Risk Assessment in Oil and Gas Industry Using Simulation and Bow-Tie Analysis

Authors

  • Zaid Kbah University of New Haven
  • Nadiye O. Erdil University of New Haven
  • Faisal Aqlan Penn State Behrend

DOI:

https://doi.org/10.23055/ijietap.2020.27.1.4042

Keywords:

Supply chain risk management, risk modeling, Bow-Tie analysis, simulation, oil & gas industry

Abstract

Risks have been in the forefront of supply chain management because of the exponential rise of natural disasters and the noticeable increase of supply chain disruptions. In oil and gas industry, risk events can be associated with consequences that might lead to fatalities and loss of millions of dollars. Therefore, effective risk management is vital for oil and gas companies. In this research, a framework that combines simulation and Bow-Tie risk modeling is proposed to study the disruption risks in oil and gas supply chains. The simulation model captures the flow of material and information and accounts for the dynamic interactions among the system components. Bow-Tie analysis is used to quantify the risks and their impact. A case study is provided to demonstrate the application of the proposed framework and to show its effectiveness as a decision-support tool that can be used in disruption risk management.

Author Biographies

Nadiye O. Erdil, University of New Haven

Nadiye Özlem Erdil is an assistant professor of industrial and systems engineering and engineering and operations management at the University of New Haven. She has over eleven years of experience in higher education and has held several academic positions including administrative appointments. She has experience in teaching at the undergraduate and the graduate level. In addition to her academic work, Dr. Erdil worked as an engineer in sheet metal manufacturing and pipe fabrication industry for five years. She holds B.S. in Computer Engineering, M.S. in Industrial Engineering. She received her Ph.D. in Industrial and Systems Engineering from Binghamton University (SUNY). Her background and research interests are in quality and productivity improvement using statistical tools, lean methods and use of information technology in operations management. Her work is primarily in manufacturing and healthcare delivery operations. She is a member of the Institute of Industrial and Systems Engineers (IISE) and currently serves as the Board Member of IISE Lean division.

Faisal Aqlan, Penn State Behrend

Faisal Aqlan is an Assistant Professor of Industrial Engineering at Penn State Behrend. He earned B.S. and M.S. in industrial engineering from Jordan University of Science and Technology in 2007 and 2010, respectively and Ph.D. in Industrial and Systems Engineering from the State University of New York at Binghamton in 2013. Prior to joining Penn State Behrend, Dr. Aqlan was a faculty member of Industrial and System Engineering at University of New Haven where he taught undergraduate and graduate courses. Dr. Aqlan has also worked on industry projects with Innovation Associates Company and IBM Corporation. His work has resulted in both business value and intellectual property. Dr. Aqlan is a certified Lean Silver and Six Sigma Black Belt. He is a senior member of the Institute of Industrial and Systems Engineers (IISE) and currently serves as the president of IISE Logistics and Supply Chain division. He has received numerous awards and honors including the IBM Vice President award for innovation excellence. He is also a member of American Society for Quality (ASQ) and Industrial Engineering and Operations Management (IEOM) society. His email address is FUA11@psu.edu.

Downloads

Published

2020-02-17

How to Cite

Kbah, Z., Erdil, N. O., & Aqlan, F. (2020). Risk Assessment in Oil and Gas Industry Using Simulation and Bow-Tie Analysis. International Journal of Industrial Engineering: Theory, Applications and Practice, 27(1). https://doi.org/10.23055/ijietap.2020.27.1.4042

Issue

Vol. 27 No. 1 (2020)

Section

Supply Chain Management

License

The Author(s) must formally transfer each article's copyright before publication in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING. Such transfer enables the Journal to defend itself against plagiarism and other forms of copyright infringement. Your cooperation is appreciated.

You agree that the copyright of your article to be published in the INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE is hereby transferred, throughout the World and for the full term and all extensions and renewals thereof, to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE.

The Author(s) reserve(s): (a) the trademark rights and patent rights, if any, and (b) the right to use all or part of the information contained in this article in future, non-commercial works of the Author's own, or, if the article is a "work-for-hire" and made within the scope of the Author's employment, the employer may use all or part of the information contained in this article for intra-company use, provided the usual acknowledgments are given regarding copyright notice and reference to the original publication.

The Author(s) warrant(s) that the article is Author's original work and has not been published before. If excerpts from copyrighted works are included, the Author will obtain written permission from the copyright owners and credit the article's sources.

The author also warrants that the article contains no libelous or unlawful statements and does not infringe on the rights of others. If the article was prepared jointly with other Author(s), the Author agrees to inform the co-Author(s) of the terms of the copyright transfer and to sign on their behalf; or in the case of a "work-for-hire," the employer or an authorized representative of the employer.

The journal does not provide the author copy of the final paper when it is published. The author(s) can make(s) a subscription to INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING - THEORY, APPLICATIONS, AND PRACTICE if they want to get the final paper that has already been published.

The journal is registered with the Library of Congress (ISSN # 1943-670X). All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the journal.

The author reserves patent and trademark rights and the right to use all or part of the information contained in the article in future non-commercial works.