Risk Management In Production Research Articles

Risk Management in Production using Quality Risk Approach and FMEA

Abstract: The production process of 600ml AQUA at PT Tirta Investama (AQUA) Pandaan faces significant risks, including non-compliance with standards in bottle density, incorrect packaging labels, unreadable bottle codes, box failures, and barcode rework. These issues pose challenges in maintaining product quality and operational efficiency. Specific Background: With 247 bottles failing density standards and 18 packaging errors occurring daily, effective risk management is crucial. Knowledge Gap: Previous studies have not integrated Quality Risk Management (QRM) and Failure Mode Effect and Criticality Analysis (FMECA) to address production risks in the context of AQUA's operations. Aims: This study aims to identify the highest critical risk points and propose mitigation strategies. Results: Utilizing QRM and FMECA, 42 risks were identified, categorized into 20 acceptable, 21 tolerable, and 1 unacceptable risk, specifically related to pallets stuck on conveyors due to substandard quality. Novelty: The application of these integrated methodologies provides a systematic approach to identifying and mitigating risks in the production process, highlighting the necessity for in-depth inspections by logistics and machine operators. Implications: The findings underscore the importance of rigorous quality control and proactive risk management in manufacturing to enhance product quality and minimize operational disruptions, thus ensuring customer satisfaction and competitiveness in the market. Highlights: Effective risk management is crucial to ensure product quality and operational efficiency. Integration of QRM and FMECA identifies critical risk points in the production process. Regular inspections and quality control can significantly reduce unacceptable risks. Keywords: Risk Management, Production Process, QRM, FMECA, AQUA

Қызметкерлерді ынталандыру арқылы қауіпсіз еңбек жағдайын жасау

The main idea of the article is the creation of safe working conditions at the enterprise with the help of labor motivation. In the modern system of occupational risk management in production, the importance of encouraging the safe behavior of an employee is increasing. The article studies the problems of labor motivation among employees working in hazardous production facilities. The reasons for non-compliance with the basics of safety regulations are considered. The result of this article is the development of recommendations for improving safe working conditions at especially hazardous production facilities.

Selected issues of risk management in livestock production

This article presents the findings of a review study conducted using the snowba l l ing te chnique. Its primary goal is in-depth analysis of six important, in the author’s subjective opinion, issues concerning risk management in livestock production. The starting point for consideration is the observation that livestock farmers are confronted with various risks that can ultimately (when they materialise) impair their economic and financial situation. However, the most serious threat lies in animal diseases and epidemics, which can also adversely affect the states’ budgetary situation, as well as the supply of animal products and their quality and prices. In this context, both farmers and public authorities should have appropriate economic models in place to control animal health and diseases, an overview of which are provided in this article. However, for the models to be used effectively, all stakeholders should, at minimum, have general knowledge of the sources of risks, their perception and the attitudes of agricultural producers themselves towards them, so the article analyses these categories as well. We also present the formal aspect of production and price risk modelling to address, among others, the reasons for the low uptake of traditional insurance in livestock production. Following this, the practical and political recommendation that every country should have a holistic risk management system for livestock rearing and breeding, which is also the main conclusion of the analysis, is reliably documented. Of course, such system should be continuously improved, and it is also highly desirable that it is gradually supported by complex models of system dynamics. Key words: economic models for livestock health and disease control, risk in livestock production, insurance in livestock production, risk management in livestock production

Agricultural Insurance, Risk Management and Sustainable Development

Risk management and sustainability in agro-industrial production play an important role [...]

How crop insurance influences agrochemical input use: Evidence from cotton farmers in China

AbstractCrop insurance is critical in risk management in global agricultural production (e.g. by helping stabilise farmers' incomes in the long term and reducing risk‐bearing costs). In this paper, using field survey data on cotton farmers in Xinjiang, China, we examine the influence of crop insurance on farmers' behaviours regarding agrochemical inputs and aim to investigate the synergy between crop insurance and reductions in fertiliser and pesticide usage. We find evidence that crop insurance significantly negatively affects farmers' use of fertilisers and pesticides, as well as significantly positively affects their adoption of green agricultural technologies (GAT) that can replace or complement traditional fertilisers and pesticides. Moreover, our results reveal that compared with small‐scale farmers, crop insurance has a stronger effect on large‐scale farmers' use of agrochemicals. Finally, when the insured amount is higher or the relative deductible is lower, farmers are more likely to reduce fertiliser and pesticide usage and adopt GAT. Overall, this paper scientifically identifies crop insurance can improve farmers' agrochemical input behaviour, by reducing farmers' use of traditional agrochemical inputs and increasing their adoption of GAT, which is of great significance for ensuring the safety of the agricultural ecological environment.

