Five-Year Safety Program

for Quezada Imports

Background

• In 2011, 95 million people were out of work due to warehouse-related injuries• Between 2009 and 2011, 956 injuries

were reported at Quezada Imports• This resulted in 3.5 million dollars in

claims and 8.2 million in open claims

Components of the Safety Program

• Trainings• Equipment• Machinery• Physicals• International Relations

Overview: Trainings • All of our employees must complete OSHA

training• The training covers: • Unsafe use of forklifts• Improper stacking of products• Failure to use proper personal protective

equipment• Failure to follow proper

lockout/tagout procedures• Inadequate fire safety provisions• Repetitive motion injuries

https://www.osha.gov/Publications/3220_Warehouse.pdf

Overview: Equipment and

Machinery • The last time new equipment and

machinery were purchased was in 2004’s fiscal year • Forklifts, conveyor belts, and cranes date

back to 2004 or before• All safety equipment was purchased in 2004 • We will be replacing the ones dating before

2004

Summary of Safety Program

• The safety program will have an immediacy over the course of five years, with some aspects lasting throughout the long run• Each year will have a new goal, with one

end-goal to be achieved at the end of the five years

Overall goal: Reduce workplace injury by 65%

Year One Goals

• Enrich our employees through routine trainings and information sessions in order to reduce accidents

Year Two Goals

• Replace the older equipment with new and modern ones • Safety materials• Safety signs

• Repaint the factory floor

Year Three Goals

• Help improve the overall health of our employees through regular physicals and checkups

• Decrease injuries and health issues by 65%

Year Four Goals

• Replace all the older machinery with modern ones• Forklifts• Conveyor belts• Cranes

Year Five Goals

• Improve routine with international exporters

Training Program

• Three types of trainings:• Initial Reboot – retraining the employees in

all of the basics• Monthly Trainings/Info Sessions: monthly

trainings based on OSHA guidelines will be facilitated by a selected warehouse supervisor on the first Friday of every month.• Biannual review of OSHA regulations

Schedule

• January 6, 2015: Initial Reboot• February 6, 2015: First monthly training• Time:• Initial Reboot: 57 minutes• Monthly training: varies

Costs

• Initial training: $17.99 for warehouse supervisors• Monthly/biannual trainings/sessions:

cost varies. • Possible costs• Printing• Opportunity• Various training fees

Goal: Techniques to be Taught

Initial Reboot: to reinstate common techniques in the warehouse.

Monthly Trainings: • Reinstate or teach new techniques to

employees• Introduce new ideas• Cover common mistakes in order to

prevent them• Keep minds fresh

New Materials and Equipment

• Equipment: tools, batteries, etc.• Safety: reflective vests, hardhats,

goggles• Signage: some are old, worn, or not

readable anymore• Lines: repainting Lines, markings, and

“floor signs”

New Machinery

• Outdated: Forklifts, conveyor belts, cranes• Don’t have: Casters and electric tugs

Models

Models we currently own:Forklifts: Linde Electric Forklift, 2000Conveyor Belts: Steel Cord Conveyor, 1999Cranes: Demag AC-200 Crane, 2002

Models we want to upgrade to:Forklifts: Linde Electric Forklift, 2013Conveyor Belts: Steel Cord Conveyor, 2012Cranes: AC-200 Crane, 2012

Lines

• Our goal is to have everything that needs to be repainted done by the second year• Most important: • Barriers• Lines• Hazards

Schedule

• Year one: replace all of the safety equipment• Year two: repaint lines • Years three-five: replace and update

machinery

Costs

• Hardhats: $11.00• Safety Vests: $4.00• Gloves: $9.00• Signage: $25.00• Forklifts: $25,000.00• Conveyor Belts: $155.00 per foot• Cranes: $31,000.00• Casters: $39.99• Electric tugs: $3,157.00

Benefits• Replacing older models of some of our

equipment will provide our employees with up-to-date, safer, and easier to use equipment• This will help increase productivity and

decrease injuries• Casters and electric tugs will allow our

employees to move heavy objects without having to use manpower• This will also help decrease injuries

Physicals

• We plan to have physicals for our employees every two months, with one mandatory physical every year• Employers must pay a $35 co-pay

• The physicals will be given by six doctors, whom we will hire through a contract• The physicals will include spine

rehabilitation, lumbar exams, and basic exams such as vision and blood pressure

Schedule

• The first physicals will take place on February 23, 2015• Time:• 10 minutes minimum• 25 minutes maximum

Costs

• Doctor Contracts: $90,000.00/year• Back braces: $16.78

Goal and Benefits

• Biggest goal: reduce injuries• Many times, health issues are not

noticed until it is too late• Physicals are not covered by the

insurance, so they will be available to our employees at reduced price; they must pay a $35 co-payment

International Relations

• Our exporters in Mexico, Italy, and Greece are responsible for packaging products and sending them our way• If the item is ordered through an online

retailer, it must be repackaged in our warehouse and then transported to the mail room• Part of our safety program includes a

new packaging system for our exporters

Plan

• Items will be divided into online and in- person sections, so they can be packaged accordingly• Bobby Wally, from public relations, will

propose this idea to our exporters• Accommodations will be made for their

extra effort

Goal

• Reduce strains on backs• Reduce injury• Save time

Other Aspects of the Safety Program

• Warehouse supervisors will be required to inspect workspace regularly• Accident investigations will be

conducted regardless of the situation

Overall BudgetEquipment Cost (USD) Quantity Total

Battery Recharger

$130.00 3 $390.00

Initial Training $17.99 20 $359.80

Forklifts $25,000.00 10 $250,000

Hardhats $11.00 5,000 $55,000

Safety Vests $4.00 5,000 $20,000

Gloves $9.00 5,000 $45,000

Doctor Contracts $15,000.00 6 $90,000

Back Braces $16.78 1,000 $16,780

Casters $39.99 10 $399.90

Electric Tugs $3,157.00 10 $31,570

Cranes $31,000.00 5 $155,000

Conveyor Belts $155.00/ft. 100 $15,000

Signage $25.00 85 $2,125

Lines $175/hr. 48 $8,400

$690,024.70

Overall ScheduleTraining:• January 6, 2015: Initial Reboot

• February 6, 2015: First monthly training

Equipment and Machinery:• Year one: replace all of the safety equipment

• Year two: repaint lines

• Years three-five: replace and update machinery

Physicals: • February 23, 2015: First day of physicals

Similar Situations

• In 2012, Wal-Mart had issues with fire safety in their locations in Bangladesh• They enacted a safety program similar to

this one in the sense where their main goals were to reduce injuries• So far their program has been successful

by reducing the number of injuries significantly

Similar Situations

• JCPenney’s supply chain managers kept seeing an increasing number of injuries in their warehouses• They developed a program to help

encourage safety and prevent workplace-related accidents

Conclusion

• The five-year safety program for Quezada Imports will have long-term effects and goals that are hoped to be met by the end of the five years• We hope to reduce the number of

injuries by 65%• The program will begin the first week of

2015 and carry on in the long-term