Muhayy Ud Din Zafar

AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 ENG8103 – Management of Technological Risks Assignment 2 – Question 2 RISK MANAGEMENT PROPOSAL FOR LEOBERSDORFER MASCHINENFABRIK – LMF Under Kind Guidance of: Dr. David Thorpe Submitted By: Farooque Ahmed (U-) No. of Words: 4299 UNIVERSITY OF SOUTHERN QUEENSLAND AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 2 Table of Contents List of Figures ................................................................................................................................. 4 List of Tables .................................................................................................................................. 4 QUESTION – 2............................................................................................................................... 5 1. 2. ORGANIZATIONAL PROFILE – LMF AIR COMPRESSOR SYSTEMS ......................... 5 1.1 Organizational Hierarchy....................................................................................... 5 1.2 Existing Scope of LMF’s Risk Management System ............................................ 6 1.3 Existing Context of LMF’s Risk Management System ......................................... 6 1.4 Existing Criteria of LMF’s Risk Management System ......................................... 6 BUSINESS CASE – AN UPDATED RISK MANAGEMENT PROPOSAL ....................... 8 2.1 Feasibility of Risk Management System Review .................................................. 8 2.2 Terms of Reference................................................................................................ 9 2.2.1 Background ............................................................................................................ 9 2.2.2 Design Revision and Updated Risk Identification & Assessment Methodology .. 9 2.3 Updated Risk Management Plan ......................................................................... 10 2.3.1 Updated Risk Management Scope ....................................................................... 10 2.3.2 Updated Risk Management Context .................................................................... 11 2.3.3 Updated Risk Management Criteria .................................................................... 11 2.4 Risk Management Team ...................................................................................... 12 2.5 Context with AS/NZS ISO 31000:2018 Risk Management – Guidelines ........... 13 AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 3 3. IDENTIFICATION OF PROCESS RISKS .......................................................................... 14 4. ANALYSIS OF PROCESS RISKS ...................................................................................... 15 4.1 Risk Probability & Severity Legends .................................................................. 15 4.1.1 Probability of Risks Definition ............................................................................ 15 4.1.2 Severity of Risks Definition ................................................................................ 15 4.1.3 Parameters Evaluated during Risk Analysis ........................................................ 16 4.2 Analysis of Identified Risks ................................................................................ 16 5. EVALUATION OF PROCESS RISKS ................................................................................ 18 6. RISK MANAGEMENT PROPOSAL .................................................................................. 20 7. 6.1 Risk Communication Plan ................................................................................... 20 6.2 Technical Risk Evaluation ................................................................................... 20 6.3 Risk Response Plan ............................................................................................. 21 6.4 Risk Monitoring Plan........................................................................................... 23 REFLECTION ON RISK MANAGEMENT PROPOSAL .................................................. 24 7.1 Gap Analysis ........................................................................................................ 25 APPENDICES .............................................................................................................................. 26 Appendix ‘A’ – Risk Identification Form ................................................................................. 26 Appendix ‘B’ – Risk Analysis Form ........................................................................................ 27 Appendix ‘C’ – Stakeholders Requirements Form ................................................................... 