ПРОИЗВОДСТВЕННЫЕ РИСКИ В СИСТЕМЕ УПРАВЛЕНИЯ ПЕРСОНАЛОМ: ЗАПАДНЫЙ ОПЫТ

The growing role of organizations in promoting risk management in production indicates their desire to improve the working conditions of personnel and control all risks. Personnel costs represent investments, not costs, that facilitate management in the direction of preventing risks associated with the business. This includes the definition of responsibilities and organizational structure, planning activities, responsibilities, practices, procedures and resources for the development, implementation, implementation, revision and maintenance of policies to prevent industrial risks.
 Improving the working conditions of personnel and environmental protection should be considered as important practical goals that can be achieved through measures such as risk factors control; adaptation of equipment and labor tools appropriate to human capabilities; changes in the organization, maintenance and control of labor; environmental monitoring and education. Risk assessment should be a dynamic process. For this, each enterprise, in accordance with the legislation, should develop a system for preventing industrial risks, the purpose of which is to promote the safety and health of employees by applying appropriate measures and procedures necessary for the continuous identification of hazards, risk assessment and implementation of necessary control measures.

System for recognising and monitoring the technical condition of construction machines

Assessing and predicting machine reliability and failure risks is an essential requirement of international standards for machine safety. The existing methods for determining reliability indicators and risk assessment are based on statistical information about failures and faults that occur during machine operation. Collecting, accumulation and processing of statistical data about failures of machines by traditional methods does not provide the necessary efficiency and reliability of the received information. In this connection forecasting of reliability, estimation, and risk management in production and operation of machines with necessary reliability is not a simple task. Modern diagnostic systems offer unlimited possibilities for the timely acquisition and transmission of information concerning the technical condition of machines, which can be used for the solution of problems. Depending on the structure and location of the transmission, storage and processing of the information, a distinction is made between stationary or remote diagnostics systems. With the modern development of communication and data transmission, remote systems are improved versions of stationary diagnostic systems. In the article the questions of formation of a recognition system and monitoring of a technical condition of building machines by means of the diagnostic information are considered. The main purpose of the development and implementation of the system is to ensure the reliability and safety of operation of construction machines. In order to solve this problem, it is necessary to recognize and promptly prevent the occurrence of failure, which requires the allocation of a special class of intermediate states, called pre-emergency. The results of the implementation of the recognition and monitoring system of construction machines with the help of diagnostic information are presented.

Food allergens: threshold levels and methodologies for risk management

Food allergies and allergen management are important problems of the public health and food industry. The idea of determining allergen concentrations in food ingredients and food products that are capable of causing severe allergic reactions is of great interest for regulatory bodies as well as consumer associations and the industry all over the world. In this connection, scientists proposed different approaches to determining the basis for assessment of severity of risks of food allergens for health of patients suffering from food allergy similar to methods of risk assessment for other hazards associated with food products (for example, chemical, microbiological). To assess risk of allergens, three different approaches were proposed: i) traditional risk assessment using the no observed adverse effect level (NOAEL)) and uncertainty factors; (ii) approach based on the benchmark dose (BMD)) and margin of exposure (MoE)); and (iii) probability models. These approaches can be used in risk management in food production and in the development of warning marking about the presence of allergens. The reliability of risk assessment will depend on a type, quality and quantity of data used for determining both population threshold levels (or threshold distributions) and an impact of an allergenic product/ingredient on a particular individual.

