UNIT – V

Quality Assurance and Industrial Safety

• Statistical Process Control – Control Charts for Variables and Attributes, Process Capability;
Acceptance Sampling – Sampling Plans, OC curve; ISO 9000Standards and Total Quality
Management, Benchmarking, Industrial safety rules, Investigation and analysis of Accidents,
Indian Factories Act, Workmen Compensation Act and Industrial Disputes Act

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Statistical Process Control

Statistical process control (SPC) is defined as the use of statistical techniques to control a process or
production method. SPC tools and procedures can help you monitor process behavior, discover issues in
internal systems, and find solutions for production issues.

THE 7 QUALITY CONTROL (7-QC) TOOLS

In 1974, Dr. Kaoru Ishikawa brought together a collection of process improvement tools in his text Guide
to Quality Control. Known around the world as the seven quality control (7-QC) tools, they are:

Cause-and-effect diagram (also called Ishikawa or fishbone diagram)

Check sheet

Control chart

Histogram

Pareto chart

Scatter diagram

Stratification

What is Statistical Process Control (SPC)

SPC is method of measuring and controlling quality by monitoring the manufacturing process. Quality data
is collected in the form of product or process measurements or readings from various machines or
instrumentation. The data is collected and used to evaluate, monitor and control a process.

SPC is an effective method to drive continuous improvement. By monitoring and controlling a process, we
can assure that it operates at its fullest potential.

Why Use Statistical Process Control (SPC)

Manufacturing companies today are facing ever increasing competition. At the same time raw material
costs continue to increase. These are factors that companies, for the most part, cannot control.

Therefore companies must concentrate on what they can control: their processes.

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Companies must strive for continuous improvement in quality, efficiency and cost reduction. Many
companies still rely only on inspection after production to detect quality issues.

The SPC process is implemented to move a company from detection based to prevention based quality
controls. By monitoring the performance of a process in real time, the operator can detect trends or
changes in the process before they result in non-conforming product and scrap.

How to Use Statistical Process Control (SPC)

Before implementing SPC or any new quality system, the manufacturing process should be evaluated to
determine the main areas of waste. Some examples of manufacturing process waste are rework, scrap
and excessive inspection time. It would be most beneficial to apply the SPC tools to these areas first.

During SPC, not all dimensions are monitored due to the expense, time and production delays that would
incur. Prior to SPC implementation the key or critical characteristics of the design or process should be
identified by a Cross Functional Team (CFT). Data would then be collected and monitored on these key or
critical characteristics.

Collecting and Recording Data

SPC data is collected in the form of measurements of a product dimension / feature or process
instrumentation readings. The data is then recorded and tracked on various types of control charts, based
on the type of data being collected. It is important that the correct type of chart is used gain value and
obtain useful information. The data can be in the form of continuous variable data or attribute data.

Types of Control Charts (SPC).

There are various types of control charts which are broadly similar and have been developed to suit
particular characteristics of the quality attribute being analyzed.

Two broad categories of chart exist, which are based on the data being monitored is “variable” or
“attribute” in nature.

CONTROL CHARTS FOR VARIABLES

Control charts for variables monitor characteristics that can be measured and have a continuous scale,
such as height, weight, volume, or width.

When an item is inspected, the variable being monitored is measured and recorded. For example, if we
were producing candles, height might be an important variable, so we could take samples of candles and
measure their heights.

Two of the most commonly used control charts for variables monitor both the central tendency of the
data (the mean) and the variability of the data (either the standard deviation or the range).

Each chart monitors a different type of information. When observed values go outside the control limits,
the process is assumed not to be in control. Production is stopped, and employees attempt to identify the
cause of the problem and correct it. Next we look at how these charts are developed.

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Variable Control Charts:
X bar control chart.

This type of chart graphs the means (or averages) of a set of samples, plotted in order to monitor the
mean of a variable, for example the length of steel rods, the weight of bags of compound, the intensity of
laser beams, etc..

In constructing this chart, samples of process outputs are taken at regular intervals, the means of each set
of samples are calculated and graphed onto the X bar control chart.

This chart can then be utilized to determine the actual process mean, versus a nominal process mean and
will demonstrate if the mean output of the process is changing over time

Range “R” control chart.

This type of chart demonstrates the variability within a process. It is suited to processes where the sample
sizes are relatively small, for example <10.

Sets of sample data are recorded from a process for the particular quality characteristic being
monitored. For each set of data the difference between the smallest and largest readings are recorded.

This is the range “R” of the set of data. The ranges are now recorded onto a control chart. The center line
is the averages of all the ranges.

Standard Deviation “S” control chart.

The “S” chart can be applied when monitoring variable data. It is suited to situations where there are large
numbers of samples being recorded.

