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Group 04 Safety Consulting Firm 12121 Shadow Mountain Street El Paso, TX. 79958 November 21, 2013 Ms. Maria Teresa Torres Human Resources Director Quezada Imports 725 North Mesa Street El Paso, TX. 79901 Dear Ms. Torres: Thank you for allowing Group 04 Safety Consulting Firm to assist your company in finding a solution for the current productivity issues which Quezada Imports is facing as a result of a high incident rate of back injuries in the workplace. We have not only examined, but thoroughly researched the potential elements that have been contributing to the sharp increase in workers compensation claims and appreciate the opportunity to present our information for consideration in developing a workplace safety program which will aid in preventing warehouse employee back injuries in the future. We understand that there are certain standards that are unique to Quezada Imports and assure you that we will continue to work hard in promoting the already excellent reputation and quality standards present within the company. During the last 10 years, Group 04 Safety Consulting Firm has worked tirelessly in cooperation with The Safety and Health Councils field assisting different companies, such as Ashley Furniture Home Store, Home Depot, Lowes, and many more. This experience has proved beneficial in launching new safety programs within already established companies, this coupled with our ability to communicate new ideas and innovations has helped these companies to minimize workplace injuries and keep employees safe at a minimal cost to the company. Group 04 Safety Consulting Firm is recently ranked number 2 in The Association of Consulting Firms in North America, and we received an award in October 1, 2013 as Consulting Firm of the Year in The United States by The National Congress of Consulting Firms (TNCCF). We would like to respectfully request a meeting at your convenience. Please call us at 1 (800) 8881515 or contact by email at group04@safetyprograms.com. Thank you for your consideration. Sincerely, Monique Navarro Group 04 Safety Consulting Firm. 1

BENEFITS OF IMPLEMENTING A WORKPLACE SAFETY PROGRAM 2013 Safety Report

Prepared by Monique Navarro, Principle Investigator; Jhiovanni Franco, Researcher; Angel Ortiz, Compiler Group 04 Safety Consulting Firm

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Report Distributed November 21, 2013

Prepared For Ms. Maria Teresa Torres, Human Resources Director & Mr. Glen Holder, Warehouse Supervisor Quezada Imports
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Benefits of implementing a workplace safety program -- 2013

ABSTRACT This report examines the common occurrence of employee back injuries at Quezada Imports. From 2012-2013 there have been 956 workplace injuries, resulting in a current cost of 3.5 million dollars, which can potentially escalate to 8.2 million dollars when taking into consideration the remaining open cases. This report also provides ways in which Quezada Imports can increase overall productivity, while also increasing the effectiveness of their staff and minimizing injuries. There are three initial recommendations which include (1) a straightforward and initial strength test which will be required for all potential employees and a mandatory strength test for employees transferring to physically demanding positions within the company. (2) Training to educate employees on how to utilize lifting techniques which place minimum strain on the lower back. (3) Physical training and conditioning or stretching programs to reduce the risk of muscle strain. Also presented are recommended changes to engineering controls which can aid in the success of the proposed safety program. The effectiveness of these changes within a workplace have been documented in studies conducted by the U.S Department of Labor. Upon implementation of these safety changes, Quezada Imports and its employees will be in a more ideal position to avoid back injuries and the costs which are associated with these workers compensation claims. Recommendations for planning the implementation of the new Quezada Imports workplace safety program include (1) A Human Resources training workshop for a more thorough understanding of new guidelines (2) Increasing the budget for new safety equipment (3) Providing employees with the necessary resources needed to fully understand the changes which will be occurring.

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Benefits of implementing a workplace safety program 2013

TABLE OF CONTENTS

ABSTRACT.iii

PREFACE...vii

EXECUTIVE SUMMARY...6

INTRODUCTION 8

ISSUE9

RELEVANT INFORMATION...11 Culture of Prevention........12 Available Options..14 CONCLUSIONS AND RECOMMENDATIONS..17 Recommendations.17 Justification...21 Cost Analysis....22

