Contractor and supplier management: mitigating risk by better decision making

2012 ◽  
Vol 52 (2) ◽  
pp. 642
Author(s):  
Dag Yemenu ◽  
Richard Cerenzio

Global industry trends show increased outsourcing of non-core business activities (i.e. construction, maintenance, engineering, etc.) to third-party contractors. Data from several industries show that contractors face 1.5–3 times higher incident rates than in-house employees. This extended abstract covers leading-edge approaches for managing contractor risk, presently implemented by organisations in the oil and gas, mining and manufacturing industries. Using a database of more than 35,000 contracting companies and 220 owner/operator companies, this extended abstract accumulates more than six years of extensive health and safety data to show trends associated with health and safety management and performance improvement. Using statistical analysis methods, actionable leading indicators and insightful trends are discussed. Best practices of contractor management and decision-making tools based on a comprehensive management-system approach to contractor-risk management are also examined. Discussed is a practical model to address the following key elements: Gathering, reviewing and verifying contractor information as part of the due-diligence process. Analysing leading and lagging performance indicators. Driving safety through feedback, benchmarking, and continual improvement.

Author(s):  
Dimitrios A. Tsamboulas ◽  
Seraphim Kapros

A methodological framework with models is provided, which correlates behavioral and perceptual issues related to the use of intermodal transportation with the commonly used physical and economic criteria in modal choice approaches. With factor analysis, key variables and common decision patterns related to the choice of intermodal transportation are identified. Factor analysis is applied to capture the actors’ perception of the importance of variables affecting the decision-making process. With multiple regression analysis, models simulating the decision-making process are developed for actor groups, utilizing actual quantitative data of cost and performance of intermodal transportation services. Three decision patterns and the respective actor groups’ profiles are identified. The first group consists of actors who decide almost exclusively according to the cost criterion; these actors are intensive users of intermodal transportation. The second group has actors who decide according to both quality and cost criteria; using intermodal transportation by this actor group constitutes a minor portion of its total transport volumes. The third group consists of actors who are influenced in their decisions by specific logistics needs, beyond the physical transportation activity itself. The offer of third-party end-haul operations or refrigerated storage areas is an example of such services, necessitating specific logistic support. For each actor group a model is developed, which associates values of the quantitative variables affecting the decision-making process with the share of intermodal transportation in the total volume of transport handled by the group. The application of the model defines the extent to which changes in the values of relevant variables may shift a decision toward the use of intermodal transportation.


2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Suxia Liu ◽  
Edmund Nana Kwame Nkrumah ◽  
Linda Serwah Akoto ◽  
Emmanuel Gyabeng ◽  
Erasmus Nkrumah

Background. The study examines the mediation effect of safety knowledge in causal the relationship between Occupational Health and Safety Management Frameworks (OHSMF) and occupational injuries and workplace accidents in the Ghanaian Oil and Gas Industry. The study explores different dimensions of occupational health and safety management systems, workplace accidents, and occupational injuries. The study adopted a cross-sectional survey design. A total of 699 respondents through a convenience and purposive sampling technique were selected in three government-owned oil and gas organizations for the study. Correlation, multiple regression analysis, and bootstrapping methods were used for data analysis. The findings of both the regression and correlation analysis indicated that there is a moderately strong negative and significant relationship between Occupational Health and Safety Management Frameworks (OHSMF) and workplace accidents and occupational injuries. Safety knowledge significantly mediates the causal relationship between OHSMF and workplace accidents and injuries. Safety training was found to be a significant predictor of safety knowledge, work-related injuries, and workplace accidents. The negative relationship between OHSMF and workplace accidents and injuries shows that the existing OHSMF are either ineffective or lack the acceptable safety standards to control hazard exposures in the industry. Management must invest in frequent safety training and orientations to improve safety knowledge among workers. The study further recommends government and industry players to extend serious attention towards the promotion and improvement of occupational health and safety management systems in Ghana.


2019 ◽  
Vol 14 (10) ◽  
pp. 172
Author(s):  
Gilbert Joshua Atteh Sewu ◽  
Emmanuel Gyabeng ◽  
Adelaide Angela Dadzie ◽  
Nana Kwame Nkrumah

A survey was conducted to investigate the impact of occupational health and safety measures (OHSMs) on the performance of Banks in Ghana. Questionnaires were administered to employees of various Banks in the country. Using a Likert scale, respondents were asked to assess the impact of OHSMs on the performance of their Banks. The reliability of the survey data collected was tested using Cronbach’s alpha. Subsequently, Pearson correlation and simple regression were used to understand the statistical relationships between variables in terms of the magnitude and the direction (positive or negative) and to determine the degree of variance among dependent and independent variables. Findings suggest that there was a slightly moderate positive correlation between OHSMs and performance of Banks. Although employees generally agreed that OHSMs were in practice, the measures should be improved and government should reinforce policies for the implementation of OHSMs and ensure compliance by the Banks.


