Question One: Calculate the total benefit expected for this proposed engineering control. Show your calculations.
A proposed engineering control is expected to cut the accident rate by 40 percent for a given process that was recently cited as being out of compliance by an OSHA inspector. Auditors have estimated cost data for accidents with this process as follows (average cost per accident):
Expenses
Direct Cost
Hidden Cost
Frequency per year
First aid cases
1000$
4000$
6
Med. treatment cases
6000$
9000$
1.5
Lost time cases
3000$
50000$
0.5
No-injury cases
0
2000$
5
Grand Total
10000$
65000$
Total Cost (Direct and Hidden)
75000$
The proposed project will save around 40 percent of the total cost, thus it will save aroung 30000 per year.