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Locstatt Return on Investment (ROI)


Safety Advisors on a drilling facility report to Rig / Operations Managers. These same managers have important operations daily tasks where they need safety personnel to be involved.

Locstatt Return on Investment (ROI)

At the same time, Safety Advisors have a need to implement the now complex safety management systems as directed and expected by corporate management. Typically this involves a lot of administration tasks which are time consuming and take place in an office environment and not ‘out there on the work site’.

There is therefore a natural gap between the expectations of the Rig / Operations Managers and the tasks and time needed to implement safety administration. It is now well understood in 2018 that on-site safety advisors currently have more tasks than time.

These tasks that are currently slipping off the table have a cost impact.


To get a better understanding of the issues and impact an experienced operational and safety team sat down and formally agreed on four task categories:

  1. The total number of tasks needed to ‘Do it Right’ when implementing 11 elements of operational and safety requirements as shown below. They identified that to do their job effectively on-site Safety Advisors need to perform approximately 86 tasks or key job indictors (KJI’s).

2. Then having identified the 86 tasks required, they agreed on those tasks that were currently being carried out efficiently.

3. After that they identified tasks that were currently being carried out inefficiently. There were many examples of this such as having safety meetings but not documenting discussion topics or having errors on muster lists during drills.

4. Finally the team having experience in using Locstatt was able to identify where in the 86 tasks, Locstatt could assist.

It was agreed that typically 9 of these tasks were carried out efficiently and 56 inefficiently due to time restrictions or lack of personnel resources. 21 tasks were not carried out at all.

Out of the 86 tasks, Locstatt was able to assist in approximately 82.


The next step was to establish approximate time allocations for the 4 categories between minutes per day / hours per month. The results are shown below.

Out of the 86 tasks Locstatt was able to assist in 82 which resulted in a time saving of approximately 450 hours per month or over $100K per year.

Additional ROI Considerations / Opportunities

The team also identified that in addition to personnel savings, Locstatt assists a company due to the fact that:

  1. It provides a pathway for contractors to follow when managing their health and safety programs
  2. It provides information at the work site or coal face.
  3. It allows the management of contractors to monitor performance of their personnel at the work site
  4. It provides a two way flow of information between managers and employees
  5. Real time data enables managers to make informed decisions on how to manage health and safety
  6. Demonstrating SMS compliance to clients is simple and transparent which leads to a competitive advantage
  7. A well-managed SMS improves both safety and quality and allows a company to outperform its competitors

Summary Return on Investment (ROI)

Return On Investment ROI602%
Total Annual 5 year Gain$649,847
Payback Period< Year 1

Results =

5 year realized gain (personnel only) over $600K