1.

Potential Risks of Machines and Equipment

Aging equipment can compromise productivity, safety, and financial performance. To address
these issues comprehensively:
 Implement Predictive Maintenance: In the industrial application of predictive
maintenance, real-time IoT sensors and machine learning algorithms predict when
machines are likely to fail. These systems evaluate patterns in the utilization of
equipment, vibration, and temperature in a bid to estimate when they are likely to fail.
For example, the use of vibratory transducers on equipment that rotates, like
compressors and pumps, among others, can easily point to misalignment or wearing out.
The advantages of using condition-based maintenance techniques include a lower
number of hours spent in unplanned downtime, a lesser magnitude of costs in
maintenance, and higher levels of reliability in machines. Another interesting application
of predictive systems is in the scheduling or timing of maintenance activities, thus
making efficient use of resources.
Support: Lee et al. (2020) demonstrate that predictive maintenance lowers costs by
20% and prevents 50% of unexpected breakdowns.
 Upgrade Critical Equipment: Purchasing modern equipment helps reduce the risk of
obsolescence by addressing issues such as high repair costs and low efficiency.
Upgrading the distribution system can also bring innovative features like automatic
controls, energy management, and compatibility with current monitoring devices.
However, prioritizing the upgrade of critical machines, such as extruders or reactors in
petrochemical production, often delivers better operational returns. This approach allows
teams to clearly define priorities and promptly address safety concerns.
Support: Gopalakrishnan (2019) highlights that upgrading machinery enhances
efficiency and lowers operational expenses by 10-30%.
 Engineer Training Programs: Trainings should aim at preparing the engineers to
operate new systems and also manage problems with the old systems. The workshops
cover topics such as diagnostic tools, failure analysis techniques, and certifications for
using specific technologies. Professional staff understand the organization’s various
systems, ensuring compliance with essential safety and performance regulations.
Support: Zgodavova and Bober (2021) argue that enhanced training reduces
operational errors and machine downtime.
 Digitize Maintenance Processes: Use of some of the CMMS enhances the
documentation, tracking, and scheduling of maintenance activities. These systems
combine predictive analytics with maintenance processes to cover important
interventions and provide comprehensive records for ongoing measurement.
Support: Wajid et al. (2022) discuss how CMMS enhances maintenance efficiency by
improving task prioritization and resource allocation.

2. Lack of Raw Materials

Securing a stable and sustainable supply of raw materials is vital for continuous production and
market competitiveness. Proposed solutions include:
  Diversify Supply Chains: Establish relationships with multiple suppliers from different
regions or countries to reduce reliance on any single source. Diversification minimizes
risks associated with geopolitical issues, transportation disruptions, and fluctuating
market conditions. In petrochemical production, collaborating with suppliers of key
feedstocks like naphtha or propylene ensures redundancy and flexibility.
Support: Severin (2023) emphasizes that a diversified supplier network increases
resilience to global supply chain challenges.
 Establish Strategic Reserves: Building inventory buffers of critical materials acts as a
safety net during shortages or market volatility. For instance, maintaining reserves of
propylene feedstock can stabilize operations during disruptions while offering time to
adjust sourcing strategies.
Support: Hoekstra and Romeo (2020) indicate that companies with reserves mitigate
risks from sudden supply chain interruptions.
 Recycle Petrochemical Byproducts: Recycling reduces dependency on virgin raw
materials while improving environmental sustainability. Processes like depolymerization
enable the recovery of monomers from waste plastics, which can be reused in
production. Incorporating circular economy principles not only strengthens material
availability but also aligns with global sustainability goals.
Support: Ellen MacArthur Foundation (2021) highlights that recycling reduces raw
material consumption and fosters long-term sustainability.
 Foster Supplier Relationships: Negotiating long-term contracts and fostering
partnerships with suppliers ensure steady pricing and availability. Joint ventures or co-
investments in upstream operations (e.g., feedstock extraction) further secure resources
and enhance control over supply chains.
Support: Mohanty and Mishra (2021) stress that strong supplier relationships are crucial
for maintaining operational stability.

