799,801
Purchase Mechanical Screw Press
$563,108
Demonstrate PPE Effectiveness
$49,467

 

Thus, the formal retrospective analysis confirmed managements judgment that demonstrating PPE effectiveness provided the most cost-effective and rapid solution to achieving regulatory compliance and ensuring the protection of their employees hearing. Management also realized that their efforts to reduce employee noise exposures via engineering controls needed to continue on an ongoing basis. However, due to the loud metal-to-metal contact associated with hammer forging processes, it is likely that employees will need hearing protection against hazardous noise exposures as long as this technology is in use.

Lessons Learned

  1. The case study demonstrated that an industrial hygienist working with business partners can help protect the overall viability of a business. In this case, management estimated that without the selected intervention it would not have been possible to maintain operational continuity given the nature of a commodity product and the highly competitive global marketplace.
  2. The use of PPE can be an effective measure to protect employees in high noise areas.
  3. Relying on PPE as the primary means of protection requires extraordinary measures to ensure that expected levels of protection are validated in actual field operations.
  4. Where PPE is a primary means of protection, employees must be properly trained and understand the level of hazard so that they can utilize the PPE in the most effective manner.
  5. Sound IH investigations and measurement can be a key to reducing employee exposures, ensuring regulatory compliance, and contributing to business profitability.

Case Study 4: Chemical Drum Handling

Background

The operation analyzed was a manufacturing step which involved the manual transfer of materials into a kneader for processing. The original process involved the manual handling of drums, bags, and pails associated with the addition of powders and liquid into the kneader for mixing. The process of weighing out powder and liquid to blend in the kneader was labor intensive and also introduced process fluctuations due to the variability of material mixed caused by manual dispensing.

Hazard Identification

The company is considered a world leader in the prevention of injuries and illness. As part of their safety management system, workplace risk assessments identified the operation as having the potential to cause ergonomic injuries and/or illnesses due to the routine handling of drums, bags, and pails of various weights. The open handling also introduced exposure to low-toxicity dusts, which required air-purifying respirators to be worn.

Hazard Intervention

The intervention involved the design and installation of an automated system to add liquids and powder to the kneader. This design eliminated the manual handling of powders using bags, pails, and scoops at the filling stage. The project included the installation of lifting devices to handle drums at raw material and finished product loading and unloading stations. It also reduced airborne dust exposures that eliminated the need for employees to wear respiratory protective equipment (RPE).

Impacts of the Intervention

The intervention significantly reduced the ergonomic exposure associated with the routine handing of drums, bags, and pails. The company estimated that the intervention would normally eliminate one serious injury over a 10-year period. However, the operation is in a country with very liberal laws regarding injury/illness reporting and disability and as such it is likely that the intervention could achieve even greater cost reductions associated with fewer injuries being incurred. The intervention also enclosed the transfer operation resulting in a more efficient containment of dusts and eliminating the need for RPE at this manufacturing stage.

The intervention also resulted in a significant productivity improvement resulting in one less person needed to operate the kneader process. During the project implementation, a scale was incorporated into the closed transfer process thus allowing more accurate liquid addition and reducing the variability of the quality of the final product.

Financial Metrics

A financial analysis of the intervention showed a 5-year net present value (NPV) of $39,708 with an internal rate of return (IRR) of 32%. This scenario assumed that if the intervention had not been undertaken, one serious ergonomic injury would have occurred during the 5-year period. The company uses an internal cost of $40,000 per ergonomic injury/illness. A second scenario that assumed no injury would occur yielded an NPV of $24,160 with an IRR of 25%. Both scenarios resulted in a discounted payback period (DPP) of 3.1 years.

Lessons Learned

Facility management recognized the ergonomic risk associated with the routine manual handling of drums involved in this production operation. From a financial viewpoint, it was hard to determine future health and safety benefits associated with the project other than to project that a serious ergonomic injury was likely during the next 5 years. However, the productivity improvement associated with the more efficient handling of drums and the transfer of product were the financial drivers to justify the project. Improvement in operator health and safety, along with improved product quality, were intangible benefits. This project demonstrated that health and safety consequences should be considered when work systems are designed or retrofitted to ensure the benefits to the organization are optimized.

Case Study 5: Carbon Monoxide Control

Background

The following case study involves a company with operations in industrial manufacturing. The case study will focus on a heat-treating facility. The process entailed open-room exhaust of natural gas-fired furnaces and open-room exhaust of endogas (a carbon rich atmosphere used in heat-treating furnaces). Once exhausted to the room, the only ventilation was achieved through axial roof fans.

Hazard Identification

The hazard identified with this particular industrial manufacturing operation involved carbon monoxide (CO) exposure to employees working within a heat-treating facility. CO is a poisonous gas that is odorless, colorless, and tasteless. Carbon monoxide is harmful when inhaled because it displaces oxygen in the blood and deprives vital organs such as the heart and brain from receiving oxygen. CO poisoning can be reversed if caught in time, but even with recovery, acute poisoning may cause permanent damage. OSHA standards prohibit worker exposure to more than 50 parts per million (ppm) over an 8-hour time-weighted average (TWA).