Assessment of profitability and risk management in vegetable production in Ogun State, Nigeria

The study examined the performance and risk management of vegetable production in Ogun State, Nigeria. A multistage sampling procedure was used to select 120 respondents for the study. Data were collected through a well-structured questionnaire and personal interview schedule. Descriptive statistics and inferential statistics such as Ordinary Least Square (OLS) were used for the analysis of this study. The results found out that lack of discriminating pricing system, conflict in policy making, and high cost of inputs affect the market prices and as well serve as the main production risks that were observed by the farmers in the area. The average cost incurred for the production was about ₦6,908, while the total revenue accrued was ₦41,751. The gross margin and net farm income realized per production season were ₦36,973 and ₦34,843, respectively. The value (6.0) of return on investment showed that farmers realized times six of their investment. The variables such as household size, farm size, fertilizer application and equipment were the main determinants of vegetable production in the area. Also, the main challenges faced by the farmers were the infestation of pests and diseases, inadequate funds and climate change consequences. Therefore, it is recommended that the vegetable farmers should be encouraged through technical training on innovative approach to price determination and forming of functioning market structure in the area.

To the issue of risk management in coal production

In the last quarter of the twentieth century, a new technical term appeared in world practice - risk, with its various manifestations: technical and industrial, emergency, aerological, environmental, individual, collective, complex, etc. New forms of safety assessment preceded the public's understanding of the need to improve approaches to its assessment in such a way, which led to great differences in the interpretation of risk-oriented technology for safety management of dangerous production objects (DPO). In the article, the peculiarities of coal production in modern Ukraine are considered in terms of labor protection with its drawbacks, and a conclusion is made that the way out for the coal industry from the situation is to reduce risks of various types, which increases the safety of coal workers. It is noted that the terms «risk» and «danger» are not synonyms. Safety does not mean absence of unacceptable risk. A term «risk management» requires additional discussion and elucidations. Based on the terminological foundations of management theory, management is a process which includes development of alternative control influences, making of decisions by choosing the most effective ones and the implementation of control influences to achieve the desired results of the controlled object. The Risk, as (a) measure of danger of an object, is not an object, and therefore cannot be an object of control. Risk cannot function, and it has no results of functioning. Therefore, it is impossible to manage risk as such. The term "risk management" is a market phrase it is a mistake to consider risk in the form of an independent entity (because risk is only a rate of danger). It is necessary to manage work the safety of the site as a whole, and not its features and parameters, one of which is the risk. Unfortunately, in practice, we have to observe how "risk is managed" by unscrupulous authors of industrial safety declarations, as well as by hasty interpreters in their one-sided and biased reports in some media. The risk of a man working in DPO needs further and more thorough researches.

Improving the Risk Management System in Oil Production

The article describes an original approach to assessing the risks in investment projects of oil-and-gas companies and proposes an improved methodology for risk management in oil production, which accounts for the special nature of investment projects of oil producers. For each field development program, it is proposed to produce a risk evaluation map that would allow for the most unbiased assessment of risks to be faced by the company to let it focus the efforts on managing those risks typical for each project phase. The companies will be able to quantify the risks of the oil-and-gas field development project by the life cycle phases of an investment project.

Risks of dairy farming in Ukraine and ways of their minimization and neutralization

