Daikin Steel Report

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1.

0 INTRODUCTION

Occupational safety and health (OSH) is a discipline with a broad scope involving many
specialized fields. In its broadest sense, it should aim at:

 The promotion and maintenance of the highest degree of physical, mental and social
well-being of workers in all occupations.

 The prevention among workers of adverse effects on health caused by their working
conditions.

 The protection of workers in their employment from risks resulting from factors adverse
to health.

 The placing and maintenance of workers in an occupational environment adapted to


physical and mental needs.

In other words, occupational safety and health encompasses the social, mental and
physical well-being of workers, which is the “whole person”. Successful occupational safety
and health practice requires the collaboration and participation of both employers and workers
in health and safety programs, and involves the consideration of issues relating to
occupational medicine, industrial hygiene, toxicology, education, engineering safety,
ergonomic, psychology, etc.

Figure 1: Group members with Puan Juliana, OSH executive of Daikin Steel Company.
The exposure towards students about OSH is important because they will be working
one day. Therefore, one industrial visit to Daikin Steel Malaysia on 22 November 2018 was
held by our group under subject course Occupational Safety and Health (MEM603). Effective
workplace health and safety programs can help to save the lives of workers by reducing
hazards and their consequences. Health and safety programs also have positive effects on the
morale and productivity of worker, which are important benefits. At the same time, effective
programs can save employers a great deal of money.

Company Background

Figure 2: Daikin Steel Malaysia Sdn. Bhd. (DSM)

DSM Company Profile

Company Name Daikin Steel Malaysia Sdn. Bhd.

Formerly Known As O.Y.L. Steel Centre Sdn. Bhd.

Location Lot 1, Jalan Asam Jawa 16/15, Section 16, 40000, Shah Alam
Selangor Darul Ehsan.

Date Incorporated November 1992

Core Business Steel Sheet Service Centre


Paid Up Capital RM 5 Million (1994)

Shareholder Daikin Malaysia Sdn. Bhd.

Land Area 9,268 m2

Factory Area 5,867 m2

Sales RM 140 Million

Production Capacity 5,000 MT

ISO Accreditation ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007

Major Suppliers CSC, POSCO, BENXI, BAOSTEEL & JFE

Total Headcount 90 person

Figure 3: Daikin Steel Malaysia Milestone

Types of Steel Specification available at Daikin Steel:

GI/ GA Steel Sheets


 SGCC / SGHC 0.4mm to 3.0mm

Hot Roll and Cold Roll steel sheets

 SPC / SPH / SPH-PO 0.5m ~ 4.0mm

Stainless Steel

 SUS 409, SUS 436

Figure 4: Manufacturing Process Flow from Raw Material to Finished Goods.

Daikin Steel provides One Stop Solution for below Steel Services, Shearing Process:

Slitting Process

Stamping Process

Importation of Mother Coil Materials

Purchasing and Storage


Figure 5: Products that available at Daikin Steel Malaysia, baby coil and stamping parts.

As an organization, Daikin Steel Malaysia’s key responsibility in sustainable


Occupational Safety & Health is achieving Towards Zero Accident. Daikin Steel nurture and
enhance the safety and health through policy, compliance and Safety Management system in
order to achieve goal and become a safety leader and people centered management in Daikin
Globally.

Towards Zero Accident is DAMA optimal goal in occupation safety & health practice.
Daikin Steel committed to ensure the safety of their employees as they are the asset of an
organization. Through education, operational control and enforcement, Daikin Steel believes
the level of safety will be up kept and accident rate can be reduced. Beside compliance towards
subscribes legal, OHSAS 18001 management systems is use as tools for Daikin Steel Malaysia
to achieve their goal.

Daikin Malaysia Sdn. Bhd. and Daikin Research & Development Malaysia Sdn.
Bhd. pledges to provide a safe and healthy workplace for all its employees, visitors, customers
and vendors through implementation of the 3C2Safe Policies:

Comply with applicable legal requirements and other related Occupational Safety &
Health requirements.
Commitment to prevent injuries and ill health.
Continue to improve in Occupational Safety & Health Management System.
Safe working practices in performing their duties.
Safe working condition at the workplace.
The Occupational Safety & Health policy is documented, implemented, maintained and
reviewed for continual suitability. It is communicated to all persons working under the control
of the organization. The Occupational Safety & Health policy is available to all interested
parties.

