Safety Risk Management at IKEA

5280 words (21 pages) Essay

18th May 2020 Organisations Reference this

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Contents

AED MACHINE INSTALLATIONS

Executive Summary

Background

Justification

Deliverables

Objectives

Assumptions

Constraints

The Triple Constraints- Each project has in theory the affects of the Triple Constraint Triangle. If one of the three areas within the triangle changes it will have a flow on effect with the changes to the other two constraints of the triangle creating trade-offs in the project.  Such constraints are Scope (also involves quality), Cost and Time.  (Rugenyi, 2016, p.295)

Risk Assessment

Milestone Schedule

Financial Analysis

Communication Plan

Signatures and Commitment

References

Executive Summary

IKEA Australia– Ikea is a self-funded Swedish retailer that is globally recognised for their modern innovative designs in regards of products such as flat pack furniture, household goods and electricals. IKEA has also provided a supportive and community involvement through their philanthropic commitments. A leader in risk management and have their own OH&S Constitution. IKEA has a generally positive diverse culture across their workplace

As a business needs the overall goal is to continue to bring best practice and improvement in meeting IKEA’s obligations to Duty of Care and continue IKEA’s leadership standards in Safety Risk Management.

The Background

There is an identified scarcity in the number of installations of Automated External Defibrillator’s (AED) machines that could mean the difference between life and death. Though it is not a legal obligation to install AED machines, employers are recognising the multiple benefits for having this equipment. When critical first aid incidents occur, time is the vital key to obtaining desired outcomes particularly if emergency service response is not immediately available in nearby locations.

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The benchmark rate of success where Cardio-Pulmonary Resuscitation (CPR) is used along with application of AED in the event of a Sudden Cardiac Attack) is 71%, while applying CPR alone is at 5%. success. (Aeds.com.au, 2018)

According to the Heart Foundation, mortality due to heart attacks claimed the lives of 7813 in 2017, with 92,000 deaths from heart attacks in the decade leading up to this in Australia. (The Heart Foundation, n.d.)

Currently the response rates by Risk Operations Officers to injury or serious incidents (should they occur) are in decline due to lack of staffing to fulfil First Aid obligations. With electrocutions that may occur in the workplace on the rise IKEA has opportunity for ensuring they can support safe work best practices by installing AED machines.

Kerry Packer has established within his estate to set aside funds for AED installations for public access defibrillator’s. This initiative set the trend after Kerry himself was saved by an AED.

Deliverables

St John to Install a total of 20 AED machines, 2 for each IKEA retail site at exit/ entry points near Cashiers and near entry to First Aid rooms (subject to risk assessment of suitability)

Include the following;

Mandatory onsite risk assessment to determine the quality of the locations for installations

Contractor Technician to ensure capability for WIFI connectivity

2x First Aid trainers per site for training of 20x managers first aid certifications/ site

20x Wall mounted alarmed cabinets,

20x visual AED and DRSABCD signage,

Total Cost to Client

$110,499 *correct at time of estimate

Risks

There have been noted risks due to fear of use in AED equipment and possible litigation, this can be mitigated through staff training and also coverage of The Good Samaritan Act in which a unpaid first aider is covered. There have been litigations in the Europe and USA for failure of employers not having AED equipment installed as this is considered against duty of care obligations.

Financial Analysis

The installations of AED equipment have indirect value rather than to increase profits. IKEA may save money through insurance premiums and earn further assurance and trust within the communities and with this bring more customers through the door.

A snapshot of customer loss may equate to the following;

Based on Annual Financial Report yr 2018. (Dam, 2018)

Number Customers

Euro/ Millions

Annual Retail sales as at November 2018

 

 €                        38,800.0

Potential Litigation per case (example LUFTHANSA)

 

 €                                   2.4

Reduced Gross sales

 

 €                        38,797.6

Customer base

957,000,000

Customer Loss 20% due to non-AED provision

191,400,000

Reduced Customer Base after one lost case

765,600,000

Reputational damage estimates 40% yr 1 to Gross Profit

 

 €                        15,520.0

One Year Gross Profit reduced to:

 

 €                        23,280.0

This is basically just a small picture if AED not installed.

Title

        This document seeks to outline the scope for Project: AED INSTALLATIONS AT IKEA.

        It will be used to

  • define the project
  • State the case for the instigation of the project
  • Create a base line to define what is included and excluded from the project

Background

IKEA Australia- Ikea is a self-funded Swedish retailer that is globally recognised for their modern innovative designs in regards of products such as flat pack furniture, household goods and electricals. IKEA has also provided a supportive and community involvement through their philanthropic commitments. A leader in risk management and have their own OH&S Constitution. IKEA has a generally positive diverse culture across their workplace.