References...24
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Benefits of implementing a workplace safety program 2013 PREFACE Quezada Imports has recently reported a loss in productivity due to the increasing incident of workplace back injuries and the workers compensation claims which these injuries have brought upon. The fact that there have been a total of 956 injuries from 2012-2013 alone signals that there is an increasing problem which needs to be addressed and resolved immediately. We at Group 04 Safety Consulting Firm have researched the many elements pertaining to these issues and have prepared a comprehensive outline which not only documents the many areas that can easily be improved within the company, but also provides a detailed proposal for the implementation of a new Workplace Safety Program designed specifically to meet the needs and demands of Quezada Imports. As the Principle Investigator for Group 04 Consulting Firm I have prepared a list of objectives which will assist in our goal of establishing an efficient and productive working environment for Quezada Imports employees and a positive financial turnaround for the company. Communicate the importance of safety in the workplace to all Quezada Employees. Through the use of training workshops, educate Quezada Imports employees in regard to new guidelines within the Workplace Safety Program. Implement mandatory strength testing prior to employment or transfers to ensure strength ability for assigned tasks. Establish a mandatory 5-minute stretching routine for all Quezada Imports employees who are in the position to handle any heavy lifting. Install mechanical aids such as pneumatic lifts, conveyors, and/or automated materials handling equipment. This report examines not only obvious issues but also the underlying issues which in the past may have contributed to the occurrence of workplace injuries at Quezada Imports. Furthermore, this report was compiled in an effort to raise awareness of the continuing problem and also to provide a clear and concise solution to this subject. vii
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Benefits of implementing a workplace safety program 2013 EXECUTIVE SUMMARY This report examines the many factors which have contributed to the current issues that Quezada Imports is now facing with a constantly rising number of workers compensation claims being submitted due to an influx of back injuries which are occurring in the workplace. Also included is a thorough analysis of potential solutions to this problem and a complete proposal for the implementation of a Workplace Safety Program which has been designed to suit Quezada Imports demands, while keeping in mind its specific needs as a company who works in the International spectrum. Administrative changesdefined as the guidelines for potential and current employees of Quezada Imports to follow in regard to work duties being assigned based on physical ability, training workshops, resources readily available for employees to educate themselves on safety guidelines and prior to performing heavy lifting the implementation of a mandatory 5-minute physical conditioning or stretching program. Engineering changesdefined as a [potential] reduction in the size or weight of the object lifted. The parameters include maximum allowable weights for a given set of task requirements; the compactness of a package; the presence of handles, and the stability of the package being handled. Adjusting the height of a pallet or shelf. Lifting which occurs below knee height or above shoulder height is more strenuous than lifting between these limits. Obstructions which prevent an employee's body contact with the object being lifted also generally increase the risk of injury. Installation of mechanical aids such as pneumatic lifts, conveyors, and/or automated materials handling equipment. (U.S. Department of Labor, 2013) The effectiveness of this proposal is evidenced within the U.S Department of Labors recommendations for the reduction of back injuries within the workplace. More specifically, we have provided a comprehensive plan which includes suggestions for changes which have been proven to be effective in workplace environments similar to Quezada Imports.

Benefits of implementing a workplace safety program 2013

Based on these conclusions, our recommendations for effectively reducing the number of back injuries include several non-invasive and cost effective measures such as training workshops and mandatory 5-minute stretches along with practical improvements to the companys current machinery which can enable more productivity while reducing the chance of injury at a minimal cost to the company.

Benefits of implementing a workplace safety program 2013

INTRODUCTION For several years, all companies around the world have been facing a lot of issues, such as robbery, fraud, illegal transactions, low employment, lack of employees and experience, and many more that have cost those millions of dollars, but the main issue that companies are facing nowadays is injuries, especially back injuries. Trying to prevent back injuries in any workplace is a very huge challenge. According to the Department of Labor-Bureau of Labor Statistics, there are more than one million workers around the world suffering from back injuries per year, and 222,290 injuries from that million mentioned before, were registered in The United States. This situation has produced more instability between employees and employers since many employees are afraid of doing risky tasks because they are afraid of getting an injury and they could lose their job, and many employers do not want to put in risk any employee since it could cost a lot of money but at the same time they need someone to do all the hard work, reason why many companies are desperate to find the solution that will completely stop this issue and let them continue with their work without losing millions of dollars. Quezada Imports, a large online retailer of imported food and household products has a total cost of $3.5 million dollars in 956 injuries occurred. Quezada Imports warehouse employees spend their days packing boxes, lifting boxes, place them into carts and pull the carts to mailing rooms, and the majority of these employees do not take precautions. At Group 04 Consulting Firm, we have established a safety program which will aid in preventing warehouse employee back injuries in the future. It will reduce the number of injuries in the workplace. The safety program is way cheaper than any other program. It will save Quezada Imports millions of dollars.

