Supply Chain Management and Advanced Planning †MyAssignmenthelp

Question: Discuss about the Supply Chain Management and Advanced Planning. Answer: Introduction Researchers Ch and Hamper (2013) argue that Risk Management is essentially a procedure that emphasizes on the identification of the risks associated with any organizational process or a project, assessing the impact of the same on the successful completion of the process and/ or the project on a whole and prioritize them accordingly. On the other hand Ho et al. (2015) comment that the primary objective of following a risk management process is to highlight the mechanisms that can be utilized for avoiding the risk scenarios that might be associated the project or process under consideration. This report is being documented with the aim of identifying the methods that can be utilized for the management for risks associated with the supply chain system of Ford Australia. While the introductory section of the report essentially provides an insight into the contents of the report, the backgrounds scenario along with the risks that are currently associated with the said system would be discussed in section 2 of the report. The methods, tools and techniques that can be utilized for the appropriate management of risks would be discussed in details in section 3 of the report, while the overall findings of the study would be discussed in the concluding sections of the report. Ford Australia is one of the most well known names in the automotive industry of Australia (Ford Australia, 2017). According to K?r?lmaz and Erol (2017), in the past few years, the organization has been experiencing severe issue with supply chain process, the cumulative effects of which have actually forced the organization to outsource the majority of their supply chain functionalities, besides shutting down several productions units in the country. A close review of the existing supply chains system of various automobile organizations reveal that the following risk factors are associated with the same: Inbound quality of product: According to researchers Holweg and Helo (2014) the first and foremost risk event associated with the supply chain management process of automobile organizations is that the organization might fail to provide quality product t its customers, thus resulting in significantly low customer satisfaction levels. In fact, in case low quality products are made available to the customers, there lies a significant possibility that the process of sales revenue generation would be affected considerably. Delay in delivery of products: Yet another risk factor associated with the supply chain process is that the supply chain representatives of automobile organizations might not be capable of delivering the product to the customer within the time phrase promised to them, thus resulting in higher number e of customer complaints and lower customer satisfaction levels (Monczka et al. 2015) . As in case of the previous of the previously mentioned risk factor, delays in delivery system might actually result in affecting the process of sales revenue generation. Lack of accuracy in the process of delivery and shipment of products: Along with the risk if delivering faulty products or delivering products after their due dates, there also exist the possibility that the supply chain representatives in consideration might deliver wrong products to the customers, thus resulting in the low customer satisfaction levels and high number of escalations (Lavastre, Gunasekaran Spalanzani, 2014). Internal processes not functioning properly: According to experts Holweg and Helo (2014), perhaps the greatest risk associated with the supply chain system of automobile organizations is that the internal supply chain processes might not function appropriately, thus resulting in wrong and delayed deliveries made to the customers, along with the non adherence to the quality standards committed to the client. Methods for avoiding risk The preceding section of the project provides an idea regarding the very primary risk factors that might affect the efficiency of the supply management system that currently exists in at Ford Australia . In the following section of the report, discussions would be made regarding the tools., techniques and methods that can be utilized for the management of the same. Although the discussion made in section 2 provide a fair idea of the risk factors commonly associated with the supply chain processes of all major automobile organizations, it is essential to identify the ones that are specifically associated with the organization under consideration. According to Monczka et al. (2015), the following key steps should essentially be adhered to for the identification of risk across all business and operational activities associate with the supply chain management system of Ford Australia: Understanding the context of the risk identification process Identifying the risks through a thorough information gathering process and the utilization of the appropriate risk identification techniques and tools Understanding the context of the risk identification process Understanding the context of the risk management process i essential for the identification of a comprehensive list of possible risks that might be associated with any project or a process on a whole (Peng, Peng Chen, 2014). However, in case of the circumstances under consideration, the identification of the context had been performed in the very initial phases of the task. In order to gain information regarding the risks associated with the chosen context, that is the supply chain process of Ford Australia, the SWOT analysis and PESTLE analysis of the business process needs to be conducted. According to researcher Stadtler (2015) the appropriate utilization of these tools would facilitate the identification of the existing weakness of the system and the environmental factors that might affect the efficiency of the existing system: these factors in turn can be considered as the major points to be considered during the identification of the risk factors. Once the major risk and threat areas are identified, techniques like brainstorming, scenario analysis and system analysis would be utilized for pinpointing the risk