Hazard Intervention

The company identified the hazard as a chemical exposure to employees. The abatement approach involved a change in the administrative and engineering controls. Data points for CO were routinely collected and administrative controls were implemented as necessary. The corporate goal for CO levels was less than half of the TLV for CO (12.5 ppm). This goal was reached by implementing local exhaust ventilation (LEV) as the primary engineering control. All CO emission points (burner exhausts and endogas exhausts) were identified and targeted for LEV source controls. A ventilation system with variable-speed fans controlled by real-time direct reading electrochemical sensors for CO was installed in the heat treating facility.

Impacts of the Intervention

There were many positive health, business and risk management results from the implementation of the engineering controls. Health improvements resulted from the intervention because employees were not directly exposed to CO. Employees were healthier, happier, and more comfortable in the workplace. Health-related absenteeism was reduced drastically. Employee morale increased significantly, improving the quality of the work. The business process was improved because there was a reduction of CO concentration in the heat treat.

While this project did not demonstrate a significant financial payback, many benefits resulted from it. The project demonstrated the leadership commitment to HSE. A major facility aesthetic improvement resulted because all of the smoke and haze were properly exhausted through the LEV system under a state-permitted emission source. There were no changes in product quality or customer satisfaction or service resulting from the intervention.

Financial Metrics

The projects capital requirements were $1.6 million to install the ventilation system. The intervention resulted in a negative net present value (NPV) of -$1,005,597. The internal Rate of Return (IRR) was -25% while the return on investment (ROI) was -56%. Utility costs associated with running the IH-related equipment were expected to increase once the intervention was in place.

Lessons Learned

Retrospective analyses do not provide the opportunity to evaluate the costs and benefits of alternative hazard control solutions, but even in negative cost situations IH value can be demonstrated. In this case, the heat-treat operation was an ultimate financial negative but a health, morale, and productivity positive. The benefits were valuable to management, and in time will very likely be shown to have financial payback as well.

Case Study 6: Noise Abatement

Background

The following case study involves a company with operations in equipment manufacturing. The facility had 27 mechanical pump presses, 16 injection mold machines, and 7 assembly lines for boxing plastic interiors and safety switches. Products were also painted at the facility, using powder coat paint.

Hazard Identification

The hazard identified with this particular equipment manufacturing operation involved noise exposure to employees working on the assembly line. The company had a demonstrated history of one hearing shift per year. Approximately 130-150 employees worked in the assembly line area where there was borderline overexposure to noise. Employees working in the fabrication group were exposed to a time-weighted average (TWA) of 89 decibels (dBA) over 8 working hours.

Hazard Intervention

The abatement approach involved a change in the engineering controls, but more importantly, an elimination of the hazard altogether. A few engineering changes were made to the process prior to this hazard intervention such as air nozzle replacements; however they were not as effective. One year prior to the intervention, 90% of the facility was based on hearing conservation. The hearing conservation program was developed in accord with OSHAs program. The program was intended to protect workers with considerable occupational noise exposures from hearing impairment. Once the hazard intervention was implemented the need for such a program was eliminated. Every year the company hired consultants to select company sites where they could conduct noise surveys, develop noise maps, and make recommendations to improve working conditions in the assembly line area. This particular sound level reduction project was completed in three days by the consulting group. The project focused on the assembly area with less emphasis on the fabrication area. Employees working in the assembly area were rotated and only worked a maximum of one hour per day.

Impacts of the Intervention

There were many positive health, business, and risk management results due to the implementation of the hazard abatement intervention. Health improvements resulted from the intervention because employees were not directly exposed to high noise levels. Employees were healthier, happier, and more comfortable in the workplace. Health related absenteeism reduced drastically. Employee morale increased significantly, improving the quality of the work.

The business process was improved because there were no costs associated with the hearing conservation program for the assembly line. Hearing protection, audiometric booths, and training requirements had been eliminated because the noise level was below 85 dBA in the assembly room. The costs associated with following these requirements were saved. Studies showed the fabrication area still had a few hydraulic presses that made noise after the sound levels reduction project was implemented.

The only major financial impact that resulted which affected the business process was the cost of hiring a consulting firm to assess the situation. Many positive benefits resulted from the intervention. The company was able to obtain a more accurate calculation of the true time-weighted average (TWA) for the noise exposure through noise surveys and mapping. The process used was more accurate than using noise dosimeters. Temporary employees were also eliminated from the Hearing Conservation Program. The program was reduced by 75 employees. Employees were also at a lower risk of being written up for having improper PPE. Industrial hygienists were necessary to complete an accurate survey of noise levels within the assembly areas. The company plans to conduct an IH study on sound reductions in the future.

