Risk analysis and mitigation strategy for sugar cane production processes (Case Study: X Sugar Cane Factory - West Java)

Abstract

As an agricultural industry, sugar mills face additional risks affecting the performance of production processes derived from raw materials due to their seasonal, perishable, bulky, and diverse quality. Therefore, risk management becomes very important.. The purpose of this study was to identify, analyze, and define risk mitigation strategies. The methods used are: (1) Risk breakdown structure for exploring Sugar Cane Production Processes; (2) Failure Mode and Effects Analysis Fuzzy (Fuzzy FMEA) for assessing risk components and risk priority number (RPN), and (3) Modified Fuzzy House of Risk 2 (HOR2) for determining rank of priority to each mitigation action. The research was conducted at X sugar factory in West Java as a case study. The whole energy consumption of the factory is supplied from biomass energy. The study identifies 42 risk incidents and 9 risk events with very high priority categorical value. The dominant incidence of risk occurs in the activity of cane sugar supply, sugar cane milling, evaporation, and cogeneration. While one of the recommended risk mitigation strategies that can address the cross-activity risk is by improving the management process of sugarcane supply. This is done by maintaining the stability and the quality of the established cane supply.