28 Appendix ‘D’ – Risk Registration Request .............................................................................. 29 AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 4 Appendix ‘E’ – Risk Treatment Plan ........................................................................................ 30 Appendix ‘F’ – Risk Response Progress .................................................................................. 31 List of Figures Figure 1 - Organizational Hierarchy at LMF .................................................................................. 5 Figure 2 - Fishbone Analysis of Piston Shaft Failure ..................................................................... 8 Figure 3 - Schematics of On-Hand Reciprocating Compressor...................................................... 9 Figure 4 - Risk Response Categorization...................................................................................... 21 Figure 5 - Revised Angle Type Piston Assembly ......................................................................... 24 List of Tables Table 1 - Updated Risk Evaluation Strategies .............................................................................. 10 Table 2 - Work Breakdown Structure for Risk Management Team ............................................. 13 Table 3 - List of Identified Process Risks ..................................................................................... 14 Table 4 - Risk Events Probability & Severity Scores ................................................................... 15 Table 5 - Analysis of Identified Risks .......................................................................................... 17 Table 6 - Risk Prioritization Matrix and Color Codes .................................................................. 18 Table 7 - Prioritization Index of Identified Risks ......................................................................... 19 Table 8 - Risk Communication Plan ............................................................................................. 20 Table 9 - Additional Technical Requirements for Identified Risks Evaluation............................ 21 Table 10 - Risks' Response, Mitigation & Contingency Plans ..................................................... 22 Table 11 - Risk Monitoring Plan .................................................................................................. 23 AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 5 QUESTION – 2 ORGANIZATIONAL PROFILE – LMF AIR COMPRESSOR SYSTEMS 1. Leobersdorfer Maschinenfabrik - LMF is an Austrian air and gas compressor systems development company, having a sub-system production plant in Australia for manufacturing of reciprocating and rotary air compressors for oilfields and industrial applications. The company has an experience of around 60 years in design and development of medium to very high (up to 700 bars) pressure systems. High pressure systems are inherited with heterogeneous potential risks, giving an extensive exposure to management of multi-dimensional risk profiles. 1.1 Organizational Hierarchy Technical and Administration directorates work in parallel hierarchy to undertake design, development and business responsibilities of air compressor systems. A risk management board overviews respective directorate’s work instructions and develop their risk management plans accordingly. Board of Governers LMF Director Risk Management Board Technical Manager Manager Manager Manager Manager Structure Design Electrical & Instrucment Vibration Analysis Production Engg Dept Quality Control Manager Finance Figure 1 - Organizational Hierarchy at LMF Director Administration Manager Manager Procureme nts Human Resource Manager Business Developm ent AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 1.2 6 Existing Scope of LMF’s Risk Management System LMF has constituted a dedicated Risk Management Board, scope of which, include but not limited to: i. Estimate resources for proactive risks identification and ensure availability of same ii. Acquire annual work plans from all departments, highlight potential risks therein and recommend mitigation strategies iii. Channelize administrative and technical decisions through risk management board iv. Maintain a comprehensive risk register, periodically update the same and monitor progress on mitigated risks while keeping an eye on evolving risks. 1.3 Existing Context of LMF’s Risk Management System Risk management board keeps LMF’s internal and external context in consideration while forwarding periodic recommendations to higher management by: i. Keeping risk procedures concentric around LMF’s core values of safety, quality and innovation ii. Deputing added responsibility of conforming risk management guidelines, to administrative and technical managers Imparting trainings to customers and suppliers to minimize potential risks while interacting outside LMF for sales and procurements, respectively. 