Joe, the plant manager was reviewing plans for a new production line. Abbott
had developed a new product, the A-drug delivery pump. The A-drug pump was very similar in terms of
design and weight characteristics to the X-drug delivery pump, a product that had been manufactured
at Joe's site for the last several years. Both pumps weighed about 26 pounds.
Certainly because of the similarities between the new product and the old pump, the initial plan was
to construct a line very similar to the X-drug pump line. While this seemed a cost effective
approach, Joe was concerned because the X-drug pump line has been plagued with manually intensive
tasks associated with product handling, testing and inspection. These tasks included product lifting
and transfer, awkward posturing, close visual inspection and repetitive motions. These tasks had
lead to multiple OSHA recordable cases in the past. Exhibit 1 details workers' compensation cases
for 2000-2003 for the X-drug pump line.
One problem Joe faced was to redesign the X-drug pump line, but that was a problem for another day.
Joe's immediate concern was the new line. The costs for the new line were estimated around $100,000.
Joe wanted to create a proposal for a more ergonomic line than the X-drug pump line but was
concerned about how much additional capital costs could be justified above the base estimate of
$100,000.
Exhibit 1 – OSHA recordable cases for the X-drug pump line
| Description of case |
Workers' compensation costs |
| 2000 |
| Reaching pump from top of the cart |
$800 |
| Lifting pump from line |
$57,000 |
| Repetitive lifting of pump |
$55,000 |
| Repetitive assembly work |
$10,000 |
| 2001 |
| Repetitive cleaning of pump |
$22,000 |
| 2002 |
| Label removing repetitive work |
$800 |
| 2003 |
| Repetitive lifting of heavy boxes |
$2,500 |
| Ergonomic Improvements in Manufacturing (B) |
Abbott spent an additional $20,000 on ergonomic improvements above the $100,000 capital costs
required to implement the basic line. The A-drug pump production line was outfitted with multiple
material handling items including portable lifting tables, product handling turntables, single shelf
product carts, conveyor systems, foot rests, ergonomic chairs, automated presses, tool fixturing,
and grip enhancements. Implemented in 2002, there have been no OSHA recordables for the A-drug pump
line.2
Ergonomic Improvements in Manufacturing
Teaching Notes |
This case demonstrates the importance of designing safety into a production
line. Even though ergonomic changes represented a 20 percent increase in costs, the extra $20,000
was less than a severe workers' compensation case such as from an injury while lifting a pump
($55,000 in 2000).
1This case is based on information provided by Abbott in 2003. This
case was prepared as part of an Alliance between Georgetown University's Center for Business and
Public Policy, OSHA, and Abbott. Participation in an Alliance does not constitute an endorsement of
any specific party or any party's products or services. This case was prepared as the basis for
class discussion in the "Business Value of Safety." The decision maker and his associated thoughts
and actions are fictionalized, and product names have been disguised.
2As of September 2003.
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