Discuss below questions based on attached case study PART A 1) What were the Top 3 capability strengths for i-AM, Inc.? Top 3 weaknesses? Describe a -

Discuss below questions based on attached case study

PART A
1) What were the Top 3 capability strengths for i-AM, Inc.? Top 3 weaknesses? Describe an example of each strength and weakness.

Don't use plagiarized sources. Get Your Custom Assignment on

Discuss below questions based on attached case study PART A 1) What were the Top 3 capability strengths for i-AM, Inc.? Top 3 weaknesses? Describe a

From as Little as $13/Page

2) Based on the resilience gaps computed by the SCRAM tool, are there any patterns that i-AM, Inc., can use to their advantage?

PART B
1) Compute the recommended safety stock and re-order point for a continuous review inventory system, using actual data from December 2012, given i-AM, Inc.s goal of a 95% service level.

2) Determine which supplier or suppliers should be used for 2013 and beyond. Consider both financial and resilience aspects of this recommendation.

Council _x000D_ of _x000D_ Supply _x000D_ Chain _x000D_ Management _x000D_ Professionals _x000D_
333 _x000D_ East _x000D_ Butterfield _x000D_ Road, _x000D_ Suite _x000D_ 140 _x000D_
Lombard, _x000D_ Illinois _x000D_ 60148 _x000D_ USA _x000D_
+1 _x000D_ 630.574.0985 _x000D_ _x000D_ | _x000D_ _x000D_ [emailprotected] _x000D_ _x000D_ | _x000D_ _x000D_ cscmp.org _x000D_

_x000D_
_x000D_
_x000D_
_x000D_
_x000D_
_x000D_ _x000D_
_x000D_
_x000D_
_x000D_
_x000D_

CSCMP _x000D_ ACADEMIC _x000D_ CASE _x000D_ STUDY _x000D_ SERIES _x000D_
_x000D_ _x000D_

Case _x000D_ studies _x000D_ can _x000D_ supplement _x000D_ a _x000D_ course _x000D_ and _x000D_ be _x000D_ used _x000D_ to _x000D_ teach _x000D_ application _x000D_ of _x000D_ supply _x000D_ chain _x000D_
management _x000D_ concepts _x000D_ to _x000D_ real-world _x000D_ situations. _x000D_ Others _x000D_ can _x000D_ use _x000D_ the _x000D_ case _x000D_ studies _x000D_ to _x000D_ learn _x000D_
about _x000D_ supply _x000D_ chain _x000D_ challenges _x000D_ and _x000D_ to _x000D_ analyze _x000D_ the _x000D_ situation _x000D_ to _x000D_ develop _x000D_ solutions. _x000D_
_x000D_ _x000D_

Supply _x000D_ Chain _x000D_ Resilience: _x000D_
A _x000D_ Case _x000D_ of _x000D_ Balancing _x000D_ the _x000D_ Supply _x000D_ Chain _x000D_
for _x000D_ Long-term _x000D_ Sustainability _x000D_
An _x000D_ Academic _x000D_ Learning _x000D_ Case _x000D_ Study _x000D_ written _x000D_ for _x000D_ the _x000D_
Council _x000D_ of _x000D_ Supply _x000D_ Chain _x000D_ Management _x000D_ Professionals _x000D_

By: _x000D_
Lieutenant _x000D_ Colonel _x000D_ Timothy _x000D_ J. _x000D_ Pettit, _x000D_ PhD _x000D_
U.S. _x000D_ Air _x000D_ Force _x000D_ Academy _x000D_ [emailprotected] _x000D_

The _x000D_ views _x000D_ expressed _x000D_ in _x000D_ this _x000D_ article _x000D_ are _x000D_ those _x000D_ of _x000D_ the _x000D_ authors _x000D_ and _x000D_ do _x000D_ not _x000D_ necessarily _x000D_ reflect _x000D_ the _x000D_ official _x000D_
policy _x000D_ or _x000D_ position _x000D_ of _x000D_ the _x000D_ Air _x000D_ Force, _x000D_ the _x000D_ Department _x000D_ of _x000D_ Defense, _x000D_ or _x000D_ the _x000D_ U.S. _x000D_ Government. _x000D_