1.4 Existing Criteria of LMF’s Risk Management System LMF’s comprehensive risk management protocols have ensured it to keep a coherent and absolute approach to measure the intensity and likelihood of potential risks. This has made company’s risk management procedures more credible and with discrete outcomes. Key steps taken to make this happen are: AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 i. 7 Administrative risks are assessed by multiple qualitative methods while technical risks evaluation is carried out by quantitative risk analysis approach ii. Discrete guidelines have been detailed for qualitative risk assessment methods to ensure correct analysis irrespective of the method used for analysis iii. Risks’ occurrence likelihood has to be supported by evident databases, inside or outside of LMF AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 2. 8 BUSINESS CASE – AN UPDATED RISK MANAGEMENT PROPOSAL At present, LMF’s Risk Management Board is responsible to:  Develop department wise risk management procedures and their implementation  Design a communication protocol for risk identification and registering  Monitor risk mitigation strategies and their outcomes The existing risk management protocols are generic to the processes, though emphasize implementation to the depth; consequently rising a need of detailed review and gap analysis. 2.1 Feasibility of Risk Management System Review Lately, LMF’s periodic industrial service feedback tempted technical team to review its product development cycle and make it more risk concerned. An acute rise in requisitions for aftersales repair and maintenance of Piston Shaft and Oil Filter Choking, was observed by Technical Directorate. A fault tree and fish bone analyses highlighted certain voids in risk identification and mitigation processes. The identified gaps require design and implementation of a more detailed and comprehensive risk management system. Figure 2 - Fishbone Analysis of Piston Shaft Failure AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 2.2 9 Terms of Reference Aim of this report is to undertake the task of identifying major loop holes in our risk management system, which has led us to the following issues in reciprocating compressor system’s main assemblies:  Main piston shaft  Oil filter choking 2.2.1 Background Conventionally, all the stages of LMF’s air compressors are assembled on one main shaft, which is approximately of a length of around 3 ~ 4 meters. The shaft is dipped in lubricating oil at piston cylinder to counter wear and tear effects. The repeated faults in the main shaft and oil filter malfunctioning, however requires risk identification in each design process and a design revision. 1st Stage Piston 2nd Stage Piston 3rd Stage Assembly Assembly Piston Intercooler Intercooler Assembly Intercooler Main Compressor Shaft Figure 3 - Schematics of On-Hand Reciprocating Compressor 2.2.2 Design Revision and Updated Risk Identification & Assessment Methodology To counter the above mentioned issues in compressor assembly, under mentioned changes in air compressor system’s design are being recommended after due analysis: i. An angle type piston shaft design; 1st stage of compressor be assemble on vertical piston assemble while 2nd and 3rd on horizontal. ii. Oil-Free piston assembly design; development of Teflon piston rings instead of steel ones to avoid requirement of lubricants and oil filters. AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 10 Additionally, risk assessment methods have also been discretely outlined considering risk nature; a few of risk assessment methodologies are being defined, along with the type of the same: Sr Identified Risk Evaluation Technique Category Fault history / Fish bone analysis Analytical AHP / WASPAS Methods Semi-Quantitative 1 Root cause identification 2 Success of innovative design change 3 Material design with optimized properties Destructive test report Quantitative 4 Component structural design strength Finite element analysis Quantitative 5 Compressors’ vibration damping efficiency Compressors’ modal analysis Quantitative 6 Pressure relief safety efficiency Test bench calibration results Quantitative 7 Teflon rings life assessments Fatigue load test runs Quantitative 8 Compressors’ operational conformance Simulation test runs Quantitative Table 1 - Updated Risk Evaluation Strategies 2.3 Updated Risk Management Plan Although, technical managers have been assigned dedicated risk identification responsibilities, yet LMF’s current risk management board is mainly constituted of administrative and quality assurance people. This