Benefits of implementing a workplace safety program 2013 ISSUE History has shown that companies with the highest back injury incident rate, tend to lose productivity and have higher rates of absence. This in turn translates to losses for the companys efficiency and revenue, as this loss in productivity means less income for the company. Back injuries have been present in jobs involving manual material handling that is extremely common in warehouses. For example an employees might lift heavy items without using their legs, while some tend to rely on work belts, without the understanding that they are not efficient when absent from performing a lifting technique. OSHA states that Although back injuries account for no work-related deaths, they do account for a significant amount of human suffering, loss of productivity, and economic burden on compensation systems (OSHA, 1999). Back injuries have the highest rates of occurrence within warehouses, one of the main factors being the continuance of employees lifting of heavy objects without proper training. OSHA lists the factors associated with back disorders. (OSHA, 1999).

Reaching while lifting. Poor posture--how one sits or stands. Stressful living and working activities--staying in one position for too long. Bad body mechanics--how one lifts, pushes, pulls, or carries objects. Poor physical condition-losing the strength and endurance to perform physical tasks without strain. Poor design of job or work station. Repetitive lifting of awkward items, equipment, or (in health-care facilities) patients. Twisting while lifting. Bending while lifting. Maintaining bent postures. Heavy lifting.

Benefits of implementing a workplace safety program 2013

Fatigue. Poor footing such as slippery floors, or constrained posture. Lifting with forceful movement. Vibration, such as with lift truck drivers, delivery drivers, etc.

Almost all of these factors are related to the lifting of an object without proper posture being used or the weight of the objects being outside the employees strength capabilities. All of these factors can be easily addressed with the correct training and procedures.

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Benefits of implementing a workplace safety program 2013 RELEVANT INFORMATION The purpose of this report is to identify the different types of injuries which can occur in the workplace, and how best to prevent them. This report will focus on the most affordable and efficient solutions to back injuries which have proven to be the most occurring of work related injuries. Several companies have problems with back injuries, but not all of them do something to avoid or prevent them. Back injuries have thus far cost 3.5 million to Quezada Imports in 2012-2013 alone. That amount could be considerably reduced with the assistance of non-invasive and cost effective techniques such as workshops or implementing mandatory stretches. 2.1 Back Injuries Injuries to the back are the most common type of injuries occurring in the warehouse. In the United States back Injuries have a high rate of occurrence along with injuries to the hands. Although specifically in the sector of the warehousing The U.S. Department of Labor Statistics shows that warehousing have the highest rate of Back injuries than any other job. The Graphic below show the rates of back injuries on different work environments or environments (U.S.D.L.S, 2013).

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Benefits of implementing a workplace safety program 2013 CULTURE OF PREVENTION Having a culture of prevention is extremely important to avoid any kind of accidents and injuries. Since an accident cannot be controlled it can still be prevented. The statistics of the Center of Decease control and prevention has a graphic that show how the biggest amount of accidents occur in the United States (CDC, 2007). Even with the majority of the accidents occur while handling materials, there is still a large amount of accidents occurring from a person slipping or falling. If the employee has been trained in a culture of prevention the amount of back injuries could be reduced with safety being taught as a primary objective. The International Social Security Association lists the next points about the culture of prevention (ISSA, 2013). Comprehensive management of safety and health Challenges and barriers to promoting safety culture (e.g. mobility of workers, new forms of employment contracts, economic crises). Ways to promote safety culture (e.g. zero accident vision, resilience technology, attitude, cognitive factors in occupational accident/risk prevention). Developing safety and prevention culture - the role of training and education (e.g. education and safety in health and safety, transition from school to work, lifelong education and training).

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Benefits of implementing a workplace safety program 2013 Sources of support for prevention, health promotion and social accident insurance (e.g. role and tasks of different stakeholders). Benefits of prevention (e.g. economics, working career, work ability). Good practices (e.g. examples from corporate social responsibility, highrisk-sectors, national forums, business cases). These factors are ones which companies can implement and share with their employees. Consequently adapting this mindset can serve as a great tool in preventing back injuries while also benefitting the company by having healthier and more prepared employees at the warehouse.