Aim. To identify the main types of risks, remarkable for agricultural dairy production, to evaluate the consequences of their increase and to substantiate a comprehensive system of managing them on the level of enterprise which would promote their minimization and neutralization. Methods. Common methods and techniques were applied in the study: a combination of scientifi c techniques of abstract-logical method of elaborating theoretical provisions, deduction method while isolating specifi c risks in dairy farming from the total amount, empirical methods of investigating the activity of dairy enterprises and computer generated simulation while substantiating practical instruments of risk management in agricultural dairy production. The correlation-regression analysis was used for statistical processing of the data and study results. Results. During the investigation the following kinds of risks in dairy production were isolated: natural, ecological, technological, market-related risks. The natural risk is related to the environmental impact, fi rst and foremost, to the change in temperature regime of the environment of keeping cows, ecological component of manure utilization. The technological risk is characterized by violating the conditions of keeping cows at farms, which is manifested via loss and disposal of cows from the core herd. It has been found that currently the distribution of diseases, i.e. epizootic situation in the country, presents increased risk for farms. One of the ways to neutralize and minimize the manifestation of technological risks is improving biosafety of stock breeding complexes and developing the insurance of livestock. In addition to risks of diseases (infectious, invasion, non-contagious) and other standard risks (fi re, natural disasters, etc.), it is reasonable to insure against the following kinds of risks: interrupted production (caused by death or loss of insured animals), after which current expenses for renewal of production or forfeited profi t would be reimbursed automatically or after submission of confi rmation documents; transportation of animals, including sea, air, and railway travel; expenses to remove the remains of animals after the insured event which caused their death; reimbursing the expenses for elimination of consequences, caused by infectious diseases, which made it impossible to renew the production without prior applica- tion of disinfectants. While evaluating market-related risks, special attention should be given to the relations of producers and processors of milk. Market risks are closely related to technological risks, as milk quality has a decisive impact on the formation of procurement prices. Conclusions. The systematization of risks in dairy farming should be performed in accordance to the total system of their manifestation and to specialized identifi cation which characterizes specifi cities of this sphere. The probability of most risks, occurring in dairy production, is considerably dependent on the effi ciency of managers of agricultural enterprises and partially on legislative and executive branches of power (in the part of legisla- tive provisions). Currently the mitigation of environmental risks is possible only on condition of searching for internal reserves of ensuring the stability of dairy farming, which envisages creating conditions for production of high quality milk, minimization of expenses for its production and sale, compliance with agreements with contractors.

Prawna organizacja rynku rolnego w aspekcie zarządzania ryzykiem w produkcji rolnej

The article discusses the issues connected with the organization and functioning of the selected agricultural markets with regard to the risk management in the agricultural production. It concerns those markets where the EU’ legislator foresees the implementation of some legal instruments. The author attempt to answer the question whether the current legal organization of those markets allows their development. In particular it aims to answer the question how the legislation support the farmers in selecting some countermeasures which protect them against the environmental risk. The reflection ends with the enunciation of the some de lege ferenda conclusions.

Prediction of kharif rice yield at Kharagpur using disaggregated extended range rainfall forecasts

The Extended Range Forecasts System (ERFS) has been generating monthly and seasonal forecasts on real-time basis throughout the year over India since 2009. India is one of the major rice producer and consumer in South Asia; more than 50% of the Indian population depends on rice as staple food. Rice is mainly grown in kharif season, which contributed 84% of the total annual rice production of the country. Rice cultivation in India is rainfed, which depends largely on rains, so reliability of the rainfall forecast plays a crucial role for planning the kharif rice crop. In the present study, an attempt has been made to test the reliability of seasonal and sub-seasonal ERFS summer monsoon rainfall forecasts for kharif rice yield predictions at Kharagpur, West Bengal by using CERES-Rice (DSSATv4.5) model. These ERFS forecasts are produced as monthly and seasonal mean values and are converted into daily sequences with stochastic weather generators for use with crop growth models. The daily sequences are generated from ERFS seasonal (June–September) and sub-seasonal (July–September, August–September, and September) summer monsoon (June to September) rainfall forecasts which are considered as input in CERES-rice crop simulation model for the crop yield prediction for hindcast (1985–2008) and real-time mode (2009–2015). The yield simulated using India Meteorological Department (IMD) observed daily rainfall data is considered as baseline yield for evaluating the performance of predicted yields using the ERFS forecasts. The findings revealed that the stochastic disaggregation can be used to disaggregate the monthly/seasonal ERFS forecasts into daily sequences. The year to year variability in rice yield at Kharagpur is efficiently predicted by using the ERFS forecast products in hindcast as well as real time, and significant enhancement in the prediction skill is noticed with advancement in the season due to incorporation of observed weather data which reduces uncertainty of yield prediction. The findings also recommend that the normal and above normal yields are predicted well in advance using the ERFS forecasts. The outcomes of this study are useful to farmers for taking appropriate decisions well in advance for climate risk management in rice production during different stages of the crop growing season at Kharagpur.

