The Main Critical Risk in the Supply Chain of Component Automotive Industry: A Case Study

Abstract

In automotive component company that produce electric components their supply activities have the opportunity to arise risks. Therefore, is necessary to identify and analyze critical risks or disturbances that are likely to arise and mitigate risks in operational activities in the component automotive supply chain. This research was conducted with using a house of risk model consisting of 2 phases. The first phase is identifying risk and agent risk, which then measure the severity and insurance level and calculate the aggregate risk priority (ARP) value. The second phase is handling risk. After doing research risk mitigations which were prioritized to be realized were review the current SOP and control the implementation, make punishment policy that does not to according to the SOP, maximize supervision to subordinates, discussions with customers for specific policy change in each issue, improve production and inventory control performance, arrange engine maintenance programs according to production capacity, discussion to review contracts with suppliers, strengthen implementation TQM in supplier and look forward to more long term potential supplier.