Total Cost = C_direct + C_indirect + C_payment + C_immeasurable   where,

 

The parameters that reflect the direct costs are formulated as

C_direct = C_damage + C_medical + C_fine + C_insurance ;

= RM 1,505 + RM 5,000 + RM 15,000 + RM 5,000

= RM 26,505

The parameters which reflect the indirect costs are formulated as 

C_indirect = C_{capacity lost} + C_schedule + C_recruit + C_{work time} + C_wip + C_mang ;

= RM 10,000 + RM 20,000 + RM 500 + RM 200 + RM 5,000+ RM 5,000

= RM 40,700

C_payment = M(Pay_newW₁) + Bi - NI x W₂ , and

= RM 4,100

C_immeasurable = C_reputation + C_morale

= RM 15,000

 

Hence,

 

Total Cost = RM 26,505 + RM40,700 + RM 4,100 + RM 15,000

= RM 86,305

Flow chart of Manufacturing Process of Rubber Mat
As shown in the flow chart below.

  

A mill operator began feeding rubber compound into two roll mill. When adding ingredients into the mill, there are leftover compounding materials on the surface of the mill. The operator tried to remove the ingredients using his hands with gloves on. His glove and hand was caught and trapped in between the rotating mills. Eventually he freed himself by pulling away from the machine causing the de-gloving of both hands This resulted in the medical amputation of both hands. 

 

Total Cost = C_direct + C_indirect + C_payment + C_immeasurable   where,

 

The parameters that reflect the direct costs are formulated as

C_direct = C_damage + C_medical + C_fine + C_insurance ;

= RM 300 + RM 15,000 + RM 7,000 + RM 150

= RM 22,450

The parameters which reflect the indirect costs are formulated as 

C_indirect = C_{capacity lost} + C_schedule + C_recruit + C_{work time} + C_wip + C_mang ;

= RM 5,000 + RM 3,000 + RM 1,100 + RM 150 + RM 10,000+ RM 5,000

= RM 24,250

C_payment = M(Pay_newW₁) + Bi - NI x W₂ , and

= RM 100,000

C_immeasurable = C_reputation + C_morale

= RM 10,000

 

Hence,

 

Total Cost = RM 22,450 + RM24,250 + RM 100,000 + RM 10,000

= RM 134,870

Total cost = C_direct + C_indirect + C_payment + C_immeasurable 

The parameters that reflect the direct costs are formulated as 

C_direct = C_damage +  C_medicaL + C_fine + C_insurance 

10 operator is employed in spraying department. 7 operator is suffered from health problem. 

Direct cost = RM 707,000 

 | Direct cost issues | Amount (single cost) | quantity | Amount  | Review
 | Damage cost  | 0 | - | 0 |  
 | Medical cost + insurance  | 100,000 | 7 | 700,000 |  
 | Fine cost | - | - | 7,000 |  
 | Total  |   |   | 707,000 |  

 

Indirect cost = RM 166,480 

 | Indirect cost issues | Amount (single cost) | Duration  | Amount  | Review
 | Capacity lost | 320,000 | 26 |   |  
 | Schedule lost | 2000 | 50 | 100,000 |  
 | Recruit cost | 2000 | 5 | 10,000 |  
 | Work time lost cost | 5 | 208 | 1,040 |  
 | Wip cost | 255 | 20 | 5,100 |  
 | Manager cost | 3356 | 15 | 50,340 |  
 | total |   |   | 166,480 |  

 

 

C_payment = (Paynew + ∑Bi + Ni)  x W₂ = RM 2408 × 7 = RM16856 

 | Payment cost issues | Amount (single cost) | Amount  | Review
 | Paynew  | 2000 | 2000 |  
 | Worker benefits(Bi) | 100 | 100 |  
 | National insurance refund(Ni) | 100 | 100 |  
 | Work time lost cost | 208 | 208 |  
 | total |   | 2408 |  

 

C_immeasurable = C_reputation + C_morale  = RM 301,000 

 | immeasurable cost issues | Amount (single cost) | Amount  | Review
 | Reputation cost | 300,000 | 300,000 |  
 | Morale cost | 1,000 | 1,000 |  
 | Total  |   | 301,000 |  

 

Total cost = C_direct + C_indirect + C_payment + C_immeasurable 

= RM707,000 + RM 166,480 + RM16,856 + RM 301,000 

= RM 920436.00 

ACCIDENT CHRONOLOGY: 

 

A worker from the maintenance department had been attached to the conveyor belt for maintenance duty once for a month. On that month, an accident occurred when he try to repair the one part of the idler of the conveyor belt. The conveyor belt suddenly switched on while he was repairing that part while his hand still working on that part. His index finger was stuck in between the idler and belt. He suffered a permanent scar on his finger.

COST ESTIMATED:

Total cost = C_direct + C_indirect + C_payment + C_immeasurable
 =RM 84100 

C_direct = C_damage + C_medicaL + C_fine + C_insurance 

  = RM 13000 

C_indirect = C_{capacity lost} + C_schedule + C_recruit + C_{work time} + C_wip+ C_mang 

   = RM13100 

 C_payment = M(PaynewW1) + ΣBi -  NI x W2 

   =RM50000 

 

C_immeasurable = C_reputation + C_morale 

                  = RM8000 

Ali was machine operator who working at an operating station for a hot rolling mill machine. He was a new worker for xxx company for about 2 months. Hot rolling mill is a device meant for pressure shaping of the metals or other materials between the rotating rolls. On 17 September 2019, Ali work as usual in inspecting the working operation of hot roll mill machine. Suddenly, he realised that there was a loosen screw above the hot roll mill machine. He tried to tight the screw. For safety issues, he needs to wear the leather gloves before doing the operation. However, he could not find any leather gloves from the cabinet, but he found plastic gloves. Without hesitating, he proceeded with plastic gloves. He did not stop the operation of hot roll mill while tightening the screw. Suddenly, his hand accidentally stuck inside the hot roll mill and his hand injured.

Cause of incident

1.      Enforcement in the QA checking on the incoming raw material

2.      Scheduled online inspection during the fabrication

3.      Enforce good manufacturing practice

1.      Provide monthly training to all operators and follow up their progress in understanding the SOP through test.

2.      Revised SOP by providing clear flowchart on the machine area.

3.      Provide safety training and proper safety equipment to all workers when they first enter the company.

1.      Implement training of new workers by the experienced workers before going to the production lines

2.      Implement merit-demerit system to all workers

3.      Explain the consequences of disobeying the SOP to the workers to increase the awareness of the safety.

1.      Arrange yearly maintenance of the machine and internal checking on the machine for every month

2.      Arrange the “machine rest time” to prevent machine damage which may cause accident such as explosion

1.      Revise the Standard Operation Procedure (SOP)

2.      Implement a clear Standard Operation Procedure on the incoming raw materials checking