Spare Parts Outsourcing Project Risk Management In BK Wire Products Group

On the upgrade path of China manufacturing industry,wire products industry is accelerating deep-end processing development and industry concentration.Spare parts management,as one of the most important subjects for wire products industry is greeting a great challenge from integrated supply chain model in inventory control,opportunity sharing,strategy spare parts management and etc.Spare parts outsourcing strategy-the 3rd party manage the whole spare parts supply chain,gains its popularity among subsidiaries of the large multinationals or groups.To implement a good project risk management for the spare parts outsourcing is the approach to a successful spare parts out sourcing strategy decision making,out sourcing project implementation and win-win realization between spare parts manufacturer,spare parts 3rd party and the end users.By case study on spare parts management outsourcing in a worldwide benchmark enterprise of wire products industry,the thesis comprehensively researched risk identification,risk evaluation and encounter.First to breakdown project phases into detail steps,list out risk factors according to the steps,permute and combine the risk factors with 4 spare parts categories and 3 risk resource groups,384 risk factors have been systematically identified.Then to perform the two-step risk assessment method: based on risk matrix method,14 high risk factors and 84 middle risk factors have been valued and ranked in individual risk assessment step;according to risk factor group structure,all levels of groups have been valued and ranked.The last to develop risk encounter list for the individual risk factors and risk management system based on the high risk value of risk groups.The project risk management had ensured the company spare parts outsourcing project had achieved the project target and will be continuously practiced and improved in the future projects.