_x000D_
_x000D_

_x000D_ _x000D_

This _x000D_ document _x000D_ is _x000D_ available _x000D_ from _x000D_ our _x000D_ site _x000D_ and _x000D_ provided _x000D_ for _x000D_ your _x000D_ personal _x000D_ use _x000D_ only _x000D_ and _x000D_ may _x000D_ not _x000D_ be _x000D_ retransmitted _x000D_ or _x000D_ redistribute _x000D_ d _x000D_ without _x000D_ written _x000D_ permission _x000D_ from _x000D_ the _x000D_
Council _x000D_ of _x000D_ Supply _x000D_ Chain _x000D_ Management _x000D_ Professionals _x000D_ (CSCMP). _x000D_ You _x000D_ may _x000D_ not _x000D_ upload _x000D_ any _x000D_ of _x000D_ this _x000D_ sites _x000D_ material _x000D_ to _x000D_ any _x000D_ public _x000D_ server, _x000D_ online _x000D_ service, _x000D_ network, _x000D_ or _x000D_ bulletin _x000D_
board _x000D_ without _x000D_ written _x000D_ permission _x000D_ from _x000D_ CSCMP. _x000D_

Supply _x000D_ Chain _x000D_ Resilience: _x000D_ Balancing _x000D_ the _x000D_ SC _x000D_ for _x000D_ Long-term _x000D_ Sustainability _x000D_ _x000D_

_x000D_

2 _x000D_

_x000D_

CASE _x000D_ OVERVIEW _x000D_

The _x000D_ i-AM _x000D_ Tablet _x000D_ is _x000D_ an _x000D_ evolving _x000D_ gadget _x000D_ in _x000D_ a _x000D_ world _x000D_ of _x000D_ fast-paced _x000D_ technological _x000D_ change. _x000D_ Facing _x000D_

a _x000D_ new _x000D_ partnership _x000D_ with _x000D_ a _x000D_ major _x000D_ customer, _x000D_ the _x000D_ market _x000D_ for _x000D_ the _x000D_ i-AM _x000D_ Tablet _x000D_ is _x000D_ about _x000D_ to _x000D_ explode _x000D_ on _x000D_

the _x000D_ market. _x000D_ Jim _x000D_ MacDonald, _x000D_ CEO _x000D_ of _x000D_ i-AM, _x000D_ Inc., _x000D_ and _x000D_ his _x000D_ team _x000D_ have _x000D_ effectively _x000D_ employed _x000D_ traditional _x000D_

risk _x000D_ management _x000D_ concepts _x000D_ over _x000D_ the _x000D_ past _x000D_ two _x000D_ years _x000D_ and _x000D_ they _x000D_ have _x000D_ yet _x000D_ to _x000D_ face _x000D_ a _x000D_ product _x000D_ recall _x000D_ or _x000D_

distribution _x000D_ disruption. _x000D_ However, _x000D_ with _x000D_ the _x000D_ growth _x000D_ that _x000D_ Jim _x000D_ envisions _x000D_ for _x000D_ his _x000D_ company, _x000D_ he _x000D_ is _x000D_ turning _x000D_

to _x000D_ the _x000D_ evolving _x000D_ concept _x000D_ of _x000D_ Supply _x000D_ Chain _x000D_ Resilience _x000D_ to _x000D_ focus _x000D_ his _x000D_ team _x000D_ on _x000D_ proactively _x000D_ managing _x000D_ the _x000D_

upcoming _x000D_ change. _x000D_

[Note _x000D_ to _x000D_ readers: _x000D_ Concepts _x000D_ in _x000D_ this _x000D_ case _x000D_ were _x000D_ developed _x000D_ in _x000D_ cooperation _x000D_ with _x000D_ The _x000D_ Dow _x000D_

Chemical _x000D_ Company _x000D_ and _x000D_ The _x000D_ Ohio _x000D_ State _x000D_ University. _x000D_ Details _x000D_ are _x000D_ described _x000D_ in _x000D_ the _x000D_ 2011 _x000D_ CSCMP _x000D_

