ONE COMPANY’S GAME PLAN FOR ELIMINATING THE NEED FOR HEARING CONSERVATION Dennis P. Driscoll, P.E. Principal Consultant Associates in Acoustics, Inc. Company Background Background on the subject company: Annual revenues of approximately $20B, Manufacturer of consumer goods, One business unit was targeted for this effort, This business unit comprises 13 plants: 4 in North America 2 in Europe 2 in South America 4 in Asia and 1 in Australia), Hearing Conservation Background Each plant, except Asia, has between 200‐300 employees in their hearing conservation program (HCP). The plants in Asia are less automated, and as a result have 700‐1200 employees in the HCP. The subject company HCP criteria follows the European Directive on Noise, which stipulates a permissible exposure level of 85 dBA, as measured with a 3‐dB exchange rate. Project Goal Based on historical noise exposure data from 2006‐2009, the statistically‐significant equivalent‐continuous average (Leq,8h) noise exposures range from 82‐88 dBA across all job classifications. The project goal is to implement a systematic noise control program that will reduce and maintain noise exposures below 80 dBA. Project Game Plan A 5‐year plan for satisfying this goal was initiated in early 2010. To justify the expenditures for noise control, it was important to establish the on‐going costs for the HCP versus the cost for noise control. This game plan was presented to the subject company’s upper management as the “return on investment” (ROI). The Cost Estimates HCP: Noise assessment Engineering and/or administrative controls Employee education and training Hearing protection program Audiometric testing Audiometric data analysis Recordkeeping Noise Control to achieve Leq,8h < 80 dBA Annual HCP Costs The annual HCP costs include the following: 1. The number of participants in the HCP, 2. Hearing protection devices, 3. Noise surveys, 4. Audiometric testing, 5. Audiometric follow‐up and retests, 6. Recordability determination, Annual HCP Costs The annual HCP costs include the following: 7. Employee training materials, 8. Calibration of acoustical instrumentation, 9. Calibration of audiometers, 10. Employee training time, 11. Employee hearing test time, 12. HCP administrative time, Annual HCP Costs The annual HCP costs include the following: 13. Maintenance of acoustical instrumentation, 14. Lost production, 15. Space allocation, 16. Expense to certify CAOHC technicians, 17. Medical record retention, and 18. Workers’ compensation. Annual HCP Costs Based on cost data and estimates from 3 North American, 1 South American, 2 European, and 2 Asian plants, the subject company put the annual cost per employee in the program at: $310.00 On an average per plant basis: $310 x 250 employees = $77,500/yr. Validating the HCP Costs At the 2010 PCIH Conference I conducted a half‐ day workshop on the Economics of Noise Control versus the HCP. 48 attendees were divided into 8 work groups and tasked with putting an annual cost per employee in the HCP together. 7 out of 8 workgroups estimated the cost at $300‐375. The lone outlier was comprised of railroad industrial hygienists, and their cost was $1,200. Determining the Cost of Noise Control 1. The noise control survey(s), 2. Project management, 3. Company personnel time, 4. Retrofit installation costs, including procurement of the noise control systems and lost production during installation, 5. Maintenance of noise controls, and 6. Miscellaneous (discretionary funds). Determining the Cost of Noise Control Based on the results from: 6 plant noise control surveys, Determining the interrelationship between each noise source and individual worker’s noise exposure, and Cost estimates for retrofit and maintaining low‐ noise levels over time: The average cost per plant for Noise Control was approximately $371,000. Return on Investment So the ROI for this program is estimated to be: Conclusions The subject company has taken the initiative to attempt a long‐term plan for eliminating the need for hearing conservation in one business unit. Three important factors have been established: 1. The HCP cost is $310/employee/year. 2. The cost for noise control is $371,000/plant. 3. The breakeven point or ROI is ~4.79 years. These are the essential tools needed to make an assessment as to the potential cost for eliminating the need for hearing conservation.
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