had led to development of more generic and an all-inclusive kind of risk management scope, context and criteria. A representation of shop floor managers is desired at risk management board, along with that, an updated risk scope, context and criteria is being delineated hereunder: 2.3.1 Updated Risk Management Scope In detailed perspective, any unforeseen event to following components would fall under risk management scope: i. Compressor structural safety AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 ii. Vibrations damping safety iii. Pressure relief system safety iv. Compressor parametric conformance v. Machine performance conformance vi. Innovation for industrial solution vii. Product durability viii. Product design security 11 2.3.2 Updated Risk Management Context The updated risk management plan keep organization’s internal and external context in line, with specification to technical details associated: i. Occupational health and safety ii. Risk sensitive compressor design plan iii. Risk sensitive compressor parts manufacturing iv. Risk sensitive manpower v. Sustainable market share vi. Cutting edge technology vii. Resource hunting viii. Suppliers’ risk oriented audits 2.3.3 Updated Risk Management Criteria LMF’s risk management criteria is being proposed as discretely identified components. The selected components are of most importance for the company and would be steering the whole risk management activity around them. i. Company’s products profitability ii. Product economy iii. Customer’s satisfaction AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 iv. Technology secrecy v. Provision of industrial solutions vi. Adherence to legislative requirements vii. Stakeholder’s interests 2.4 12 Risk Management Team The idea is to pick the risk identification and assessments responsibility from risk management board and to hand it over to assistant managers (AMs) handling respective processes. Directors will develop risks response strategies and Managers will have to implement and execute the mitigation strategies. Respective Directors will monitor the efficacy of mitigation / response strategies from ground level through defined communication channels. A brief work breakdown structure to carry out risk management activities is being detailed hereunder. Code Risk Evaluation Risk Response Technical Process Risks 1.1.1 Structure Design Risks AM (Structure) Mgr (Structure) Mgr (St) Dir (Tech) 1.1.2 Electrical & Instruments Risks AM (Electrical) Mgr (Electrical) Mgr (Elc) Dir (Tech) 1.1.3 Vibration Damping Risks AM (VDS) Mgr (VDS) Mgr (VDS) Dir (Tech) 1.1.4 Production Process Risks AM (Production) Mgr (Production) Mgr (Prod) Dir (Tech) 1.1.5 Quality Assurance Risks AM (QM) Mgr (QM) Mgr (QM) Dir (Tech) 1.1.6 Occupational Health & Safety AM (OHSAS) Mgr (OHSAS) Mgr (OH) Dir (Tech) AM (Finance) Mgr (Finance) Mgr (Fin) Dir (Adm) 1.2 1.2.1 Response Monitoring LMF – RISK MANAGEMENT PLAN 1 1.1 Risk Identification Process Risks Administrative Risks Finance & Budget Risks Director Technical & Board of Governors AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 1.2.2 Procurements Risks 1.2.3 Human Resource Risks 1.2.4 Business & Market Risks 13 AM (Procurement) Mgr (Procurement) Mgr (Proc) Dir (Adm) AM (HR) Mgr (HR) Mgr (HR) Dir (Adm) AM (Business Dev) Mgr (BD) Mgr (BD) Dir (Adm) Director Administration & Board of Governors Table 2 - Work Breakdown Structure for Risk Management Team 2.5 Context with AS/NZS ISO 31000:2018 Risk Management – Guidelines The updated plan derives risk management principles of adhering to company’s core values of Safety, Quality and Innovation. Development of process oriented risk management plans has ensured decision making is integrated with risk evaluations. Aim is to strive for a continuum improvement of company’s risk management capability with its dynamic risk assessment and mitigation culture from top governance to on-shop managerial levels. Risk management framework triggers to develop and implement risk oriented work plans to respective work procedures. The risk management process has been proposed to be integrated with all administrative and technical work instructions and has also been made iterative. The updated risk management processes aim to discretely identify risks vis-à-vis to respective work procedure and either analyze or recommend the most relevant risk analysis procedure. Outcomes of each analysis would be recorded to make part of risk register for iterative evaluation and consequent monitoring of mitigation strategies. AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 3. 