Business Case for an Electrical Safety and Maintenance Program

Abstract

In the modern era where many countries view life as a basic, inalienable right it is assumed in these regions that a safety program which protects life does not require a business case and should never be considered in those terms. However, in a global economy we are faced with cultures that do not have the same belief in the right to life, and may not put a “priceless” value on loss-of-life. As well, in the “right to life” countries we are still faced with risk assessments that categorize risks based on both the probability and severity of an accident. The results do not arrive at a “bottom line” financial value to justify expenditure necessary to mitigate the hazard. Thus, an electrical safety program is still left to the subjective mindset of the management – electrical and nonelectrical. Now that the U.S. consensus standard NFPA 70E, Standard for Electrical Safety in the Workplace, has clearly recognized that the condition of electrical equipment and maintenance is a necessary consideration in an electrical safety program, companies are required to develop their electrical maintenance program in harmony with their electrical safety program. This paper demonstrates that a good electrical safety program, coupled with a good electrical maintenance program, will lead to higher reliability, longer life of equipment, and lowest total cost of ownership. There is heavy reliance on anecdotal data (incidents) to demonstrate the losses associated with failures that were also safety accidents or near misses. This focus attempts to show the business losses that will inevitably result from unsafe behaviors.