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The economics of ergonomic material handling

Ergonomic equipment heads off lost-time injuries, boosts productivity

Seconds not spent reaching into a bin are seconds spent moving material, increasing productivity. A tilter can be used to present the container at an optimal height and angle, allowing workers to access items with minimal bending, reaching, and stretching.

For many years in the U.S., ergonomics was considered just a nice thing to do. In contrast, in other countries like Australia, Canada, and those in the European Union (EU), ergonomics is law. The offending business can be fined for not adhering to rules, standards, and guidelines. While ergonomics still is voluntary in the U.S. today, now it is not just a nice thing to do, it is a must-do, because of its economic value.

As with so many business decisions, installing ergonomic equipment comes down to the numbers.

Although ergonomic equipment costs money, so too do lost-time accidents and the reduced productivity of an unsafe workplace. Injuries and accidents are costly because of workers’ compensation claims and medical payments, as well as the loss of productivity from the absence of a productive employee.

In addition, ergonomic equipment can increase efficiency and productivity by eliminating wasted movement which is consistent with lean manufacturing principles, and by reducing worker fatigue.

Injuries, Accidents Cost Money

Manual material handling (MMH) injuries continue to lead the list of workers’ compensation claims and their associated costs in the U.S., according to the 2017 Workplace Safety Index, published by Liberty Mutual Research Institute for Safety (https://www.libertymutualgroup.com/about-liberty-mutual-site/news-site/Pages/2017-Liberty-Mutual-Workplace-Safety-Index.aspx). Costs of lost-time injuries vary, but using a conservative average of $25,000 per incident, preventing a single lost-time injury can save more than enough to pay for the ergonomic equipment.

The problem is widespread, and not confined to a single sector; however, the industrial workplace reports a very high percentage of MMH lost-time injuries and workers’ compensation claims, as shown in the U.S. Department of Labor, Bureau of Labor Statistics (BLS) Table 2; Numbers of nonfatal occupational injuries and illnesses by industry and case types [2016] (https://www.bls.gov/iif/oshwc/osh/os/ostb4734.pdf).

Often these MMH injuries are associated with poor ergonomics. A poorly designed workstation and improper manual handling equipment can put workers at risk. The result is decreased productivity; quality problems; lost workdays; and increased employer medical costs, including workers’ compensation claims.

Many claims are for injuries that are the result of accumulated trauma, rather than from a single event. They include such ailments as sprains, strains, tendonitis, and the big one, lower back pain. The injuries derive from actions that create excessive or repeated stress on backs, shoulders, elbows, wrists, ankles, and hands.

For example, lifting objects at a low angle such as from the floor or a pallet; bending over and into containers, tubs, and wire baskets; reaching out from the body to pick up an item; and carrying materials of any weight, even for short distances, are common MMH tasks that can injure a worker. Yet workers are being asked to do them, hour to hour, day in and day out.

Even conservative estimates are that workers’ comp claims are costing U.S. businesses nearly $60 billion annually, according to the 2017 Workplace Safety Index. The National Council on Compensation Insurance (NCCI) reports that back injuries comprise more than half of these costs.

Figure 1
Elevating a pallet with a simple load leveler eliminates stressors. A leveler with a turntable allows a worker to stay in one position while loading and unloading, reducing wasted movement and increasing productivity.

According to the most recent BLS data (https://www.bls.gov/news.release/osh.nr0.htm), nearly 3 million workers suffered work-related injuries and illnesses in 2015. In its “Workers’ Compensation Solutions from CNA,” commercial insurance corporation CNA states, “About half of this group either missed work or had a job restriction resulting from a reported incident. A strong safety culture helps keep your company from being part of this statistic.”

In its report, CNA also states that a good safety record can result in reduced insurance premiums, saving manufacturers money. “A company’s experience modification rating (MOD) is one of the most important factors in determining its workers’ compensation premium. The frequency and size of workers’ compensation claims determine a company’s rating and, ultimately, its premium. As a general rule, the lower the MOD, the lower the premium.”

Better Ergonomics Increases Productivity

A dependable, well-trained, productive, problem-solving employee is one of the most valuable assets a company has. When an employee is absent, even for a short-term injury, the unique skills he or she has developed are not replaced by a temporary stand-in. Efficiency, quality, and productivity can all suffer. These indirect costs can easily exceed direct medical costs.

Often ergonomic improvements come in the form of simple upgrades. These can include adaptable, easily operated devices that eliminate awkward and uncomfortable work positions and reduce lifting, bending, and reaching.

These ergonomic improvements also can eliminate wasted motion—a core lean manufacturing tenet. “The same lean management principles that create a more efficient work environment can also create a safer one,” according to the CNA report.

In contrast, poorly designed workstations, excessive manual materials handling, and just plain poor ergonomics can cause productivity bottlenecks. Ergonomic economics can be measured analytically by improvements in productivity and efficiency. Even a gain of just 5 to 10 more minutes per shift of productive time or 10 percent increased efficiency can have measurable productivity gains.

Also, those gains are realized immediately after the ergonomic equipment installation, so management can see an equally rapid ROI.

Equipment Eliminates Strained Posture, Unnecessary Motions

Some basic, manual materials handling tasks common to most manufacturing operations can be significantly improved by the addition of simple, inexpensive ergonomic equipment.

Elevated Loading, Unloading Pallets. Regardless of the size or weight of items on pallets, manual loading and unloading poses risks. Repeated bending, stretching, and reaching out to pick up boxes from pallets resting on the floor puts undue stress on all workers. If the pallet is elevated by a simple load leveler, the stressors are all but eliminated (see Figure 1). And, if the leveler has a turntable that allows a worker to stay in one position throughout the loading and unloading process, the productivity gains are even greater.

Accessible Containers for Parts Feeding. Wire containers, totes, baskets, and Gaylord dumpers often are used to hold parts and blanks. As items are removed, the worker has to reach lower and lower to access the remaining pieces, making it more difficult and straining his or her back.

Figure 2
A lift table that raises sheet metal to the proper height enhances the operator’s ability to move the material, and to do so without the assistance of a second worker.

A tilter can be used to present the container at an optimal height and angle, allowing workers to access items with minimal bending, reaching, and stretching (see lead photo).

Waist-high Large-sheet Feeders. Because of their size and weight, loading or feeding sheets into shears, presses, and brakes sometimes requires two workers. But if the sheets are on a lift table that elevates them to the proper height, an operator can move the material easily. Sometimes the operator can even perform the feeding operation without the aid of a second worker (see Figure 2).

When considered from a bottom-line standpoint, safety and ergonomics in the manufacturing workplace make economic sense.

Every operation is different, so for detailed recommendations on how to improve ergonomics in a facility, stamping manufacturers are advised to consult with an ergonomics expert. If that’s not possible, a local materials handling supplier should be able to provide suggestions for ergonomic equipment that can improve productivity.