Financial Metrics

The costs associated with time spent on managing the noise hazard by industrial hygienists and safety staff increased during the time the project was being implemented; however, once the intervention was completed the costs associated with the time spent by these individuals was greatly reduced. The noise abatement intervention resulted in a Net Present Value (NPV) of $47,249 and a NPV for future hearing loss of $198,015. The Internal Rate of Return (IRR) was 161%, while the Return on Investment (ROI) was 98%. The discounted payback period (DPP) was 0.6 years.

Lessons Learned

The economic circumstances of PPE programs support the IH hierarchy of controls. Personal protective equipment (PPE) programs that require periodic monitoring of the workplace and employee health status, as well as enforcement, equipment purchase and follow-up, are often more expensive in the long run and less effective than either engineering controls or complete hazard elimination. Management of PPE programs requires costly resources, and should be considered as a last resort in situations where other measures are not available or are in the process of installation.

Case Study 7: Metal Removal Fluid Management Control Plan

Description of Operation

The following case study involves a company with operations in auto manufacturing. The process involved an automotive transmission machining plant for a global transportation company. This case study focuses on a machining department where metal removal fluids (MRF) such as lubricants and coolants are utilized in production processes.

Hazard Identification

The hazard identified with this particular equipment manufacturing operation involved employee exposure to contaminated metal removal fluids in the automotive transmission machining plant. In 2002, an employee reported to the plant medical department with complaints of respiratory illness while working in machining plant. The employee was working in a machining department where metal removal fluids (MRF) such as lubricants and coolants were utilized in production processes.

A subsequent medical examination confirmed that the employee was diagnosed with occupational hypersensitivity pneumonitis (HP). The employee received medical treatment, was placed on medical leave, and an investigation of the cause of the disease was undertaken. Hypersensitivity pneumonitis is a serious lung disease associated with exposure to microbiologically-contaminated aerosols of some synthetic, semi-synthetic and soluble oil metalworking fluids. In the short term, HP is characterized by coughing, shortness of breath, and flu-like symptoms (fevers, chills, muscle aches, and fatigue). The chronic phase (following repeated exposures) is characterized by lung scarring associated with permanent lung disease.

Hazard Intervention

The company identified the hazard as microbiological contamination of the metal removal fluid. The abatement approach was to change the type of fluid in use and implement a comprehensive MRF Control Plan that provided for proper selection of metal removal fluids, development of efficient coolant and machine maintenance schedules, and design of effective ventilation systems to maximize control of coolant aerosols.

The initial study and completion of IH risk assessments did not identify a clear relationship between known air contaminants in the work environment and the respiratory disease. Therefore a multifunctional task force was created, with the primary objective to eliminate the risk of respiratory disease (HP) associated with metal removal fluid (MRF). The task force represented the following: division and plant functions, corporate/plant IH, corporate research and development IH, plant union S&H and IH, division/plant medical, corporate/plant environmental engineering and chemical management, plant manufacturing leadership, manufacturing engineering, and maintenance. The task force conducted numerous exposure assessments, research studies, production process changes, and maintenance process improvements.

Impacts of the Intervention

There were many positive health, business, and risk management benefits that resulted from the implementation of the comprehensive MRF Control Plan. Health improvements resulted from the intervention because the air contaminant exposure associated with MRF machining was eliminated or reduced and employees were no longer directly exposed. No further cases of HP have been reported in the four years following the intervention. Employee respiratory complaints were eliminated or reduced. Employees were healthier, happier, and more comfortable in the workplace. Employee morale increased significantly, improving the trust and confidence of employees in the S&H program. The business process was improved as tooling life was extended and therefore tooling costs were reduced. Many risk management benefits resulted from the intervention, including enhanced relationships between the division and plant union management. Management and engineering systems to support MRF S&H goals were enhanced. Another benefit involved the development of improved bio-stable coolant strategies.

Financial Metrics

As part of the value study, a retrospective analysis was conducted with an incremental approach to reduce workplace illnesses, and improve the risk management and business processes. After using the Value Study Data Collection Tool and entering the data in the ROHSEI software, the net present value (NPV) for the project was calculated for a project length of 5 years, resulting in $991,888 NPV. The internal rate of return (IRR) was 120%, while the return on investment (ROI) was 22%. The discounted payback period (DPP) was 0.5 years. Total costs after reducing, mitigating, or controlling the IH hazards were $2,883,573.

Management also realized that their efforts to reduce employee exposures to air contaminants from metal removal fluids through a comprehensive MRF Control Plan needed to continue on a regular basis. The process is now institutionalized.

Lessons Learned

Without IH involvement in this problem, it would have been difficult to identify the source of the hazard because the relationship between illness and MRF is not well understood. With experience investigating complaints of this nature, IH was able to pinpoint the microbiological nature of the hazard and make recommendations that solved the problem.