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Benefits of implementing a workplace safety program 2013 AVAILABLE OPTIONS There are severalsolutions included in this report Mandatory 5-minute stretches before working. The implementation of training workshops for employees. Promoting a culture of prevention Machinery The mandatory stretches are a good way to ensure that the muscles of the back are not damaged as well as protection of the spinal cord. The stretches have been shown to be effective in preventing back injuries. For example, the web page of Occupational Health and Safety shows a study made by a company with nearly 400 employees, with some being professionally trained. The study states that In 2007 there were only two lost workday cases the following year. These results represented a 67 percent reduction of lost work day cases from the previous fiveyear average (OHS, 2009). According to these studies stretches are one of the most effective ways to prevent back injuries. The purpose of a work belts is to prevent injuries while lifting, although a work belts would not support the back itself, it is necessary to combine them with a proper lifting technique. The web page Live Healthy states that Weightlifting belts wrap firmly around your lower back and protect your spine from collapsing as youre performing heavy lifting exercises(Nunly, 2013). With back injuries being one of the most frequent and common injuries in the sector of warehousing, many companies have tried to find the way to completely stop this and prevent the risk of getting any injury, in this case a back injury. Companies came out with different products that promised to be the solution to this type of injuries. One of these products and actually the most famous all around the world is the Back-Belt (shown below).

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Benefits of implementing a workplace safety program 2013 The National Institute for Occupational Safety and Health (NIOSH), which is the institute responsible for making recommendations to companies for the prevention of injuries in the workplace, clearly mentioned and stated that there is not sufficient information and evidence to prove that back belts prevent back injuries and protect employees 100%. Actually, there are a lot of false and inadequate theories that suggest that back belts reduce the risk of back injuries. There is not enough evidence that proves that back belts actually prevents back injuries. Many workers might try to lift more than what they can because they are wearing back belts, which could lead to greater the risk of injury.

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Benefits of implementing a workplace safety program 2013 Although an effective way to deter misinformation among your staff is by utilizing the option of mandatory workshops. These workshops are also a great way of explaining the culture of prevention to employees and a good opportunity to offer training on lifting techniques. The mayo clinic shows the proper lifting technique that could be implemented in these workshops. (Mayo, 2013).
1. Start in a safe position 2. Maintain the natural curve in your lower back

3. Use your legs

4. Squatting instead of kneeling

5. Let your legs do the work

Avoid twisting

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Benefits of implementing a workplace safety program 2013 RECOMMENDATIONS 1. Mandatory 5-min Stretches Mandatory 5-min stretches are a good way to improve the situation by lowering the possible problems of back injuries. This is a simple solution that could be implemented fast and at no cost.

2. Safety Workshops The implementation of these workshops will aid in training to avoid accidents involving back injuries. They will focus on teaching employees the correct lifting techniques, like lifting with the legs instead of using the back and can also be used to train employees on the correct use of any other equipment. Overall a minimally invasive and low cost solution.

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Benefits of implementing a workplace safety program 2013 3. Pneumatic Lifts Pneumatic lifts can reduce workplace back injuries significantly. The capability of lifting as much as 4000 lbs. with as little as 80 psi offers another great incentive. The approximate range cost of this equipment goes from $3,900 to $4,300 dollars.

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Benefits of implementing a workplace safety program 2013 4. Fork Lifts Fork lifts are a great option for increasing productivity, by reducing an employees workload. Each vehicle can carry up to 3 tons. These vehicles work on diesel fuel and require training and certification for operators and while the prices for a fork lift range from $8,000 to $13,000 dollars this amount is easily set off by the savings from a drastic reduction in back injuries.

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Benefits of implementing a workplace safety program 2013

5. Hefti-Lift - Hydraulic Lift/Positioners This lifts are a great option because this lifts are easy to use requiring just a little bit of training to be used. Hydraulic lifts are great for lifting heavy things because they use a system of hydraulic oil that could lift things as heavy as several pounds. User-friendly portable hydraulic lifts provide reliable, powerful lifting when moving and positioning loads. Economical and attractive, they're ideal for commercial or industrial uses. This lift has a mechanism that allow it to be moved from one side to the other making it very useful to avoid injuries. The disadvantages is that it cannot be used on palettes, but that is only a little disadvantage since only a few lifts can be used on palettes. The prices for the hydraulic lifts range from $700 to $1,000 dollars.

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Benefits of implementing a workplace safety program 2013 JUSTIFICATION From 2012-2013 Quezada Imports has suffered heavy losses due to the rising costs associated from an increase in workers compensation claims alongside the losses in productivity from workers being unable to work. Group 04 Consulting Firm has formulated an effective plan which aims to drastically reduce the occurrence of workplace injuries within your warehouses, while still maintaining only reasonable budget increases. We are confident that you will find our initial implementation of Mandatory 5-minute stretches, Workplace safety workshops alongside educational literature in regard to workplace safety; which will be distributed to all current employees. These initial immediate benefits in productivity and a drop in the number of incidents occurring within the first month. Furthermore, we will follow through with a strategic plan (dependent on approval of certain options) to include, new equipment at an approximate cost of $7,270 for (10) Hefti-Lift - Hydraulic Lift/Positioners to help with the lifting and moving of heavy shipments and. After the proper training is conducted for all new resources, Quezada Imports will find themselves in a new position, where workers are eager to work in an ideal and safe environment and the company will continue to thrive with its newfound capabilities.