2015 ◽  
Vol 55 (2) ◽  
pp. 446
Author(s):  
Clare Pope

The development of LNG project infrastructure for exclusive use in relation to LNG projects in Australia has placed an enormous strain on and demand on human and manufactured resources. It has undoubtedly contributed to project delay and cost blow outs, and these have had an effect, along with the falling price of oil and LNG, of putting in jeopardy the development of further LNG projects in Australia. Tie-ins and joint development may be one way to de-risk and enhance the economic viability of developing future oil and gas resources through the following means: reducing project delays by using existing developed facilities without the need for extensive pre-FEED and FEED work; reducing the number of government approvals required by using existing facilities that already have relevant government approvals; reducing the unit cost of production by using underused facilities or expanding existing facilities at a marginal additional cost to cater for the additional demand and use; and, reducing exposure to workforce related issues, which have adversely affected the LNG projects in Australia, including unionised workforces, skill shortages and occupational health and safety risks. There are some key issues however, that need to be considered before embracing this approach, which includes: Capacity—the availability of capacity in existing infrastructure which is constructed with an individual project in mind will need to be assessed. Distance—the geographical location of projects can be prohibitive, unlike in other jurisdictions such as the UK North Sea. Loss of control—operators and the majority of participants may no longer be able to dictate development programs and project schedules. Pre-FID work—the access agreements need to be finalised and agreed pre-FID and will need to be front-ended at a time when not all issues are foreseeable. Tolling price—the price needs to be reasonable, yet reflective of the risk taken by the asset owner in allowing third party access and relinquishing some control. The author will explore these considerations and how some of these issues can be addressed in legal matters, as well as the way other jurisdictions have sought to use infrastructure sharing arrangements and the different ways government has influenced infrastructure sharing.


2021 ◽  
Author(s):  
Maureen Cooper

For businesses that are internally motivated to incorporate environmental management into daily practice, an environmental management system (EMS) is an effective tool to address environmental impacts. Yet, certification to formal EMS standards such as ISO 14001 may pose challenges for the unique needs of a small and medium-sized establishment (SME) such as Company Y, who seeks systematized environmental management while maintaining flexibility and openness. The researcher explores the proposition that EMS implementation and performance of an SME in the position of Company Y can be optimized by incorporating key tenets of Organizational Learning theory (OLT) into decision making and operations. Primary questioning, observation and literature research are used to characterize Company Y’s environmental decision-making and communication structure. For growing SMEs that are not comfortable with the formal requirements of third party EMS certification, this thesis suggests that OLT can be an effective approach to integrate environmental management into their business.


2021 ◽  
Vol 12 (5) ◽  
pp. 1466-1495
Author(s):  
Adesoji Anthony Adegboyega ◽  
Chidiebere Emmanuel Eze ◽  
Onyinye Sofolahan

The construction industry is hazardous and experiences poor health and safety performance records; as a result of the abuse and negligence of health and safety policies. Emphasis is now on health and safety management as health and safety risks are now normalised in the construction industry by the actions of construction SMEs. The study assessed the factors promoting health and safety risks normalisation in the construction industry of Nigeria. The study sampled construction professionals and tradespeople, using a well-structured questionnaire and snowball sampling techniques. With a response rate of 72.61% and a Cronbach's alpha value of 0.916; percentage, frequency, Mann-Whitney U Test and factor analysis were used to analyse the gathered data. It was found that there is a low level of occupational health and safety policies application and performance in the construction industry. The poor health and safety performance is prompted by HS risks normalisation promoted by factors such as misconception of and unwillingness to invest in HS, informal and unstructured HS policies, medical issues and excessive workload, Planning and client unwillingness, management commitment issues, and unorganised HS culture. Also, there was no statistically significant difference in the perceptions of the professionals and the tradespeople regarding 89.29% of the assessed variables. Commitment from the management and leadership of the SMEs and making of health and safety culture an integral part of the functioning of the organisations was thus recommended.


Author(s):  
Siyuan Song ◽  
Ibukun Awolusi

Safety is considered a top priority due to its significance in safeguarding human lives and properties, especially in high-risk industrial sectors such as aviation, oil and gas, construction, transportation, steel manufacturing, and mining industries. These industries are plagued by workplace injuries, illnesses, and fatalities because of the dangerous work environments. As such, it is very vital to integrate safety into every work process in any industrial environment just like quality is built into products and services. It is important to establish and execute an effective safety management system to prevent the risks of irreversible accidents. This chapter begins with a background to safety management in industrial engineering and a discussion of the various issues of industrial safety management. It follows with an extensive description of existing and commonly used safety performance measurement methods. Several case studies are used to explain the methods and explore the important application areas relevant to most industrial sectors. The techniques and tools for safety data collection, analysis, and sharing are introduced together with their applications for safety management. The last section explains how emerging technologies can be implemented in most industrial sectors to enhance safety management.


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