factors associated with the supply chain system of Ford. Documentation of risks and the methods utilized in identifying the same The identification of the risks associated with the supply chain management system of Ford Austral would essentially lead to the development of the risk register. As authors Qiang et al. (2014) comment, the risk register can be considered as a comprehensive document that contains a record of all the risk factors that are considered to be associated with any major business process or project undertaken by an organization. On the other hand, according to Trkman et al. (2016 ), the risk register is developed with the aim of meeting the following purposes: It acts as that particular source that can be utilized to inform the various stakeholders associated with any project (or an organization as a whole), besides sharing the same within the entire organization. The risk register allow the organizational heads to take a note of the high priority risks associated with the project/ organizational process. As researchers Wang et al. (2015) point out, the risk register to developed should essentially include the following basic information regarding the supply chain risks of Ford Australia: The detailed description of the riske risk category The factors that lead to the occurrence of the risk The probable impact of the risks on the organization as a whole The consequence and likelihood of the occurrence of the risk events A profiling of the risk events The project or organizational resources responsible for the management of each risk factor The timeframe required/ utilized for the appropriate management of the risk factors Risk Assessment and response: methods, tools and techniques Experts Edelenbos et al. (2017) comment that risk assessment can be considered as the process that is associated with the qualitative and or quantitative analysis of the risks associated with any organization process or project, provided the details of the situation and the characteristics of the risk or the hazard are available with the project team in advance. On the other hand, researcher Enyinda (2017) is the opinion that the in case of Quantitative risk assessment, it is essential that the following two components are available to then organizational or project personnel associated with the assessment of risks: The magnitude of loss that the organization or the project might suffer from in case the risk event occur in practice The probability that the risk event occurs in practice Researchers Wiengarten et al. (2016) are of the opinion that the quantitative method of risk assessment is the most suitable method for inclusion in the risk register: hence the same would be utilized for the analyzing the risk associated with the supply chain process of Ford Australia. The following risk matrix can be utilized for the identification of the impact and priority of each of the risks identified: Table: The risk matrix Negligible Marginal Critical Catastrophic Definitely High High Extreme Extreme Likely Moderate High High Extreme Occasional Low Moderate High Extreme Seldom Low Low Moderate Extreme Unlikely Low Low Moderate High The probability parameters included in the risk matrix above are being discussed in details in the section below (Enyinda, 2017): Definitely: The probability of occurrence of these risk factors lies in between 80 to 100 percent. Likely: The probability of occurrence of these risk factors lies in between 60 to 80 percent. Occasional: The probability of occurrence of these risk factors lies in between 40 to 60 percent. Seldom: The probability of occurrence of these risk factors lies in between 40 to 60 percent. Unlikely: The probability of occurrence of these risk factors lies in between 20 to 40 percent. On the other hand, the impact parameters included in the risk matrix above are being discussed in details in the section below (Enyinda, 2017): Catastrophic: The risk event in consideration is detrimental for the entire project/ organizational process Critical: The risk event has the capability of jeopardizing the success of the project/ progress to a significant Moderate: The risk event in consideration would create certain issues, but would not affect the success of the project to a significant extent. Marginal: The risk event in consideration would have little or no impact on the process or projects under consideration. This is the final stage of the risk management process , during which strategies would be decided for the management of the negative risks associated with the supply chain of Ford Australia. According to Wiengarten et al. (2016), the risk response phase would emphasize on the identification of the appropriate strategy that can be utilized for the management of identified risk, the available options being the following: Risk Avoidance: Strategies should be taken so as to reduce the factors that lead to the occurrence of risk events, thus reaching a situation where the risk facto can be avoided completely (K?r?lmaz Erol, 2017). Risk transfer: Any third party should be made responsible for the management of the risk event under consideration. Risk mitigation: Strategies would be utilized for reducing the impact of the risk event under consideration (Peng, Peng Chen, 2014). Risk Acceptance: The risk event would simply be accepted, as the cost associated with mitigating, avoiding or transferring it is too high. Conclusion The preceding sections of the report highlight the methods and techniques to be utilized in analyzing and managing the risks associated with the supply chain of Ford Australia. The information provided in section 2of the report indicate that the following risks are primarily associated with the supply chain systems of the automobile organizations: inbound quality of product, delay in delivery of products, lack of accuracy in the process of delivery and shipment of products and internal processes not functioning properly In the light of the discussions, it can thus be concluded that techniques like brainstorming, scenario analysis and system analysis would be utilized for identifying the risks associated with the process, whereas a risk matrix would be utilized for the quantitative analysis of the same. 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