Fuel distribution process risk analysis in East Borneo

Abstract

Fuel distribution is an important aspect of fulfilling the customer’s need. It is risky because it can cause tardiness that can cause fuel scarcity. In the process of distribution, many risks are occurring. House of Risk is a method used for mitigating the risk. It identifies seven risk events and nine risk agents. Matrix occurrence and severity are used for eliminating the minor impact risk. House of Risk 1 is used for determining the Aggregate Risk Potential (ARP). Pareto diagram is applied to prioritize risk that must be mitigated by preventive actions based on ARP. It identifies 4 priority risks, namely A8 (Car trouble), A4 (Human Error), A3 (Error deposit via bank and underpayment), and A6 (traffic accident) which should be mitigated. House of Risk 2 makes for mapping between the preventive action and risk agent. It gets the Effectiveness to Difficulty Ratio (ETD) for mitigating action. Conducting safety talk routine once every three days with ETD 2088 is the primary preventive actions.

Risk and Supply Chain Mitigation Analysis Using House of Risk Method and Analytical Network Process (A Case Study on Palm Oil Company)

“…HOR method is chosen to select a series of proactive actions that are considered cost-effective in managing supply chain risk in newspaper companies. Laksmita and Widodo (2018) use House of Risk method to mitigate risks and successfully identify four priority risks, namely A8 (car problems), A4 (human error), A3 (error deposits through banks and underpayments), and A6 (past accidents cross) that must be reduced.…”