Vol. 2002 No. 1 (2002)
Methodological Evaluation of Process-Control Systems in Kenya Using Difference-in-Differences Approach for Risk Reduction Measurement
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 $Y_{it}=\beta_0+\beta_1X_{it}+u_i+\varepsilon_{it}$, with robustness checked using heteroskedasticity-consistent errors.