Ultimately, the task force concluded that an effective MRF Management Program is essential for ensuring the health and safety of employees working in aluminum and iron metal machining operations. This was accomplished by developing a comprehensive MRF Control Plan that provided for proper selection of metal removal fluids, development of efficient coolant/machine maintenance schedules, and design of effective ventilation systems to maximize control of coolant aerosols. A multifunctional taskforce, including IH, was required to consider all aspects of S&H as well as manufacturing processes. The industrial hygienists played a key role in this task force.

Case Study 8: Control of Lead Exposure in a Foundry

Description of Operation

The facility is a foundry that makes automatic diesel engine blocks using both cupola and induction melting processes. The facility purchases various forms of scrap metal from scrap metal suppliers, re-melts the scrap, and pours it into engine block molds. After cooling, the casts are machined before being sent to the engine assembly facility.

Hazard Identification

Some of the scrap metal purchased from scrap vendors contained lead bearings and bushings, structural steel scrap with lead-based paints, and chunks of lead-containing materials. The melting of lead-contaminated scrap creates airborne lead exposure to employees as well as poor casting quality. As a result of the employee lead exposures, the company instituted a series of changes in its IH program including a medical surveillance program to monitor employee blood lead levels. A respiratory protection program was also initiated to protect employees who worked in the melting and metal pouring processes from overexposure to lead.

Hazard Intervention

The foundry was faced with either continuing to implement a more stringent lead exposure control program or finding another means of eliminating the lead in the process. In addition to medical surveillance and PPE the facility was also faced with the prospect of expensive engineering controls to control lead exposures. As an alternative, a process was developed ensure that suppliers supplied scrap metal that was free of lead contamination. Such a purchasing specification existed but was ineffective and required changes that included the aggressive enforcement of the supplier scrap procurement requirements and the use of internal scrap inspection procedures.

Impacts of the Intervention

As a result of the aggressive purchasing specifications and increased inspections of incoming scrap metal, the melting and pouring processes were maintained free of any significant employee airborne lead exposures. Medical surveillance demonstrated that there was no lead detected in employee blood tests and the need for respiratory protection for lead exposure in manufacturing operations was eliminated.

The option to focus on the elimination of lead versus providing employee protection and engineering controls resulted not only in higher levels of employee protection, but also in millions of dollars in savings for the facility. Given the strong competitive pressures in the industry, it is possible that eliminating the hazard through stringent purchasing controls helped to keep the facility viable and saved hundreds of jobs.

The elimination of lead in the scrap metal feed stock also resulted in the prevention of lead from being introduced to the cast engine blocks. Any significant amount of lead in the engine blocks would degrade the overall strength of the casting. Previous quality problems that resulted from lead contamination had been noted.

Financial Metrics

A retrospective ROHSEI analysis was computed for the actual costs associated with the purchasing controls versus the potential costs associated with enhanced respiratory protection and engineering controls. Improving the purchasing controls and enhanced inspections required the hiring of additional inspectors, rewriting scrap specification procedures, and retraining of management and employees. The 5-year cost was a net present value (NPV) of ($1,125,347). The estimated 5-year cost associated with enhanced employee respiratory protection and significantly upgraded exhaust ventilation was a net present value (NPV) of ($20,735,212). Thus the option to eliminate the exposure was both a far superior business option as well as an approach that virtually eliminated employee lead exposure and the associated health hazard.

Lessons Learned

At this facility, management recognized the threat that lead contamination presented to the employees and the product. Contracts with waste suppliers clearly stated the need to severely restrict any lead-containing materials in the scrap metal provided. However, there was reluctance by management to take firm action to control vendors due to the competitiveness of the scrap market and a concern about not receiving sufficient scrap to supply the facility.

The site IH professional served as the catalyst to drive management actions. Identification of employee health risks, as well as defining the necessary actions to control those risks via PPE and engineering controls, convinced management that firm action was needed to enforce contract provisions and implement stringent on-site scrap audits to verify supplier compliance with the contract provisions.

Case Study 9: Chemical Containment

Description of Operation

The operation where the intervention occurred is a process step in the manufacturing of active pharmaceutical ingredients which are subsequently formulated in various drug products. The current operation was an open process involving the repack of resin columns using an acetonitrile (ACN) slurry.

Hazard Identification

The current operation involved the addition of ACN into an open manway of a process tank. During the operation two operators were exposed to levels of ACN ranging from 60-100 parts per million (PPM). Operators were required to wear powered air-purifying respiratory protective equipment to protect against airborne ACN exposures that were created during the solvent charging process.

Hazard Intervention

To reduce exposure an engineering control consisting of purchasing and installing a high containment valve was implemented. By using the high containment valve for charging the tank, airborne exposures of ACN were virtually eliminated.

Impacts of the Intervention

Due to the installation of engineering controls the airborne levels of ACN were reduced from the 60-100 PPM range to less than or equal to 1 PPM. The resultant exposure level eliminated the requirement for operators to wear respiratory protective equipment (RPE).

