Occupational Risk Management

Impact of Technology Progress to

Personnel, Equipment, and Tool, and
Business Risk in Industrial Revolution
By Shony Erdinal
Past Industry (1st and 2nd Industrial Revolution)
Training OWNER
Certification
No smart safety system
Communication
(safety engineering
feature/safety device) on
object handled

INC

P
O

Individual operates the equipment

and tool which depend on his/her
awareness and work behavior Legend
A : Administration (Training, Certification)
Whenever an individual has lack of awareness and
IND : Personnel
behavior of his/her work (not trained/not fit for
O : Object Handled (Equipment, Tool)
duty/make an error), risk of personnel injury,
P : Process (Activity, Machine)
property damage, and environmental damage
INC : Income
(pollution) gets the increase
Current Industry - Transition (3rd Industrial Revolution)
Training OWNER
Certification
Smart safety system (safety
Communication
engineering feature/safety
device) is exist on object
handled

INC

SSS P

Individual operates the equipment

O
and tool which depend on his/her
awareness and work behavior Legend
A : Administration (Training, Certification)
Whenever individual has lack of awareness and IND : Personnel
behavior on his / her work (not trained / not fit for SSS : Smart Safety System
duty / do an error), smart safety system works as O : Object Handled (Equipment, Tool)
safety device to prevent risk of personnel injury, P : Process (Activity, Machine)
property damage, and environmental damage INC : Income
(pollution)
Future Industry (4th Industrial Revolution)
OWNER

Autonomous operation

INC
SSS
No individual operates the equipment and
P tool. It’s an era of autonomous intelligent
O operation where transmission from
machine to machine (M2M) happens
through wireless network communication

Legend
SSS : Smart Safety System
O : Object Handled (Equipment, Tool)
P : Process (Activity, Machine)
INC : Income
 Discussion
Identification of occupational risk aspect of the industrial revolution
Aspect Past Industry Current Industry Future Industry
Direct control by an Big Reduced Little / No
individual on operated
equipment or tool
Risk of Loss Many personal injuries Less personal injury Little / No personal injury
Many property damages Less property damage Little / No property
damage
Many environmental Less environmental Little environmental
damages damage damage/No
Source of error/failure Personnel Personnel and Personnel and
equipment/ tool equipment/tool
Cost of initial investment Little cost More cost Big cost
Cost of incident Big Less Little / No
Cost of personnel More cost of personal Less cost of personal Little cost of personal
handling training training training
More cost of personnel Less cost of personnel Little cost of personnel
certification certification certification
 Discussion
Identification of occupational risk aspect of the industrial revolution
Aspect Past Industry Current Industry Future Industry
Cost of equipment /tool No/little investment cost More investment cost on Big investment cost on
handling on smart safety system smart safety system smart safety system
(safety engineering (safety engineering (safety engineering
feature /safety device) feature/ safety device) feature/ safety device)
No/little investment cost More investment cost on Big investment cost on
on equipment reliability equipment reliability equipment reliability
(inspection and (inspection and (inspection and
maintenance maintenance maintenance
/calibration) /calibration) /calibration)
 Discussion
Identification of managerial control aspect of the industrial revolution
Aspect Past Industry Current Industry Future Industry
Allocation of resources to Big Less Little / Not Required
handle problem-solving of
daily operation technical
Understanding technology Little More Big
application
Supervision to an individual in Big Less Little / Not Required
the team
Using of technology/logic Little More Big
program
The ripeness of investment Little More Big
decision considering the risk of
loss
Effectiveness allocation of Little effective More effective Much effective
industrial cost
*Smart safety system is utilized and applied. If the smart safety system is not utilized and applied, the
industry is categorized as a past industry even though it operates in the transition period (current
industry).
Discussion
Recommendation of an improvement plan for smart safety system utilization into ongoing industry

No Ongoing Industry

1 Identify the highest risk operation and all occurred incidents which cause personal injury,
property damage, environmental damage and lost income for the company.
2 Identify smart safety system (safety engineering feature/safety device) which could prevent
the incidents.
3 Calculate the investment cost needed to apply the required smart safety system (safety
engineering feature/safety device).
4 Calculate the total direct and indirect cost of all occurred incidents. Consider the number of
personnel and equipment/tool as a multiplier factor (every company may determine its own
multiplier factor formula)
5 Compare the investment cost in line-3 with total incidents cost in line-4 and do review for
prioritization.
6 Start to develop a smart safety system (safety engineering feature/safety device) on the
prioritized operation.
7 Apply mitigation action to identified high operation risk which not yet supported with a smart
safety system.
Discussion
Recommendation of an improvement plan for smart safety system utilization into upcoming industry

No Upcoming Industry
1 Identify the highest risk operation which may potential causes personal injury, property
damage, environmental damage, and lost income for the company.
2 Identify smart safety system (safety engineering feature/safety device) which could prevent
the incidents.
3 Calculate the investment cost needed to apply the required smart safety system (safety
engineering feature/safety device).
4 Calculate the value of industrial capital.
5 Compare the investment cost in line-3 with the value of industrial capital in line-4.
If value of industrial capital smaller than investment cost on smart safety system (safety
engineering feature/safety device), the best decision is to suspend the industry
commencement to avoid risk of loss due to personal injury, property damage, environmental
damage, and loss income to Company, except Company want to put initial investment on
smart safety system (safety engineering feature / safety device) before commencing industry.
THANK YOU!