House Of Risk Research Articles

Rework Reduction and Quality Cost Analysis of Furniture Production Processes Using the House of Risk (HOR)

Quality is one of the important factors that makes a company survive in the industrial world. PT. X maintains the quality of its products by conducting quality tests on all products that will be sent to consumers. Although the quality test has been carried out on products, there are still consumers who receive defective products. To reduce product defects, a risk management approach is carried out. Risk management is a method in which organizations can identify problems with a comprehensive and systematic management approach. The method used in this study is Seven tools and House of Risk (HOR). Phase 1 of the House of Risk (HOR) method used to search for risk agents must be prioritized by looking at the value of Aggregate Risk Potential (ARP). Furthermore, the ARP value is used as input for House Of Risk phase 2 to find mitigation strategies that can be applied in the company. Based on the identification of risk events there are 24 risk events in the production process and there are 21 causes of risk (risk agents). The causes of risk that must be prioritized are 10 causes of risk with the highest ARP value of 2699, ie the operator ignores the SOP. So that the causes of risk must be prioritized for improvement. based on the analysis of the quality costs is repair product costs or rework product cost, it is focused on two products is Crb 10123-31 and Crb 01143-79 Ns.

Interpretive Structural Modeling and House of Risk Implementation for Risk Association Analysis and Determination of Risk Mitigation Strategy

The increasingly fierce industry competition causes each company needs strong supply chain activities as part of the company to be able to survive in an environment full of competition. In carrying out supply chain activities, it is certainly inseparable from supply chain risks that can disrupt supply chain activities. In supply chain risk it is important to know the key risks as the risks that trigger the other risks in the supply chain. This study aims to identify the relationship of risk and mitigation to reduce the causes of the risk. The interpretive structural modeling (ISM) approach is applied to solve problems related to risk linkages and produced key risks which are the risks that most influence the occurance of other risks. The key risks obtained are then processed using the house of risk (HOR) approach to determine the priority of risk mitigation actions. ISM result obtained four key risks, namely the risk element of inputting data error when entering the number of goods and spesifications, product spesification errors desired by the customer, frequent changes in customer design requests and revisions to the design drawings. Then the result of the HOR method obtained four recommended priority mitigation actions, namely updating information on a scheduled basis, conducting briefings every day before work, coordinating and reconfirming requests for product spesifications, and implementing more strigent worker selection procedures. The linkage of the causes of risk, the validation of the ISM model statistically and the weighting of the triggered criteria are several aspects that further research is needed.

RISK MANAGEMENT IN ORGANIC FERTILIZER SUPPLY CHAIN ACTIVITIES

Supply chain management is not easy because there are two challenges that must be faced, that is the complexity of the supply chain structure and sudden uncertainty, therefore conditions are vulnerable to various forms of risk. In companies that produce organic fertilizer such as PT. MBA, organic fertilizer supply chain activities have the opportunity to pose risks. The purpose of this research is to identify risks and identify the causes of risk and determine the right strategy to deal with the causes of risk in supply chain activities at PT. MBA. The method used is the House of Risk (HOR) by using five indicators in the SCOR (Supply Chain Operation Reference) model, that is plan, source, manufacture, distribution and return. Risk events are identified and considered priorities, that is delays in receiving raw materials from suppliers, implementation of production not on schedule, no production process activities, unable to meet all requests, decreasing product quality during the process, product quality not in accordance with existing standards and delays product delivery (finished fertilizer) to PT. PKG. The priority risk agent is a risk agent to check inaccurate raw materials. Meanwhile, the handling strategy that is a priority to be implemented, with the hope of being able to prevent the causes of risk is coordination, stock strategy and flexible supply base.

Halal Risk Analysis at Indonesia Slaughterhouses Using the Supply Chain Operations Reference (SCOR) and House of Risk (HOR) Methods

The Halal supply chain is one of the most important factors for Muslim because the product to be consumed must be halal, from the source to the end consumers. This research was conducted at several feedlots (fattening cattle), slaughterhouses (RPH), and traditional markets in the city of Medan and surrounding areas. In this study identified all activities in the slaughterhouse, activity mapping, determination of risk events, risk agents, and Aggregate Risk Potential (ARP) calculations in the red meat supply chain with the adoption of the SCOR model namely plan, source, make, deliver, and return and HOR (House of Risk). The results showed that there were 19 activities (sub-processes), 28 risk events and 28 risk agents. The selected risk agents based on the five highest ARP values are less cleaned floor after slaughtering (Ag17), the accumulation of blood into clots (Ag20), lack of machine maintenance management (Ag2), too many cattle to be slaughtered (Ag3), and increased consumer demand (Ag1). Knowing the risks and causes of risks will facilitate handling so that supply chain performance can be improved. It is necessary to study appropriate risk mitigation actions so that risk events can be reduced.

