Measuring and managing operational risk in industrial processes

Abstract

The risk of not achieving process outcomes in key processes should be identified and reduced to achieve better results. The identification of risks involves defining the possible events that compromises the achievement of process outcomes and also the consequences of the occurrence of these events. This paper proposes a methodology to minimize operational/technical risk across different processes or departments, minimizing the possibility of spending excessive resources in a given process while other processes pose bigger risks to the organisation or considered system. The probability of occurrence of the events that hinder the achievement of outcomes can be influenced by some technical, administrative or management actions. The methodology is tested through a case study of a CNC milling section on a furniture manufacturing process. The reliability of a key item, electrospindles, is determined and the influence of maintenance activities on such reliability and therefore on risk is analysed