1. Produa Berhad has established in 1993 that has offer products geared towards various needs and wants, supported by a far-reaching nationwide sales and services network for the ultimate convenience of our valued customers. It owns a plant, equipment and vehicles worth of RM155 million and currently, there are 10,500 workers under its direct employment.

Amar Hazwan is a risk management consultant and has been hired by Produa to analyse and recommend the amount to be spent for safety measures in order to reduce worker injuries at 2 departments: Logistic and Parts Warehouse. Below is the injury records for both departments and the costs incurred for a 6-year period:

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Year 2014 2015 2016 2017 2018 2019 Logistic 50,900 76,350 101,800 Number of injured workers Logistic 127,250 230 152,700 75 135 210 150 89 Parts Warehouse 190 92 141 201 65,600 Parts Warehouse 98,400 177 131,200 99 164,000 196,800 Total cost of Injury (RM) Logistic 72,000 35,000 The sharp increase in the costs of injury in year 2019 has forced Produa to spend RM25,450 and RM32,800 for Logistic and Parts Warehouse respectively on the loss control expenditures in 2020 and the number of injured workers in that year was recorded at 290 people for both departments. In his analysis, Amar has estimate that if there were no loss control expenditures, the number of injured workers would increase to 301 and 303 for Logistic and Parts Warehouse respectively. 120,000 The additional spending on loss control expenditures will result in a lower number of injured workers as indicated in the following table: Loss control expenditures (RM) 37,000 116,000 109,900 234 194 Parts Warehouse 166 67,500 109 28,980 111 119,550 29,690 Number of injured workers Logistic 121,000 100,890 Parts Warehouse 222 188 99 156 105 Based on the information above: a. Calculate the average injury severity for each department. b. Based on 3(a), determine and indicate the amount that Produa should spend on safety measures for each department. Year 2014 2015 2016 2017 2018 2019 Logistic 50,900 76,350 101,800 Number of injured workers Logistic 127,250 230 152,700 75 135 210 150 89 Parts Warehouse 190 92 141 201 65,600 Parts Warehouse 98,400 177 131,200 99 164,000 196,800 Total cost of Injury (RM) Logistic 72,000 35,000 The sharp increase in the costs of injury in year 2019 has forced Produa to spend RM25,450 and RM32,800 for Logistic and Parts Warehouse respectively on the loss control expenditures in 2020 and the number of injured workers in that year was recorded at 290 people for both departments. In his analysis, Amar has estimate that if there were no loss control expenditures, the number of injured workers would increase to 301 and 303 for Logistic and Parts Warehouse respectively. 120,000 The additional spending on loss control expenditures will result in a lower number of injured workers as indicated in the following table: Loss control expenditures (RM) 37,000 116,000 109,900 234 194 Parts Warehouse 166 67,500 109 28,980 111 119,550 29,690 Number of injured workers Logistic 121,000 100,890 Parts Warehouse 222 188 99 156 105 Based on the information above: a. Calculate the average injury severity for each department. b. Based on 3(a), determine and indicate the amount that Produa should spend on safety measures for each department.

Answer rating: 100% (QA)

ANSWER To calculate the average injury severity for each department we need to divide the total cost of injury by the number of injured workers Lets calculate the average injury severity for each depa... View the full answer