DWAIPAYAN CHAKRABORTY

BUDGETING OF SAFETY
DEFINITION OF BUDGETING

A budget is an estimation of revenue and

expenses over a specified future period of time
and is usually compiled and re-evaluated on a
periodic basis. Budgets can be made for a person,
a group of people, a business, a government, or
just about anything else that makes and spends
money.
A budget can be of different types:- Master budget,
Labour budget, financial budget, safety budget etc.
Here we shall discuss about safety budgeting.
SAFETY BUDGETING

A safety budget should specifically be set

out to allocate funds for any future
improvements that may arise from
recommendations made from safety
monitoring activities, risk assessments
and accident investigations.
A safety budget includes various
elements and processes which will be
included in the subsequent slides.
ELEMENTS OF SAFETY
BUDGETING
For a budget in safety management where
various activities and events are followed,
the following elements are given as:-
ELEMENTS OF SAFETY
BUDGETING

PLANNIN CONTROLLIN
G SCHEDULING G
A table described here about the
timing of the budgeting process
ELEMENTS TIMING OF TOOLS
APPLYING
Planning Before the start of Cash flow charts,
budget process Personnel data charts,
Estimates of time and
cost
Scheduling Before the start of Milestone charts, CPM
budget process and PERT networks,
Gantt charts
Controlling After the start of budget PERT charts, updating
process and resource allocation
on the basis of crash
costs, quantity of work
completed etc.
DIMENSIONS DESCRIPTION
WEARABLE TECHNOLOGY In the safety budget, basic dimension
we can consider the different new
technological devices like including of
smart watches, sensors, etc. This
technology can give correct and
accurate information about different
safety issues, also announcement
system can be introduced, thus
ductility is maintained and health of
many workers and trainees can be
saved in this process.
ERGONOMIC INTERVENTIONS We can analyse our surrounding
especially through the accident prone
areas by introducing the software
which would help in detecting any
problem occurring in any part of the
area.
DIMENSIONS DESCRIPTION
This would help in maintaining proper
atmosphere in the workplace, thus
saving lot of money and labour as well
as resources, moving the budget
network in right path.
WORKPLACE DESIGN Workplace design has a profound
impact on the productivity of workers.
Making the best use of space through
optimum placement of equipment,
integrating the human factor into
workplace design, and effectively
aligning the workplace into the
surrounding environment are
important aspects of ergonomics. This
ergonomic conditions can lower the
budget and maintain the critical
network path.
DIMENSIONS DESCRIPTION
LEADERSHIP DEVELOPMENT In safety management and budgeting,
proper leadership is one of the major
cause. Proper leader can only prepare
the budget network in the most
efficient way making it the max
probability of working, without being
crashed. This helps in proper cast
maintainance.
EMPLOYEE RELATIONSHIP Proper relationship between the
employees and the higher
management, allows the project to
continue within the critical path of
resources with min input of resources
and max outcome of profit by reducing
no of accidents and maintaining
proper health among workers.
TOOLS AND TERMS FOLLOWED
FOR SAFETY BUDGET NETWORK
Before starting a design of safety budget network, let us
discuss some terms regarding some tools followed in
network, given in the following table:-

1. Activity:- For safety management budget, a

budget is classified into various jobs and
operations.
Each jobs and operations which consume time
and resources termed as activities.
Activities represented in the form of:-
 DESCRIPTION

DURATION

Activity mainly represented in the form of

an arrow. It is the connector between 2
events.
2. Event:- An event is the part where specific
milestone is achieved i.e end of a preceeding
activity and start of a successive activity.
Event does not consume any time and resources
and can be rectangular, circular shapes in network
etc.

The above figure shows the following shapes of events.

 Noting that

Activities can be serial or concurrent as

SERIAL CONCURRENT

Activities occuring Activities occuring

one at a time simultaneously
SCHEDULING PART OF
BUDGET
For the scheduling part of safety budget
in safety project management, we will go
for 2 types of estimates:-
TOOLS FULL TYPE ORIENT
FORM OF ATION
ESTIMA
TE
PERT Programme Probabilistic Event
Evaluation
and Review
Technique
CPM Critical Path Deterministic Activity
1. Programme Evaluation and
Review Technique
It is a probabilistic technique where we
determine through network a no of critical paths
where it will be economical to prepare the
budget and carry out the safety activities on the
basis of that.
It follows a probability distribution method.
It includes the following time estimates:-

Optimistic time Most likely time Pessimistic time

estimate(t0) estimate(te) estimate(tp)
 From the above 3 terms, the expected
time can be calculated on the basis of a
formula derived by the statisticians as:-

texp=t0+4te+tp
6
Variance determined as σ2=tp-to
6
Now after following the expected time, the
critical path can be determined which will
be shown in the diagram
Now the expected time can be as defined
in 3 cases as:-
Case 1 :- texp= te which is possible only if
the te, to, tp are given in a common
interval.
Case 2:- texp>te
Case 3:- texp<te
The above 2 cases are possible when to,
tp, te are not given in common interval.
CRITICAL PATH METHOD(CPM)

Like in PERT which follows a probabilistic

approach, CPM follows a deterministic
approach.
It is activity oriented network, where we
can determine a particular critical path of
cost of safety budget where an
economical safety budget can be
prepared and used in project
management.
CPM network does not require any
probabilistic distribution and involves
some terms such as:-
Earliest start time(EST)(tei)
Earliest finish time(EFT)(tej
Latest start time(LST)(tli)
Latest finish time(LFT)(tlj)
UPDATING AND RESOURCE
ALLOCATION
After the network is completed and the critical path of
the safety budget is determined, then the safety work
control starts and if the activities are not occuring on
the basis of the path on the basis of which budget is
done, then that path is crashed and new critical path
which is economical chosen.
This is termed as updating and on the
basis of this resources like man power,
material is given as additional. This
process called as resource allocation.
Resource allocation process adopted for
completing the project in critical time
duration so that the duration of budget is
not affected and resources given on the
basis of that.
If any accidents, or risk or any failure
occurs, then additional cost required for
the analysis of accidents by providing
much more resources, thus affecting the
safety project duration. So this becomes a
big loss of cost.
Thus the above procedures for safety budgeting and for successful
project management

THANK YOU