Design of Resilient Production Facilities through Innovation and Risk Management
Authors: Uzcategui M.. , Mathison J.. , Soto A. J. 
Published: June 2015

This paper presents a resilient approach to designing production facilities and processes based on the capability of organizations to effectively innovate and adapt to changes and risk while maintaining quality and profitability. It presents a practical and innovative method that uses benchmarking to show how to identify risk factors and develop prioritized contingency plans for marine facilities, based on risk and criticality of operational weaknesses.

The investigation is descriptive and research-based, combining field research with bibliometric case studies. The research illustrates the relationship between variables, and an oil industry case study provides the context for the research. The process used includes assessing risk, characterizing effects, evaluating resilience capacity, and designing solutions. Risk assessment is developed for operational, process, supply chain, and other risks, whereas the capacity for resilience is assessed on the basis of capabilities to monitor the environment, incorporate process flexibility, and adapt organizationally to change.

In addition, the bibliometric analyses of companies in the energy sector were conducted to identify and document best practices and lessons learned.

On the basis of this investigation, a strategic framework for facilities development was formulated that incorporates excellence in operations, innovation, and efficiency.

This process optimizes the management of resilient facilities based on the implementation of an integrated cycle, including a proactive business and corporate culture. It includes assessing risk, evaluating response capability, designing the balance between reactive and proactive capabilities, planning resilience, and managing the implementation of the facilities planning strategy.

The paper underscores the importance of integrating and improving business processes and tools to facilitate decision making in a timely and reliable manner while managing risk and operational and environmental uncertainties. Consequently, in addition to focusing on the causes of changes and risks, resilience is oriented toward enabling adaptation to changes during the project lifecycle in the face of the unknown.

Usually, companies have a tendency to dedicate their resources to the area of highest vulnerability (high occurrence and high impact) and to neglect the areas of medium vulnerability that result from low impact but high frequency events. The medium impact method identifies these risks; it also defines factors that contribute to designing resilient facilities, creating competitive advantage, managing internal and external adversities, and incorporating lessons learned from other projects.

Growing uncertainty within various business areas has attracted the attention of many companies, particularly within the oil and gas industry, in which many risk factors in exploration, drilling, production, and marketing are managed onsite.

This paper summarizes best practices and lessons learned from benchmarking cases of resilient organizations that have integrated risk management methods for uncertainty and achieved high value innovations within their processes and products. These companies have attained excellence in operations while effectively innovating.