Risk Assessment and Vulnerability Analysis for AEROLTD's Supply Chain
1. How will you determine the most vulnerable sub-system?
The most vulnerable subsystem is the centre fuselage.
2. After you have determined the vulnerability of the sub-system, what will be your next steps?
The next steps are to identify the specific risks associated with the subsystem and develop mitigation strategies.
3. How will you ensure that the recommendations from your risk assessment exercise are implemented?
The vulnerability of a subsystem can be determined by calculating a risk score for each subsystem. The risk score is calculated by multiplying the weight of each parameter by the value of the parameter for the subsystem, and then summing the products. The parameters used to calculate the risk score are: Degree of supplier involvement, Process complexity, Logistical complexity, Manufacturing capacity.
Risk Analysis and Vulnerability Assessment
The vulnerability of a subsystem can be determined by calculating a risk score for each subsystem. The risk score is calculated by multiplying the weight of each parameter by the value of the parameter for the subsystem, and then summing the products. The parameters used to calculate the risk score are: Degree of supplier involvement, Process complexity, Logistical complexity, Manufacturing capacity. The weights of the parameters and the values of the parameters for each subsystem are shown in Tables 1 to 6.
Calculating Risk Score
The risk scores for the subsystems are as follows:
- Centre fuselage: 129.77
- Wing: 113.93
- Empennage: 96.41
- Forward fuselage: 73.75
Next Steps
Once the most vulnerable subsystem has been identified, the next steps are to:
- Identify the specific risks associated with the subsystem.
- Develop mitigation strategies for the risks.
- Implement the mitigation strategies.
Implementation
The recommendations from the risk assessment exercise should be implemented by the product development team, suppliers, and the quality assurance team. The implementation of the recommendations should be monitored to ensure that they are effective in reducing the risks.
AEROLTD, an aircraft manufacturer, is facing delays in combat aircraft programmes and has strategic vendors located in different parts of the world. CEO Mr. Billington has hired your team as consultants to address the risk management issues in the supply chain.
By conducting a vulnerability analysis and risk assessment of the supply chain subsystems, you can determine the most vulnerable subsystem, develop mitigation strategies, and ensure the implementation of recommendations to reduce risks in the early stages of development. The data provided in Tables 1 to 6 will guide you in assessing the vulnerability of each subsystem and taking necessary steps to mitigate risks effectively.
Through careful analysis and strategic planning, your team can help AEROLTD in enhancing supply chain resilience, meeting performance and cost targets, and ensuring on-time launch of products. By identifying weak links and implementing tailored risk management strategies, AEROLTD can navigate uncertainties and challenges in the supply chain more efficiently.