The “S” relates to the standard deviation within the sample sets and is a better indication of variation
within a large set versus the range calculation.

An advantage of using the standard deviation is that all data within a set are utilized to determine the
variation, rather than just the minimum and maximum values

Attribute Control Charts

Attribute control charts are utilized when monitoring count data. There are two categories of count data,
namely data which arises from “pass/fail” type measurements, and data which arises where a count in
the form of 1, 2, 3, 4, ,…. arises. Depending on which form of data is being recorded, different forms of
control charts should be applied. .

“u” and “c” control charts.

The “u” and “c” control charts are applied when monitoring and controlling count data in the form of
1,2,3, …. i.e. specific numbers. An example of such data is the number of defects in a batch of raw material,
or the number of defects identified within a finished product.

The c chart is used where there can be a number of defects per sample unit and the number of samples
per sampling period remains constant.

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In the u chart, again similar to the c chart, the number of defects per sample unit can be recorded,
however, with the u chart, the number of samples per sampling period may vary.

“p” and “np” control charts.

P charts are utilized where there is a pass / fail determination on a unit inspected. The p chart will show
if the proportion defective within a process changes over the sampling period (the p indicates the portion
of successes).

In the p chart the sample size can vary over time. A similar chart to the p chart is the np chart. However,
with the np chart the sample size needs to stay constant over the sampling period.

An advantage of the np chart is that the number non-conforming is recorded onto the control rather than
the fraction non-conforming. Some process operators are more comfortable plotting the number rather
than the fraction of non-conformances.

Pre-control Charts.

Where a process is confirmed as being within statistical control, a pre-control chart can be utilized to
check individual measurements against allowable specifications.

Pre-control charts are simpler to use than standard control charts, are more visual and provide immediate
“call to actions” for process operators.

If however a process is not statistically “capable” i.e. having a Cpk of at least 1, pre-control can result in
excessive process stoppages.

Process capability
The process capability is a measurable property of a process to the specification, expressed as a process
capability index or as a process performance index. The output of this measurement is often illustrated
by a histogram and calculations that predict how many parts will be produced out of specification

Process capability is defined as a statistical measure of the inherent process variability of a given
characteristic. A process-capability study is used to assess the ability of a process to meet specifications.

During a quality improvement initiative, such as Six Sigma, a capability estimate is typically obtained at
the start and end of the study to reflect the level of improvement that occurred.

Several capability estimates are in widespread use, including:

Potential capability (Cp) and actual capability during production (Cpk) are process capability estimates.
Cp and Cpk show how capable a process is of meeting its specification limits, used with continuous data.
They are valuable tools for evaluating initial and ongoing capability of parts and processes.

"Sigma" is a capability estimate typically used with attribute data (i.e., with defect rates).

Capability estimates essentially reflect the nonconformance rate of a process by expressing this
performance in the form of a single number. Typically this involves calculating some ratio of the
specification limits to process spread.

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Acceptance Sampling
What Is Acceptance Sampling?

Acceptance sampling is a statistical measure used in quality control. It allows a company to determine the
quality of a batch of products by selecting a specified number for testing. The quality of this designated
sample will be viewed as the quality level for the entire group of products.

A company cannot test every one of its products at all times. There may be too many to inspect at a
reasonable cost or within a reasonable timeframe.

Also, comprehensive testing might damage the product or make it unfit for sale in some way. Testing a
small sample would be indicative without ruining the bulk of the product run.

Understanding Acceptance Sampling

Acceptance sampling tests a representative sample of the product for defects. The process involves first,
determining the size of a product lot to be tested, then the number of products to be sampled, and finally
the number of defects acceptable within the sample batch.

Products are chosen at random for sampling. The procedure usually occurs at the manufacturing site, just
before the products are to be shipped.

The goal is to measure the quality of a batch with a specified degree of statistical certainty without having
to test every single unit. Based on the results—how many of the predetermined number of samples pass
or fail the testing—the company decides whether to accept or reject the lot.

Why Is It Called Acceptance Sampling?

As a measure of quality control, acceptance sampling inspects a small number of available products in
order to infer the quality of all other units produced.

This is the sampling part, where a small number of units are randomly selected from the population of
available units. If the sampled units are acceptable, then the whole batch is accepted.

How Does Acceptance Sampling Work?

Several methods are utilized. The simplest involves testing a single unit at random, per x units produced
[sometimes called an (n, c) plan]. The acceptance is evaluated based on the number of defective units (c)
found in the sample size (n).

Other methods involve multiple sampling, which relies on several such (n, c) evaluations. While using
multiple samples is more costly, it may be more accurate.

When Should Acceptance Sampling Be Used?

