Quantitative and Qualitative Models for Managing Risk Interdependencies in Supply Chain

The interdependent nature of supply chain elements and events requires risk systems must be assessed as an interrelated framework to optimize their management and integrate effectively with other decision-making tools in uncertain environments. This research shows a synthesis and analysis of the main qualitative/quantitative methods that have been used in the literature considering the treatment of event dependencies in supply chain risk management in the period 2003– 2018. The results revealed that the integration with disruption analysis tools and artificial intelligence methods are the most common types adopted, with increasing trend and effectiveness of Bayesian and fuzzy theory approache

Assessing Total Cost of Supply Chain Risk : Constructive Study at a Semiconductor Company

This master’s thesis provides tool for supply chain risk impact identification and assessment in monetary terms by combining the total cost of ownership (TCO) approach with a selected toolbox from supply chain risk management (SCRM) literature as one of the very few examples of synthesis from these two literature fields. The research design of the study is based on the constructive research process (CRA) which has not seen extensive usage in SCRM literature. The SCRM construction created via synthesis of literature is tested and further developed in a qualitative and constructive single case study utilizing three supply chains of the Client company, a Finnish semiconductor manufacturer with heavy footprint on the automotive industry. As the main key finding of the study, a SC risk analysis tool combining the TCO approach with the SCRM framework is found possible to be constructed. The tool is discovered to provide broad and relevant insight for decision-making but suffering from lack of novel risk findings, complicatedness, and high usage of time. Furthermore, support is established for the usage of absolute business measures rather than relative scales for monetary prioritization of risk. In addition, the limiting effect of scope-driven approach for comprehensiveness of risk analysis and the difficulties with SCRM tools in the remote working are pondered. The main research contribution for academic audience is created by providing a synthesis of SCRM and TCO frameworks which has been lacking practical applications despite a prominent expectations of the literature. Furthermore, contribution is presented for three other research gaps highlighted by SCRM literature: creation of supporting tools for SCRM cost-benefit analysis, robust and systematic tools for risk identification and assessment, and further empirical validation of theoretical SCRM concepts. The main managerial implications are provided by answering the practical needs of the Client company. In a more general level, the tool could see usage in differing contexts as well thanks to the comprehensive walk-through of the process and the review of limitations for ap-plicability. Furthermore, practical implications can be drawn from the supporting risk classifications of the tool mirroring the risk environment studied – not to forget the explored potential of CRA in finding practical solutions for SCRM-needs. Finally, four future research ideas related to revisiting the Client company, integration of entire SCRM process, testing of the constructions in other industrial settings as well as further research combining SCRM and TCO literatures are proposed.Tämä pro gradu -tutkielma tarjoaa työkalun toimitusketjuriskien tunnistamiseen ja rahalliseen arviointiin yhdistämällä kokonaiskustannusten hallinnan (TCO) lähestymistavan valittuihin työkaluihin toimitusketjujen riskienhallinnan (SCRM) kirjallisuudesta yhtenä harvoista esimerkeistä, jotka yhdistävät nämä kaksi kirjallisuuden suuntausta. Tutkimusstrategia perustuu konstruktiivisen tutkimukseen (CRA), joka ei ole nähnyt laajaa käyttöä SCRM-kirjallisuudessa. Tieteellisen kirjallisuuden synteesin avulla luotu SCRM-konstruktio testataan ja edelleen kehitetään kvalitatiivisessa ja konstruktiivisessa tapaustutkimuksessa, joka hyödyntää kolmea toimeksiantajayrityksen toimitusketjua. Toimeksiantaja on suomalainen puolijohdevalmistaja, jolla on vahva jalansija autoteollisuudessa. Merkittävimpänä tutkimustuloksena toimitusketjuriskien analyysityökalu, joka yhdistää TCO-lähestymistavan SRCM-viitekehykseen, todetaan mahdolliseksi luoda. Työkalu tarjoaa laajaa ja relevanttia tietämystä päätöksenteolle, mutta kärsii uusien riskilöydösten puutteesta, monimutkaisuudesta ja korkeasta ajankäytön tarpeesta. Tukea annetaan myös absoluuttisten liiketoiminnallisten mittarien käytölle riskien priorisointiin suhteellisten skaalamittarien sijasta. Lisäksi pohditaan fokusoituneemman lähestymistavan rajaavaa vaikutusta riskianalyysin holistisuudelle sekä SCRM-työkalujen soveltamisen haasteita etätyöskentelyssä. Pääasiallinen tieteellinen kontribuutio akateemiselle yleisölle luodaan tarjoamalla SCRM- ja TCO-viitekehysten synteesi, joka ei ole kirjallisuuden odotuksista huolimatta tarjonnut juuri käytännön sovellutuksia. Kontribuutiota esitetään myös kolmelle muulle SCRM-kirjallisuudessa korostetulle tutkimuspuutteelle: tukevien työkalujen luomiselle riskienhallinnan kustannus-hyötyanalyysille, kestävien ja systemaattisten työkalujen laatimiselle riskien tunnistamiseen ja arviointiin sekä teoreettisten SCRM-konseptien lisävalidoinnille empiirisesti. Pääasiallinen käytännön kontribuutio tarjotaan vastaamalla toimeksiantajayrityksen käytännön tarpeisiin. Yleisemmällä tasolla, luotu SCRM-työkalu voisi olla käyttökelpoinen jopa toimeksiantajasta eroavissa konteksteissa laajan prosessin läpikäynnin sekä sovellettavuuden rajoitteiden katsauksen ansiosta. Lisäksi käytännön kontribuutiota tarjoaa tutkittua riskiympäristöä heijastelevat ja työkaluun sisältyvät riskien luokittelut. Unohtaa ei sovi myöskään todettua CRA-lähestymistavan potentiaalia käytännön ratkaisujen löytämiseksi SCRM-tarpeisiin. Tutkielmassa tunnistetaan myös neljä jatkotutkimusideaa liittyen toimeksiantajayrityksen seurantaan, koko SCRM-prosessin integraatioon, konstruktion testaamiseen muilla toimialoilla sekä SCRM- ja TCO-kirjallisuudet yhdistävään lisätutkimukseen