Innovation _x000D_ Award _x000D_ Competition _x000D_ case _x000D_ study1, _x000D_ found _x000D_ on _x000D_ the _x000D_ CSCMP _x000D_ website _x000D_ cscmp.org.] _x000D_

AUDIENCE _x000D_

This _x000D_ case _x000D_ incorporates _x000D_ the _x000D_ multiple _x000D_ business _x000D_ aspects _x000D_ of _x000D_ operating _x000D_ a _x000D_ firm _x000D_ as _x000D_ well _x000D_ as _x000D_ the _x000D_

interactions _x000D_ between _x000D_ supply _x000D_ chain _x000D_ partners. _x000D_ Therefore, _x000D_ this _x000D_ case _x000D_ is _x000D_ most _x000D_ appropriate _x000D_ for _x000D_ advanced _x000D_

undergraduate _x000D_ business _x000D_ majors _x000D_ and _x000D_ MBA _x000D_ students. _x000D_ The _x000D_ questions _x000D_ in _x000D_ Part _x000D_ B _x000D_ are _x000D_ specifically _x000D_ geared _x000D_

toward _x000D_ the _x000D_ MBA-level _x000D_ student. _x000D_ This _x000D_ case _x000D_ should _x000D_ be _x000D_ considered _x000D_ for _x000D_ capstone _x000D_ courses _x000D_ to _x000D_ take _x000D_ full _x000D_

advantage _x000D_ of _x000D_ the _x000D_ integration _x000D_ of _x000D_ a _x000D_ variety _x000D_ of _x000D_ business _x000D_ concepts. _x000D_

LEARNING _x000D_ OBJECTIVES _x000D_

Participants _x000D_ will: _x000D_ _x000D_

– understand _x000D_ the _x000D_ concept _x000D_ of _x000D_ resilience _x000D_ and _x000D_ its _x000D_ similarities _x000D_ and _x000D_ differences _x000D_ from _x000D_

traditional _x000D_ risk _x000D_ management _x000D_

_x000D_ _x000D_

Supply _x000D_ Chain _x000D_ Resilience: _x000D_ Balancing _x000D_ the _x000D_ SC _x000D_ for _x000D_ Long-term _x000D_ Sustainability _x000D_ _x000D_

_x000D_

3 _x000D_

_x000D_

– appreciate _x000D_ the _x000D_ complexity _x000D_ and _x000D_ inter-relation _x000D_ of _x000D_ managerial _x000D_ capabilities _x000D_ in _x000D_

establishing _x000D_ and _x000D_ maintaining _x000D_ a _x000D_ resilient _x000D_ supply _x000D_ chain _x000D_

– apply _x000D_ the _x000D_ results _x000D_ of _x000D_ a _x000D_ resilience _x000D_ assessment _x000D_ to _x000D_ recommend _x000D_ managerial _x000D_

improvements, _x000D_ both _x000D_ toward _x000D_ increasing _x000D_ capabilities _x000D_ and _x000D_ to _x000D_ potentially _x000D_ lower _x000D_ other _x000D_

capabilities _x000D_

– understand _x000D_ the _x000D_ process _x000D_ of _x000D_ resilience _x000D_ management _x000D_

CURRENT _x000D_ OPERATIONS _x000D_ OF _x000D_ i-AM, _x000D_ INC. _x000D_

Jim _x000D_ MacDonald _x000D_ is _x000D_ the _x000D_ founder _x000D_ and _x000D_ CEO _x000D_ of _x000D_ the _x000D_ tech _x000D_ start-up _x000D_ i-AM, _x000D_ Inc. _x000D_ His _x000D_ vision _x000D_ for _x000D_ a _x000D_ new _x000D_

breed _x000D_ of _x000D_ tablets _x000D_ will _x000D_ directly _x000D_ compete _x000D_ against _x000D_ the _x000D_ evolving _x000D_ multi-function _x000D_ e-readers, _x000D_ booming _x000D_

notebooks, _x000D_ and _x000D_ smartphones. _x000D_ Jims _x000D_ business _x000D_ model _x000D_ is _x000D_ to _x000D_ find _x000D_ a _x000D_ niche _x000D_ market _x000D_ in _x000D_ which _x000D_ to _x000D_ grow _x000D_ his _x000D_