Because it relies on statistical inference made from a small sample, it's not as accurate as more
comprehensive measures of quality control. Therefore, it should only be used in cases where so many
products are made that is impractical or unfeasible to test a large percentage of units; or when inspection
of a unit would result in its destruction or render it unusable again (e.g., testing a fire extinguisher).

Sampling Plans

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Three main types of sampling plans used for acceptance sampling are: 1. Single Sampling Plan 2. Double
Sampling Plan 3. Sequential Sampling Plan.

1. Single Sampling Plan:

• Procedure of single sampling plan is outlined as follows:

(i) Pick up randomly ‘n’ number of items from the lot of ‘N’ and inspect them.

(ii) If the number of defectives found in the sample size is ≤ A1, accept the lot.

(iii) If the number of defectives in sample of n items > A1, inspect the remaining (N – n) items.

(iv) Correct or replace all the defective products found.

Example: Let the values of N, n and A1, be as follows: N = 400, n = 20, A1= 2

A Sample of 20 products shall be taken from a batch of 400 pieces randomly. The 20 pieces shall
be inspected and if the number of defectives found is ≤ 2, the lot of 400 pieces will be accepted
without further inspection.

If the number of defectives in the sample of 20 is more than 2 then all the remaining products.
(400 – 20) = 380 should be inspected and all the defectives should either be corrected or replaced
by good ones before the whole lot of 400 is accepted.

Where N = Number of products in the given lot.

n = Number of units of the product randomly selected from the batch of size N.

A = Acceptance number. It is the number of maximum defectives allowed in a sample of size n.

So A1, A2, A3, A4, A5 are the acceptance numbers to be used in double and multiple sampling plans.

2. Double Sampling Plan:

A sample consisting of n units of products is inspected, if the number of defective is below A1 the lot is
accepted, if it is above the second acceptance number A2, the lot is rejected. If the number of defectives
falls between A1 and A2 the result is inconclusive and a second sample is drawn.

The rule again is similar to that of a single sampling plan. If the total number of defectives of the two
samples is below the pre-determined acceptance number A2, the lot is accepted otherwise rejected

Example: Let N = 600 A1 = 2, n1 = 30, n2 = 50, A2 = 4 then the interpretation of the above data is
given below:

(i) The lot consists of 600 products.

(ii) Take a sample of 30 randomly from 600 and inspect them.

(iii) If the number of defectives is < 2 accept the lot of 600 without further inspection

(iv) If the number in 30 is more than 2 but < 4 take the second sample of 50 products from the
remainder of N i.e., from (600-30) and inspect 50.

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 (v) If the total of defective in 50and 30 together < 4 then accept the batch of 600 otherwise reject
the lot of 600.

3. Multiple or Sequential Sampling Plans:

This is similar to the double sampling plan except that with the second sample we have again an
inconclusive range between A3 & A4. Below A3 the lot is accepted above A4 it is rejected and if the total
number of defectives is between A3 and A4, a third sample is taken and so on.

Eventually after a number of samples the inspector must come to a final decision and one critical limit is
set (as in single sampling plan) which determines whether the lot is accepted or rejected.

• Procedure:

(i) Take the sample of 60 items from the lot of N pieces and inspect them.

(ii) If there is no defective accept the lot of N without any further inspection.

(iii) If it contains > 3 defectives reject the lot of N.

(iv) If it contains < 2 defectives take another sample of 30 pieces at random and inspect them.

(v) If the total number of defectives from the first and second sample combined comes out to be
1 accept the lot of N.

(vi) If the total number of defectives from the first and second samples combined comes out to
be > 4 reject the lot of N.

(vii) If the total number of defectives < 4 and > 1 take third sample of 30 and inspect the combined
lot of 120.

(viii) If the total number of defectives in the combined lot of 60+30+30 = 120 items is < 2, accept
the lot of N.

(ix) If the total number of defectives > 5, reject the lot of N pieces.

(x) If the total number of defectives is more than 2 and < 5, take another sample of 30 and inspect.
In this way sampling is continued.

Operating Characteristic Curves

Operating Characteristic Curves — The OC curve is a means of quantifying the producer’s and consumer’s
risk. The OC curve for an attribute plan is a graph of the percent defective in a lot versus the probability
that the sampling plan will accept the lot.

The probability must be stated for all values of “P” (percent defective) since “P” is unknown. An
assumption is made that an infinite number of lots will be produced.

It is characteristic of sampling plans that the probability of acceptance is high as long as product quality is
good, but decreases as product quality becomes poorer.

An example of an optimum OC curve is shown in Figure 8.3.1. Let us assume that we desire to accept all
lots less than 2% defective and reject all lots greater than 2% defective. All lots less than 2% defective

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have a probability of acceptance of 1.0 (certainty), and all lots greater than 2% defective have a probability
of acceptance of 0%. However, in reality, there are no sampling plans that are perfect.