Integrating SWOT analysis into the FMEA methodology to improve corrective action decision making

Improving the method for selecting risk-based competing improvement strategies has equal importance with failure risk quantification in the FMEA methodology. Nevertheless, there are few studies which focus on this issue. Furthermore, the influence of factors relating to the business environment which may support or derail improvement efforts is not considered in previous studies. In order to address these limitations, a model is proposed in which the impact of environmental factors is considered by integrating SWOT analysis into the FMEA method in order to support the appraisal of competing risk-based improvement efforts. The impact of SWOT variables is deployed using a decision support model based upon the benefit, cost, opportunity, risk and organisational readiness index (BCOR2) approach in order for the FMEA team to select from competing corrective actions. A case example from industry is provided in which the proposed model is applied. This example illustrates that this new model contributes successfully to good practice by identifying the most appropriate corrective action option to take and improves upon the decisions provided by existing developments of the FMEA methodolog

VIKOR Technique:A Systematic Review of the State of the Art Literature on Methodologies and Applications

The main objective of this paper is to present a systematic review of the VlseKriterijuska Optimizacija I Komoromisno Resenje (VIKOR) method in several application areas such as sustainability and renewable energy. This study reviewed a total of 176 papers, published in 2004 to 2015, from 83 high-ranking journals; most of which were related to Operational Research, Management Sciences, decision making, sustainability and renewable energy and were extracted from the “Web of Science and Scopus” databases. Papers were classified into 15 main application areas. Furthermore, papers were categorized based on the nationalities of authors, dates of publications, techniques and methods, type of studies, the names of the journals and studies purposes. The results of this study indicated that more papers on VIKOR technique were published in 2013 than in any other year. In addition, 13 papers were published about sustainability and renewable energy fields. Furthermore, VIKOR and fuzzy VIKOR methods, had the first rank in use. Additionally, the Journal of Expert Systems with Applications was the most significant journal in this study, with 27 publications on the topic. Finally, Taiwan had the first rank from 22 nationalities which used VIKOR technique

Study of Major-Accident Risk Assessment Techniques in the Environmental Impact Assessment Process

[EN] Design, implementation, and operation of any project are affected by the environment where it is developed; at the same time, the project will influence the environment, since during its life cycle it can cause an impact on it. This impact can lead to social, economic, and environmental results. Directive 2014/52/EU, on the assessment of the effects of certain public and private projects on the environment, reflects the obligation for the project promoter to consider, in the Environmental Impact Study (EIS) of the project, their vulnerability (exposure and resilience) to major accidents and/or disasters, evaluating both the risk and their effects on the environment, in case these major accidents and/or disasters appear. The IEC 31.010:2019 Risk management-Risk assessment techniques standard defines 45 risk appreciation techniques that are useful when analysing the risks, in general. The objective of this paper is to review these 45 techniques, and establish which ones can be used for the assessment of accidents or disasters required in the specific environmental impact assessment process to accomplish with the regulation. After the revision, the authors propose five risks appreciation techniques that could be used for the assessment of major accidents and or disasters in projects for which EIA has to be carried out.The APC was funded by Universitat Politecnica de Valencia, Spain.Fuentes Bargues, JL.; Bastante Ceca, MJ.; Ferrer-Gisbert, P.; González-Cruz, M. (2020). Study of Major-Accident Risk Assessment Techniques in the Environmental Impact Assessment Process. Sustainability. 12(14):1-16. https://doi.org/10.3390/su12145770S1161214Gimenez, C., Sierra, V., & Rodon, J. (2012). Sustainable operations: Their impact on the triple bottom line. International Journal of Production Economics, 140(1), 149-159. doi:10.1016/j.ijpe.2012.01.035Kleindorfer, P. 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Enhancing product quality control through applications of FMEA

