To remain competitive and profitable, industrial manufacturers restructure their operations to reduce costs and improve operational efficiency. This is felt at every stage of manufacturing, including highly sensitive areas such as those controlled by factory safety systems. Cost is undoubtedly a consideration, but safety must be considered beyond pure cost considerations. Instead, adding safety systems can potentially increase production capacity, reduce worker compensation costs, decrease overtime, and make more efficient use of management time. Why are manufacturers hesitant? While safety controls offer many potential benefits, they are often seen as unnecessary and an expensive barrier to increasing output. Traditionally, safety and productivity in the manufacturing workshop have been seen as opposing forces: the safer the system, the lower the productivity. Furthermore, manufacturers tend to measure the implementation of a safety system in terms of cost. This is because many benefits are not realized, such as lower insurance premiums, making manufacturers hesitant to invest in safety systems. Employee Compensation It is obvious that employee safety on the manufacturing floor is a top priority. Besides employee safety, a well-designed safety system can also potentially save the company money. For example, employee compensation is a high-cost safety-related expense. Almost all countries require employers to purchase insurance for their employees from national workers' compensation departments or insurance companies. Because the financial impact of employee injuries is measurable, their compensation and insurance premiums constitute a direct loss. Clearly, reducing the frequency and severity of employee injuries will reduce this additional cost. On the other hand, indirect losses include reduced output, extended overtime, and unproductive use of management time. These are indirect losses because their financial and operational impact is difficult to estimate, making the reduction of this cost a worthwhile concern. However, a 2001 survey from Liberty Mutual Insurance Company indicated that these indirect losses could be three to five times greater than direct losses. Improving Productivity The historical view of safety is that it slows down production, so implementing a proper safety program can potentially increase output. Implementing a safety system can increase productivity while simultaneously making employees feel that the company values ​​their safety and health, gradually instilling confidence in them. This increases employee morale, leading to greater gains. One automaker, after implementing a safety program, was able to produce one more car per assembly line every five hours. An example of how advanced safety products can improve productivity is light curtains, or infrared gratings, that detect operators in hazardous areas. A typical example is a safety interlock door used to prevent operators from entering these hazardous areas. The door takes approximately 10 seconds to open and 10 seconds to close, depending on the program used. If operators do this 100 times a day, six days a week, 300 days a year, the lost productivity accumulates. Replacing the traditional door with an optical curtain interrupts the infrared beam when an operator—about to enter the hazardous area—and the operation safely stops (through proper programming). As the frequency of entry into hazardous areas increases, the investment in optical curtains rapidly increases productivity, generating significant returns. International Automation was among the first to see this improved productivity. They upgraded the presses on a large serial production line and improved safety controls on five presses. Before the upgrade, the production line efficiency was only 40%, producing 85 to 120 parts per hour. International Automation adopted Rockwell Automation's Allen-Bradley® GuardLogix®, a new safety controller, increasing the serial production line efficiency to 90%, producing 500 parts per hour per line. Additional cost savings: Safety systems help companies meet regulatory requirements, potentially increasing profitability. For example, safety inspectors will immediately shut down any machine they deem unsafe during their rounds. Such shutdowns on the production line can have financial consequences, such as product loss, and may result in fines for violating safety regulations. Implementing a safety system not only increases productivity but also reduces other costs, such as overtime, management, and public relations expenses. If an employee is injured, other employees must work overtime to compensate for product loss, creating overtime issues. Safety systems can also help managers and supervisors use their time more effectively. For instance, if an employee is injured, managers need to spend extra time visiting them and handling compensation. In the event of an accident or fine, the company's public relations pressure (and associated costs) must be increased to effectively manage its reputation. By investing in a suitable safety technology, companies can protect their most valuable asset—the workforce—while simultaneously reducing costs, boosting employee morale, and ensuring future production continuity.