Finally, Corporate Social Responsibility by Daikin Steel is committing to ensure the


companies contribute to Environment and social needs of their surrounding communities. As a
leading supplier to Air Conditioner manufacturer, Daikin Steel Malaysia will use its strength
to think and act globally toward sustainability.
2.0 FACILITIES EXISTED AT THE COMPANY

Daikin Steel Sdn. Bhd. is been taking by new owner on 2006. The new organization
had made new development in term of safety and health for their workers. The development of
facilities helps the company to reduce the hazard of worker and environment. With the
improvement of facilities, the worker can work in harmonies and motivation among the
workers. Their goal is to achieve Towards Zero Accident in their premises.

The facilities that exists for occupational safety and health to create harmonies working
environment among workers are gymnasium, toilets for disable people, concrete for guard
house, air-conditioning meeting room and coffee machine.

The gymnasium is built up to encourage workers encourages workers to be health. The


warfare of the workers is important to the company as they are assets to the organization. A lot
of equipment of the gymnasium is placed in one room near to their workplace. Besides, the
owner had also built up the toilets for disable worker. The purpose is to ensure the warfare,
safety and health of them are guarded. Not only the normal worker gets the benefits from
company but disable worker also get the same benefits too. In addition, the meeting room had
improved by putting the air conditioning for the comfort ability of the worker. Inside the
meeting room also, they put new television projector. This new advance technology helps the
worker to meeting in the comfortable environment. The guard house also is improved by built
the concrete house to avoid worker from smoking. The air conditioning is placed inside the
guard house to motivate them to work effectively. The coffee machine also is placed near the
toilets area.

Figure 6: The toilet for normal and disable worker


Figure 7: The concrete guard house

Figure 8: Gymnasium room Figure 9: Coffee machine

In the nutshell, the company had built many facilities to ensure the warfare, safety and
health of the worker. Those facilities are built up to encourage them to be health and leads to
harmonise environment. The company give the equality benefits for both normal and disable
worker. With zero accident occurs, the profit of the company will increase due to have health
worker.
3.0 TYPES OF HAZARD

Generally, there are seven types of hazards which have high potential to cause any harm and
risk to human especially during working in industries, construction sites and shipments. The
types of hazards can be listed as follow:

 Chemical hazards
 Transport hazards
 Ergonomic hazards
 Psycho-social hazards
 Biological hazards
 Mechanical and electrical hazards
 Physical hazards

There are only a few of the types of hazards that exist in Daikin Steel Malaysia Sdn. Bhd.
that we able to figured out during the visit. They were transport, ergonomic, psycho-social,
mechanical and physical hazards. We would like to recommend some of preventive procedures
so that, any risk from the stated hazards can be avoided easily and safely.

1. Transport hazards

In Daikin Steel Malaysia Sdn. Bhd., the transport being used are forklifts. The forklifts are used
for lifting the boxes, crates, products and others that human is not able to carry and move from
place to place.

Figure 10: The forklift


The possible risks from the forklifts are crashes, people struck and people fall from the
forklift, the falling items from the forklifts and others. These possible risks need to be avoided
completely to sustain the safe and healthy working environment.

Fortunately, Daikin Company had come up with several precautions to prevent the risks
that may be caused by forklifts. Firstly, the company had safe human walkway and the paths
for forklifts. This was to prevent the people from being crushed by the forklifts and this can be
classified as engineering control. Besides, the drivers of the forklifts must be trained first before
they can drive the forklifts. The sufficient trainings helped them to easily control the forklifts
and avoid any incident that may lead to accident. This kind of control is called as administrative
control.

Figure 11: The zebra cross on the forklifts traffic

2. Ergonomic hazards

In Daikin Company also had this type of hazards since there were also tiny product pieces that
needed to be moved from place to places. Usually, the small pieces of products are placed in
the boxes and moved by workers if there the forklifts is not needed. There are many possible
risks may occurred when workers involve in this kind of material handling such as back pain,
neck pain and other musculoskeletal disorders. The workers may be not able to do another
activities when they faced such the risks.

So, the company provided the suitable tools for workers to handle the materials and
items safely such as the adjustable trolley and this is administrative control of the company.
Then, the workers also being trained frequently on how to handle any material that involves
pulling, pushing, lifting and holding activities.