As the Safety Risk Operations Manager there is an identified scarcity in the number of installations of Automated External Defibrillator’s (AED) machines that could mean the difference between life and death. Though it is not a legal obligation to install AED machines, employers are recognising the multiple benefits for having this equipment. When critical first aid incidents occur, time is the vital key to obtaining desired outcomes particularly if emergency service response is not immediately available in nearby locations. The benchmark rate of success where Cardio-Pulmonary Resuscitation (CPR) is used along with application of AED in the event of a Sudden Cardiac Attack) is 71%, while applying CPR alone is at 5%. success. (Aeds.com.au, 2018)

According to the Heart Foundation, mortality due to heart attacks claimed the lives of 7813 in 2017, with 92,000 deaths from heart attacks in the decade leading up to this in Australia. (The Heart Foundation, n.d.) Though a rare event, IKEA would not be immune to someone having such a critical incident anywhere at any time on their premises.

St John’s Organisation states,” many workplaces are recognising the benefits of having this life saving equipment on hand at times where heart attack events occur.” (St John Victoria, 2019)

Installing extra two AED machines in all stores across Australia that are well sign posted and visible to all provides IKEA with opportunity to showcase their risk culture which will bring about customer assurance and enhance their value in the business that may lead to external opportunities. Other benefits for implementing more AED machines could be used as a quality assurance promotion tool, may reduce the need for litigation and insurance premiums. This also meets compliance with WHS Act 20111

The current policy allows for no mandatory first aid certification of employees with exception of the Risk Operations Department. As a general standard requirement, Safework Australia suggests that there should be one first aider to every 25 employees. (SafeWork Australia, 2019, p.17). With busy periods during weekend trade, employees who are trained first aiders and skilled on application of AED machines will be suitable first responders.

Business Needs

 

The overall goal is to continue to bring best practice and improvement in meeting IKEA’s obligations to Duty of Care and continue IKEA’s leadership standards in Safety Risk Management.

Our customers need the assurance that IKEA is committed to our obligations for Safety Risk Management.

We will do this by installing AED machines with accessories across the current Australian network franchises and ensuring that our critical positions are aptly skilled in first aid certification and use of AED machines by 1st December 2019 in readiness for our busy Christmas period.

Justification

Ikea needs to lower the response impact on injury, and lower its insurance premiums

Identified implications from serious disease risk across the Australian demographic including our employees and customers.

IKEA brand empowerment due to duty of care best practices.

Deliverables

To Install a total of 20 AED machines, 2 for each IKEA retail site at exit/ entry points near Cashiers and near entry to First Aid rooms (subject to risk assessment of suitability)

Include the following;

Mandatory onsite risk assessment to determine the quality of the locations for installations

Contractor Technician to ensure capability for WIFI connectivity

2x First Aid trainers per site for training of 20x managers first aid certifications/ site

20x Wall mounted alarmed cabinets,

20x visual AED and DRSABCD signage,

Provide AED E-training for up to 20 employees

Objectives

  1. Do mandatory location risk assessment of potential physical constraints and awareness of dangers for the installations of 20x AED’s to be managed. This to be done a week prior to installations so that required preparations prior to installations can be done. Start 7TH September 2019
  2. Prepare surface areas for the wall mounted cabinet installations safe for mounting. This to be included as part of location risk assessment
  3. Contract technicians to ensure IT services have capacity for continuous Wi-Fi connectivity of AED machines- By 15th September 2019
  4. Install 2 AED machines across two stores each week till completion of all 20x installations including testing. 25TH November 2019
  5. Complete all installations and training of AED use by 1st December 2019

Assumptions

The following assumptions have been made in the preparation of this document.

  • Ease of site access with technician’s vehicles and supplier’s onsite
  • The project has approval from Australian Country Manager
  • Adequate rooms/ space and equipment availability for First Aid courses and E-training

Constraints

The Triple Constraints- Each project has in theory the affects of the Triple Constraint Triangle. If one of the three areas within the triangle changes it will have a flow on effect with the changes to the other two constraints of the triangle creating trade-offs in the project.  Such constraints are Scope (also involves quality), Cost and Time.  (Rugenyi, 2016, p.295)

Certain constraints have been noted as requested by the client;

  • Quality- Ensure continuity of performance of AED machines.
  • Time- To be installed on weekdays due to busy weekend trade
  • Time- Installations to be completed by 1st December 2019 in readiness of busy Christmas trade.
  • Scope- Performance monitoring, Staff training on the use of the machines to be included.

Risk Assessment

 

Issue

Mitigation

Stock supply chain limitations in time for installations

Utilize a staged time period for installations- eg: stage 1,2

Install 1 AED machine per store then follow up with 2nd installations

Seek alternative suppliers

No Contractor Technicians available to install and test AED

Seek to get own facilities management and department trained up on Installations and testing

Customer foot traffic periods cumbersome during installations

Provide signage, verbal instore announcements, physical barriers around work areas,

Work at less busy time periods through the weekdays

Fear of litigation in the use of AED’s

Un paid first aiders covered by Good Samaritan Act, encourage duty of care best practices, promote a positive risk culture across the organisation, highlight cases of negligence. Benefits of customer assurance and potential for brand empowerment, lower insurance premiums.