Analisis Risiko Produksi Sayuran Daun Indigenous di Kecamatan Kadudampit, Kabupaten Sukabumi, Jawa Barat

This study aims to identify 1) the source of production risk in some indigenous leaf vegetables, especially basil 2) the level of risks encountered, and 3) formulate strategies tocontrol the risk of production of indigenous leaf vegetable. The research was conducted in Kecamatan Kadudampit Sukabumi, the method of sampling used simple random sampling.The number of farmers were 42 farmers. In specialization activities, the method to process risk data used are analysis of variance, standard deviation and coefficient of variation. Theresults showed that the source of production risk faced by farmers were weather / climate, pest and disease diseases and seed quality. The expected return value of basil commodityRp.1.801.204 with the risk level of losses was 0.382 or 38%. Strategies that could be done to reduced the risk was the diversification activity with . timing and appropriate commodities of diversification activities, plan intercropping cropping pattern between two combination basil with lettuce were 60% and 40% and basil with gourd were 60% and 40%, risk managementin production through preventive strategies with improvement of physical facilities and mitigation strategies with pest and disease controls encountered.Keywords: basil, variance analysis, standard deviation, coefficient of variation, risk management.

Risk management in crop production based on the regional index

Regional index insurance is one of the newer instruments for reducing losses in crop production. The regional index indicates the average yield or average production value in a region, representing the basis for the premium calculation and insurance benefits. The main advantage of this insurance model is that it does not require the damage assessment, which is one of major problems in the relationship between the insured and insurer. In the case of corn, wheat and sunflower production as the most important crops in the region of Ada municipality, the authors describe the methodology of application of the analysed insurance system. Implementation of this contemporary form of insurance in Serbia would reduce the negative financial consequences in agricultural production. The abovementioned model of insurance can be seen as a significant alternative to conventional insurance, which can increase insured area and number of insured, and trust and confidence in insurance companies would also be restored.

Climate variability and risk management in nursery production©

Climate variability and risk management in nursery production^©

Awareness and Perceptions of Food Safety Risks and Risk Management in Poultry Production and Slaughter: A Qualitative Study of Direct-Market Poultry Producers in Maryland.

The objective of this study was to document and understand the perceptions and opinions of small-scale poultry producers who market directly to consumers about microbial food safety risks in the poultry supply chain. Between January and November 2014, we conducted semi-structured, in-depth interviews with a convenience sample of 16 owner-operators of Maryland direct-market commercial poultry farms. Three overarching thematic categories emerged from these interviews that describe: 1) characteristics of Maryland direct-market poultry production and processing; 2) microbial food safety risk awareness and risk management in small-scale poultry production, slaughter and processing; and 3) motivations for prioritizing food safety in the statewide direct-market poultry supply chain. Key informants provided valuable insights on many topics relevant to evaluating microbial food safety in the Maryland direct-market poultry supply chain, including: direct-market poultry production and processing practices and models, perspectives on issues related to food safety risk management, perspectives on direct-market agriculture economics and marketing strategies, and ideas for how to enhance food safety at the direct-market level of the Maryland poultry supply chain. The findings have policy implications and provide insights into food safety in small-scale commercial poultry production, processing, distribution and retail. In addition, the findings will inform future food safety research on the small-scale US poultry supply chain.

Hail risk management in fruit production: anti-hail net versus hail insurance in Germany

Hail risk management in fruit production: anti-hail net versus hail insurance in Germany

Risk management in agriculture under climate changes

Agricultural production is exposed to the effects of various risks, of which the production risks represent its specificity, given that they stem from the fact that the production is done outdoor and that it encompass management of living beings. Climate changes directly affect the production risks of agricultural production. In the literature, climate change are relatively sufficient researched but there are scarce studies that deal with the theme of risk management in agricultural production and in particular the management of risks under climate changes. With this in mind as the goal of the paper we have determined the need to point out on the importance and forms of agricultural risk management under climate changes. In an effort to achieve the goal, in the paper we first point out to the basic characteristics of agricultural production risk management and then we point to the application of preventive measures, the role of the state as well as the comparative role of insurance. As the impact of climate changes have strongly negative impact on insurance companies that provide insurance for agricultural risks, we consider the issue of whether the conclusion of agricultural insurance contracts should be mandatory or voluntary.