Risk Management Of Casting Suppliers Selection For W Automotive Engine Project

Along with the development of automotive industry, the severe competition hasbeen the capabilities of development, controlling and management to all of thecomponents suppliers. The successful suppliers for engine casting components as thepre-tache of automotive supply chain, as well as the typical representative incomponents suppliers, will take a very important role for the fate of automotiveindustry. Therefore, it will have a great significance for the automotive company totake the correct decisions and to have the effective operations when the effectiverecognition and evaluation for the potential and existing risks can be done during thesuppliers selection.Firstly, this article analyzes the whole developing environment of the automotiveand components industry in the world, as well the risks and impacts due to theeconomic and finance risks and the natural disasters, and then brings forward thepractical meaning of risks management for components suppliers’ selection. Becauseof the particularity and limitation of engine casting production, for the riskmanagement of casting supplier’s selection, the detailed study and analysis need bedone, and the feasible procedure and method need be made.Secondly, on the base of risk management theories and practical study forautomotive industry, and combined the actual purchase and selection procedures forengine casting suppliers in W automotive company, this article brings forward that therisk management concept should be inducted into the field of casting componentselection on the current procedure. Moreover, to the current distribution of castingcomponent suppliers of W automotive company, as well the shortcomings of thecurrent procedure, this article has a detailed analysis. The two methods of risk checklist and risk pre-analysis have been used to design the risk evaluation criteria forsuppliers’ selection, which has been used in the suppliers selection for someimportant casting parts in the EA888G3Engine project in W automotive company.Hope this article can provide some help and meaningful reference for the furtherstudy and practice of risk management in automotive components’ selection.