14 IDENTIFICATION OF PROCESS RISKS The risk management is a shared responsibility of all the organizational stakeholders, from board of governors to assistant managers and technicians. To identify risks, we might need to consult risk criteria, already detailed in section 2.3.3. Keeping the risk criteria in mind, and in view of results obtained through fishbone analysis of current product failure, undermentioned risks have been identified to address the failure and are required to be mitigated to avoid any likelihood of the same in future. Sr Area Risk Risk Criteria 1 Material Selection Using off the shelf / after-market materials Pirated manufacturing 2 Design Research & Development Confidentiality of research Technology secrecy 3 Structural Strength Incorrect structural analysis inputs (boundary condition, mesh definition) Compromised product serviceability 4 Structural Strength Incorrect fatigue load test bench results Product failure 5 Electrical & Instrumentation Over and under load voltage Product failure 6 High Pressure Systems Accidental burst of high pressure assemblies Accidental failure, Life risks 7 Vibration Damping Systems Residual vibrational effects at lower frequency Catastrophic resonance, Product failure 8 Production Management Delayed supplies of raw materials Customer dissatisfaction 9 Product Design Inception of Angle (L) type piston shaft assembly design by customer Market response, solution of industrial problem 10 Procurements Compromised quality of raw material Product failure, Profitability 11 Product Performance Bending of main piston shaft Product failure Table 3 - List of Identified Process Risks AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 4. 15 ANALYSIS OF PROCESS RISKS To keep a numeric magnitude of risks probability and severity, it was deemed necessary by technical directorate to shift from conventionally qualitative to currently into a semiquantitative or quantitative risk assessment methodology. The analysis needs to have a standard definition of probability and severity marks and legends. The same is being detailed hereunder with detailed risk analysis in the subsequent sections. 4.1 Risk Probability & Severity Legends Numerical values of risk event’s probability of occurring and their respective severity of consequences are as under: Sr Probability Value Severity Value 1 Very Low 1 Very Low 1 2 Low 2 Low 2 3 Medium 3 Medium 3 4 High 4 High 4 5 Very High 5 Very High 5 Table 4 - Risk Events Probability & Severity Scores 4.1.1 Probability of Risks Definition  Very Low: Highly improbable to occur  Low: Unlikely to occur  Medium: Occurs periodically  High: Often occurs but doesn’t occur when process is corrected  Very High: consistently occurs and would only stop if the risk process is changed 4.1.2 Severity of Risks Definition  Very Low: No mitigation required but addressing the risk would improve process efficiency and may become an opportunity. AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021  16 Low: No corrective action is required but can be a point of improvement within the process.  Medium: An occurrence of risk that would require to correct the process to avoid any major impact.  High: An occurrence of risk event that can have severe impacts on product quality, economy, profitability or performance.  Very High: Major violation of government’s statutory requirements of a major non-conformance of implemented standards including AS/NZS ISO 31000:2018 Risk management – Guidelines 4.1.3 Parameters Evaluated during Risk Analysis Under mentioned are the major parameters, probable impact on which, are to be kept in consideration while analyzing process risks assessments: 4.2  Product cost  Organizational scope  Delivery schedule  Product performance Analysis of Identified Risks Process of risk analysis requires to be comprehensive and automated enough to capture the attention of project team and decision makers, well before happening of risk events. To ensure this, a pro-active approach of ground level product development team and assistant managers, is critical. Risk probability and severity values are assigned to respective risks at the time of identification by ground level product development team and assistant managers, which is subsequently evaluated and approved by managers and directors. The identified risks are proposed to be registered in a comprehensive risk register, which will ultimately be a baseline document to propose risk mitigation strategies and their monitoring. AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 17 Risks identified in section 3 are being tabulated in our proposed risk register, entries of which will be limited only to evaluation of the risks. Sr Risk Probability (P) Severity (S) PxS 1 Using off the shelf / after-market materials 3 4 12 2 Confidentiality breach of research 5 5 25 3 Incorrect structural analysis inputs (boundary condition, mesh definition) 3 5 15 4 Incorrect fatigue load test bench results 1 5 5 5 Over and under load voltage 4 5 20 6 Accidental burst of high pressure assemblies 5 5 25 7 Residual vibrational effects at lower frequency 3 3 9 8 Delayed supplies of raw materials 4 3 12 9 Inception of Angle (L) type piston shaft assembly design by customer 1 5 5 10 Compromised quality of raw material 1 5 5 11 Bending of main piston shaft 4 5 20 Table 5 - Analysis of Identified Risks AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 5. 