Implementation of Supply Chain Risk Management (SCRM) Using House of Risk (HOR): Case Study on Supply Chain of Craft Bag Industry

The length of supply chain at Ajeng Gallery causes emergence of risks that can harm the company. Moreover, the company has not implemented risk management properly so that the purpose of this study is to implement supply chain risk management properly. By using House of Risk, it is obtained 10 risk events and 9 risk agents. 2 risk agents that have the largest percentage are mitigated. There are 4 priority mitigation strategies to overcome risk agents. The implementation of mitigation strategy can reduce risk levels in risk map based on previous research that discusses the same mitigation plan.

PENINGKATAN KINERJA, MITIGASI RISIKO DAN ANALISIS KELEMBAGAAN PADA RANTAI PASOK CABAI MERAH DI KABUPATEN GARUT

Supply chain of red chilli has not integrated and involves all actor like farmers, collectors, traders, suppliers and industry. This condition creates instability in the quality of red chilli on the market, supply availability and price fluctuations. The purpose of this research was to study the mechanisms, performance, risk mitigation and institusional analysis of the supply chain using the Van de Vorst method, SCOR-AHP method, House of Risk (HOR) and Interpretative Structural Modeling (ISM). The location of this study was in Garut District, the highest production of red chili in West Java. The supply chain mechanism was approached through four elements, namely a) supply chain structure, b) chain business processes, c) network management and chain coordination, and d) chain resources used. The supply chain performance system has five levels of hierarchy, namely goals, business processes, criteria, attribute, and performance metrices. Results showed that the supply chain performances of the red chilli at farmers, collector, suppliers, and small medium enterprise (SME) were 74.6%, 76.8 %, 82.5%, 81.9%, respectively. Risk priorities showed there were 10 at the farmer, 9 at the traders, 11 at the supplier, and 10 at the industrial stage. Information on supply chain performance is expected to enable actors in the red chili supply chain to improve coordination, integration between actors, fulfillment of production facilities, proper implementation of Good Agricultural Practices (GAP), and distribution mechanisms, so that can optimally fullfil the consumer demand and minimize yield loss to improve competitiveness in the red chili industry. Keywords : Supply chain, performance, risk mitigation, institutional analysis

Sustainable risk mitigation in manufacturing company

Companies that are not aware of any risk events and sources of risk that occur in the company, will not be able to formulate an appropriate strategy in mitigating risk. This research aims to identify, measure and plan risk mitigation strategies related to sustainable risk. Sustainable risk is related to risks from environmental, economic and social aspects. This research takes a case study in one of the manufacturing companies in Indonesia. This study uses the Failure Mode and Effect Analysis (FMEA) method to identify events and sources of risk and the House of Risk (HOR) to analyze and design risk mitigation. This research identified 14 risk events and 39 sources of risk that occurred in the company. By using the HOR method, 15 priority sustainability risk mitigation actions were obtained.

Evaluasi Risiko Rantai Pasok pada Komoditas Bawang Merah di Lampung

The Study of supply chain risk in shallot commodity needs to take more concern. This is related to the increasing number of risks that faced in different the Industrial and business world. Based on these risks, currently the condition of the Shallot commodity supply chain performance is less than expected. In Relations of existence of risks in the supply chain, risk management plays an important role in keeping the supply chain system in order to be not disrupted. Risk Management is the part. Risk management is an integral part of the management process that runs continuously to minimize losses either increase opportunities or opportunities. This risk management process starts from the process of risk identification, risk assessment, mitigation, monitoring and evaluation. The purpose of this research is to evaluate the risk of supply chain shallot commodity. The Step that has to do is risk identification, risk analyze, and risk evaluation of supply chain. House of Risk (HOR) model is the method that used to identification, analyze, and evaluation the risk of shallot commodity.

The design of cold chain risk management system of frozen tuna product in Aceh using fuzzy logic

Frozen tuna is a perishable product that sensitive to temperature changing, therefore a good cold chain system is needed. As a part of the supply chain, cold chain system aims to maintain the temperature of the product in order to keep its quality from upstream to downstream. There are various problems encounter the cold chain process that effected to the streamline. In consequence, it is important to build a continuous improvement to reduce the risk in the cold chain. The aims of this research are to discover the risk that can be found on the cold chain process, what is the causes, and the connection between both risks and its causes. This matter to develop risk management system on frozen tuna products in Aceh. This research using House of Risk (HOR) method to capture the most critical risk and risk management system is carried out Fuzzy Inference System (FIS) by Mamdani approach. The results of risk evaluation using HOR phase 1 show that there are 2 risks from 20 existing agents and 33 risk events that must be managed with the risk management, namely human errors and temperature during initial handling that is not according to standard.