There will always be some chance that a good lot will be rejected or a bad lot will be accepted. The one
major goal in developing a sampling plan should be to make the acceptance of good lots more likely than
the acceptance of bad lots.

Important points regarding O.C. curves:

(i) There is some chance that good lots will be rejected.

(ii) There is some chance that bad lots will be rejected.

(iii) These risks can be calculated by the theory of probability and depends on the number of
samples inspected, the acceptance number, and the percent defectives in the lot offered for
sample inspection. Given the amount of risks which can be tolerated, a sampling plan can be
devised to meet these requirements.

(iv) The larger the sample used for inspection, the nearer the O.C. curve approaches the ideal.
However beyond a certain point, the added cost in inspecting a large number of parts far exceeds
the benefit derived.

In any acceptance sampling plan, three parameters are specified. The first parameter is number
of articles N in the lot from which sample is to be drawn. The second parameter is the number of
articles n in the random sample drawn from the lot, and the third is the acceptance number A.

This acceptance number A is the maximum allowable number of defective articles in the sample.
If more than A defectives are found in a sample the lot is liable to be rejected. Since the lot size
has little effect on the probability of acceptance, therefore lot size is generally ignored in deriving
a sampling plan.

O.C. curve of an acceptance sampling plan (i.e. for a particular combination of n and A) shows
how well the sampling plan discriminates between good and bad lots. In order to examine the
suitability of an acceptance sampling plan, it is necessary to compare their performance over a
range of possible quality levels of the product.

The graph of this performance is known as operating characteristic curve. Fig. 60.2 below shows
an ideal O.C. curve where it is desired to accept all lots having 3% or less defectives, and to reject
all lots having more than 3% defectives.

In this curve, all lots with less than 3% defectives have a probability of acceptance of 100%, while
all lots with more than 3% defectives have a probability of acceptance as 0%. However such a plan
does not exist in reality.

ISO 9000
What is ISO 9000?

ISO 9000 is a set of standards for quality management, developed as an internationally-acceptable

baseline for performance by businesses and other organizations.

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It was created by the International Organization for Standardization (ISO) with input from standards
professionals from many nations.

Quality management is the act of overseeing all of the processes that go into achieving and maintaining
the desired level of excellence in the creation and delivery of a product or service.

This includes the determination of a quality policy, creating and implementing quality planning and
assurance, and quality control and improvement. It is also referred to as total quality management (TQM)

Understanding ISO 9000

ISO 9000 standards were developed to help manufacturers effectively document the quality system
elements that need to be implemented to maintain an efficient quality system. They are increasingly being
applied to any organization or industry.

ISO 9001 is now being used as a basis for quality management—in the service sector, education, and
government—to help organizations satisfy their customers, meet regulatory requirements, and achieve
continual improvement.

The ISO 9000 series, or family of standards, was originally published in 1987 by the International
Organization for Standardization (ISO). They first gained popularity in Europe, and then spread to the U.S.
in the 1990s. As the world’s view of quality assurance has evolved, the standards have been revised.

Current versions of ISO 9000 and ISO 9001 were published in September 2015.

ISO 9000 Standards

ISO 9000 lays out in detail the fundamentals and vocabulary of quality management systems.

The actionable portion of ISO 9000 is ISO 9001. Organizations that receive certification are being
recognized as meeting ISO 9001. Obtaining that certification is a process that takes over a year and
requires substantial documentation to demonstrate conformity with the standards.

The ISO 9000 family contains these standards:

• ISO 9001:2015: Quality Management Systems—Requirements

• ISO 9000:2015: Quality Management Systems—Fundamentals and Vocabulary (definitions)

• ISO 9004:2009: Quality Management Systems—Managing for the Sustained Success of an

Organization (continuous improvement)

• ISO 19011:2011: Guidelines for Auditing Management Systems

Total Quality Management

Total Quality Management (TQM) is a management approach that seeks to provide long-term success by
providing unparalleled customer satisfaction through the constant delivery of quality services. To properly
execute on TQM methods, the entire organization needs to operate as a single unit in the pursuit of
excellence.

Achieving this, is accomplished with a laser-focus on the principles of TQM:

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 • Customer first: TQM’s first and foremost pillar of success is an unwavering focus on the
customer’s experience in all interactions with the organization. From first contact through
purchase and continued support, the customer should always be the main priority.

• Employee ownership: TQM requires the involvement of every team member to ensure that
complete quality control is offered at every level. TQM doesn’t focus on a single department
because the goal is to provide customers with a great experience from every level of the
organization.

• Process-based: TQM focuses on the creation and implementation of processes that provide
organizations with the ability to find success and repeat it. Quantifying success and defining the
steps taken to get there are essential for successful implementation of TQM.