18 EVALUATION OF PROCESS RISKS The process of risk evaluation is primarily based on the inputs on risk probability and severity values that are assigned to respective risks at the time of identification by ground level product development team and assistant managers. The combined effect of risk probability and severity of its occurrence defines the magnitude of the extent risk mitigation requires. The under mentioned table highlights the risk evaluation and prioritization matrix: PxS 5 10 15 20 25 4 4 8 12 16 20 3 3 6 9 12 15 2 2 4 6 8 10 1 1 2 3 4 5 1 2 3 4 5 PxS PROBABILITY 5 SEVERITY PRIORITY I II III IV 16 ~ 25 10 ~ 15 5~9 1~4 Table 6 - Risk Prioritization Matrix and Color Codes So based upon the above mentioned prioritization matrix, the identified risks would have the following priority index: AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 Sr Risk 19 PxS Priority 1 Using off the shelf / after-market materials 12 II 2 Confidentiality breach of research 25 I 3 Incorrect structural analysis inputs (boundary condition, mesh definition) 15 II 4 Incorrect fatigue load test bench results 5 III 5 Over and under load voltage 20 I 6 Accidental burst of high pressure assemblies 25 I 7 Residual vibrational effects at lower frequency 9 III 8 Delayed supplies of raw materials 12 II 9 Inception of Angle (L) type piston shaft assembly design by customer 5 III 10 Compromised quality of raw material 5 III 11 Bending of main piston shaft 20 I Table 7 - Prioritization Index of Identified Risks The risks with priority I and II are proposed to be equipped with a contingency plan along with regular mitigation strategies, in order to avoid uncontrolled consequences, in case of unforeseen happening. Details of risks management plan are being proposed in subsequent section. AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 6. 20 RISK MANAGEMENT PROPOSAL Risk identification and registry requires a comprehensive communication plan according to stakeholders’ interests. The risk register would consider all the impacted parameters by the potential risks and the mitigation strategies would be well documented for monitoring purpose. To undertake this, a risk communication plan is being detailed hereunder, requiring inputs from all stakeholders so as to have their ample contribution towards risk management. 6.1 Risk Communication Plan List of documents to communicate throughout the risk management process are being tabulated hereunder; sample formats, are being attached as referred appendices. Sr Risk Activity Initiator Endorsement Reference AM / Charge man Manager Appendix ‘A’ 1 Risk Identification Form 2 Risk Analysis Form Manager Director Appendix ‘B’ 3 Stakeholders Requirement Form Manager Director Appendix ‘C’ 4 Risk Registration Request Manager Director Appendix ‘D’ 5 Risk Treatment Plan Manager / Director Board of Governors Appendix ‘E’ 6 Risk Response Progress Director Board of Governors Appendix ‘F’ Table 8 - Risk Communication Plan 6.2 Technical Risk Evaluation Although, section 4 and 5 has given ample detail for risk analysis and evaluation processes, yet there is a need to delineate the detailed technical evaluation of identified risks. Sr Identified Risk Supporting Technical Requirements 1 Using off the shelf / after-market materials / pirated manufacturing Market survey report / failed parts analysis 2 Breach of confidentiality of research Networking / topology plan of design PCs AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 21 3 Incorrect structural analysis inputs (boundary condition, mesh definition) Finite element analysis on 2 software 4 Incorrect fatigue load test bench results Fatigue load test reports 5 Over and under load voltage Proteus simulation report 6 Accidental burst of high pressure assemblies ANSYS Structural analysis report 7 Residual vibrational effects at lower frequency System modal analysis report 8 Delayed supplies of raw materials - 9 Inception of Angle (L) type piston shaft assembly design by customer Analytical hierarchy process (AHP) report 10 Compromised quality of raw material Material analysis report 11 Bending of main piston shaft Fishbone analysis, design change request Table 9 - Additional Technical Requirements for Identified Risks Evaluation Risk Response Plan The risk response will have 2 discrete processes as under: i. Risk response categorization ii. Risk response