sales _x000D_ and _x000D_ continue _x000D_ innovation _x000D_ while _x000D_ leveraging _x000D_ supply _x000D_ chain _x000D_ relationships _x000D_ with _x000D_ major _x000D_

manufacturers _x000D_ in _x000D_ Asia _x000D_ and _x000D_ retail _x000D_ outlets _x000D_ in _x000D_ North _x000D_ America. _x000D_ Selling _x000D_ at _x000D_ only _x000D_ $199, _x000D_ the _x000D_ first _x000D_ generation _x000D_

i-AM _x000D_ Tablet _x000D_ integrated _x000D_ a _x000D_ very _x000D_ long-life _x000D_ battery _x000D_ with _x000D_ an _x000D_ easy-to-read _x000D_ 8 _x000D_ screen, _x000D_ along _x000D_ with _x000D_ Wi-Fi _x000D_

enabled _x000D_ web _x000D_ browsing _x000D_ and _x000D_ open-sourced _x000D_ apps. _x000D_ Since _x000D_ the _x000D_ i-AM _x000D_ Tablet _x000D_ was _x000D_ introduced _x000D_ 2 _x000D_ years _x000D_ ago, _x000D_

sales _x000D_ have _x000D_ grown _x000D_ from _x000D_ an _x000D_ introductory _x000D_ quarter _x000D_ of _x000D_ $128,000 _x000D_ to _x000D_ over _x000D_ $80M _x000D_ last _x000D_ quarter. _x000D_ Mr. _x000D_

MacDonald _x000D_ projects _x000D_ that _x000D_ with _x000D_ a _x000D_ new _x000D_ partnership _x000D_ with _x000D_ a _x000D_ major _x000D_ cell _x000D_ phone _x000D_ carrier _x000D_ and _x000D_ the _x000D_ inclusion _x000D_

of _x000D_ 4G _x000D_ communications _x000D_ into _x000D_ the _x000D_ i-AM _x000D_ Tablet, _x000D_ sales _x000D_ will _x000D_ greatly _x000D_ increase _x000D_ as _x000D_ customers _x000D_ replace _x000D_

multiple _x000D_ gadgets _x000D_ with _x000D_ a _x000D_ single _x000D_ multi-purpose _x000D_ i-AM _x000D_ Tablet _x000D_ device. _x000D_

However, _x000D_ the _x000D_ road _x000D_ toward _x000D_ success _x000D_ has _x000D_ not _x000D_ been _x000D_ smooth. _x000D_ The _x000D_ i-AM _x000D_ has _x000D_ faced _x000D_ multiple, _x000D_ but _x000D_

minor, _x000D_ supplier _x000D_ disruptions _x000D_ throughout _x000D_ the _x000D_ past _x000D_ two _x000D_ years. _x000D_ Although _x000D_ none _x000D_ have _x000D_ greatly _x000D_ impacted _x000D_

customer _x000D_ orders, _x000D_ Jims _x000D_ plans _x000D_ to _x000D_ expand _x000D_ to _x000D_ the _x000D_ big _x000D_ leagues _x000D_ has _x000D_ him _x000D_ worried _x000D_ about _x000D_ being _x000D_ able _x000D_ to _x000D_

continually _x000D_ maintain _x000D_ customer _x000D_ expectations _x000D_ for _x000D_ product _x000D_ quality _x000D_ and _x000D_ delivery _x000D_ schedules. _x000D_ Meeting _x000D_

demand _x000D_ without _x000D_ the _x000D_ burden _x000D_ of _x000D_ large _x000D_ inventories _x000D_ in _x000D_ this _x000D_ fast-paced, _x000D_ high-technology _x000D_ market _x000D_ will _x000D_ be _x000D_

critical _x000D_ to _x000D_ the _x000D_ financial _x000D_ success _x000D_ of _x000D_ i-AM, _x000D_ Inc. _x000D_

_x000D_

Supply _x000D_ Chain _x000D_ Resilience: _x000D_ Balancing _x000D_ the _x000D_ SC _x000D_ for _x000D_ Long-term _x000D_ Sustainability _x000D_ _x000D_

