Effect on costs and employer, Operation Management

Effect on Costs and Employer: Accidents  are harmful when  we take into account  the business  of the  concern.  It adds to the  costs of production  directly  as well  as  indirectly. The employer has to  bear the  followings  costs:

a. Medical expenses to be paid to the victim

b. Compensation of injury on the basis of disablement

c. Fines which   may be  imposed upon the industry for neglecting safety measures.

d. Loss of damaged materials and machinery  involved in the accidents.

Indirect  costs: indirect  costs  of the accidents have been estimated to be higher  than direct  costs.  Indirect costs  include the followings.

a. Time  lost by  management and other  personnel  in helping  the injured person   on the spot.

b. Investigating the accident .

c. Preparing  the reports  of the accidents.

d. Time  lost by the  workers in  observing and discussing  the  accidents.

e. Training and placement of new employees

f.  The injured person  on return to turn out interior products

g. Psychological  effects on  return to duty may work with  reduced efficiency

h. If the accident is very  severe and deliveries are delayed he customers  may be  lost.

Posted Date: 2/25/2013 6:39:28 AM | Location : United States







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