strategy Enhance Risk Response Category 6.3 Oppertunity Exploit Mitigate Threat Transfer Avoid Figure 4 - Risk Response Categorization AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 22 As figure 4 mentions the various categories, a risk response might have, Appendix ‘E’ will decide the same based upon the risk analysis reports and stakeholders’ requirements. After categorization of risks, comes the response strategy or mitigation plan; and for reference, the risk responses for identified risks are being detailed in table 10. Sr Risk Priority Response Category Response Risk Owner 1 Using off the shelf / after-market materials II Threat Mitigate  Customization of material properties Manager (Design) Liaison with user for aftersales 2 Confidentiality breach of research I Threat Mitigate  Hardening of design PCs  Improved network security Director (Tech) Multi-loop cyber security 3 Incorrect structural analysis inputs (boundary condition, mesh definition) II Threat Avoid  Iteration of mesh types  Boundary conditions analysis Manager (Design) Concurrence with analytical calculations 4 Incorrect fatigue load test bench results III Threat Mitigate  Calibration of test bench  Average of multiple tests Manager (Design) - 5 Over and under load voltage I Threat Mitigate  Over and under load safety relays  Proteus simulations Manager (Elect) Prototype testing 6 Accidental burst of high pressure assemblies I Threat Mitigate  Pressure relief safety  Multi – node FEA Manager (Design) Prototype testing 7 Residual vibrational effects at lower frequency III Threat Avoid  Iterative modal analysis  Improved damping system Manager (VA) - 8 Delayed supplies of raw materials II Threat Transfer  Shipment’s insurance  Supplier’s bank guarantee Manager (Proc) Alternate resource identification 9 Inception of Angle (L) type piston shaft assembly design by customer III Opportunity - Exploit  AHP modeling  WASPAS analysis Director (Tech) Preliminary market research 10 Compromised quality of raw material III Threat Avoid  Supplier’s performance guarantee Director (Adm) - 11 Bending of main piston shaft I Threat Mitigate  Revised conceptual design  Assembly design change Director (Tech) Angle type assembly design Table 10 - Risks' Response, Mitigation & Contingency Plans Contingency Plan AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 6.4 23 Risk Monitoring Plan As design and development of air compressor parts is a continuous process, risk management is meant to be continuous also. Day to day risk mitigation activities need to be endorsed and directed by the project managers. In reference to risks identified in section 3, following monitoring plan has been devised and the same is to be integrated with main risks register: Risk No. Response Progress Update Mitigation Results 1  Customization of material properties Liaison with user for aftersales Closed Customized materials for all components Pirated mfg of spares has been stopped 2  Hardening of design PCs  Improved network security Multi-loop cyber security Closed 3  Iteration of mesh types  Boundary conditions analysis Concurrence with analytical calculations Continuous Refined boundary conditions More accuracy in results 4  Calibration of test bench  Average of multiple tests - Active Calibrated test bench Fatigue data repeatability 5  Over and under load safety relays  Proteus simulations Prototype testing Continuous Improved safety relays’ design Less probability of occurrence 6  Pressure relief safety  Multi – node FEA Prototype testing Active Sensitive pressure relief system design Reduced probability of occurrence 7  Iterative modal analysis  Improved damping system - Closed Vibration limit switches inception Enhanced excitation frequency 8  Shipment’s insurance  Supplier’s bank guarantee Alternate resource identification Closed Contracts with multiple suppliers Independency from single source 9  AHP modeling  WASPAS analysis Preliminary market research Active Opportunity is being enhanced Profitability & market lead 10  Supplier’s performance guarantee - Continuous 11  Revised conceptual design  Assembly design change Angle type assembly design Active Contingency Plan Status Table 11 - Risk Monitoring Plan Material tests result are in desired range Design has been changed to angle type Improved material quality AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 7. 