Improving Safety through Efficiency in the Construction Industry – Is it a Fallacy? Presented by:...

Improving Safety through Efficiency in the Construction Industry – Is it a Fallacy?

Presented by:Todd HohnBrian Roberts

2CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Objectives:Improved understanding on the effects of pre-planning.

Motion is money – discuss the impact staging of materials has on profits and exposures to loss.

Understanding the components that help determine if your job will be safe and profitable.

Overview of key loss drivers and review of best practices to control them.

3CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Road Building Industry:We Know!:

Profit margins are thinner than everAging WorkforceLess Experienced Workforce

4CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Impacts on Profit Margin:

More CompetitorsMedical claim costsIndemnity claim costsEmployee benefitsInsurance costs

5CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Aging Workforce

Age - 45-64Yrs Old

6CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Current Population:

By 2015 – 55 million workers will be 45 or older

Nearly half of all workers will be considered “aging” by 2015

Number of 55 years or older will increase 50 percent between 1998 and 2008.

Those between ages 24 and 54 will only increase 5 percent.

7CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Aging Trends – Average Loss Work Days

05

101520253035404550

0 to 18 19 to 29 30 to 39 40 to 49 50 to 59 60 to 64 65+

AverageDays Lost

1.67

10.4

18.09

31.3

47.7

37.8

48.9

8CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Less Experienced Workforce:

9CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Labor ProductivityChanges on Net Profit

Line %1 Contract Revenues $20,000,000 100%

2 Contract Costs3 Labor 3,000,000 15%4 Material 6,600,000 33%5 Equipment 6,000,000 30%6 Other Contract Costs 800,000 4%

7 Total Contract Costs 16,400,000 82%

8 Gross Profit 3,600,000 18%

9 Total Overhead 3,000,000 15%

10 Net Profit $600,000 3%

------------------------------THEN $360,000 Added to Profit

Profit & Loss Statement

10% Improvement in Productivity = $300,000 Savings in Direct Labor+

Payroll Tax and Insurance Savings = $60,000 if 20% of Direct Labor

------------------------------

A 60% Improvement in Profit (To 4.8% from 3.0%)------------------------------

Same Effect on Profits as Getting $12 MM in Additional Contracts

New Net Profit = $600,000 + $360,000 = $960,000

10CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Is your workforce physically capable of doing their job?

11CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Will your workforce be physically capable of doing their job 10 years from now?

12CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

CNA – Creating a competitive Advantage!

Analyzed essential job functions of your workforceAnalyzed the physical exposures of your workforceAnalyzed the workforce to see if it is physical capable of performing the essential job functions.

13CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

•Number Level Lift Grasp Pinch Static P/P Number Level Lift Grasp Pinch Static P/P FrequencyFrequency 100% ROM100% ROM D Demandsemands

•( 1 ) •Sedentary •<10 lb. •15 lb. •8 lb. •<10 lb. •-

•( 2 ) •Light •10-20 lb. •20 lb. •10 lb. •10-30 lb. •25%> •> 50% of categories

•( 3 ) •Moderate •20-50 lb. •35 lb. •13 lb. •30-60 lb. •20%> •> 75% of categories

•( 4 ) •Intermediate •50-75 lb. •50 lb. •17 lb. •60-85 lb. •15%> •100% of categories

•( 5 ) •Heavy •75-100 lb. •65 lb. •22 lb. •85-100 lb. •10%> •-

•( 6 ) •Extreme •100 lb.> •85 lb. •28 lb. •100 lb.> •5%> •-

Job Function Analysis ClassificationsJob Function Analysis Classifications Level-1 Level-2 Level-3 Level-4 Level-5 Level-6Level-1 Level-2 Level-3 Level-4 Level-5 Level-6

Payroll Clerk Salesman Crane Operator Tear Off Crews Laborers/Journeyman/ Helper/Apprentice

Receptionist Estimator Foreman

BUR Roofing

Project Manager Single Ply

Kettle Operator

14CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

15CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

16CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

17CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

18CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Productivity Studies:

Ontario study revealed Construction workers only spending, on average, 32% of their day performing fully productive work.