_x000D_

4 _x000D_

_x000D_

THE _x000D_ APPROACH _x000D_ FOR _x000D_ SUCCESS _x000D_

Although _x000D_ the _x000D_ traditional _x000D_ concepts _x000D_ of _x000D_ risk _x000D_ management _x000D_ are _x000D_ firmly _x000D_ embedded _x000D_ in _x000D_ his _x000D_

engineering, _x000D_ production, _x000D_ and _x000D_ logistics _x000D_ decision _x000D_ processes, _x000D_ Jim _x000D_ wants _x000D_ to _x000D_ be _x000D_ more _x000D_ proactive _x000D_ in _x000D_

managing _x000D_ his _x000D_ companys _x000D_ changing _x000D_ environment. _x000D_ Therefore, _x000D_ MacDonald _x000D_ is _x000D_ applying _x000D_ the _x000D_ concept _x000D_ of _x000D_

Supply _x000D_ Chain _x000D_ Resilience _x000D_ to _x000D_ his _x000D_ operations _x000D_ in _x000D_ hopes _x000D_ of _x000D_ maintaining _x000D_ financial _x000D_ success _x000D_ through _x000D_ these _x000D_

turbulent _x000D_ times. _x000D_ _x000D_

Current _x000D_ Strengths _x000D_ _x000D_ Risk _x000D_ management _x000D_ versus _x000D_ Resilience _x000D_

Since _x000D_ the _x000D_ 1970s, _x000D_ risk _x000D_ analysis _x000D_ techniques _x000D_ have _x000D_ played _x000D_ a _x000D_ major _x000D_ role _x000D_ in _x000D_ corporate _x000D_ decision _x000D_

making, _x000D_ especially _x000D_ when _x000D_ combined _x000D_ with _x000D_ financial _x000D_ models2. _x000D_ In _x000D_ practice, _x000D_ risk _x000D_ management _x000D_ entails _x000D_

examining _x000D_ all _x000D_ possible _x000D_ outcomes _x000D_ of _x000D_ a _x000D_ project _x000D_ or _x000D_ process, _x000D_ then _x000D_ weighing _x000D_ the _x000D_ potential _x000D_ returns _x000D_

against _x000D_ the _x000D_ potential _x000D_ risks _x000D_ of _x000D_ the _x000D_ investment3. _x000D_ Currently, _x000D_ the _x000D_ leading _x000D_ approach _x000D_ to _x000D_ Enterprise _x000D_ Risk _x000D_

Management _x000D_ comes _x000D_ from _x000D_ the _x000D_ Committee _x000D_ of _x000D_ Sponsoring _x000D_ Organizations _x000D_ of _x000D_ the _x000D_ Treadway _x000D_

Commission _x000D_ (COSO _x000D_ 2004)4. _x000D_ A _x000D_ typical _x000D_ view _x000D_ of _x000D_ the _x000D_ traditional _x000D_ risk _x000D_ management _x000D_ process _x000D_ is _x000D_ shown _x000D_ in _x000D_

Figure _x000D_ 1, _x000D_ depicting _x000D_ a _x000D_ continuous _x000D_ cycle _x000D_ of _x000D_ identification _x000D_ of _x000D_ hazards, _x000D_ assessment _x000D_ of _x000D_ risks, _x000D_ analysis _x000D_ of _x000D_

controls, _x000D_ choosing _x000D_ controls, _x000D_ implementing _x000D_ controls, _x000D_ and _x000D_ review. _x000D_ In _x000D_ many _x000D_ applications, _x000D_ risks _x000D_ can _x000D_ be _x000D_

quantified _x000D_ based _x000D_ on _x000D_ historical _x000D_ data, _x000D_ but _x000D_ evaluating _x000D_ risks _x000D_ typically _x000D_ requires _x000D_ assumptions _x000D_ based _x000D_ on _x000D_

subjective _x000D_ information _x000D_ rather _x000D_ than _x000D_ hard _x000D_ facts. _x000D_ _x000D_

