Machine Safety: Managing operational risk

Risk management has historically been a core element of business management to protect vital enterprise resources. Key executives now take a much broader perspective called “Managing Operational Risk,” with benefits for machine safety. See six data points or ways to measure.


Strategies like “Best In Class” and “Overall Equipment Effectiveness” (OEE) bring together business macro’s like Social Responsibilities and Business Strategy KPI’s with a key common focus called – Machine Safety. Courtesy: JB Titus & Associates

Risk Management has historically been a core element of business management as viewed from the insurance perspective and the assurance of protecting the vital resources of an enterprise. No longer! Key executives now see a much broader perspective called “Managing Operational Risk,” which includes several more key aspects critically important to a healthy business.


Six data points/ways to measure: How important does your organization consider some of the following items relating to their database of “know how” for feeling the pulse of their business operations?

  1. Production control automation data
  2. Risk assessment data
  3. Change management data
  4. Dashboard tools
  5. Non-compliance data
  6. Unplanned downtime data


As you look at these items you readily understand that you don’t see any data about how many stocking locations are too high, which reduces the effectiveness of installed overhead sprinklers guarding against fire hazards. Obviously risk management is no longer the exclusive domain of the insurance perspective. I believe executives are now expanding the practice of managing operational risk because they understand the potential negative impact and because software tools now exist that enable efficient gathering and reporting of critical data.


In fact, in my opinion, one reason companies are transitioning from wired electro-mechanical safety devices to electronic/software based safety devices is to enable the efficient gathering of critical safety-related data. This further enables manufacturers to see the bigger picture of their operations and to develop solutions for eliminating un-planned downtime. We actually see some companies feeding this information to plant level employees via their mobile devices or work stations to support relevant timely continuous improvement action.


Can this expanded approach to Managing Operational Risks actually have resulted from Enron?


J.B. Titus, CFSE

Your comments or suggestion are always welcome so please let us know your thoughts. Submit your ideas, experiences, and challenges on this subject in the comments section below.


Related articles:

Aberdeen Group - “Operational Risk Management”, November 2012

The term Operational Risk Management (ORM) is defined as …..Wikipedia

Machine Safety: Where do effective safety cultures roost?


Contact: for “Solutions for Machine Safety”.

No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me