Minimising Production Related Risks - Revenue losses, CO2 emissions - Case study available
Published September 22nd, 2021.
Unexpected production slowdowns / stoppages have a direct effect on company profits and CO2 emissions - one single unduplicated machine, when breaking down, can cost considerable sum of money and add on significant emissions.
With this in mind, we have started collaboration with a leading Risk Management Consultant, Mr. Kari Muhli to develop a calculation methodology and toolset. The main purposes of the toolset are to give simple and understandable way of estimating and/or preparing for different scenarios on the additional costs and loss of sales revenue occurring from unexpected production stoppage and/or partial slowdowns as well as fuel change from bio -> fossil fuel (including CO2 emissions), over-maintenance and production losses.
Comment from Mr. Kari Muhli: With my experience working on business continuity and recovery plans it has become evident that evaluation of losses and consequences even from a short-term total or partial production stoppage before something happens gives you a clearer and more transparent perspective to the risks involved. Converting risk scenarios to monetary values with even a simplified calculation method/tool (bearing in mind the likelihood of risk events) gives a solid indication of which risks need to be taken care of and in which order.
During this study we will jointly elaborate case studies with industry stakeholders; if you have interest in this field, let us now.