Risk Assessment In Production Organization

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Risk Assessment In Production Organization

  1. 1. Risk Assessment In Production Organization Munif Ahmad
  2. 2. Purpose of today’s meeting: 1- To revisit Risk Assessment Process 2- Identify Tools used 3- To explain the structured approach to Risk Assessment.
  3. 3. Risk : The possibility of meeting danger or suffering harm or loss. Risk Management: The identification, analysis and mitigation of risks that could impact the achievement of objectives over time. Two important definitions :
  4. 4. Components of Risk Assessment Process : Risk Management is a series of coordinated activities to direct and control an organization with regard to risk. In general an effective risk management process has the following primary components: <ul><li>Risk Identification </li></ul><ul><li>Risk Assessment </li></ul><ul><li>Risk Accountability </li></ul><ul><li>Risk Mitigation Plan Development </li></ul><ul><li>Risk Mitigation Implementation </li></ul><ul><li>Continuous review and monitoring </li></ul><ul><li>Independent Audit </li></ul>
  5. 5. <ul><li>Sources of Risk Identification </li></ul><ul><li>Risk Log & Risk Register. </li></ul><ul><li>Personal observations. </li></ul><ul><li>Audit Reports. </li></ul><ul><li>Check out other Sites / Functions. </li></ul><ul><li>Group Web Site. </li></ul><ul><li>News. </li></ul>
  6. 6. External Risk: What are they ? 1- Some things can go wrong which are outside the control of GMS. 2- If the likely hood cannot be reduced than action should be taken to reduce the consequences. 3- These risks need to be included in the risk register and addressed in the Business Continuity Plan (BCP). Internal Risk: What are they ? <ul><li>Things can go wrong which impact : </li></ul><ul><li>Security of supply </li></ul><ul><li>Product Quality / Patient’s Safety </li></ul><ul><li>Costs </li></ul><ul><li>People (Both Employees, Neighbors, and Partners) </li></ul><ul><li>Reputation </li></ul>
  7. 7. Brain Storming (Already done by us) GEMBA Fish Bone Risk Identification Tools :
  8. 8. <ul><li>Possible impacts </li></ul><ul><li>Inadequate skills or manpower impacting short and longer term security of supply/ quality. </li></ul><ul><li>Disaffected people impacting quality and safety </li></ul><ul><li>Misuse of human potential ( 8th waste) impacting costs </li></ul><ul><li>and reputation </li></ul>8.3 Under valued, Disengaged People 8.1 Wrong people / roles Ineffective Training Future skills Mis-identified Excessive headcount Lack of integrity / Unethical behaviour Safety Accidents:- at work , travelling Loss via Retirement, Redundancy, or to other employers Critical knowledge Not defined,captured 8.2 Not developing people effectively. Not reaching full potential Ineffective PDP process Key talent not developed Lack of disabled facilities Lack of diversity Grievances Poor IR Unclear, poor communication Language barriers Poor resource planning Excessive overtime Ineffective Succession planning Skill shortage Poor external Talent pipeline High turnover Reliance on temporaries Long term vacancies Organisational Structure impedes delivery Unclear role specs / responsibilities Discrimination Bullying Poor synchronisation across functions Unclear targets Strikes Uncompetitive Pay/reward HR Policies Poor working environment Alcohol / drug abuse Low reward recognition Misaligned objectives Decisions take Too long 8.4 Health and Safety Stress / Poor work life balance High Absence Sensitisation Absence process Protective clothing Poor Ergonomics and Job design Equipment not used/ Poor Poor safety Audit process Poor 5S/ housekeeping High Sound levels Poor Lighting Air quality Infectious disease HIV Flu Legionnaires Sabotage Theft Don’t work to standard No back up on key skills E.g. Fish Bone >>>>>> People Issues & Causes
  9. 9. Assess & Priorities Risks Risk Index Value Risk Index Value = Severity of Consequence x Likely Hood of Occurrence Three Classification of Risk Levels as per Index Value : 10 to 25 High Risk 5 to < 10 Medium Risk < 5 Low Risk
  10. 10. Assess & Priorities Risks Risk Matrix High Risk if Risk Index Value > 9 Catastrophic 5 Major 4 Moderate 3 Minor 2 Insignificant 1 Likelihood 25 20 15 10 5 Almost Certainly 5 (Nearly every time) 20 16 12 8 4 Likely 4 (1 in 1 Yr) 15 12 9 6 3 Possible 3 (1 in 5 Yrs) 10 8 6 4 2 Unlikely 2 (2 in 10 Yrs) 5 4 3 2 1 Rare 1 (1 in 10 Yrs) Consequences
  11. 11. Definitions Insignificant : First aid, no customer or regulatory impact, immediately reversible environmental damage, lose/rework part batch, < 2% COG Minor : Medical treatment, no impact to patient, regulatory notification, limited annoyance to locals, lose batch, stock out 1 sku. > 2% COG Moderate : Lost time, recall 1 product/market, environmental damage <1 year, lose production> 1shift, Stock out >1 sku, interrupt supply > 1 day, > 5% COG Major : Permanent damage, recalls, warning letter, environmental damage > 1 y, lose production, interrupt supply > 1 week, major stock out, > 15% COG Catastrophic : Death, global recall, long term environmental damage, lose production > 1 month, 35% COG
  12. 12. Thank You

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