Title: Development of a risk assessment model for the customer performance perspective in power plants applying a system dynamics approach
Authors: Sahar Al Mashaqbeh; Jose Eduardo Munive-Hernandez; Awni Al Khazaleh; M. Khurshid Khan
Addresses: Faculty of Engineering, Department Industrial Engineering, The Hashemite University, Zarqa, 13133, Jordan ' Lecturer-Adv Manufacturing Engineering, Faculty of Engineering and Informatics, Department of Mechanical and Energy Systems Engineering, University of Bradford, BD7, 1DP, UK ' Faculty of Engineering, Department of Mechanical Engineering, ALBalqa Applied University, Amman, 1705, Jordan ' Faculty of Engineering and Informatics, Department of Mechanical and Energy Systems Engineering, University of Bradford, BD7, 1DP, UK
Abstract: Risk management is a key management process to identify, understand and assess risks. Customer risks are also relevant to the organisation's long-term strategy and they should also be considered to integrate a robust risk management system. Key risks are not isolated, cause and effect interrelationships can be established among those risks to assess their impact on organisational performance. This situation represents a complex problem. This paper develops a system dynamics (SD) model to assess the impact of customer risks on three key strategic performance measures in power plants (i.e., efficiency, availability, and operational and maintenance costs). The exponential behaviour of customer risks reveals that these risks can be controlled through normal procedures of the risk management process and can be monitored through functional managers and supervisors due to their distribution. The developed model is validated in two power plants in the Middle East through focus group interviews and questionnaire surveys.
Keywords: System dynamics; risk management; risk assessment; customer performance; strategic performance; energy sector.
International Journal of Intelligent Engineering Informatics, 2020 Vol.8 No.5/6, pp.471 - 496
Received: 03 May 2020
Accepted: 23 Nov 2020
Published online: 06 Jun 2021 *