Answer ALL questions
Logistic Operations and Industrial Accidents
Effective logistics management must deal with a wide range of decisions. Logistics decisions may be categorised into three levels, depending on the scope, the investment requirement, and the time horizon and frequency of the decisions involved from the different level. The highest level of strategic decisions are usually concerned with major capital commitments and with the efficient allocation of resources to the various components of logistics operations, over a relatively long period of time. Where as the tactical decisions typically deal with moderate capital investments and involve plans for annual, semi- annual, or seasonal time horizon. Decisions at this level can usually be reversed at lower cost than that which is required to reverse strategic decisions. And the lowest level deal with operational decisions and day-to-day operations. They are characterised by low capital investments and can be reversed at a relatively low cost. The purpose of this hierarchical categorisation is twofold. First, it is consistent with the existence of an organisational structure within a firm, where each level of the organisation deals primarily with one of the levels of decisions outlined above. Second, the separation of the overall decision-making process into various stages (levels) makes the planning, design and operation of a logistics system tractable. It should be noted however that an interdependence exists not only among decisions within any given level, but also between decisions at different levels. Higher-level decisions often determine the boundaries for decisions in subsequent levels. On the other hand, evaluating higher-level decisions requires managers to consider the expected outcome of lower-level decisions.
This is the reason why many decisions in many logistics operation were calculated based on the factor rating analysis where high value and ranking plays an important role in making decision. The proposed model can be expected to provide a more complete and accurate representation of the trade-offs that exist among the three cost components above, thereby leading to solutions that are closer to "true" optimality than those provided by existing mathematical models. However in performing those routine, there is another pressing issues facing the real logistics business and haunting many operations to be extra careful. One of the crucial components for consideration is the industrial accidents that keep on the rise and cause fatal rate increase while performing the logistic operations. The importance of examining the nature and strength of inter-relations between the individual components of the quality of working life can be readily appreciated when one observes that so many empirical studies of the quality of working life have used only a single variable to measure or proxy movement or variation in the quality of working life. This procedure is reasonably acceptable, at least in the absence of readily available data on all individual at- tributes of the quality of working life, if one can be confident that these attributes, or at least the vast majority of them, tend to be positively, significantly and consistently inter-correlated. Consider yourself as an operation manager in the situation above, discuss the following issues.
Based on the case above, discuss the term of “Factor Rating System” in the context of logistics business operation. Your explanation should include the relevancy of the term in every logistics business operations functions. Support each of your discussion using appropriate citation, evidence and example. (20 marks)
The ever increasing electrification and sophistication have made industrial jobs more and more complex and intricate. This has led to increased dangers to human life in industries through accidents and injuries, especially in a manufacturing firm and shipping industry. Demonstrate FOUR (4) leading causes of industrial accidents in a shipping firm. Justify the cause and effect of each incident. Support each answer with an example and evidence from the past studies.
Formulate FOUR (4) critical analysis based on your opinion to overcome the issue faced in the following case. Support your discussion using an appropriate citation, evidence and reference.
Discuss the term "Factor Rating System" in the context of logistics business operation.
In the context of business operation logistics is involved in generalizing the entire process of an organization as well as implementing it in a complex operation. The term logistics basically indicates the integration of information, components handling, production process, packaging as well as transportation. It is mostly known as a business directory in terms of material storage and goods transportation. Factor Rating System is a commonly used tool for identifying a location and involved in the analysis of diverse components with a useful comprehensive process. As the concept of logistic operations, a factor rating system considers high value as well as ranking, which plays an important role in terms of making an effective decision. Logistic decisions have three different components that include depending on scopes, the requirements of investments as well as time horizon in relation to frequency. The factor rating system is used to evaluate both quantitative as well as qualitative factors. This system consists of six different steps that are including; identification of specific factors that need to be considered in terms of site selection, the correlation between the selected factors with its importances, rating for each location in correspond to each factor. The first step is the multiplication of each factor by weighing corresponding factors. Finally, sum up the overall score, and the highest score has been selected as the location.