As a result there was a cost savings associated with the elimination of the RPE as well as the associated time required to properly don/doff the RPE. Prior to the intervention the process step required three operators, which was subsequently reduced to two operators after the implementation of the containment project thus significantly reducing overall labor costs associated with the operation.

Although no quality deviations had been previously associated with this manufacturing step the containment and enclosure of the open process were also recognized as a quality control improvement. In addition, containing the process also eliminated foaming issues sometimes noted during the operation of the process, but the benefit of the reduction has yet to be fully evaluated.

The process change also reduced by one third the amount of ACN lost to the environment during the operation thus allowing a small material savings and a corresponding lowering of volatile organic compound (VOC) air emissions. The enclosed process would require additional Leak Detection and Repair (LDAR) monitoring points to be added to the environmental monitoring schedule, but the incremental cost was minimal.

Another benefit of the project was the elimination of the need to dispose of used RPE as hazardous waste. As a result one drum of hazardous waste per month and the associated disposal costs were eliminated.

Financial Metrics

The financial metrics associated with the intervention indicated that the project yielded a 5-year net present value (NPV) of $23,629 with an internal rate of return of 14%. The project had a discounted payback period of 3.8 years. Therefore in addition to the benefits of lower employee ACN exposures, improved quality, reduced air emissions and reduced hazardous waste the project also yielded a competitive rate of the return on the organizations investment. The project also resulted in some improvement in employee morale due to eliminating the need for the wearing of respiratory protective equipment.

Lessons Learned

The benefits of making IH-related process improvements that many times are designed to reduce or eliminate employee health exposures can also result in significant business improvements or savings. In this case the implementation of engineering controls resulted in a process change that reduced labor and material costs, improved product quality, reduced air emissions, and reduced the volume of hazardous waste generated and its associated disposal cost and liability.

Case Study 10: Potent Pharmaceutical Compound Containment

Description of Operation

Pharmaceutical manufacturing operations require the mixing, blending, and processing of multiple compounds to obtain finished drug products. Increasingly, new active drug compounds are becoming more potent thus increasing their toxicity to workers who may be exposed to the substances during manufacturing. One area of potentially high exposure to workers is the dispensing of pharmaceutical ingredients during various stages of the manufacturing process. Traditionally, dispensing was performed by carefully hand scooping powders into containers or directly into process equipment.

Hazard Identification

With the increasing potency of new drug entities, companies are finding that high levels of personal protective equipment are required to meet minimum protection requirements. As drug research has identified even more potent compounds, respiratory protective equipment with Assigned Protection Factors (APF) as high as 1000 have been found to be insufficient to provide adequate employee protection. In this case the manufacturer recognized that the use of powered air-purifying respirators (PAPR) with an APF of 1000, although currently sufficient, would not effectively protect operators from the new generation of drug substances being developed. It was determined that containment technology needed to be developed that would allow for the accurate measurement and dispensing of powered drug compounds but that would also protect workers from potent compound dust exposures.

Hazard Intervention

The company formed a team to determine a dispensing method that incorporated the necessary parameters to optimize the combination of manufacturing accuracy, quality control, cost control, and employee safety and health. The team determined that using flexible containment glove bag technology verses fixed containment systems was the most effective solution to control dust exposures during dispensing operations.

Impacts of the Intervention

The intervention achieved all of the necessary requirements of the project. The glove bag technology lowered the exposure risk by a factor greater than 1000 with the actual exposure measures being significantly less than 10% of the established Occupational Exposure Limit (OEL). As a result of the intervention there was no longer a need for operators to wear respiratory protective equipment. Used glove bags are required to be incinerated after use however the overall volume of hazardous waste for incineration was reduced by 75% since the need to dispose of PAPRs was eliminated. As a result of the intervention operator confidence in the level of protection being provided is extremely high.

Financial Metrics

The project resulted in a 5-year net present value of $27,585 with an internal rate of return of 98%. The discounted payback period for the project was 0.9 years. No capital investment was required since the glove bag equipment was already available at the facility. The savings in respiratory protective equipment, labor time to don the RPE, and disposal costs of the RPE more than offset the planning time associated with the project and the cost of purchasing and disposal of the glove bags.

The intervention also demonstrated a level of containment that satisfies the requirements of EU and US pharmaceutical regulatory agencies with regard to the cross-contamination of active pharmaceutical ingredients. The alternative to the solution provided by the intervention would have required a segregated facility to dispense compounds. Such a facility would have cost several millions of dollars in capital expense. These costs were not considered in the financial metrics listed above.

Lessons Learned

The project showed containment projects can result in improvements in employee health exposures and savings in labor and waste disposal costs. This case demonstrated an example where containment projects require little incremental capital investment to accomplish significant results.

The project not only addressed the current challenge of employees wearing cumbersome respiratory protective equipment but also addressed the developing concern about the existing RPE providing ineffective protection for newer and more potent pharmaceutical compounds.

