Presented by:

Carrie Stinson

ECCO Company - Warranty Data

 

Results

 

Based on the 110 claims filed with ECCO Company for injuries, we find that it may be pertinent to look at the detailed data and pin-point the factors that may be causing claims, and where the most claims are happening, as well as time of day. First and foremost, it is difficult to fully argue that these findings are 100% correct, in that we are unsure of total number of employees at each plant, as well as total number of employees on each shift.  The recommendations are solely based on the notion that each plant and each shift is made up of approximately the same amount of employees.

 

We find that the largest amount of injuries occurs at the Boise plant during the daytime shift.  The total claims had a cost of $21,395.00 in Boise, $6,761.00 in Atlanta, and $1,813 in Reno.   

 

The total claims throughout the three plants for the day shift were $20,562.00, $7984 for the swing shift, and $1422 for the graveyard shift.  It is apparent that the most injuries occur at the Boise plant based on the numbers.   

 

In addition we have broken the data down by complaint codes.  The data tells us that malfunction represents 58% of the total claims filed.  Since more than half of the claims filed are directly due to malfunction, there are several aspects the company we must first consider.

 

More directly however, first look at the data at the Boise plant location.  The descriptive statistical analysis is below for your review, as well as the same summary specifically for malfunctions.

 

Population Statistics
Mean		268.44
Standard Error		5.7628
Median		269.5
Standard Deviation		50.896
Sample Variance		2590.4
Skewness		0.1884
Sum		20938
Count		78
Confidence Level(95.0%)		11.475
Malfunction
Mean	273.68
Standard Error	7.6546
Median	277
Standard Deviation	42.619
Sample Variance	1816.4
Skewness	-0.293
Sum	8484
Count	31
Confidence Level(95.0%)	15.633

 

The average claim due to malfunctions is $273.68 with a standard deviation of $42.16.  There is a 95% confidence level that the mean will be between $258.05 and $289.31.  Other plants had may have had the same or near the same average for malfunctions, however their standard deviations were much larger and they reported fewer malfunction claims.  Please find the attached Excel file for each complaint codes descriptive statistics, as well as each plant locations statistics.

 

Based on the findings that most claims occur during the daytime and are due to malfunctions, recommendations can be made to support a safer environment.  Other information may lead us to believe that injuries occur due to sleepiness, lack of training, or simply not paying attention.  However, this data tells us that 58% of claims filed are malfunction related, and furthermore that 71% of claims are generated in the Boise plant location.

 

It is our recommendation that the Boise Plant Location be fully inspected.  Fifty-eight percent of injuries related to malfunction is unacceptable.  We first must decide if the malfunctions are genuine, or if the employee was at fault.  Training may need to be provided every six months to insure that employees understand the equipment in full.  Each piece of equipment must be inspected, serviced, maintained or replaced. It may also be beneficial to inspect the entire Boise Plant Location to insure it is safe to continue operations.

 

 

Recommendation for Incentive Plans

 

Many large organizations have practices that minimize on the job injuries.  Ecco Company must make changes in their safety practices to lower the total dollar claims paid for each plant.

 

The first step in minimizing work place accidents is by education.  Educating employees how to avoid workplace injuries will lower the percentage of claims filed.  Employees must be well versed in dealing with potential hazard areas.  They must understand the value of immediate treatment, to prevent prolonged healing.  Educational workshops for safety and policy/procedure will be mandatory for each employee to attend twice per year, occurring every six months.

 

In addition to training employees how to avoid workplace accidents, Ecco Company will reward those shifts illustrating a safe work environment.  The entire shift must have no reported accidents for the duration of one month.  At the end of every month, each shift will be evaluated and rewarded accordingly.  The bonus will be a catered luncheon recognizing those shifts each and every month.

 

Finally, bonuses will be rewarded to individual employees who demonstrate exceptional safety awareness by allowing two additional floating holidays at the end of every year of service without an injury.