Product quality is the most vital factor for manufacturers’ survival. As an effective quality control technique, FMEA (Failure Mode Effect Analysis) has been put into widespread use. However, improper, unsystematic and isolated FMEA applications in product design and manufacturing process design have lowered its effectiveness greatly. This research aims to develop an integrated FMEA framework which can guide correct FMEA applications. The focus of the research is to interrelate and provide traceability of the potential failures of functions of product design and the manufacturing processes. The objectives are to: (1) synthesise the best practices of FMEA applications through a comprehensive literature review; (2) identify the gap between FMEA application performances and best practices through document research, staff interviews and questionnaire in an aerospace company; (3) develop an integrated FMEA framework designed to interrelate and provide traceability of potential failures of functions of product design and manufacturing processes; (4) validate the framework through expert judgement in collaboration with the aerospace company. This research has proposed an integrated FMEA framework. It has five parts, which mean 5 stages for applying FMEA. To guarantee enough management support and required resources, it is first necessary to establish management awareness and commitment; then the system for mandatory, systematic and correct FMEA applications must be established; subsequently, staff training to develop a sound understanding of FMEA applications, FMEA implementation for risk assessment and elimination and auditing process for continuous improvement are proposed sequentially. According to the expert judgement, the framework can guide correct and systematic FMEA applications in the collaborative aerospace company, focusing more attention on defect elimination and thereby enhancing product quality control

Integrating Quality and Risk Management in Logistics

This book focuses on the integration of quality and risk management in logistics. It examines theoretical and practical guidelines and addresses the main risks of non-compliance with the customer and legislative requirements that arise in a constantly changing external environment. Chapters discuss changes in quality and risk management in logistics, research methodologies, and the risks of non-conforming services. The book also includes a Logistics Services Satisfaction Survey. The analyses presented give us a reason to believe that the development of a systematic approach, including both satisfaction analysis and risk factor analysis, may be sufficient grounds for initiating improvements in customer service

A collaborative perspective in green construction risk management

Many risks existing in the supply chain of green construction projects are poorly managed by traditional non-collaborative approaches leading to problems such as higher prices, inappropriate indoor environment quality, technological failures and legal battles that in turn adversely affect all stakeholders. To reduce the cases of failure in the green construction industry, it is necessary for supply chain (SC) key players to collaboratively identify, analyse and treat risks, considering benefits and concerns of all stakeholders inside the network. This paper presents a method for collaborative risk management to provide informed advice to supply chain stakeholders to manage risks in the green construction industry. Contribution of the proposed collaborative approach is illustrated in a case study carried out in a green construction development project in Melbourne, Australia. The case study introduced in this research is sufficiently robust to provide evidence that collaborative approaches can add value to traditional methods of risk management and presents a modelling and analysis framework for assessing supply chain risks in the green construction

Operational Risk Management of Feed Industry (Case Study at PT. XYZ)

PT. XYZ is a feed industry company. Potential risk is bound to happen within the company's operational processes. This study aims to analyze problems or risks existed in the plant manufacturing process, assess and evaluate the correlation between risks, its degree and impact on plant manufacturing process activity, as well as creating alternative solutions to mitigate risk in the plant manufacturing process that is appropriate to increase efficiency and effectiveness. The method used is the SCOR model for getting risk event and fuzzy FMEA for risk assessment. Based on the results of operational risk, around 46 risk events were agreed upon by experts as respondents in this study. Risk event assessment was carried out using fuzzy FMEA by calculating the value of FRPN. On fuzzy FMEA, there are three input variables (Severity, Occurence, and Detection). Operational risks categorized as very high (VH) based on a case study in PT. XYZ were (1) the risk of fire plant (M14) FRPN 884.24, (2) the risk of damage to the main engine (M12) FRPN 882.76, (3) the risk of unavailability of raw materials main production (S3) FRPN 880.07, (4) the risk of uncertainty of product sales (P2) FRPN 883.12, and (5) the risk of feed manufacturing process does not conform to standards (M3) FRPN 658.07. Meanwhile, from risk event mapping by SCOR models showed that the highest operational risk and the highest in the feed industry is in the major process make with 14 risk events and the total of its accumulated FRPN is 8,488.13. Mitigation had emphasized more on the very high risk category (VH) with a range of values of ​​RPN 800-1000 assuming that these risks have a significant impact on business processes. Keywords: process, plant operational manufacturing risk, Fuzzy FME