3. Harmful Impacts to Surroundings

JGSOC has recognized the environmental challenges posed by its manufacturing operations,
including air pollution and harmful emissions that affect surrounding communities. Addressing
these concerns is crucial, not only for regulatory compliance but also for the company’s long-
term sustainability and reputation. In response, JGSOC has made a firm commitment to
sustainability, with clear management objectives aimed at reducing its environmental footprint.
 Adopt Advanced Emission Control Technologies: The company should continue to
invest in and upgrade emission control technologies such as electrostatic precipitators,
scrubbers, and catalytic converters. These technologies are effective in significantly
reducing pollutants, such as particulate matter and sulfur compounds, which are
common in petrochemical plants. Real-time monitoring systems should be integrated to
ensure the continual performance of these systems and immediate detection of any
emissions exceeding regulatory limits.
Support: The Environmental Protection Agency (EPA, 2022) affirms that the
implementation of modern emission control systems can reduce pollutants by up to 90%,
ensuring compliance with increasingly stringent environmental standards.
  Conduct Independent Environmental Audits: Independent professionals should
regularly audit environmental practices to identify operational inefficiencies and offer
advice on areas for improvement. Independent evaluations will provide opportunities for
transparency and build confidence among stakeholders. The company will document
these audits as a commitment to responsible operations. The results of the audits can
help shape future strategies and policies aimed at reducing harmful impacts.
Support: Wajid et al. (2022) emphasize that third-party audits play a pivotal role in
ensuring compliance with environmental regulations and improving overall operational
sustainability.
 Invest in Renewable Energy Sources: Switching to renewable energy sources, like
solar or wind power, can cut greenhouse gas emissions and ultimately lead to savings in
energy costs. For instance, JGSOC will lessen its dependency on fossil fuels by
integrating renewable energy into its operations, joining the global fight against climate
change. On top of that, renewable energy systems such as solar panels can even be set
up onsite, reducing the carbon footprint as well as the operating costs of the company.
Support: Jones et al. (2021) highlight that the adoption of renewable energy
technologies can reduce emissions by 30% within three years, while also contributing to
cost savings and enhancing the company’s green credentials.
 Engage Local Communities: It is important to communicate openly with the community
in dealing with the concerns raised about emissions and environmental health.
Organizations can initiate community engagement endeavors such as public forums and
stakeholder meetings to gain the trust and confidence people have in the organization.
The organization could also invest in local projects, be it a health initiative or an
environmental education program, as part of demonstrating its commitment to the public
good.
Support: Allen and Davis (2020) suggest that community engagement reduces
resistance to operations and fosters a positive public image by demonstrating corporate
social responsibility.
 Sustainability Commitments: JGSOC is actively working to reduce its environmental
footprint within the folds of its larger sustainability commitment. Efforts are including the
installation of energy-efficient measures across all plant operations, the establishment of
pollution control systems managing all emissions, and the promotion of eco-material
development by recycling programs. These activities would result in waste recycling,
energy conservation, and a reduction in the environmental impact of the manufacturing
process, thus supporting long-term business goals for the company.
Support: According to Gopalakrishnan (2019), integrating energy-efficient technologies
and recycling initiatives not only helps reduce operational costs but also aligns with
corporate sustainability goals.

4. Financial Downturns
JGSOC has encountered significant financial challenges, particularly due to an oversupply of
petrochemical products. This surplus led to a 39% drop in profits, which disrupted the
company’s financial performance. To address these issues, JGSOC applied the controlling
function of management, a critical aspect of organizational strategy that focuses on monitoring
performance, identifying discrepancies, and implementing corrective actions.
 Optimize Production Through Demand Forecasting: Leveraging advanced
forecasting tools, such as AI-powered demand prediction models, allows JGSOC to
better align its production targets with actual market needs. Accurate demand
forecasting reduces the risk of overproduction and minimizes the possibility of market
oversupply. By refining forecasting accuracy, JGSOC can mitigate risks related to market
fluctuations and prevent excess inventory, which otherwise leads to financial losses.
Support: Lee et al. (2020) argue that predictive analytics and accurate demand
forecasting help reduce excess inventory and production costs, leading to improved
profitability.
 Diversify Product Lines: Expanding into specialized, high-margin products, such as
premium plastics or biodegradable materials, can provide new revenue streams.
Diversification reduces the reliance on commoditized products like polyethylene (PE)
and polypropylene (PP), which are vulnerable to oversupply and market volatility. By
targeting niche markets or emerging industries, JGSOC can stabilize its revenue
sources and avoid the financial risks associated with fluctuating demand for mass-
market petrochemicals.
Support: Gopalakrishnan (2019) emphasizes that product diversification not only
reduces risk but also fosters innovation and enhances profitability.
 Enhance Operational Efficiency: Implementing lean manufacturing principles helps
JGSOC minimize waste, optimize resource use, and reduce production costs. Lean
practices focus on eliminating inefficiencies in production workflows, which directly
improves the bottom line. Furthermore, improving energy efficiency, reducing material
waste, and optimizing supply chains can contribute to cost savings, enabling JGSOC to
remain competitive and profitable in a volatile market.
Support: Wajid et al. (2022) highlight that lean manufacturing improves cost efficiency by
streamlining operations and reducing waste.
 Control Production Based on Real-Time Data: In response to financial downturns,
JGSOC applied the controlling function of management by continuously analyzing
fluctuations in demand and adjusting production targets accordingly. Real-time data
analytics on market conditions, consumer trends, and inventory levels allow JGSOC to
refine its budgeting practices and prevent oversupply. These corrective measures are
focused on re-aligning operations to reduce waste, improve forecasting accuracy, and
restore profitability.
Support: Severin (2023) discusses how real-time data analysis helps organizations
adjust operations proactively and restore profitability by minimizing excess production.

References
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