Explanation based on logistics business operations functions
Logistics business operation acts in different fields that are considering inventory management processes, warehousing, the fulfilment of orders, schedule formation and maintenance as well as communicating with other providers (Vault, 2020). Inventory management process has been controlled by logistics in terms of following supply chain management. In the case of controlling goods storage as well as crucial updates regarding the flow of goods storing. In the case of industrial business operation logistics has an immense impact on storing all the goods for a longer period of time. Business logistics plays an important role in transporting goods from one place to another in order to provide service. Factor rating system involves selecting the location based on values as well as ranking, which has been controlled by logistic operations. Logistic business operation has been focused on making fulfilment by providing ordered products on time. This basically indicates the rate of consumer satisfaction as well as establishing brand and reputation. Supply chain management has been operated by the logistic business operation department in order to avoid business conflicts. The overall industrial process has been controlled by forming a schedule on the basis of the entire work division.
Support each of the discussions using evidence and example
As per the information of Supplychaindigital, (2020) DHL has been followed a logistic business operation in terms of courier service, parcel as well as mail delivery. The supply chain of DHL specializes in operating the process of designing and shipping goods of the clients. DHL logistics involved in providing a reasonable price range for goods and services, door to door facility. J.B Hunt Transportation service industry also followed logistic business operations in terms of providing a wide range of services (Amstan, 2020). The logistic business operation basically involved in providing integrated service to consumers in terms of gaining profits. As per the information of Ttnews, (2020) Lineage has followed a logistic business operation in terms of increasing the level of warehousing service. In this regard, they innovated modern technologies such as automation, energy consumption measuring tool, blast freezing technique and so on.
Industrial accidents are depicted as a sudden as well as unexpected incidence, which has interrupted the overall progression of industrial work. Accidents can be of different types based on durability, severity and the level of injuries. An accident is an uncontrolled and unplanned event which is based on the action or reaction of a particular object. An accident that occurs life-threatening problems is considered as a major accident while normal injury that does not make disable of an employee is considered as a minor accident. In this context, the rising of electrification and sophistication are involved in making industrial jobs more and more complicated as well as intricate. These are involved in increased dangers to human life through accidents and injuries, most importantly in the shipping industry and manufacturing firm. The ultimate consequences of industrial accidents based on a number of reasons include unsafe acts, inadequate conditions, machine factors and non-machine factors, inherent hazard as well as other factors.
Demonstrate FOUR (4) leading causes of industrial accidents in a shipping firm
Industrial accidents are the serious issues which are involved with hazardous materials and a high chance of having negative consequences in the surrounding locality and environment. It has been observed that increasing electrification and sophistication have made industrial jobs more complex in modern days. That is why the number of industrial accidents has increased in modern days. It is noticed that most of the workers are exposed to electrical energy in their workplace for which electrification is one of the major causes of industrial accidents. Therefore effective logistics management has great importance in this case as it deals with a wide range of decisions. However, it has been observed that behind industrial accidents, a number of issues are involved. Below, some of the major causes of the industrial accident has been discussed briefly along with real-life examples to analyses the matter in details manner:
Cause 1: Equipment failure
Equipment failure is one of the leading technical causes of industrial accidents. As per the view of Olivares, Rivera & Mc Leod, (2018)), due to the lack in the designs of the machines or equipment and also for human, sometimes, it may cause the explosion or system failure for which the employee suffers highly. Along with this, it needs to be mentioned that not only the employee suffers but also the productivity and efficiency of the business firms impacts highly due to the equipment failure.
Cause 2: Lack of proper training and human error
On the other hand, lack of proper training of the workers is another significant cause of the industrial accident in the shipping firm in contemporary days. It is noticed that due to this, employee usage of the machinery and equipment in the wrong way increases the chance of industrial accidents exceedingly. Even in the age of technical advancements, human errors are still a considerable issue as there is a huge lack in the training and developmental program in most of the companies. For this issue, cybersecurity of the company suffers, which provides adverse effects to the business. In this case, it needs to be mentioned about the Japan nuclear fuel conversation co (JCO). According to Opus Kinetic, (2020), in the year of 1999, some workers with any proper qualifications and training were preparing for a batch of fuel in the experimental fast breeder reactor for the first time. However, in this meantime, due to the nuclear fission and chain reaction, an explosion occurred. That is why it can be mentioned that a lack of proper training and human error is one of the leading causes of industrial accidents.
