An economic evaluation of a participatory ergonomics process in an auto parts manufacturer

TitleAn economic evaluation of a participatory ergonomics process in an auto parts manufacturer
Publication TypeJournal Article
Year of Publication2009
AuthorsTompa E, Dolinschi R, Laing A
JournalJournal of Safety Research
Volume40
Issue1
Pagination41 - 47
Date Published2009///
Keywordsclaim, compensation, cost, disability, economics, ergonomics, health and safety, insurance, intervention, outcome, safety, work, workers
Research Areas

Preventing MSDs compensation & benefits

Abstract

PROBLEM: We assess the costs and consequences of a participatory ergonomics process at a Canadian car parts manufacturer from the perspective of the firm. METHOD: Regression modeling was used with interrupted time series data to assess the impact of the process on several health measures. Consequences were kept in natural units for cost-effectiveness analysis, and translated into monetary units for cost-benefit analysis. RESULTS: The duration of disability insurance claims and the number of denied workers' compensation claims was significantly reduced. The cost-effectiveness ratio is $12.06 per disability day averted. The net present value is $244,416 for a 23-month period with a benefit-to-cost ratio of 10.6, suggesting that the process was worth undertaking (monetary units in 2001 Canadian dollars). DISCUSSION: Our findings emphasize the importance of considering a range of outcomes when evaluating an occupational health and safety intervention. IMPACT ON INDUSTRY: Participatory ergonomics process can be cost-effective for a firm