Risk In Thermo Plastic Plant Essay

490 Words2 Pages
Operation Vs Thermoplastics Risk analysis – Thermo plastic business is all about volume production. There is a big responsibility to keep the production going continuously. Power failure is a major threat for the process. There is about 15 kg wastage after every interruption due to the re-setup of the process. Therefore auto switching generators are installed to avoid such situations. Fire threat is a huge risk to the business as all these raw materials are inflammable. Hence the smoking is strictly prohibited in the premises and the fire fighting team and equipments are always ready for action. Warehouses are at fire risk and company keeps on eye to prevent sabotages and other damages. There is a big role to play by HR regarding this factor. Machine down time is a controllable risk factor to influence to the production process. Engineering maintenance division pay 24 hours attention and they do preventive maintenance before the things happen. Relevant spare parts are ready at there finger tips to avoid longer machine down time. This is a one of mission to the organization as this play a crucial role. Raw material should available to maintain a smooth run in the supply chain. Even though the JIT is the best practice in inventory controls, there are lots of factors oppose to the theory in Sri Lanka. As the company has 5-day delivery policy, raw material should have in hand before accepted the order. There are lots of other factors come into play to keep sufficient stocks in the stores. Generally the Re Order Level is 2 months and which is sufficient for 6 months buffer. The governing factors to keep such a big inventory are a) demand fluctuations b) raw material price fluctuations c) shipping and clearance delays d) holidays e) stores capacity f) try out new suppliers etc... There are specialists for the particular machine fine tuning in this business. This

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