3. Psycho-social hazards

Psycho-social hazard includes stress during work, working alone, the period of work is too
long and fatigue. Normally, the workers had to stand up for a quite long period of time in order
to supervise the machines’ operation so that the operation is always in good condition and
follows the planning. Workers also may feel bored when they have to work alone in such a
long period of time and this leads to stress. Stress may affect the working qualities of the
workers a lot and results in low production and waste of time.

Figure 12: The worker that works alone to keep the operation run

This type of hazard can be avoided easily if one knows the right thing to do to prevent
the hazard. For Daikin Company, the workers able to spend their recess time in gymnasium to
release the stress and pressure of work. Besides, there also free hot coffee and tea that workers
can get from the coffee machine nearby the gymnasium. These two accommodations fell in
administrative control. Furthermore, the company conducted many outdoor activities for
employers and workers to have a good bonding and to release the stress.
4. Mechanical hazards

In Daikin Steel Malaysia Sdn. Bhd., we saw a lot of machines that had different functions and
operations. The machines were operated by people and some of them were operated
automatically.

Figure 13: The stamping machine

The most hazardous machine was the slitting/leveller machines where they were used
to cut and slice the large coil into smaller coil. Another hazardous machine was called as
stamping machine where they stamped the steel part into final finish product. The possible
risks are cutting and tearing, shearing as well as crushing. These kind of risks usually lead to
death and serious injury.

Figure 14: The leveller machine


Daikin Company had protected the workers from the mechanical hazard by
engineering, administrative and personal protective equipment controls. Every machine there
was guarded properly to prevent any incident that involving human. Besides that, for every
activity and machine there workers needed to study first and follow the standard operating
procedures properly to avoid mistakes and to sustain the safe working environment. They also
needed to apply and wear appropriate PPE such as gloves, safety helmet, safety vase and others
to protect themselves and others.

Figure 15: Some of the PPE in Daikin Company

5. Physical hazards

Physical hazards is defined as any external factors that may harm the people without
necessarily touch it such as vibration, noise, radiation and thermal stress. These factors affect
human in term of health and may lead to serious injuries and long term diseases.

In Daikin Company, the most vivid example of this kind of hazard was the noise that
was produced by the machines during the operations. This kind of hazard may lead to human
hearing problem, deafness and Tinnitus (ringing in the ears) which are may be permanent effect
to the workers.

The counter measure made by the Daikin Company was to provide the PPE for the
workers to protect their hearing from being affected by the loud noise. Usually, the workers
wear appropriate ear plugs when working near to noise source.
4.0 PROCEDURE AND ACTIVITIES

4.1 PROCEDURE

Creating Safety in the Workplace

The Occupational Safety and Health Act was created to give all workers a safe workplace
and reduce the number of annual injuries and fatalities. According to the act, all employers
must provide employees with a safe work environment and protect them from hazards. They
must also properly examine a workplace for safety, provide employees with tools and safety
training in a language they can understand, and more. Below are procedures and activities need
to be carried out in the event of an emergency/injury/accident/incident occured:

1. Ensure Safety of Others

When accident happens, first thing that need to do is to ensure the safety of others. First
person nears victim must confirm exact location of the affected and the nature of the incident.
Check for unconscious people and don’t move anyone unless they are in immediate danger or
require first-aid. If someone has to be moved, be careful not to twist their neck or back. For
minor injuries, get the first aid to prevent further complications from injury. If the cases if
severe, put a safety cone at the scene to warn other. In case of danger that can cause harm,
evacuate the place immediately. Stop any danger that may still existing such as if it causes from
the machine faults, turn it off before it harms other people.

2. Secure the accident site and preserve evidence

The site of any serious accident needs to be secured as quickly as possible for
investigative purposes. In more severe cases, may need to use barriers, such as safety cones or
tape to cordon off the area so a formal investigation can take place by local law enforcement
or the Occupational Safety and Health Administration (OSHA). Limit access to the scene of
the incident to avoid secondary accidents. For example, a slippery floor in one area could cause
additional injuries if access to that area is not limited. Then secure and save any equipment or
materials that were involved in the incident. This activity should have begin straight away, or
as soon as practicable. Information needs to be collected as soon as possible in order to avoid
any corrupted events such as items moved, guards replaced and others. It is necessary to stop
all the work on the accident or incident area for a certain amount of time until the activities on
collecting information is done. It is also necessary to block any unauthorised personel access
to the incident area.