Case Study 11: Chemical Substitution; Process Containment

Description of Operation

The company makes a proprietary product that is used in the manufacturing of hybrid car batteries. The product is manufactured at the nano-scale and has the potential to become part of a significant growth industry given the focus on reducing the USAs carbon-based energy dependence. The operation prior to the intervention was a batched-based production process involving nine steps which included manual handling and potential employee nano-particle and ergonomic exposures at each step.

Hazard Identification

In addition to the threat of inhalation of nano-sized particulates the existing process used titanium tetrachloride (TiCl4) as a catalyst. Titanium tetrachloride is very irritating to the eyes, skin, mucous membranes, and lungs. The use of TiCl4 required extra levels of worker protection during the addition of the compound as well as the use of pollution control equipment to scrub out the chlorine gas from the production process before it was exhausted to the atmosphere. In one case, a breakthrough of chlorine gas through the scrubber system occurred, resulting in an air quality violation and fine from the city.

In addition to the TiCl4 catalyst, the old operation involved the manual transfer of lithium and titanium compounds in a nine-step batch manufacturing process. Each step involved the open-air transfer of product, creating the potential for air and skin exposures as well as the ergonomic hazards associated with the manual handling of 50-pound bags.

Hazard Intervention

The intervention involved redesign of the production process, changing the way the final nano-product was manufactured. As part of the intervention new capital equipment was purchased that reengineered or enclosed several of the existing process steps and as a result eliminated seven manual handling operations. The redesigned process now only requires manual handing at the beginning and end of the production process. Modifying the process also allowed for the elimination of TiCl4 for use as a catalyst in the process thus eliminating the potential for operator and community exposures to the material and its decomposition products.

Impacts of the Intervention

In addition to the elimination of TiCl4 the equipment containment also reduced exposure to the final nano-product particulates at three points in the process. Previously, operators were required to wear acid/dust respirators and now are wearing simple air-purifying respiratory protection at the first and last process steps, where loading of the raw materials and unloading of the finish product occurs. By changing the process the need to maintain and comply with air quality permits associated with chlorine emissions was also eliminated. The redesign of the process also contributed significant production-related advantages. The new process has the capability of increasing the production output by a factor of 10 in the same building space. The production capacity increase has required the doubling of the production staff running the new process, resulting in a five-fold increase in product produced.

Financial Metrics

Financial metrics were calculated for the product costs but benefits of additional production capacity have not been provided.

Lessons Learned

By utilizing IH principles and practices of elimination and product containment, the project was able to achieve reductions in the potential for both employee and community exposures to potentially hazardous substances. This was accomplished by integrating IH concepts into a major process redesign which significantly expanded production capacity. This resulted in the benefit of increasing production output and subsequent revenue opportunities as well as improving employee health and welfare at several levels.

Specific benefits of the project intervention included:

  1. Improved employee and facility productivity
  2. Improved product quality including fewer reworks
  3. Improved public image through the elimination of the potential for chlorine emissions
  4. Achievement of sales and production goals
  5. Lower employee dust and ergonomic exposure levels
  6. Improved employee morale due to less manual handling, lower PPE requirements, and a cleaner workplace.

Case Study 12: Automated Baler

Description of Operation

The facility manufactures paper packaging products. The intervention was performed on a waste paper baling operation.

Hazard Identification

The waste paper baling operation required that three operators spend approximately 30 minutes at the end of each shift (three shifts per day) loading paper scrap into the existing manually-loaded scrap baler. The operation was labor-intensive with operators grabbing armfuls of shredded paper and cramming the scrap into the baler. The operation required awkward lifting, twisting, and postures. An ergonomics risk assessment determined that, because of the various and continual ergonomic stresses present, the operation posed a high risk of causing a serious musculo-skeletal injury. The facility had not experienced any ergonomic injuries associated with the baling operation but from past company experience the medical and disability costs associated with lumbar injuries averaged from $7,500 to $50,000 per injury.

Hazard Intervention

The company decided to eliminate the hazard by purchasing an automatic loading baler to fully replace the manual handling associated with managing the shredded paper scrap.

Impacts of the Intervention

The intervention completely eliminated the risks associated with the manual handling during the waste baling operation. The new baler takes waste directly from the packaging production equipment and automatically bales and stacks it. In addition to removing the ergonomic risks, the intervention eliminated the need for three operators to devote 30 minutes at the end of each of three daily shifts to hand-load scrap onto the old baler. The intervention also eliminated the need for operators to wear PPE for eye hazards and nuisance dust. From an operator morale viewpoint the intervention eliminated an unpopular task that was frequently rotated among the 47 production workers at the facility.

In addition to the direct labor saving benefits, the automated baler also reduced the amount of paper dust generated during the scrap handling operation. This resulted in less paper dust being distributed throughout the site, requiring less facility-wide cleaning while saving labor time and also contributing to a cleaner process and product. The reduction in dust buildup was considered by the property insurance provider to have lowered the facilitys fire risk.