• System integration: TQM strategies revolve around leveraging every asset available to the
company. This is best achieved through system integrations that combine disparate parts of the
organization into a single, well-oiled machine working in complete synergy.

• Communication: TQM requires every team member to be at their best and to function as a value-
adding member of that team. This means communication and transparency is a core tenet of
successful TQM practices.

• Data-driven: TQM doesn’t employ guesswork. Instead, data is leveraged for the improvement of
the organization and decisions are made based on quantifiable facts.

• Constant improvement: TQM isn’t a one and done process. Perfection is impossible, so it must
always be pursued to get the organization as close as possible to it.

These pillars of TQM act as a framework for every decision made within the methodology. Whenever an
organization feels lost, the TQM ideals are guiding stars for righting course.

How to implement TQM

The first step for implementing any new system is an honest assessment of the organization as it is today.
Implementation of TQM is something that has to be applied to the current structure of the organization;
there is no step-by-step guide that will tell you how to do it for your business. Each business is unique and
requires its own approach, but the core tenets of TQM can guide each decision.

Then, one can proceed with these areas of opportunity.

Emphasize customer satisfaction: Creating an emphasis on customer satisfaction will change the way
departments think about their duties. If something they are doing isn’t aiding in the improvement of the
quality of the product or increasing the customer’s experience, they aren’t headed in the right direction.

Each employee should take ownership of their role and be ready to consider ways in which they can
improve their own department and outputs

Communicate with everyone: Communication throughout the organization is essential for educating
everyone about the changes that are coming while also providing an avenue for receiving feedback.
Employees will have a much easier time establishing a feeling of ownership over the process when they
know their voice is heard and they had a hand in guiding the changes.

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Manage errors: One of the most important aspects of delivering quality is managing errors. No matter
how focused everyone is on driving quality, IT organizations will always run into one issue or another.

Creating processes that mitigate issues is essential for TQM success. Errors should be addressed and dealt
with as quickly as possible of course, but they should also be recorded and tracked.

Recurrent issues could be indicative of a deeper issue, requiring large-scale changes to current
procedures. An error is an opportunity to assess a problem, but it’s also a chance to discover what is
working. Total quality management practitioners should take advantage of errors as a chance to learn
from their mistakes and find ways to avoid them in the future.

TQM is everyone’s responsibility

TQM requires that all parties take ownership of the part they play and this applies equally to admitting
fault and giving out praise. A focus on improving the quality of products and services requires
accountability. Learning to snatch victory from the jaws of defeat is the pursuit of quality management
when it comes to dealing with incidents and outages.

Tracking metrics and comparing the results of operations before and after changes is the best way to learn
what works and what doesn’t. It’s also imperative that systems are structured and followed to ensure that
success can be replicated and then improved. The process of improvement should never stagnate,
ensuring that the pursuit of perfection never ends.

Benchmarking
Benchmarking is the process of comparing the cost, cycle time, productivity, or quality of a specific process
or method to another that is widely considered to be an industry standard or best practice.

Essentially, benchmarking provides a snapshot of the performance of a business and helps to understand
where you are in relation to a particular standard. The result is often a business case for making changes
in order to make improvements.

The term benchmarking was first used by cobblers to measure ones feet for shoes. They would place the
foot on a "bench" and mark to make the pattern for the shoes. Benchmarking is most used to measure
performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle
time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is
then compared to others.

“Best practice benchmarking" or "process benchmarking", is a process used in management and

particularly strategic management, in which organizations evaluate various aspects of their processes in
relation to best practice, usually within a peer group defined for the purposes of comparison.

This then allows organizations to develop plans on how to make improvements or adopt best practice,
usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event,
but is often treated as a continuous process in which organizations continually seek to challenge their
practices.

Types of benchmarking:

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1) Process benchmarking: The initiating firm focuses its observation and investigation of business
processes with a goal of identifying and observing the best practices from one or more benchmark firms.
Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly
applied to back-office processes where outsourcing may be a consideration.

2) Financial benchmarking: Performing a financial analysis and comparing the results in an effort to assess
your overall competitiveness.

3)Performance benchmarking: Allows the initiator firm to assess their competitive position by
comparing products and services with those of target firms.

4) Product benchmarking: The process of designing new products or upgrades to current ones. This
process can sometimes involve reverse engineering which is taking apart competitors’ products to find
strengths and weaknesses.
5) Strategic benchmarking: Involves observing how others compete. This type is usually not industry
specific meaning it is best to look at other industries.
6) Functional benchmarking: A company will focus its benchmarking on a single function in order to
improve the operation of that particular function. Complex functions such as Human Resources, Finance
and Accounting and Information and Communication Technology are unlikely to be directly comparable
in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison.

