Abstract:
This study aim is to implement the operational risk management plan for a plastic bags factory. With this plan, the factory can reduce risk level, loss of waste, and machine lost time into acceptable and controllable level. Risk Management System was started by specifying the objectives of the company and identifying all possible risks, which could obstruct goals achievement. The key risks were then analyzed and assessed by categorizing the similar characteristic risk in groups, generating risk relation using risk map, and assessing risk level from combination of risk likelihood and risk consequence. After assessment, risk level was prioritized according to its urgency using Pareto Diagram. Fault Tree Analysis was used to analyze root causes for Risk Management Plans. Finally, monitoring and reviewing system are created. According to risk management, it was found that the factory totally has 8 risks, which are further categorized as 3 extreme risks and 5 high risks. After the risks were Treated, the risks are reduced to 2 high risk, 3 moderate risks and 3 low risks. It was found from three months of extreme risks monitoring that waste could be reduced from 15% to 8.8%, machine lost time could be reduced from 159.3 hours per month to 135.6 hours per month (14.89% reduction), and the misplaced delivery can be completely eliminated.