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Assessment model for equipment risk management: Petrochemical industry cases
Authors:Rong-Hwa Huang  Chang-Lin Yang  Chung-Szu Kao
Affiliation:a Department of Business Administration, Fu Jen Catholic University, 510, Zhongzheng Rd., Xinzhuang Dist, New Taipei City 24205, Taiwan, ROC
b Graduate Institute of Management, Fu Jen Catholic University, 510, Zhongzheng Rd., Xinzhuang Dist, New Taipei City 24205, Taiwan, ROC
Abstract:This study presents an assessment model that examines quantity and quality factors for equipment risk management in the petrochemical industry. The proposed model has five dimensions—financial performance, logistical support, service level, learning and innovation, and risk control. This evaluation model uses 13 strategy subjects and 78 performance-measurement indicators. Performance assessment indicators are initially established and revised based on expert opinions collected via a questionnaire. Further, the analytical network process (ANP) is utilized to calculate the weights of indicators in each layer and to construct assessment models with applicable and valuable references. To determine model practicability, this study assesses four subsidiaries of the case company. Each subsidiary has a capitalization exceeding TWD 50 billion. In addition to evaluating company performance in terms of each dimension and indicator, the proposed model provides a valuable reference for decision-making in equipment risk management.
Keywords:Petrochemical industry   Risk assessment   Equipment risk management   Analytical network process
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