Cause 3: Lack of safety
Not following the workplace safety policy properly may be a leading cause of industrial accidents. Different countries follow different rules in the workplace. For example, the organizations of the UK generally follow the health and safety atwork act of 1974, and by following this, they have to provide some basic safety to their employees (Almond & Esbester, (2018). On the other hand, organizations that are based in Australia have to follow the work health and safety act of 2011 to set out the requirements and standards for building a healthy and safe workplace (Furci & Sunindijo, 2020). However, the legal acts of the countries have to be followed to maintain the business operations in a legal manner. Otherwise, it may be harmful to the safety of the employees and can be the cause of accidents in the workplace of the logistics companies.
Cause 4: Unsafe work condition
One of the biggest causes of industrial accidents in the shipping firm is the unsafe conditions in the workplace. In this case, defective plants, equipment, tools, improperly guarded equipment, hazardous arrangement, unsafe storage, inadequate safety device, improper ventilation, improper illumination, poor housekeeping and others. These causes are highly harmful, and it may lead the organizations towards uncertain accidents. As an example, the work conditions of Amazon can be mentioned. The report, as published in The Guardian (2020), reveals that the work place conditions of Amazon are not proper as employees are treated like robots in the warehouse of the UK. It is noticed that in three years, the company has to call out ambulances for around 600 times due to the employee's health issue. Even a huge number of cases have been filed in the court of the UK due to this issue. This type of unsafe work conditions is the significant cause of industrial accidents as there is a high chance of lack of energy and distraction in the work for which accidents could happen any time in the shipping firm.
Apart from the aforementioned issue, there are many more causes of industrial accidents in the shipping firm such as improper feet or grips, flying off of the hammerheads, poor physique or nervousness of the employees, collision or distraction, fire hazards and others. However, it can be stated that industrial accidents are one of the biggest issues of the workplace that has led the company to the increased dangers to human life. In the shipping industry, the chances of industrial accidents are high as employees have to work under pressure. Therefore, their nature and strengths the quality of work and life. For these reasons, shipping firms face industrial accidents more than other business firms.
Linking with past studies
In the last decades, a number of industrial accidents have happened that negatively impacted industries as well as caused people's death. Industrial accidents involved not only increasing unemployment but also the cause of increased mortality risk. In the year of 1984, one of the worst chemical disasters happened in Bhopal. This terrible incident killed almost 400 people, and over thousands of people were suffered from severe irreversible damage (Ramanathan, 2019). Chlorine leakage from Durgapur chemical factory in India was also a terrible incident in the world. In the year of 1985, this industrial accident happened and killed 50 people, and over a hundred people were affected due to leakage of chlorine (Ohsonline, 2020). In the year of 2008 roof collapse in the food industry in the UK was one of the terrible incidents. In the year of 1988, a massive fire explosion occurred in the chemical industry of Pepcon in the UK. as per the information of (Nidirect. 2020). This incident killed 2 people and over 300 people were affected.
Formulate FOUR (4) critical analysis based on strategies to overcome the issue faced in the following case
In order to overcome industrial accidents, different preventive actions have to be followed by the industry. In this context, one of the most important things that are the objectives of preventive actions regarding accidents is to identify those contributory factors which cause the possibility of accidents. Maintenance of logistic operation with all the safety measures have been effective to avoid accidents in the industry. Strategic implementation through training regarding safety measures can be effective to get rid of industrial accidents.
Training regarding safety measures:
The term training for safety measures is considered the process of teaching on safety measures that need to be followed at the workplace. Apart from, it provides training on occupational hazards in order to avoid accidents in the industry. Every industry has to provide adequate training to its employees regarding safety measures and its importance to avoid accidents. Training for safety measures is important for both the new or experienced employees due to handling new equipment (Accountlearning, 2020). In this context, a logistic business operational process can be followed by industry to mitigate the issue related to industrial accidents. A number of safety campaigns have to be organized by the industry in terms of spreading awareness regarding industrial accidents. Different types of habits in relation to maintaining safety include a breakneck process at the time of working, maintenance of body postures for a long period of time and avoidance of working without adequate rest. Most industries, such as the Pidilite chemical industry, follow safety measures through logistic business operation in order to avoid accidents. UPL limited company follows safety measures by providing safety training to theory employees due to avoiding occupational hazards as industrial accidents. In the US Vega Grieshaber KG has incorporated automation techniques in order to avoid equipment handling problems among their employees. Besides they are also providing adequate training to their employees to operate automation processes appropriately.