Financial Metrics

The 5-year net present value (NPV) of the project was -$1,385 using a discount rate of 8% and an inflation rate of 3%. The only costs included in the analysis were the labor savings from eliminating the need to manually load the baler and the capital cost of the baler purchase and installation. The costs associated with injury reduction, facility cleaning, and PPE elimination were not included.

Lessons Learned

Although the project did not yield a sizable financial return on investment, the intervention did return the companys cost of capital while reducing a significant risk of injury due to manual handling. The project also illustrated that improvement in health and safety conditions often results in improved labor productivity. In this case the positive benefits of the intervention were transferable to other facilities within the company thus serving as a best practice for the corporation.

Case Study 13: Radiation Safety Management

Description of Operation

The following case study involves a company with operations in petroleum processing and chemical manufacturing. The specific process where the involvement of industrial hygienists has contributed value is the delayed coking operation. Delayed coking is a thermal cracking process that upgrades and converts petroleum residuum (bottoms from atmospheric and vacuum distillation of crude oil) into liquid and gas product streams, leaving behind a solid concentrated carbon material called petroleum coke. The temperature inside the steel coking drum routinely reaches 800 F. Nuclear level gauges in conjunction with gamma-based detectors are used to measure rising levels of coke inside the coking drum because there are no other alternatives.

Hazard Identification

The radiation sources can create a considerable health risk to affected workers if it is not properly controlled. Therefore the Nuclear Regulatory Commission has strict requirements for licensing sources and training of those who handle them. IH helps maintain the license of the material and retains the level of training necessary to manage the testing process.

Hazard Intervention

The hazard was identified as ionizing radiation. The installers and users of the radiation devices were trained on the process hazards, including exposure to radiation. The entire nuclear process could not happen without the IH programradiation-trained experts are essential to the process.

Impacts of the Intervention

The value of the IH program to the business process is that is enables the company to take advantage of the price margin that delayed coking offers. Delayed coking is much cheaper to install and operate than the alternatives, such as fluid coking. If the delayed coking process were not used, lighter, sweeter crude oil would be used instead of the heaver crude oil, essentially reducing profitability significantly.

Some small negative financial impacts resulted to the business process because it required training for the people installing the radiation devices and the employees using the devices. Overhead charges such as these are necessary in order to use the radiation devices. However, these are insignificant in comparison to the benefit.

The intervention produced a greater need for industrial hygienists therefore, their job functions changed in the process. Industrial hygienists were used effectively for maintaining the license of the training materials. Industrial hygienists determined that radiation trained experts were critical to the process.

Financial Metrics

The $10 per barrel profit margin that delayed coking enables is worth $81,250,000 per year, based on production of 125,000 barrels a day. This provides a profit of $1.25 million per day on the 65 days per year that the coker is operated.

Lessons Learned

By providing an essential function to a highly profitable process, industrial hygienists have contributed value. Without them radiation detection in the delayed coking process could not have happened.

Case Study 14: Furnace Repair- Heat Stress

Description of Operation

The following case study involves a company with operations in chemical manufacturing. The unit of focus was a furnace that was 22 feet across, 12 burners long and 60 feet high.

Hazard Identification

The hazard identified with this particular chemical manufacturing operation involved heat stress for employees completing heavy work on the furnace. Weather conditions involving 100 F temperatures for completing this type of work were not optimal. Problems with the furnace first began in late April of 2007. Unsupported bricks inside the furnace were in need of maintenance because they were falling apart and collecting on the furnace floor. If no action was taken, complete failure of the furnace would result. Furnace failure would lead to an inevitable shutdown. The operation involved high air temperatures, extreme heat sources, high humidity, direct physical contact with hot objects, and strenuous physical activities, which had a high potential for inducing heat stress in employees engaged in the work. The goal was to complete the repair job flawlessly and on time.

Hazard Intervention

The company identified the heat stress hazard as a physical hazard to employees. The abatement plan was developed by the Joint Safe Operations Committee (JSOC). The abatement approaches involved changes in the PPE, administrative controls, and engineering controls, although the latter was the more effective level of control. The method used to repair the furnace involved fixed equipment engineering, where the repair would take place from the outside. A slot 16 feet wide and 6 inches long was cut on the outside of the furnace to hold the bricks in place. Then a steel shelf (expanded metal plate) was inserted on the top edge of the furnace. Finally, ceramic fiber refractory was injected to fill in the hole. The furnace was under negative pressure. The team also conducted a what if analysis to anticipate all the hazards. Once the analysis was complete the team recognized that setting up a hot zone and cool-down tent was important for maintaining a safe environment.

