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 How Simmons Company Turned Safety into a Profit Center
Overview
 The conventional wisdom is that safety training and fulfilling OSHA regulations are expenses that don't translate positively to the bottom line. Manufacturing companies traditionally undertake safety measures in order to meet regulatory requirements, minimize workers' compensation expenses, and avoid expensive litigation. From a financial perspective, safety initiatives are basically a cost of doing business - not endeavors that yield increased productivity, dramatic cost reductions and improved earnings. Yet Simmons Company, one of the world's largest mattress manufacturers, recently disproved this notion in stunning fashion.
 "We haven't just made safety a self-funding program," explained Dr. Jonathan Dawe, Simmons Company's director of human resources for safety, wellness and workers' compensation. "Safety contributes dramatically to our success."
Indeed, Simmons not only reduced accidents and workers' compensation costs by more the 75%, but has also increased productivity and earnings. And as the recent recession and anemic recovery posed serious hardships for other U.S. manufacturers, Simmons has prospered and grown. Dawe describes Simmons as a Cinderella story - and that's no exaggeration.
Background
Just as was the case with many old line manufacturing companies, Simmons once paid employees on a piece-work system. The more you produce, the more you make. The rationale behind this incentive is simple: increased productivity. Unfortunately, one of the casualties of this approach to compensation can be safety. As workers rush to produce they can often cut corners and even alter machines to work faster. People who aren't paying full attention inevitably have accidents.
 As in almost all types of manufacturing, building mattresses involves a good deal of heavy machinery. Some of which, if not handled properly, can be very dangerous. Large coiling machines convert wire into tightly coiled mattress springs; workers wield rapid-fire nail guns to assemble the frames and staple guns to attach the upholstery. Huge quilting machines assemble the panels while rows of workers toil at industrial sewing machines. Large machines, sharp objects, noise, and dust all add up to a formula for danger.
Dr. Dawe came to Simmons in 1999 after a stint at BellSouth as safety and training supervisor. He recognized his challenge immediately: more than simply addressing OSHA compliance and workplace hazards, the company needed to define a vision and set of goals for safety. Starting by creating a plant safety manual, something that Simmons lacked, Dr. Dawe then set out to gain the commitment of company management, initiating training sessions for supervisors, plant operations managers, and corporate executives.
 Shortly after Dr. Dawe's arrival at Simmons, a new senior management team led by CEO Charlie Eitel took charge of the company. When Dr. Dawe approached the management team to make the case for safety, he found he didn't need to evangelize. "Charlie Eitel, company president Bob Hellyer, our CFO William Creekmuir, the executive vice president of HR Rhonda Rousch and the entire management team immediately embraced what we were trying to accomplish," explained Dr. Dawe. Management saw the challenges clearly, budgeted for safety and helped lead the change.
 Working closely with the company's executive leadership, Dr. Dawe put together a National Safety Audit Process at all Simmons 18 plants consisting of a comprehensive, week-long, unannounced mock OSHA inspection. A team of auditors looked at each factory's record keeping, shop floor, and training materials. They also interviewed associates on the floor.
The team discovered that many associates would not wear protective equipment such as safety glasses, hand protection, or steel-toed shoes. Many on the floor wore loose fitting clothing that could get caught in machinery.
 The results of this audit revealed that the company needed to immediately address hazards and implement safety training and safe procedures. Simmons responded with a company-wide effort. The company established a comprehensive safety program consisting of fourteen elements that defined safety objectives and key tactics. The leadership teams at each of Simmons' plants developed site-specific safety action plans. With management already on board, it was important to recruit the line workers in this effort. Simmons organized laborer-dominated safety committees responsible for safety inspections, training, accident investigations, and hazard abatement. As all of the pieces of the effort came together, Simmons started to train.
Continued...
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