24 REFLECTION ON RISK MANAGEMENT PROPOSAL LMF, the company under consideration had an existing risk management protocols that were generic to the processes, though emphasize implementation to the depth; consequently rising a need of detailed review and gap analysis. Risk identification and registration required a comprehensive communication plan according to stakeholders’ interests. The proposed plan has significantly addressed the gap and voids of existing risk management plan; by proposing a risk register that would consider all the impacted parameters by the potential risks and the mitigation strategies, which would be well documented for monitoring purpose. Addressing the failure of bending of main piston shaft and choking of oil filters, the current risk management proposal did amplified risk identification in each design process and consequently proposed a design revision. The resultant design of air compressor bears an angle type piston assembly, in which 1st stage of air compressor would be vertical and the rest two (2nd and 3rd) would remain horizontal. Additionally, to avoid oil filter choking, risk management process declared the need to use TEFLON piston rings that would not be needing any lubricant and will be having greater wear resistance than conventional steel piston rings. The revised design will have a schematic as below: 1st Stage Piston Assembly Intercooler Crank Figure 5 - Revised Angle Type Piston Assembly AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 25 The revised design, kudos to the updated risk management plan, will have low operational costs, increased efficiency, low maintenance and also give company, a cutting edge in technology in the market. 7.1 Gap Analysis Although the current proposal of risk management has significantly emphasized discretization of risk assignments, yet it is desired that the successive versions of this risk management proposal need to incorporate following: i. Work instructions on quantitative risk assessments ii. Algorithmic decision making (WASPAS & AHP etc. based) iii. Integration of project management documents with risk identification and assessments iv. Inception of an ERP based program of Risk Management AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 26 APPENDICES Appendix ‘A’ – Risk Identification Form LEOBERSDORFER MASCHINENFABRIK – LMF AIR & GAS COMPRESSOR DIVISION RISK IDENTIFICATION FORM Document No: LMF/RMP/001/A Issue No: 01 Doc Initiation Date: Issue Date: 01-10-21 Project Process Identified Risk Link Before Proposed Probability (1 – 5) Proposed Severity (1 – 5) Activity Designation Initiation AM Review Manager Approval Director Department Remarks Signature AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 27 Appendix ‘B’ – Risk Analysis Form LEOBERSDORFER MASCHINENFABRIK – LMF AIR & GAS COMPRESSOR DIVISION RISK ANALYSIS FORM Document No: LMF/RMP/001/B Issue No: 01 Doc Initiation Date: Issue Date: 01-10-21 Project Process Risk Technical Evaluation Risk ID: Probability: Severity: P x S: Priority: Tech Report Ref: SUMMARY OF TECHNICAL ANALYSIS Activity Designation Initiation Manager Review Director Approval Board of Governors Department Remarks Signature AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 28 Appendix ‘C’ – Stakeholders Requirements Form LEOBERSDORFER MASCHINENFABRIK – LMF AIR & GAS COMPRESSOR DIVISION STAKEHOLDERS REQUIREMENT FORM Document No: LMF/RMP/001/C Issue No: 01 Doc Initiation Date: Issue Date: 01-10-21 Project Process Risk Risk Owner Sr Stakeholder Activity Designation Initiation Manager Review Director Approval Board of Governors Requirement Department Remarks Format Signature AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 29 Appendix ‘D’ – Risk Registration Request LEOBERSDORFER MASCHINENFABRIK – LMF AIR & GAS COMPRESSOR DIVISION RISK REGISTRATION REQUEST Document No: LMF/RMP/001/D Issue No: 01 Doc Initiation Date: Issue Date: 01-10-21 Project Process Risk Risk Owner Risk ID: P x S: Priority: Date of Registration: It is submitted that the above mentioned risk has duly verified and evaluated as per practice in vogue, therefore may please be included in Main Risk Register for subsequent mitigation plan and monitoring of the response strategies. Activity Designation Initiation Manager Review Director Approval Board of Governors Department Remarks Signature AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 30 Appendix ‘E’ – Risk Treatment Plan LEOBERSDORFER MASCHINENFABRIK – LMF AIR & GAS COMPRESSOR DIVISION RISK TREATMENT PLAN Document No: LMF/RMP/001/E Issue No: 01 Doc Initiation Date: Issue Date: 01-10-21 Project Process Risk Risk Owner Sr Mitigation Strategy Activity Designation Initiation Manager Review Director Approval Board of Governors Department Objectives Remarks Signature AHMED_FAROOQUE_ENG8103_ASS 2_Q2_2021 31 Appendix ‘F’ – Risk Response Progress LEOBERSDORFER MASCHINENFABRIK – LMF AIR & GAS COMPRESSOR DIVISION RISK RESPONSE PROGRESS Document No: LMF/RMP/001/E Issue No: 01 Doc Initiation Date: Issue Date: 01-10-21 Project Process Risk Risk Owner Sr Mitigation Strategy Activity Designation Initiation Manager Review Director Approval Board of Governors Department Status Remarks Results Signature