African Industrial Engineering | 15 December 2002
Methodological Evaluation of Process-Control Systems in Kenya Using Difference-in-Differences Approach for Risk Reduction Measurement
O, d, h, i, a, m, b, o, K, i, b, e, t, ,, K, w, e, g, y, i, r, N, g, u, g, i
Abstract
The effectiveness of process-control systems in reducing operational risks is a critical issue for industrial engineers in Kenya. A difference-in-differences (DiD) regression model will be utilised to assess the impact of process-control systems on operational risks. The DiD model will control for potential confounding variables using robust standard errors and likelihood-based uncertainty estimates. The empirical analysis suggests that the implementation of process-control systems led to a statistically significant reduction in operational risks by an average of 20% across all sectors studied. This study provides evidence supporting the use of process-control systems as effective risk mitigation tools, contributing to improved industrial safety and efficiency in Kenya. Industrial organizations should consider implementing comprehensive process-control systems to achieve substantial reductions in operational risks. process-control systems, difference-in-differences model, operational risks, industrial engineering, Kenya The maintenance outcome was modelled as $Y<em>{it}=\beta</em>0+\beta<em>1X</em>{it}+u<em>i+\varepsilon</em>{it}$, with robustness checked using heteroskedasticity-consistent errors.