The Economics of Ergonomics

David C. Alexander, PE, CPE

President, Auburn Engineers, Inc.
P.O. Box 3038
Auburn, AL 36831-3038

ABSTRACT:

This presentation will briefly describe a number of methodologies used for the justification of ergonomics projects and programs, along with brief explanations of their strengths and limitations. The measurement of benefits and costs is a critical aspect of ergonomics cost justification which is often poorly done, and successful techniques and results will be presented. Finally, the development and results of simulation/modeling of the economics of an ergonomics program will be discussed.

INTRODUCTION:

Ergonomics has always been described as a tool which protects workers safety and health, and which improves operating performance. The additional benefits of enhancing worker comfort and dignity are desirable, but rarely provide the means of justification for expensive ergonomics changes. As the regulatory drivers for ergonomics have diminished, economic justification becomes the most important driver for continued use of ergonomics. Fortunately, both safety and health and economic benefits are often derived from the same project, thus permitting either method of justification to provide both types of benefits.

METHODS AND RESULTS:

For the past 25 years, this author has been involved in the justification of ergonomics projects and programs, first with Eastman Kodak Company and later as an independent consultant. Extensive reviews of the literature have identified seven strategies for the cost justification of ergonomics, and seventeen specific techniques for that purpose. Each strategy has strengths and weaknesses, thus each organization should carefully choose the techniques and strategies which best match its needs and economic justification practices.

During the examination of many different cost justification reports, examples and explanations, it has become apparent that data collection and manipulation are widespread problems.

· Many benefits of ergonomics projects are overlooked, creating incorrect results. An understanding of the broad benefits of ergonomics, the ability to measure seemingly intangible outcomes, and clear examples of the quantification of benefits is necessary for the practicing ergonomist.

· Costs may be distorted or magnified with erroneous results as well. For example, inexperienced ergonomists may recommend more elaborate solutions than are actually necessary resulting in unnecessary increases in costs. Automation is too frequently recommended as a solution (and an overly expensive one at that). Non-ergonomists may fail to understand which changes are necessary for worker protection, resulting in non-required changes and added costs.

· An understanding of different justification methods, and the use of these methods by cost accountants and managers, is necessary for the ergonomist to successfully practice cost justification.

As the experience base with economic justification of ergonomics projects and programs matures, prediction of future results with models and simulations becomes possible. A model, using the following major components, was developed:

• Problem solving including use of experts and problem solving teams
• Surveillance with both active and passive
• Corrective action for a variety of different engineering and administrative solutions
• Medical management with early reporting and conservative treatment
• Training to support the above activities
  

Modeling, of course, permits exploration of different implementation scenarios. A description of the model and example outputs will be presented.

CONCLUSION:

The cost justification of ergonomics projects and programs is an important issue. Careful exploration of the many facets of this area permit it to become a more useful and practical tool for the ergonomist.

REFERENCES:

Alexander, David C., "The Economics of Ergonomics." In Proceedings of the Human Factors and Ergonomics Society 38th Annual Meeting-1994 (Vol. 1).
Alexander, David C., "The Economics of Ergonomics, Part II." In Proceedings of the Human Factors and Ergonomics Society 39th Annual Meeting-1995 (Vol. 2).
Oxenburgh, Maurice, "Increasing Productivity and Profit through Health & Safety," CCH Australia Limited for CCH International, 1991.