_x000D_

_x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_ _x000D_
2 _x000D_ Hertz, _x000D_ David _x000D_ B. _x000D_ and _x000D_ Howard _x000D_ Thomas _x000D_ (1983), _x000D_ Risk _x000D_ analysis: _x000D_ Important _x000D_ new _x000D_ tool _x000D_ for _x000D_ business _x000D_ planning, _x000D_ Journal _x000D_ of _x000D_ Business _x000D_ Strategy, _x000D_
Vol. _x000D_ 3, _x000D_ No. _x000D_ 3, _x000D_ pp. _x000D_ 23-29. _x000D_
3 _x000D_ Zsidisin, _x000D_ George _x000D_ A., _x000D_ Lisa _x000D_ M. _x000D_ Ellram, _x000D_ Joseph _x000D_ R. _x000D_ Carter _x000D_ and _x000D_ Joseph _x000D_ L. _x000D_ Cavinato _x000D_ (2004), _x000D_ An _x000D_ analysis _x000D_ of _x000D_ supply _x000D_ risk _x000D_ assessment _x000D_ techniques, _x000D_
International _x000D_ Journal _x000D_ of _x000D_ Physical _x000D_ Distribution _x000D_ & _x000D_ Logistics _x000D_ Management, _x000D_ Vol. _x000D_ 34, _x000D_ No. _x000D_ 5, _x000D_ pp. _x000D_ 397-413. _x000D_
4 _x000D_ Committee _x000D_ of _x000D_ Sponsoring _x000D_ Organizations _x000D_ (COSO) _x000D_ of _x000D_ the _x000D_ Treadway _x000D_ Commission _x000D_ (2004), _x000D_ Enterprise _x000D_ risk _x000D_ management: _x000D_ Integrated _x000D_
framework, _x000D_ www.coso.org/Publications/ERM/COSO_ERM_ExecutiveSummary.pdf. _x000D_

Supply _x000D_ Chain _x000D_ Resilience: _x000D_ Balancing _x000D_ the _x000D_ SC _x000D_ for _x000D_ Long-term _x000D_ Sustainability _x000D_ _x000D_

_x000D_

5 _x000D_

_x000D_

Figure _x000D_ 1: _x000D_ Operational _x000D_ Risk _x000D_ Management _x000D_ Process5 _x000D_

In _x000D_ assessing _x000D_ the _x000D_ risks _x000D_ at _x000D_ i-AM, _x000D_ Inc. _x000D_ (Step _x000D_ 2 _x000D_ in _x000D_ Figure _x000D_ 1), _x000D_ Jim _x000D_ has _x000D_ seen _x000D_ great _x000D_ benefits _x000D_ from _x000D_

sorting _x000D_ each _x000D_ identified _x000D_ risk _x000D_ into _x000D_ 3 _x000D_ distinct _x000D_ categories: _x000D_ 1) _x000D_ Preventable _x000D_ risks, _x000D_ 2) _x000D_ Strategy _x000D_ risks, _x000D_ and _x000D_ 3) _x000D_

External _x000D_ risks. _x000D_ First, _x000D_ preventable _x000D_ risks _x000D_ arise _x000D_ from _x000D_ within _x000D_ the _x000D_ company _x000D_ and _x000D_ are _x000D_ typically _x000D_ identified _x000D_ by _x000D_

listing _x000D_ past _x000D_ occurrences _x000D_ and _x000D_ evaluations _x000D_ by _x000D_ expert _x000D_ insights. _x000D_ These _x000D_ risks _x000D_ should _x000D_ be _x000D_ closely _x000D_

monitored _x000D_ and _x000D_ controlled _x000D_ using _x000D_ strict _x000D_ rules _x000D_ and _x000D_ standard _x000D_ compliance _x000D_ tools. _x000D_ However, _x000D_ strategy _x000D_ risks _x000D_

and _x000D_ external _x000D_ risks _x000D_ require _x000D_ distinct _x000D_ processes _x000D_ that _x000D_ encourage _x000D_ managers _x000D_ to _x000D_ openly _x000D_ discuss _x000D_ risks _x000D_ and _x000D_

find _x000D_ cost-effective _x000D_ ways _x000D_ to _x000D_ reduce _x000D_ the _x000D_ likelihood _x000D_ of _x000D_ risk _x000D_ events _x000D_ or _x000D_ mitigate _x000D_ their _x000D_ consequences.6 _x000D_

