Study On The Identification Of Supply Risk In Automobile Industry

With increasing complexity and uncertainty features of supply chain, companies are suffering more difficulties in the operation, and adverse events of supply chain happen sometimes. The supply chain in the automobile industry has the typical complex structure that includes huge supply systems, and it demands high quality of collaboration between companies. Apparently, the supply risks are very high in automobile industry. Study on how to identify the risks systematically and distinguish the organize key-point adverse events is significant, which is the main content of this paper.Through the e-EPC decomposition of supply process and the VFT analysis of related value objectives, the functional objectives structure and the fundamental objectives structure are set up; meanwhile through synchronous decomposition, the risk objectives system is built by using value focused process engineering. And combined with risk sources, all of supply adverse events that make up the risks set are identified using the risk events sources view, and the risk multidimensional view is finally constructed. Based on the identification, the severity and probability of adverse events are assessed and the risk index are calculated using extend risk matrix approach. According to the rank of risk index of each event, twenty important risk events are sifted. At last through the sensitivity analysis ofμon the twenty events, the original rank is rectified and proved, and the objective rank of events is listed. Finally, eight adverse events are selected as the key events, which are the content of top management.In this paper through systematic analysis of supply risk in automobile manufacturing industry, the possible adverse events in the process of supplier selection and components supply are identified. And by means of risk assessment, critical adverse events are distinguished. The research findings are favorable to the decision-making in automobile industry.