Impacts of the Intervention

There were many positive health, business, and risk management results due to the implementation of the hazard abatement intervention. Employees were protected from exposure to heat stress, as heat stress management was used to control potential health risks. This included development of a work-rest schedule where 25% of time was spent working and 75% of the time employees were resting. There was also a very positive impact on employee morale.

The business process was improved since there was no shutdown of the process, which would have caused an $8-10 million loss. If the unit had been shutdown other units would have to be shutdown as well. A total shutdown for 10 days would cost approximately $15 million. The knock-off effect (2:1) was included in the estimation. If the wall inside the furnace had failed, a shutdown of 10 days would have occurred.

Shutdown Type
PHLA
Knockoff
Planned slowdown
$4 million
2:1
Emergency slowdown
$8 million
2:1

 

Many positive benefits resulted from the intervention. There was no impact on production rates during the repair process. The amount of time spent on planning was significantly shortened. Risk management was greatly improved because the intervention provided many opportunities for heat stress reduction throughout other areas within the plant.

Financial Metrics

The lost production parameter is the most important parameter. Additional process staff costs were minimal with approximately 12 hours of additional work required. The total cost for mechanical repair would be $150,000 if a shutdown occurred for 7 days.

Lessons Learned

Integrating industrial hygienists into the planning of operations at the right time is of key importance. Early communication of the hazards by industrial hygienists to the management level will allow for the interventions to be more efficient and less risky. Management needs to learn where industrial hygienists fit in the process and where they can be most effective. There is great value in having properly allocated resources. The Safety and Health Group was a core part of the team from the beginning of the intervention to the end. Completing the project the way it was could have been seen as inherently dangerous, but involving the IH and safety points of view allowed for the approach to work. The intervention was broken down into components, which were then analyzed to determine how to manage them.

Case Study 14: Asbestos Case Study

Description of Operation

The following case study involves a company with operations in chemical manufacturing. The unit of focus was an Atmospheric Distillation Tower where crude oil would flow through, eventually dividing into four various streams. The tower was 80-90 feet tall, 18 feet in diameter, and was insulated with 60% chrysotile asbestos.

Hazard Identification

The hazard identified with this particular chemical manufacturing operation involved asbestos exposure to employees working near the Atmospheric Distillation Tower, which contained asbestos insulation that was in exceedingly poor condition. Once the tower cooled down the insulation would come off and large pieces of asbestos would fall and strike employees working in the area. Severe weather was also of concern because during heavy rain the asbestos would become saturated, increasing the weight by 3-4 times the original weight.

Hazard Intervention

The company identified the asbestos hazard as a chemical exposure to employees. The abatement approach involved a change in the engineering controls. Four abatement options were considered by the company. The option chosen entailed abating the remaining asbestos during the turnaround (TAR) period by requiring a full enclosure of the tower, using a methodical, step-by-step approach. Repairing the insulation was not an option due to the poor condition the insulation was already in and the work schedule conflicted for the upcoming TAR. Previously, a partial enclosure method, using metal jacketing had been attempted, but it was not effective in abating the asbestos.

Impacts of the Intervention

There were many positive health, business and risk management results due to the implementation of the hazard abatement intervention. Health improvements resulted from the intervention because employees were not directly exposed to falling asbestos. The business process was improved since there was no impact to the length of the TAR period, which allowed for no margin loss and essentially suspended over $6 million unit shutdown costs. Residual risks did not result from the TAR because it was easy to reduce the remaining asbestos. The full enclosure of the tower with fire-resistant material did have a higher cost than other options such as partial enclosure methods that were considered. Some negative financial impact resulted to the business process because it required supplied air, A/C systems, air movers, PPE, and other equipment. However, many positive benefits resulted from the intervention.

The company was able to avoid the potential for heavy litigation costs related to asbestos exposure and contamination. The intervention represented a new process that could be used not only in other facilities, but also in other such vessels within the plant. Since the hazard was eliminated, the effects of the intervention were felt over time, fundamentally reducing risk and operating expenses plant-wide. The emergency response processes were also greatly simplified and associated costs were saved. The company also avoided many environmental costs, including asbestos cleanup and regulatory costs associated with willful incidents. Safety issues concerning the process of abating the asbestos were extensively reviewed by company industrial hygienists.

Lessons Learned

Integrating industrial hygienists into the planning of operations at the right time is of key importance. Early communication of the hazards by industrial hygienists to the management level will allow for the interventions to be more efficient and less risky.

Conclusion

The AIHA Value Strategy and Qualitative and Quantitative Approaches work. The best way to capture the value that industrial hygiene adds to the business is to look at IH risk reduction and track its impact on employee health, the IH risk reduction process, and the business process in general. This can be done with a Quantitative Approach, a Qualitative Approach, or a combination of the two.

Additional work is needed to refine the IH Value Strategy, to develop representative values where appropriate, and test additional parameters. But these strategies represent a significant step forward for the IH profession. The hoped-for change in business perception of IH will occur only if industrial hygienists respond to the challenge and put these tools and techniques to use.