Decision making through group work:
Industrial accidents can be mitigated by following group discussion before taking any decision in terms of organizational operation. The process of organizational productivity needs to be generated by maintaining all the precautions such as concentration in performing the work regarding instrument handling, maintenance of the electric supply line at a regular basis to avoid any fire explosion in the industry. The process of logistic business operation can be effective to avoid industrial accidents in terms of making regular discussion with all the workers. Regular discussion with the workers makes them flexible to give enough attention to maintaining safety measures. In this regard, Optinova Europe GmbH industry follows a decision making strategy by coordinating all the workers and organizational members to know about the overall condition of the industry and taking action in order to avoid industrial accidents (Chemeurope, 2020). Accidents in the industry basically happened due to negligence of the organization bodies, but sometimes it is completely unexpected. Decisions for giving strict instructions to the employees in terms of operating all the instruments as well make them aware to avoid those elements such as chemical leakage, fire. Building materials that are causing industrial accidents need to take immediate action in order to avoid organizational accidents. In this point of view, most of the industries have followed decision making with corresponding employees and members that help them to make an effective way out to overcome accidents in the industry. The Aarti chemical industry follows this strategy in terms of making safety measures that can be effective to avoid fire explosion as well as building collapsing issues.
Usage of proper equipment and technology:
Although in contemporary society, it is noticed that the number of industrial accidents has increased highly, with the help of the proper equipment and technology, the issue could be resolved. Business firms can use advancements of technology effectively to prevent any accident in the workplace and to secure the health of workers. In this case, it can be mentioned about the data scope technology to develop the health and safety policy of the workplace. Datascope is a technology that actually improves communication among the workers and implements appropriate procedures in order to prevent any accidents and detect any kind of hazardous event (My data scope, 2020). In this way, by using the data scope technology, the health and safety policy of the business firms could be improved more, and it is possible to reduce the amount of uncertain industrial accidents.
Apart from technology, it is highly needed to concentrate on the usage of proper tools to avoid accidents in the workplace. In this case, business firms need to invest in time and money in this area. Firstly, employees should be properly trained to use the tools and technologies of the workplace of the shipping firms. For this purpose, organizations can hire professionals who will provide training for the accurate use of tools to the workers. Secondly, it is highly needed to use proper tools in the workplace. It has been observed that inappropriate tools for inappropriate work may lead to uncertain accidents. For this purpose, it is recommended to the shipping firms to concentrate on this area in order to avoid industrial accidents.
Following the legal policies:
On the other hand, following the legal policy also could be useful to prevent accidents in business firms. Such as the workplace safety act of the UK of 2011 is designed with the requirements and standards of building safety and healthy workplace Okun, Guerin and Schulte, 2016). Therefore, by following this act, organizations can protect the health, welfare and safety of the workers in the workplace. Along with this, through these regulations, it is possible to put legal obligations and duties on the workers. Apart from this, the health and safety act of 1974 could be mentioned in the discussion. In the business firms of Australia, this act is used to provide adequate welfare provision for staff at the workplace. In this manner, following the proper legal policies for the safety and well being of the workers could be useful. Along with this, by concentrating on this area, it is possible to reduce the chances of accidents in the workplace.
Thus, in this manner, in the end, it can be mentioned that there are several strategies that shipping firms could use for avoiding accidents. It is highly needed to concentrate on providing training to the employees regarding the safety measures. In this way, workers can deal with uncertain accidents by themselves and protect them from this kind of issue. Apart from this, it is needed to concentrate on Group work as well because the decision in this kind of situation will be easy. In the age of digitization, advancements of technology could be used effectively as well, such as data scope technology will improve the communication of the workers and enable them to improve these situations. Lastly, the importance of technology needs to be mentioned to avoid this kind of issue in the workplace of shipping firms.