Supply chain risk assessment of cotton shirt production uses the house of risk method

The purpose of this study is to mitigate risks in supply chain activities in the production of cotton shirts. The method used in this research is the House of Risk (HOR) approach based on the Supply Chain Operation Reference (SCOR) model. The House of Risk (HOR) offers a framework for effectively controlling risks in managing risks from risk agents. Aggregate Potential Risk (ARP) is used to determine the priority of risk sources that need to do in the design of mitigation strategies. The research results identify as many as 26 Risk Events and 21 Risk Agents. Three Risk Agents based on ARP values are Procedures for Delivery of Less Organized Raw Materials, limited and Sudden Product Demand from consumers Mitigation actions used to prevent the causes of risk from occurring are creating standard operating procedures for raw material delivery activities. Also, a contract system establishes between suppliers of raw materials and freight forwarding services. Migration in human resources is evaluating employee performance. Empowerment of the community around the company, subcontracting to other similar companies, reviewing raw material stock is an act of meditation in sudden product demand.

OPERATIONAL RISK MANAGEMENT OF SURABAYA MAIN NAVAL BASE V REPAIR AND MAINTENANCE FACILITY BASED ON ISO 31000 FRAMEWORK

Surabaya Main Naval Base V Repair and Maintenance Facility is one of the work units under the auspices of the Indonesian Navy that is tasked with carrying out the maintenance and repair of all major weapons systems of the Indonesian Navy. In carrying out their duties Surabaya Main Naval Base V Repair and Maintenance Facility has a big challenge and even there are various kinds of risks to prepare all the Indonesian Armed Forces defense equipment in accordance with the demands of need. Therefore, in this research, risk management will be carried out at the Surabaya Main Naval Base V Repair and Maintenance Facility Operational based on the ISO 31000: 2018 framework. Based on this framework, risk management will be carried out, namely how to carry out risk assessments in the form of risk identification, risk analysis, and risk evaluation for all risks in the operational field. Enterprise Risk Management (ERM) is also used to carry out in-depth risk management processes. One method used to solve existing problems is to use the House of Risk (HOR) method, which is divided into two stages. Stage 1 HOR focuses on ranking the Aggregate Risk Potential (ARP) value and with the help of the Pareto diagram the cumulative ARP value is obtained to determine the risk event (risk agent) selected, which then requires treatment on a priority scale. The results of this HOR phase 1 are then included in HOR phase 2 to rank the most effective prevention measures based on costs and resources. From the results of the HOR phase 2, further brainstorming was carried out with the Surabaya Main Naval Base V Repair and Maintenance Facility in accordance with the actions chosen for preventive actions that could be immediately carried out.Keywords: House of Risk, Enterprise Risk Management, SNI ISO 31000: 2018.

The analysis of supply chain risk logistics in implementation of West Sumatera - Riau toll road development

The aim of this research is to develop a risk mitigation strategy in supply chain process of West Sumatra-Riau toll road pavement material. Data for this study was obtained through brainstorming techniques, questionnaires, field surveys and literature review. The data was analyzed using House of Risk (HOR) method. There were 18 items of risk event’s and 21 items of risk agent’s identified from the HOR phase 1, whereas risk agent handling priority data and risk mitigation actions are 19 items by using HOR phase 2. The results show that there are 2 (two) risk agents ranked 1 and 2 for the most critical, namely A1 (poor supplier performance) with ARP of 860 and A2 (Low of Contractor Capability) with ARP of 507, which can cause ± 80% of risk events where the remaining 20% is caused by other agents. There are 2 (two) mitigation actions were obtained from HOR phase 2, namely PA1 (appropriate supplier selection method) and PA4 (appropriate contractor selection method) which can prevent the emergence of ± 80% of these risk agents and ± 20% is overcome by 17 other mitigation actions.

Integrating House of Risk Method with PESTLE and CIMOSA for Risk Assessment of Java-Bali I Power Plant Construction Project

Java-Bali I Combined Cycle Power Plant Project is part of 35,000 MW electrical generating development program. To fulfil the project construction objectives, a risk assessment is needed. It is started with risk identification using PESTLE analysis and CIMOSA approach. It can be identified that there are 18 risk events for external factor, 22 risk events for internal factor and 54 risk agents that will be analysed using House of Risk (HOR) stage 1 method. Focus Group Discussion (FGD) is held for assessing severity of each risk events and occurrence of risk agents, also the correlation between them. Using HOR stage 1 is obtained Aggregate Risk Potential (ARP) value for each risk agents. Using pareto analysis, 11 risk agents is chosen as priority and will be evaluated using HOR stage 2. Using HOR stage 2 method, 7 preventive actions (PA) are identified to prevent risk agents occur. As final result, using Cost Benefit Analysis (CBA), 7 recommendations is suggested in order to make project successful according to the target specified.