During _x000D_ Jims _x000D_ recent _x000D_ brainstorming _x000D_ session _x000D_ with _x000D_ his _x000D_ senior _x000D_ managers _x000D_ and _x000D_ front-line _x000D_ employees, _x000D_ the _x000D_

group _x000D_ sorted _x000D_ 32 _x000D_ identified _x000D_ risks _x000D_ into _x000D_ these _x000D_ three _x000D_ categories, _x000D_ which _x000D_ turned _x000D_ out _x000D_ to _x000D_ be _x000D_ very _x000D_ helpful _x000D_ in _x000D_

completing _x000D_ the _x000D_ risk _x000D_ process _x000D_ steps _x000D_ with _x000D_ a _x000D_ different _x000D_ risk _x000D_ lens _x000D_ for _x000D_ each _x000D_ category. _x000D_ It _x000D_ was _x000D_ the _x000D_ final _x000D_

category, _x000D_ External _x000D_ Risks, _x000D_ that _x000D_ really _x000D_ worried _x000D_ Jim _x000D_ MacDonald _x000D_ and _x000D_ got _x000D_ him _x000D_ focusing _x000D_ on _x000D_ his _x000D_ supply _x000D_

chain. _x000D_

Step 1:
Identify Hazards

Step 2:
Assess Risks

Step 3:
Analyze Controls

Step 4:
Determine Controls

Step 5:
Implement Controls

Step 6:
Supervise
and Review

Step 1:
Identify Hazards

Step 2:
Assess Risks

Step 3:
Analyze Controls

Step 4:
Determine Controls

Step 5:
Implement Controls

Step 6:
Supervise
and Review

Supply _x000D_ Chain _x000D_ Resilience: _x000D_ Balancing _x000D_ the _x000D_ SC _x000D_ for _x000D_ Long-term _x000D_ Sustainability _x000D_ _x000D_

_x000D_

6 _x000D_

_x000D_

Figure _x000D_ 2: _x000D_ Risk _x000D_ Categories _x000D_

Recent _x000D_ research _x000D_ has _x000D_ expanded _x000D_ the _x000D_ internal _x000D_ risk _x000D_ analysis _x000D_ to _x000D_ supply _x000D_ chain _x000D_ opportunities _x000D_ by _x000D_

integrating _x000D_ risk _x000D_ management _x000D_ techniques _x000D_ into _x000D_ a _x000D_ comprehensive _x000D_ supply _x000D_ chain _x000D_ risk _x000D_ management _x000D_

program: _x000D_ management _x000D_ of _x000D_ supply, _x000D_ products, _x000D_ demand, _x000D_ and _x000D_ information.7 _x000D_ Mr. _x000D_ MacDonald _x000D_ has _x000D_ been _x000D_

very _x000D_ impressed _x000D_ with _x000D_ his _x000D_ staffs _x000D_ implementation _x000D_ of _x000D_ risk _x000D_ management _x000D_ over _x000D_ the _x000D_ past _x000D_ two _x000D_ years. _x000D_ One _x000D_

example _x000D_ of _x000D_ what _x000D_ has _x000D_ helped _x000D_ him _x000D_ sleep _x000D_ better _x000D_ at _x000D_ night _x000D_ was _x000D_ the _x000D_ purchase _x000D_ of _x000D_ an _x000D_ electrical _x000D_ generator _x000D_

to _x000D_ avoid _x000D_ potentially _x000D_ disastrous _x000D_ effects _x000D_ of _x000D_ an _x000D_ extended _x000D_ power _x000D_ outage. _x000D_ His _x000D_ design _x000D_ manager, _x000D_ Jeanie _x000D_