Procedure
1. Identify your problem areas: Because benchmarking can be applied to any business process or function,
a range of research techniques may be required. They include: informal conversations with customers,
employees, or suppliers; exploratory research techniques such as focus groups; or in-depth marketing
research, quantitative research, surveys, questionnaires, re-engineering analysis, process mapping,
quality control variance reports, or financial ratio analysis. Before embarking on comparison with other
organizations it is essential that you know your own organization's function, processes; base lining
performance provides a point against which improvement effort can be measured.

2. Identify other industries that have similar processes: For instance if one were interested in improving
hand offs in addiction treatment he/she would try to identify other fields that also have hand off
challenges. These could include air traffic control, cell phone switching between towers, transfer of
patients from surgery to recovery rooms.

3. Identify organizations that are leaders in these areas: Look for the very best in any industry and in any
country. Consult customers, suppliers, financial analysts, trade associations, and magazines to determine
which companies are worthy of study.

4. Survey companies for measures and practices: Companies target specific business processes using
detailed surveys of measures and practices used to identify business process alternatives and leading
companies. Surveys are typically masked to protect confidential data by neutral associations and
consultants.

5. Visit the "best practice" companies to identify leading edge Practices: Companies typically agree to
mutually exchange information beneficial to all parties in a benchmarking group and share the results
within the group.

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6. Implement new and improved business practices: Take the leading edge practices and develop
implementation plans which include identification of specific opportunities, funding the project and
selling the ideas to the organization for the purpose of gaining demonstrated value from the process.

Industrial Safety Rules

Seven Basic General Industry Safety Rules

1. Keep work areas clean: Proper housekeeping alone can go a long way in preventing injuries.
Injuries such as slips, trips, falls, lacerations, sprains, strains, etc., can be reduced by keeping work
areas organized and clean.

2. Use the proper tool for the job: Avoid the first impulse to use whatever tool (or object) is
around you to get a work task done. Using the wrong tool for the job can result in an injury or
damage to the tool, which can lead to an injury in the future.

3. Always wear the proper PPE for the work task: The lack of PPE (Personal Protective
Equipment), or the use of improper PPE, leads to many injuries in the workplace. PPE is the last
line of defense when protecting yourself from the hazards of your work. If you come into contact
with a hazard when not wearing the correct PPE, the injury will be more severe than if you were
wearing it.

4. Never work on live equipment: Working on energized equipment is an unsafe act that can
result in serious injuries or fatalities. Always follow proper lock-out/tag-out procedures prior to
performing any maintenance or repair work on equipment.

5. Make sure chemicals are properly labeled and stored: OSHA issues many citations regarding
hazard communication every year. Improper labeling and storage can lead to injuries or property
loss due to fires, corrosion, etc.

6. Communicate hazards to other personnel: Never assume that a coworker understands the
hazards of a task, especially if they are new or new to the task. When work plans or conditions
change, take the necessary time to inform others of the impacts the changes have on safety.

7. Stop work when needed to address hazards: Always stop work to take the time to get hazards
addressed to make it safe to continue the task. Whether you need to involve other personnel,
such as a supervisor, or you need to take time to get the right tool for the job, always take the
time to do so.

Investigation and analysis of Accidents

Many organisations and companies take extensive proactive measures to identify, evaluate and reduce
occupational risks. However, despite these efforts things still go wrong and unintended events occur.

After a major incident or accident, conducting an accident investigation is generally the next step. A
thorough accident or incident investigation may uncover a wealth of knowledge about safety
management practices in the organisation.

Previously overlooked weaknesses of safety management or safety culture may be uncovered, as well as
underestimated risks, unknown risks or insufficient control over known risks.

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Government agencies may or may not be involved in the investigation and analysis of events. In many
countries inspectorates, accident research boards, or criminal prosecutors may investigate some or all of
the serious occupational incidents that occur.

Why investigate
Many organisations carry out formal incident investigations. There are many primary and secondary goals
to conduct an incident investigation, for example:

• to understand what went wrong (especially the causation and processes that were involved);

• to learn and improve so as to prevent future incidents from occurring;

• to blame who is responsible for the event and to punish this company or individual;

• to comply with requirements posed by governing bodies.

• an investigation is often an important part of transparency as it enables the organisation to

explain what happened to important stakeholders. It is recommended that the investigation
should always explicitly focus on understanding, learning and improving.

The Factories Act, 1948(Amended On 1987)

The Factories Act is the principal legislation, which governs the health, safety, and welfare of workers in
factories. The Act extends to the whole of India.

Mines and Railways workers are not included as they are covered by separate Acts.

The new Act addressed the issues of safety, health, and welfare. Many amendments were aimed to keep
the Act in tune with the developments in the field of health and safety.

