a targeting approach to supply chain risk management
TRANSCRIPT
Boeing Innovation Fellows Project MBA@ UNC Class 973
Matthew T. Nilson
A Targeting Approach to Supply Chain Risk Management
Boeing Innovation Project
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Boeing Innovation Fellows Project MBA@ UNC Class 973
Statement of the problem
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Proposals: • Implement a risk management framework using a targeting methodology—CARVER matrix• Use a multi-layered risk management approach to develop spatial and temporal visualization tools.
Today Modern Risk Management is about visualization of the risk and better visualization enhance value extraction throughout the supply chain.
Boeing Innovation Fellows Project MBA@ UNC Class 973
Case Comparison & AnalysisBoeing 787Operation Eagle Claw
Operation Restore Hope North Charleston Plant
Internal System Risk
External Environment Risk
Attributes• Implementation of a new process, product, or service• Top-Down Decision• Prone to group think• Crisis management
Attributes• Limited scope• External influencers• Change in operational parameters overtime (mission creep)• Consequence Management
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Boeing Innovation Fellows Project MBA@ UNC Class 973
CARVER Framework CARVER Analysis into Risk Management Process • Criticality: Target Value or importance of component to the
manufactured product (can be measured as an indexed cost/price)
• Accessibility: level of system exposure to failure/disaster (Can be measured in Distance from supplier to manufacturer)
• Recuperability: speed to repair, replace, or bypass system or supply shortage (measured in time)
• Vulnerability: lack of redundancy in the system (network analysis)
• Effect: on the company’s value, brand, customers, and regulators (measured in terms of profit / variable cost)
• Recognizability: degree to which potential failure can be recognized /identified (level of visibility of suppliers)
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Boeing Innovation Fellows Project MBA@ UNC Class 973
Risk Management VisualizationSpatial & Temporal VisualizationData Management & Communication
Risk Visualization
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Boeing Innovation Fellows Project MBA@ UNC Class 973
Summary1. Apply the CARVER framework when analyzing supply chain risks2. Enhance Supply Chain Management Software/Tools:
• Incorporate a multi-layered approach• Develop a detailed virtual model of the supply chain system• Conduct virtual simulations to provide temporal analysis vulnerabilities• Integrate mapping & spatial analysis Tools
Visualization helps reduce failures and gain value from supply chains
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Boeing Innovation Fellows Project MBA@ UNC Class 973
Questions
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