Johnston, _x000D_ had _x000D_ come _x000D_ to _x000D_ him _x000D_ last _x000D_ year _x000D_ with _x000D_ data _x000D_ from _x000D_ the _x000D_ local _x000D_ electric _x000D_ company _x000D_ on _x000D_ historical _x000D_

occurrences _x000D_ of _x000D_ power _x000D_ outages _x000D_ and _x000D_ their _x000D_ durations _x000D_ over _x000D_ the _x000D_ past _x000D_ 10 _x000D_ years, _x000D_ the _x000D_ probably _x000D_ of _x000D_ an _x000D_

outage _x000D_ lasting _x000D_ more _x000D_ than _x000D_ 24 _x000D_ hours _x000D_ was _x000D_ 0.5% _x000D_ (see _x000D_ example _x000D_ in _x000D_ Figure _x000D_ 3). _x000D_ She _x000D_ had _x000D_ then _x000D_ explained _x000D_ that _x000D_

the _x000D_ loss _x000D_ of _x000D_ data _x000D_ and _x000D_ process _x000D_ set-backs _x000D_ that _x000D_ would _x000D_ occur _x000D_ with _x000D_ an _x000D_ outage _x000D_ lasting _x000D_ more _x000D_ than _x000D_ 24 _x000D_ hours _x000D_

could _x000D_ reach _x000D_ $1.5M! _x000D_ Jim _x000D_ quickly _x000D_ agreed _x000D_ to _x000D_ invest _x000D_ $35,000 _x000D_ for _x000D_ their _x000D_ new _x000D_ generator. _x000D_ _x000D_

_x000D_

Supply _x000D_ Chain _x000D_ Resilience: _x000D_ Balancing _x000D_ the _x000D_ SC _x000D_ for _x000D_ Long-term _x000D_ Sustainability _x000D_ _x000D_

_x000D_

7 _x000D_

_x000D_

Figure _x000D_ 3: _x000D_ Example _x000D_ of _x000D_ Historical _x000D_ Electrical _x000D_ Disruption _x000D_ Data _x000D_

A _x000D_ critical _x000D_ step _x000D_ in _x000D_ the _x000D_ risk _x000D_ management _x000D_ process _x000D_ is _x000D_ the _x000D_ risk _x000D_ assessment _x000D_ (Step _x000D_ 2 _x000D_ in _x000D_ Figure _x000D_ 1), _x000D_

based _x000D_ on _x000D_ the _x000D_ assessed _x000D_ probability _x000D_ of _x000D_ an _x000D_ event _x000D_ and _x000D_ the _x000D_ estimated _x000D_ severity _x000D_ if _x000D_ the _x000D_ event _x000D_ occurs. _x000D_

However, _x000D_ the _x000D_ greatest _x000D_ weakness _x000D_ of _x000D_ risk _x000D_ management _x000D_ is _x000D_ its _x000D_ inability _x000D_ to _x000D_ adequately _x000D_ characterize _x000D_ low-

probability, _x000D_ high-consequence _x000D_ (LP/HC) _x000D_ events, _x000D_ the _x000D_ upper-left _x000D_ corner _x000D_ of _x000D_ Figure _x000D_ 4.8 _x000D_ Additionally, _x000D_ the _x000D_

traditional _x000D_ risk _x000D_ assessment _x000D_ approach _x000D_ cannot _x000D_ deal _x000D_ with _x000D_ unforeseeable _x000D_ events. _x000D_ With _x000D_ the _x000D_ upcoming _x000D_

changes _x000D_ that _x000D_ Mr. _x000D_ MacDonald _x000D_ will _x000D_ be _x000D_ bringing _x000D_ to _x000D_ his _x000D_ company, _x000D_ he _x000D_ believes _x000D_ that _x000D_ the _x000D_ concept _x000D_ of _x000D_

supply _x000D_ chain _x000D_ resilience _x000D_ can _x000D_ fill _x000D_ these _x000D_ gaps _x000D_ and _x000D_ supplement _x000D_ existing _x000D_ risk _x000D_ management _x000D_ programs, _x000D_ thus _x000D_

enabling _x000D_ a _x000D_ supply _x000D_ chain _x000D_ to _x000D_ survive _x000D_ unforeseen _x000D_ disruptions _x000D_ and _x000D_ create _x000D_ a _x000D_ competitive _x000D_ advantage. _x000D_

_x000D_

This _x000D_ document _x000D_ is _x000D_ available _x000D_ from _x000D_ our _x000D_ site _x000D_ and _x000D_ provided _x000D_ for _x000D_ your _x000D_ personal _x000D_ use _x000D_ only _x000D_ an

Related Questions:

Related questions

Leave a Comment Cancel Reply