However, it was not until 1987 that the elements of occupational health and safety, and prevention and
protection of workers employed in hazardous process, got truly incorporated in the Act.

A factory under the Act is defined as a place using power, employs 10 or more workers, or 20 or more
workers without power or were working any day of the preceding 12 months. However, under section 85,
the state governments are empowered to extend the provisions of the Act to factories employing fewer
workers also.

This section has been used to extend the coverage of the Act to workplaces like power looms, rice mills,
flour mills, oil mills, saw mills, pesticide formulating units and other chemical units where hazards to
health are considered to put workers at risk.

Electronic Data Processing Unit or a Computer Unit is installed in any premises or part thereof, shall not
be construed to make it a factory if no manufacturing process is being carried on in such premises.

"Occupier" of a factory means the person who has ultimate control over the affair of the factory.

The Act does not permit the employment of women and young in a dangerous process or operation.
Children are defined, "who have not attained an age of 15 years", are not permitted to be hired (Sec. 2,

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67) and need to have medical fitness certificates if he/she is /has to work and age is not confirmed (Sec
69).

The Act is administered by the Ministry of Labour and Employment in India through its Directorate General
Factory Advice Service & Labour Institutes (DGFASLI) and by the State Governments through their factory
inspectorates. DGFASLI advises the Central and State Governments on administration of the Factories Act
and coordinating the factory inspection services in the States.

Section 11 to 20 deal with provision of environmental sanitation that protect the worker from hazardous
environment.

• Cleanliness of the working place, privy, benches, stairs, wall etc. are explained (Sec. 11).

• Disposal of wastes and effluents should be without any risk (sec. 12).

• Ventilation, temperature inside factory, dust and fumes emission, lighting, artificial
humidification, overcrowding (minimum of 50 cubic meters per person) are specified (Secs. 13-
17).

• There should be a provision for safe and cool drinking water and provision of water in the latrine
and urinal. One latrine for 25 female workers but one for 25 male workers up to 100 and one for
50 thereafter. One urinal for 50 person up to 500 men and after that one for every 100 more.

• Safety measures like fencing of machines, protection of eyes by use of goggles, precautions
against fire, dangerous fumes, etc. are defined (Secs 21-40).

• Facilities for washing, and sitting, canteens, creche (one for more than 30 women) and first aid
appliances are provided (Secs. 42-48).

• One Welfare Officer for 500 or more workers is suggested (Sec. 49).

There is provision for one weekly holiday, and not more than 48 hours in a week an adult worker
should work. There is at least half an hour rest after a stretch of 5 hours of continuous work.

No women should be employed between 7 p.m. and 6 a.m. (Secs. 51-66). No person less than 14 years of
age should work in the factory. No child should work more than 4 hours a day and should not work in the
night between 10 p.m. to 6 a.m.

One full wage leave should be given to an adult worker for every 20 days of work and one for every 15
days to the child worker. 12 weeks of maternity leave should be given to a woman.

If an accident occurs in any factory causing death or bodily injury or prevents a worker from working for
more than 48 hours, the manager must immediately send notice to the prescribed authority (i.e. Labour
commissioner).

Major contents of Factories Act:

Various provisions are described in following chapters:

• CHAPTER I - Preliminary

• CHAPTER II - The Inspecting Staff

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 • CHAPTER III - Health

• CHAPTER IV - Safety's

• CHAPTER IVA - Provisions relating to Hazardous processes

• CHAPTER V - Welfare & Grievance

• CHAPTER VI - Working hours of adults

• CHAPTER VII - Employment of young persons

• CHAPTER VIII - Annual leave with wages

• CHAPTER IX - Special provisions

• CHAPTER X - Penalties and procedure

• CHAPTER XI - Supplemental

Workmen’s Compensation Act 1923

Employees are the backbone of any organisation. It is the duty of any employer to take care of their
employees, especially when employees face death or disability in the course of conducting their duty.

The Workmen Compensation Act 1923 was formed to provide compensation to workers who faced
accidental death or injuries in the course of employment.

The Workmen’s Compensation Act 1923 makes the employers liable to pay compensation to employees
who sustained injuries which leads to their disablement or death in the course of employment.

The Workmen’s Compensation Act came into force on 1st July 1924, and it applies across India.

However, the Workmen’s Compensation Act 1923 does not apply to employees covered under Employees
State Insurance Act, 1948.

The objective of Workmen’s Compensation Act was to ensure that employees receive a certain some of
money on which they can live on as their earning capacity would be reduced significantly in case they
suffer from death or disability.