  • Rescheduling and/ or the availability of technicians to install and train on the AED’s. – Mitigate: Seek to get our own maintenance operations trained in the installations and testing.
  • Customer traffic periods can be cumbersome during installations- Mitigate- with specific risk assessments of workspace, install barriers around installation workspace.
  • Fear of litigation in the use of AED- Mitigate- unpaid first aiders are covered under the Good Samaritan Act.

Milestone Schedule

Meeting with Operation Managers

3/09/19

 

Proposal to B2B users

3/09/19

 

Demonstration- SME- St John

4/09/19

 

Quotation Submission- St John

6/09/19

 

Acceptance Payment- IKEA

 

7/09/19

Accept Delivery of Supplies for the Installation

 

12/09/19

Supplier to complete mandatory Risk Assessments

St John Aed Supplier

15/09/19

Ensure IT department have adequate computers for the project and ensure ease of service and their obligations to the security of IKEA’s networks- Technician

15/09/19

All new policy to be updated – HRD

17/09/19

All Managers First Aid Certified

1/11/19

AED Installations and testing 2sites / week

15/11/19

AED Online and Practical Training

25/11/19

Project Completed

1st December 2019

Budget Estimates

Total Cost to Client

$110,499

  • Prices were correct at time of reporting Budget Estimates

Financial Analysis

The installations of AED equipment have indirect value rather than to increase profits. IKEA may save money through insurance premiums and earn further assurance and trust within the communities and with this bring more customers through the door. Though not a legal obligation having AED equipment in readiness of a quick response time is good practice.

IKEA can choose not to be negligent by installing AED’s or run the risk of being involved in a civil suit of negligence, duty off care and potential reputational damage if this resulted in an unnecessary death. (Refer to below snapshot and financial analysis attached)

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Under Duty of Care of the health and safety of visiting customers to premises the company policy decision as not having highly visible AED equipment onsite would require a sign to that effect prominently displayed at all entries to the premises. The consequence of that, however, is that the IKEA brand would suffer, and losses expected.

In 1997, Lufthansa were the first company to lose a civil lawsuit to a plaintiff in which they failed to not have aed equipped on their planes. The penalty for this judgement totalled $2.4 million. (Goldenfarb Esq., 2018). It was after this a trend started in litigation.

Currently the response rates by IKEA Risk Operations Officers to injury or potential of serious incidents (should they occur) are already in decline due to lack of staffing to fulfil First Aid obligations. Such delay in response to critical incidents as sudden Cardiac Arrest would not bode well on a reputational standpoint should they occur and not efficiently attended to. With electrocutions that may occur in the workplace on the rise IKEA has opportunity for ensuring they can support safe work best practices by installing AED machines.

Kerry Packer has established within his estate to set aside funds for AED installations for public access defibrillator’s. This initiative set the trend after Kerry himself was saved by an AED. It can be noted that IKEA has failed to check whether they qualify for AED’s through the Kerry Packer estate.

A snapshot of customer loss may equate to the following;

Based on Annual Financial Report yr 2018. (Dam, 2018)

Number Customers

Euro/ Millions

Annual Retail sales as at November 2018

 

 €                        38,800.0

Potential Litigation per case (example LUFTHANSA)

 

 €                                   2.4

Reduced Gross sales

 

 €                        38,797.6

Customer base

957,000,000

Customer Loss 20% due to non-AED provision

191,400,000

Reduced Customer Base after one lost case

765,600,000

Reputational damage estimates 40% yr 1 to Gross Profit

 

 €                        15,520.0

One Year Gross Profit reduced to:

 

 €                        23,280.0

This is basically just a small picture if AED not installed.

There have been great successes in use of AED machines in public places where staff are well trained to use the equipment here in Australia. As IKEA has already leadership in the retail space in safety and risk. It would further empower the brand and make money sense to install AED equipment that is highly visible to public.

EFFECTS INSTALLED AED MACHINES

 

                       38,800.00

 

30% Increase Customers

287,100,000

Total Customers expected

1,244.100

Brand Power 20% increase

 €                        7,760.00

Inc. Sales expected x30%

 €                      11,640.00

Total in Gross Profit expected

 

                       58,200.00

 

Communication Plan

Roles to communicate to

Method of Communication

Roles to Communicate to

Methods of Communication

Country Manager and other B2B

Online conferences, face to face meetings, emails, phone, fax

Facilities Managers

Phone Calls, emails, meetings

Senior Managers; store managers, operations

WHS Meetings, emails, memos

SME, Contractors

Face to Face meetings, training sessions, demonstrations, emails, phone calls

Department Managers

WHS meetings, training, emails,

Risk Operations Department

Safety Induction of contractors, meetings, emails,

HRD

Policy, training, meetings, induction updates

Customers

Signage, physical barriers for installations work, Announcements instore and websites including social media pages and newsroom media sites.

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