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Benefits of implementing a workplace safety program 2013

COST ANALYSIS Our suggested recommendations include, safety guidelines, updated protocols and essential machinery which collectively will reduce the incidence of back injuries and increase productivity for Quezada Imports. A review of overall company losses leaves Quezada Imports with an annual cost of $3.5 million annually, more specifically with a total of 956 injuries occurred, and gives us an estimate of $3,660 per injury. Taking into account the costs associated with purchasing the recommended machinery, we have provided several options for your consideration. The Hydraulic Lifts can lift up to 800 pounds and the prices for this machine range from $700 to $1,000. On average, a person can carry a weight between 35 and 40 (Morrison, J. 2008). Keeping in mind this figure we can estimate that a Hydraulic Lift can replace the work that about twenty employees. With these twenty employees having the potential for a work related injury, we then can approximate the annual savings to be $73,200 is the estimate amount that could potentially cost 20 injuries. The Pneumatic Lifts can lift up to 4,000 pounds and range in price from $3,900 to $4,300. Applying the same information as before, with an average of 40 pounds weight per person, The Pneumatic Lift can replace the work of one-hundred employees. When taking potential injuries for one-hundred employees into consideration we are left with an annual savings of approximately $366,100. Taking into account the overhead cost of one Pneumatic Lift, Quezada Imports has the potential to be save $361,800. A fork lifts can lift up to 6,000 pounds and range in price from $8,000 to $13,000.Applying the same methodology used above. The Fork Lifts can replace the work of one hundred and fifty employees. With one hundred and fifty employees having the potential for injury we then can approximate an average of $549,000 in potential savings. Taking into account the overhead cost of one Fork Lift being $536, 000 opposed to the potential savings from a reduction in injuries, Quezada Imports can potentially save $3,416 with this option.

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Benefits of implementing a workplace safety program 2013 References Primary research - Personal Interview with Union Pacific Railroad Yard Employee Mario Flores by Monique Navarro, November 18, 2013 at 1 p.m. Location Alpine Yard. DHHS (NIOSH). (October, 1996). Center for Disease Control and Prevention. BACK BELTS Do They Prevent Injury? Retrieved November 21, 2013, from http://www.cdc.gov/niosh/docs/94-127/ Ege, S. (November 1, 2009). Occupational Health and Safety. In The Benefits of Stretching. Retrieved November 21, 2013, from http://ohsonline.com/articles/2009/11/01/the-benefits-of-stretching.aspx. Helsinki. (2013). International Social Security Association. In International Symposium on Culture of Prevention Future Approaches. Retrieved November 21, 2013, from http://www.issa.int/News-Events/Events/International-Symposiumon-Culture-of-Prevention-Future-Approaches. Junlim. (2013). Avoid Back Injury at Work. Work related back injury statistics. Retrieved November 21, 2013, from http://avoidbackinjury.blogspot.com/2010/05/work-related-back-injurystatistics.html Nunley, K. (n.d). Chron. In Advantages & Disadvantages of a Weightlifting Belt. Retrieved November 21, 2013, from http://livehealthy.chron.com/advantagesdisadvantages-weightlifting-belt-1472.html. Mayo Clinic. (May 16, 2013). Mayo Clinic. In Proper lifting techniques. Retrieved November 21, 2013, from http://www.mayoclinic.com/health/backpain/LB00004_D. OSHA. (1999). United States Department of Labor. In Back Disorders and Injuries. Retrieved November 21, 2013, from https://www.osha.gov/dts/osta/otm/otm_vii/otm_vii_1.html.
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U.S. Department of Labor. (2009). U.S. Department of Labor. Back Injuries Nations #1 Workplace Safety Problem. Retrieved November, 21, 2013, from http://ehs.okstate.edu/training/oshaback.htm CDC - Mining - Sand & Gravel Operator Mining Facts - 2007 (HTML) NIOSH. (2007). Retrieved from http://www.cdc.gov/niosh/mining/works/statistics/factsheets/07sgo.html U.S Department of Labor Statistics, an Ergonomics Assessment in the Hospital Setting | The Back School. (2013). Retrieved from http://thebackschool.net/blog/ergonomics/healthcare-ergonomics/anergonomics-assessment-in-the-hospital-setting/

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