Applying the Techniques
Developing solutions to surface cause problems may occasionally require different tools and techniques than those required to solve root cause problems. Let's review the problem-solving tools and techniques that help address surface causes and then shift gears to discuss problem-solving for root causes.
But first, let's look at the following scenario and use it as the context for discussing problem-solving in each of the two areas. Read the following accident scenario and reference it to answer the questions that follow:
Bob was a new hire employee working as a clean-up person in the finish department of XYZ, Inc's particleboard plant.
On his first day, he received an initial classroom orientation on company policies from the personnel department.
He was also introduced to his new supervisor, who gave him a walk-around tour of the plant.
Since his supervisor didn't have time to fully brief Bob on his new job, he was given some simple initial duties to accomplish.
While cleaning up around the floor under the return belt of a conveyor connected to a large piece of machinery, Bob noticed a jammed piece of wood. He removed a guard covering pinch points on the conveyor belt and reached in to remove the wood.
Bob's glove got caught in the return drum nip point, and he was drawn into the machinery. Bob's hand was severely injured and required surgery.
XYZ, Inc. has a mod rate of 1.5, which is worse than average for the industry. Unfortunately, this incident was not a total surprise to the company. Most of their OSHA 300 Log recordable accidents have resulted from injuries to employees within their first six months on the job.
Experience Rating Modification Factor (Mod)
What is a MOD Rate? The Experience Modification Rate (MOD) compares a company's workers’ compensation loss (claims) experience with other companies of similar size and type in the same industry within a state. The MOD rate reflects a company's safety record and affects its insurance premium.
- If the MOD rate is higher than 1.0, the employer's accident experience is worse than expected. Insurance premiums will be higher than the average for similar companies within the industry.
- If the MOD rate is below 1.0, the employer's experience is better than expected. Insurance premiums will be lower than the average for companies in the industry.
Knowledge Check Choose the best answer for the question.
6-5. What does a company's experience modification rate (MOD Rate) of 1.5 indicate?
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