Four States Gasket and Rubber, Inc 4902 W. 29th Street, Greeley CO 80634 Steven Liparoto Denver Regional Sales Manager 720-878-1053
Shut Down Risk Management Posted on November 20, 2012
The highest pressure situation your maintenance department might ever encounter is a planned downtime. A large amount of work is scheduled into a small amount of time but the deadline for resuming production is just around the corner. There can be great gains to be made by increasing reliability or installing new equipment. However, there are risks. New problems can arise, and costs can mount. How do you make shutdowns a safer bet? In project management context, the word risk is simply used as shorthand for â€œdeviation from the project plan.â€? Encountering at least some risk is unavoidable. The impact of that risk depends on how a shutdown has been planned. Uncertainty about the magnitude of repairs needed, overaggressive estimates, lack of experience, and a number of other issues can contribute to delays, cost overruns, and lost productivity. Some of these factors can be eliminated, but most risks can only be managed. Seeing Risk The critical task here is to accurately project the magnitude of the risks involved in a shutdown and respond accordingly. Measuring Risk Not all problems are created equal. Solving some might be fairly easy, others might bankrupt a company. Determining which need your most urgent attention is the comparison of three values: tolerance level, cost, probability.
Tolerance Tolerance is evaluating the capability of your company to respond to risk without unacceptable consequences. Cost The additional cost of risk can be estimated by comparing the worst possible scenario against the planned outlay. If things begin to go wrong, what will it take to get things back under control? Probability Likelihood of an event is most accurately predicted based on prior data. Records from previous shutdowns and experienced employees can help guide this kind of analysis. But since shutdowns tend to be rare, not every kind of risk will have hard data associated with it. The key here will be to make the best possible estimate based on experience. All things considered, the best way to minimize costly overruns and unexpected delays is to strategically plan for the inherent risk that comes with major projects. The content of this blog came from the newstandardinstitue.com.
Four States Gasket and Rubber, Inc Steven Liparoto â€“ Denver Regional Sales Manager firstname.lastname@example.org 720-878-1053