Economic Methods to Sell Ergonomic Projects

Introduction    Every ergonomist has, does, and will struggle with the economic justification of ergonomics projects.  Now, during times of financial difficulty for many organizations and countries, this struggle seems even more difficult.  There are, however, methods of justifying investing in ergonomics projects.  These methods range from the simple benefits/costs method to more complex (but more accurate) time value of money. Methods.    

Objectives    The specific aims of this presentation are to:  • Describe benefit-costs economic models  • Illustrate the benefit-costs models using case studies  • Demonstrate the application of economic models using case studies  • Illustrate the efficacy of using  economic models to encourage the investment in ergonomic projects  

Methods    First, different economic models related to benefits-costs analysis will be presented.  Following, several case studies will be used to illustrate each of the benefits-costs economic models.  All models presented will be used each of the case studies presented to illustrate the universality of using economic modeling to ‘sell’ ergonomics projects.  The application of economic models to the case studies    

Results    The results of this presentation will be:  • A more informed practitioner population regarding benefits-costs analysis and their application.  • A more empowered practitioner population able to use benefits-costs analyses to ‘sell’ ergonomics projects to their administration  • A more empowered practitioner population able to demonstrate the efficacy of investing in ergonomics projects that result in long-term corporate well-being.    

Conclusions    Benefits-costs analysis most often involves using only benefits and costs that are immediately associated with a project.  Most-often long-term benefits and costs are not considered nor are a company’s profit margins. Practitioners that use economic modeling that is understood by the business community are more likely to have their projects supported by their administration(s) when important economic variables are used to justify (sell) the efficacy of ergonomics projects.