3. Get emergency services-911 (if needed)

Promptly getting appropriate medical treatment for an injured employee is the highest
priority. As soon as the incident occurs, evaluate the need for medical assistance. If the injury
is severe and the person’s life is in danger, dial 9-1-1 immediately. In non-emergency situations,
the injured employee should be transported to a medical care facility. Managers or supervisors
may consult the medical provider designated by the business’s worker’s compensation carrier
or seek help at a facility close to the scene of the accident.

4. Investigate and gather facts as soon as possible

Information can be gathered by talking to everyone who was close by when the incident
event happened, especially those who saw what happened or know any information regarding
to the incident that happens. Any clue on the incident that happened can be obtained from those
people who witness the occurrence happens in the incidents area. During the gathering
information activities, investigator shall collecting all the available and relevant information
including evidences, opinions, experiences, observations, sketches, measurements, check
sheets, permits-to-work, and details on the environmental conditions at the workplace during
that time. They should also speak with witnesses of the accident to get their accounts, take
photos where the accident took place, and comply with all OSHA reporting and recordkeeping
regulations. The information recorded should be keep in note form initially, before completing
it with a formal report later. These notes should be kept at least until the investigation on the
incidents happens is complete.

5. Assist employee with completion of incident report

The supervisor should complete an Incident Investigation Report which includes


associate, supervisor and witness incident statements. The report should include who was
involved, date and time of the incident, what duties were being performed, what equipment
was being used, what were the work conditions, was personal protective equipment (PPE)
being used and witness list and statements. Supervisor should conduct one on one witness
interviews. Witness statements should include what they saw, heard, where they were at the
time and should be notarized if possible. Take photographs or make drawings of accident scene
if necessary. Determine if the incident was work related. Injured worker should complete First
Report of Injury (FROI), if possible, in his/her own handwriting. Any claims need to be
reported to the workers’ compensation insurance carrier within 24 hours of the incident. Under
the OSHA recordkeeping regulation, employers are required to prepare and maintain records
of work-related injuries and illnesses using the OSHA form 300. Some workers’ compensations
carriers offer programs to help guide their clients in these situations. Check with the carrier or
insurance agent for available resources. The employer also need to cover medical expenses and
disability leave for the employees affected in the accident. If the accident was a result of an
OSHA violation, the employer may also have to pay for additional compensation and employee
benefits.
5.2 ACTIVITIES

Flowchart for steps to do when accident occured :

Ensure Safety of Others

Secure accident area and


preserve evidence

Call emergency service 911 if


needed

Investigate and Gather Facts


As Soon As Possible

Assist Employee with


Completion of Accident Report
5.3 Incident form

However, we could not get the incident form from the company itself as we have been told
that it is confidential. Below are another example of incident form that need to be fill out
when accident occur:

Figure 4.1 Incident form


5.0 ESTIMATED COST OF PRACTICING OSH

Cost of Facilities:

Facilities Cost
Mini Leveller Machine

Price: RM40,000/unit

Leveller Machine

Price: RM60,000/unit

Shearing Machine

Price: RM50,000/unit
Stamping Machine

Price: RM45,000/unit

Forklift Truck

Price: RM25,000/unit

Table 5.1: Cost of facilities

COST OF PRACTICING OSH:

Cost of practicing OSH Cost


Cost of facilities:
Mini leveler machine RM40,000
Leveler machine RM60,000
Shearing machine RM50,000
Stamping Machine RM45,000
Forklift Truck RM25,000
Cost of Training:
PPE training RM80/person
Welding Training RM1,000
HIRARC training RM4,000
Cost of Qualification:
OSH officer RM40,000/year
Handling of forklift truck RM500/person
Welder RM1,000/person
Cost of Maintenance:
Machine RM50,000/year
Cost of Insurance:
Worker RM200/person

Table 5.2: Cost of practising OSH

COST OF PRACTICING OSH DUE TO ACCIDENT OR INJURY:

Cost of practicing OSH due to accident Cost


or injury
Cost of downtime RM15,000
Cost of Repair RM10,000
Cost of Rectification RM8,000
Cost of Compensation RM20,000
Cost of Legal Expenditures RM14,000

Table 5.3: Cost of Practicing Osh Due to Accident or Injury


COMPARISON:

Cost of practicing OSH Cost of practicing OSH due to accident


or injury
Cost of facilities: RM220,000 Cost of downtime: RM15,000
Cost of Training: RM25,000 Cost of Repair: RM10,000
Cost of qualification: RM70,000 Cost of Rectification: RM8,000
Cost of Maintenance: RM50,000 Cost of Compensation: RM20,000
Cost of Insurance: RM18,000 Cost of Legal Expenditure: RM14,000
TOTAL: RM383,000 TOTAL: RM67,000

Table 5.4: Comparison cost between practicing OSH and practicing OSH due to accident or injury

INCIDENT COST:

Incident Cost Consequence Estimated Cost


Excessive noise Damage hearing RM25,000
Machine exposed (not Hands can accidently RM15,000
covered properly) caught into the machine
Machine fault Can harm part of the body RM10,000
Wet floor Slipping, injured head RM5,000
Lifting excessive weight Slip disc, other illness RM8,000
frequently
Hand tools Cut hands RM600
Blocked fire exit Hard to evacuate place in RM80,000
case of fire
Sharp edges Harm body part RM1,000

Table 5.5: Incident cost, consequence and estimated cost


COMPARISON BETWEEN PREVENTIVE COST AND INCIDENT COST

Incident Incident Cost Preventive Cost


Excessive noise RM25,000 RM10,000
Machine exposed (not RM15,000 RM8,000
covered properly)
Machine fault RM10,000 RM5,000
Wet floor RM5,000 RM3,000
Lifting excessive weight RM8,000 RM5,000
frequently
Hand tools RM600 RM300
Blocked fire exit RM80,000 RM10,000

Table 5.6: Comparison between Preventive Cost and Incident Cost


6.0 OCCUPATIONAL SAFETY AND HEALTH MANAGEMENT

Nowadays, organisation are increasingly concerned about achieving and demonstrating


performance occupational safety and health (OSH) at workplace. They control their OH&S
risks, consistent with their OH&S policy and objectives by increasingly stringent legislation,
the development of economic policies and other measures that foster good OH&S practices,
and increased concern expressed by interested parties about OH&S issues.

Daikin Steel Sdn. Bhd. are also one of company that had applied occupational safety
and health at the workplace. OS&H management will help the organisation achieve objective
of OS&H and economic. They nurture and enhance safety and health through policy,
compliance and safety management system to achieve their goal and become a safety leader
and people centred management in Daikin Globally. Through education, operational control
and enforcement, they believe the level of safety will be up kept and accident rate can be
reduced. Beside compliance to subscribe legal, OHSAS 18001 management system is use as
tools for us to achieve their goal.

The company implement signage safety and health at the workplace due to purpose
safety for their worker. Besides, they also had enforced their worker to use proper personal
protective equipment by putting an exhibition booth about safety and health at the entrance
door of workplace. The company also had made a route plan walkway of safety for their worker
by putting white line at their safety workplace. Yellow line is also put along the machine and
product located to differentiate their working place. Besides, they also had a fence or barrier
for each machine to protect their worker from injury. Not only putting a fence, they also put a
signage at the top to give a reminder to worker about their safety. Entrance of the office, the
OS&H management had put a picture regulation and policy of the safety. In addition, the
department of operation and manufacturing take an initiative by making a checklist safety and
health for the worker and put at the board. They support the effort of the company to ensure
the safety and health of the worker. By making the checklist, they can reduce the accident occur
at the worker. This shows the company had the initiative to take care of worker’s warfare by
implement the OS&H regulation and policy. The zero accident can be achieved if all the worker
give corporation to the company to improve and achieve OS&H management and company.
Figure 16: Signage of safety

Figure 17: Signage of the forklift safety at route walkway

Figure 18: Fence or barrier at the slitting machine


Figure 19: Route plan walkway for worker and visitor

Figure 20: The exit and entrance door of workplace


Figure 21: Checklist board for the worker

Figure 22: Exhibition booth of safety

Figure 23: Personal safety equipment for visitor


7.0 CONCLUSION

As a conclusion, the visit to the industries is very important and need to kept as compulsory
for the students to fulfil to help them being exposed to the real occupational safety and health
at a company. Once they know and understand the real situation and condition of the company’s
safety and health management, they would improve their understanding in the Occupational
Safety and Health course.
8.0 REFERENCES

1. https://en.wikipedia.org/wiki/Occupational_Safety_and_Health_Administration

2. http://www.daikin.com/about/index.html

3. https://fortresslearning.com.au/cert-iv-content/design/types-of-hazards/
9.0 APPENDIX

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