University of TX study revealed Construction workers only spending, on average, 34% of their day performing fully productive work.

19CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Production v. Non-Production

Indirect Operations

15%

Misc.7%

Ineffective Activities

26%

MMH20%

Direct Production

32%

20CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Categories Analyzed:

Direct Installation

Indirect Operations

•Actual Direct Installation•On-Site Pre-Fab Operations•Testing Operations

•Set-Up Operations•Talk About Job•Receive Instructions•Planning Job•Tools – Get Out, Set Up, Put Away

21CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Categories Analyzed:

Materials Handling

Ineffective Activities

Miscellaneous

•Unload Truck•Hoisting•Move Materials and Tools to Installation Area

•Late Start, Early Finish•Early Lunch, Later Return•Coffee Breaks•Other Rest Periods

•Get Coffee for Crew•Other

22CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Production v. Non-Production

Direct Production

52%

MMH12%

Ineffective Activities

23%

Misc.3%

Indirect Operations

10%

Time Gained

23CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

2 Common Roofing Job Tasks Analyzed

Built Up

Single Ply

24CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Job Sequencing:

Scheduling Lay down yards/material storage Staging Areas Work Areas De-Mobilizing Post Construction

25CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Opportunities – A review of Best Practices:

Focused on 3 Areas of Opportunity:• Staging• MMH• Work Method Techniques

26CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Best Practices – Scheduling:

Pre-Fab Delivery of Materials from Shop/Vendor Packaging of Materials

27CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Best Practices – Lay Down Yard:

Location to Project How materials are stored/positioned Storage trailer/layout Equipment to move materials

28CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

29CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

30CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Best Practices – Staging Areas:

Location to work areas How materials are stored/positioned Location and layout of equipment

storage/gang boxes Equipment to move materials

31CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

32CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

33CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

34CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

35CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Best Practices – Work Areas:

Storing/positioning material in close proximity to installation (daily)

Installation of material Work method techniques Tools used for installation (hand / power) Power tools

36CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

37CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

38CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

39CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

40CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

41CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Best Practices - Demobilizing:

Equipment to move materials Distance to staging How materials are stored

42CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Best Practices – Post Construction:

Compare labor actual vs. estimate Review for opportunities and

improvements Share best practices

43CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

44CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Case Study Showing Success: Trim Crew

2 men x 3 minutes x 100 times =• 600 min x 12 days = 7,200 min• 120 hrs. x $20 (ave. wage) = $2,400• $2,400 + 25% = $3,000

• 1 x 2 minutes x 5 times = 10 min• 10 min x 12 days = 120 min• 2 hrs x $20 = $40 ($50) (25%+))

$3,000- $ 50$2,950

95%+ increase in efficiencyEquivalent reduction in risk factors

•Not calculated was operator time on forklift

•Loss in productivity if operator not available

•Operator has other tasks

45CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Process for Success

Establish accountabilities at all levels Establish process to measure projects Review and implement Best Practices developed

by CNA

46CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Measurements for Success:

Baseline where you are at efficiency and safety Establish criteria Educate all & establish accountability Go out & measure performance & compare to

baseline Track improvements & reflect saving in hours Adjust bid pricing

47CNA is a service mark registered with the United States Patent and trademark Office. The information and suggestions presented in this document have been developed from sources believed to be reliable. However, CNA accepts no legal responsibility for the correctness or completeness of this material or its application to specific factual situations. This document is for illustrative purposes only and is not a contract. Only the policy can provide actual terms, coverages, amounts, conditions and exclusions. Copyright 2004 Continental Casualty Company. All rights reserved.

Is it a Fallacy?

Conclusion:

Look at the age of your workforce today Creating a competitive advantage will require

you to make your business operations more efficient

A systematic process of measuring performance against established criteria or best practices is the only way that will result in bottom-line profitability

Efficiency improvements have a direct correlation to a reduction in risk factors

Annualize the results!