Abstract
Risk analysis in the palm oil suppy chain is essential to achieve the optimum efficiency and effectiveness of the supply chain flow. One of the most common types of risk found in the palm oil supply chain is operational risk. The objectives of the research were to model palm oil supply chain risk identification and to model its risk mitigation. Measurement of operational risk required in an effort to improve the performance of the palm oil supply chain, the method used in the assessment of this type of risk is Failure Mode and Effect Analysis-House of Risk (FMEA-HOR) through two stages of modelling, the analysis and evaluation stages used to know the risk event and risk agent known as HOR 1. Meanwhile the stages of risk mitigation measures applied to handle the potential risk types known as HOR 2. Based on the results of operational risk identification in the palm oil supply chain, 31 types of risk events and 20 risk agents were obtained. Furthermore, risk mitigation measures were based on the potential risk agents generated, converged into 8 risk proactive actions that are prioritized based on costs and resources effectiveness. The results of priorities proactive actions show that 1) maintenance’s labor training, 2) committing routine preventive and predictive maintenance, and 3) preparing alternate stand by equipment and machine units were necessary mitigation actions to be done.
Published Version
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