Risk Management within Material Flows

Modern procedures of material flow projection within complex logistic procedures require the integration of risk management systems with the aim of creating safe material flows. 

Directive No. 89/391/EC, on the introduction of measures to encourage improvements in the safety and health of workers, defines the employer s commitment to perform risk analyses at a workplace (Section II, Article 6, Paragraph 2, 3) and notify workers of same (Section II, Article 10, Paragraph 1). The enactment defines principles of occupational health and safety with the main principles being the commitment of designers, project engineers, and users of machines and machinery to assess risks. 

Modem trends in the field of material flows projection aim at a purposeful systematic approach. The quality, safety, and reliability issues are crucial input parameters at the projection stage of a material flow system. 

Customer s satisfaction is one of the most important parameters of using material flows satisfaction requires a manufacturer to create a high-quality, safe, and reliable material flow (MF) system. 

Machines and machinery systems within a material flow system must be designed so that their operation, settings, and maintenance, when performed in compliance with conditions defined by the technical documentation, are not hazardous to people and property. The aim of the measures implemented must be the elimination or reduction of risk of any negative event occurrence during the machinery technological lifespan, including assembly and disassembly, even under operating conditions that are not in compliance with technical requirements for the operation. 

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Supply chain risk is defined by the distribution of the loss resulting from the variation in possible supply chain outcomes, their likelihood, and their subjective values. Supply chain risks comprise risks due to variations in information, material and product flows, which originate at the original supplier and lead to the delivery of the final product to the end user. Thus supply chain risks refer to the possibility and effect of a mismatch between supply and demand. Furthermore, risk consequences can also be associated with specific supply chain outcomes like supply chain costs or quality. Within this context, we can identify the following basic constructs of supply chain risk management ... 

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