As per the Section 3 of the Employee Compensation Act, an employer is liable to pay compensation to the
employee if the employee suffers from an accident that results in a personal injury due to an accident
that:

Arises out of employment (ie. while engaged in work) and;

Arises in the course of employment (ie. during work hours) and;

The injury results in disablement or death of the worker

If the above 3 conditions are satisfied, the employer is liable to pay compensation as per the Workmen’s
Compensation Act 1923

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An employer is liable to pay compensation under the Workmen’s Compensation Act 1923 for injuries
arising resulting Permanent or Temporary disablement of the employee due to accidents occurring in the
course of employment.

Disablement of the employee can be temporary or permanent. Permanent Disability reduces the earning
capacity of the employee permanently while Temporary Disability reduces the employee’s earning
capacity for the duration of disability. Total disablement whether temporary or permanent, incapacitates
a workman from all work which he could perform before the injury occurred.

The Employee Compensation Act also has a provision to provide compensation to the employees if the
employee contracts an Occupational Disease. Occupational Disease means a Disease which is peculiar to
a particular form of employment only.

The calculation of the compensation amount is done as per the provisions listed under Section 4 of the
Workmen’s Compensation Act as follows:

In Case of Accident Resulting in Death: An amount equal to 50% of the monthly wages of the deceased
employee multiplied by the relevant age factor or Rs.1,20,000 whichever is more.

In Case of Accident That Results in Permanent Total Disablement: An amount equal to 60% of the monthly
wages of the injured employee multiplied by the relevant age factor or Rs.1,40,000 whichever is more.

In Case of Accident That Results in Permanent Partial Disability: The amount payable is the 50% of the
loss of the earning capacity due to injury multiplied by the relevant age factor or Rs.1,20,000 whichever
is more.

Temporary Disability: Employees facing Temporary Disability are eligible for 25% of monthly wages

The Industrial Disputes Act 1947

The Industrial Disputes Act, 1947 regulates the Indian labour law so far as that concerns trade unions as
well as individual workmen employed in any industry in the Indian mainland. It was one of the last
legislative act before the passing of the Indian Independence Act of 1947.

Objectives of the Industrial Disputes Act, 1947

• The act was drafted to make provision for the investigation and settlement of industrial disputes
and to secure industrial peace and harmony by providing mechanism and procedure for the
investigation and settlement of industrial disputes by conciliation, arbitration and adjudication
which is provided under the statute.

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 • This Act was passed was with a key objective of “Maintenance of Peaceful work culture in the
Industry in India” which are mentioned under the Statement of Objects & Reasons of the statute.

• The Act also lays down:

• The provision for payment of compensation to the workman on account of closure or lay off or
retrenchment.

• The procedure for prior permission of appropriate Government for laying off or retrenching the
workers or closing down industrial establishments

• The actions to be taken against unfair labour practices on part of an employer or a trade union or
workers.

Controversy Regarding the Industrial Disputes Act, 1947

The act was implemented to provide for machinery and procedure for the investigation and settlement
of industrial disputes, applicable to all irrespective of size and sector. It even has provisions regarding
conditions for layoffs, retrenchment (reduction in the size of operations) and closure of industry.

This clause arises controversy regarding the act, particularly as per Chapter V-B. There have been multiple
amendments that have been made over the years for this clause. The chapter states the following:

If an industrial establishment employs more than 50 persons, it needs to give 60 days’ notice, citing
reasons of closure to the appropriate government before the closure of the industry. It was increased to
90 days in 1982.

If the establishment employs more than 300 employees, it must take prior approval of the proper
government authority regarding approval for layoffs, retrenchment and closure. This limit was lowered to
100 employees in the 1982 amendment.

These two provisions of Chapter V-B of the Industrial Disputes Act are interpreted as rigidity in the labour
market. The main objective of this provision is to ensure that an employer cannot hire or fire any employee
at will. To take any such action, they need to seek permission from the labour commissioner. This subject
is also under the concurrent list which is why individual states have made even stricter rules and
conditions so that the layoff, retrenchment and closure become even more difficult.

As a result, it has caused the following problems in the labour industry:

Lower output by labour

Lower productivity

Hesitation in hiring

Lower investments

Lower overall manufacturing performance

Foreign investors are deterred from investing in India.

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Apart from Chapter V-B, Section 9-A is also a cause of concern. This section says that if employers are
modifying the wages and other allowances, they need to provide the labour commission a notice 21 days
in advance. Thus, if employers quickly need to redeploy the employees to meet certain time-bound
targets, this practice disallows that.

What the industry demands, is that this law needs rationalization as per the demand of the current era of
globalization? It is the complexity of this act that is generally held responsible for the fact that only 6% of
the total labour force is working in the organised manufacturing sector and the remaining is employed in
the unorganised sector.

The challenge for the governments (centre/state) is to make a delicate balance between labour welfare
and industry welfare.

END

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