House of Risk Approach for Assessing Supply Chain Risk Management of Material Procurement in Construction Industry

The purpose of this study is to identify the potential risk events in material procurement supply chain and to arrange risk agents priority using House of Risk (HOR) approach where priority can be the basis to create mitigation strategies. The approach started with HOR Phase 1 by mapping supply chain activities using Supply Chain Operation Reference (SCOR) model and risk assessment. There are 30 risk events in supply chain are adapted from several previous studies, but after the preliminary studies by deep interview with the Manager and the Purchasing Supervisor of Accounting Division obtained 23 valid risk events with 17 risk agents. Using the Aggregate Risk Potential (ARP) values and Pareto 80:20 principle, obtained 3 selected risk agents needs immediate handling with mitigation strategies. HOR Phase 2 with the mitigation strategies arrangement will be performed in the further study.

Improvement of Preventive Maintenance Process Effectiveness in Insourcing and Outsourcing Scheme with House of Risk (HOR) Method Approach (A Case Study)

Outsourcing has become the alternative scheme to gain improvement in several fields within a short time to many enterprises. One power generation in North Java implemented PM as planned maintenance strategy to maintain equipment by conducting insourcing and outsourcing scheme as PM execution. Both conditions must follow the same business process flow in PM execution process and there will occur some obstacles that interrupted PM process. The existing problem will be analyzed with House of Risk (HOR) method approach, supported by Integrated Manufacturing Open Systems Architecture (CIMOSA) process-based function modeling for identification method and Supply Chain Risk Identification System (SCRIS) risk structure identification used for mapping problem, root cause, and its relation. Analysis with HOR results in root causes that occurred within PM implementation process for both of them commonly has the same problem that is process business acknowledgment, but in outsourcing scheme not exist root cause on culture compliance and work task requirement, because they have a descriptive target to obtain service level agreement fulfillment. On both scheme still need an improving method to monitor and evaluate the PM work for better performance.

Supply Chain Risk Management on Wooden Toys Industries by using House of Risk (HOR) and Analytical Network Process (ANP) Method

Good risk management will reduce the impact and risk of an event. In this study discussed the risks that may arise in the wooden toy industry supply chain and how to manage these risks. The calculation divided into three phases; there are risk mapping, risk assessment, and risk management. House of Risk (HOR) is used in calculating potential risks and Analytical Network Process (ANP) is used to choose the best strategy for supply chain risk management. Followed by HOR calculation, risk that has the greatest value and selected as potential risk is the risk of price/cost fluctuations with an ARP value of 432. The strategy of this risk is grouped based on 2 causes, namely raw material price fluctuations and poor management. With ANP calculations, the strategy for raw material price fluctuations are understanding and determining the quantity of material used (28.14%) and combining woods with various commodities (23.23%). Then the alternative for poor management are doing strategic financial accounting (54.48%) and doing financial planning (33.07%).

Integrated model of service blueprint and house of risk (HOR) for service quality improvement

These days, the business world experienced a very tight competition, so that the products and services offered in the market became more and more diverse. Good service quality is not enough for the company to survive in the face of increasingly fierce business competition. This study uses a Service Blueprint that is integrated with the House of Risk (HOR) with the aim of identifying service failures that can occur and then prioritizing the service quality improvements to give guidance for the service provider to improve service. To show how the model works, a cafe is used as a demonstration of this integrated model. Steps in this research used Service Blueprint to identify fail points and excessive wait. The result was used as an input in HOR 1 to determine the priority of risk which was then resumed in HOR 2 so that strategy priority was obtained. The results of the case studies show that the model could identify 20 risk events, identifies 20 risk agents, could assign 10 risk priorities agents and could give 4 main priority strategies for service quality improvement.

A fuzzy-based House of Risk assessment method for manufacturers in global supply chains

PurposeRisk management is crucial for all organizations, especially those in the global supply chain network. Failure may result in huge economic loses and damage to company reputation. Risk assessment usually involves quantitative and qualitative decisions. The purpose of this paper is to apply fuzzy logic to capture and inference qualitative decisions made in the House of Risk (HOR) assessment method.Design/methodology/approachIn the existing HOR model, aggregate risk potential (ARP) is calculated by the risk event times the risk agent value and its occurrence. However, these values are usually obtained from interviews, which may involve subjective decisions. To overcome this shortcoming, a fuzzy-based approach is proposed to calculate ARP instead of the current deterministic approach.FindingsRisk analyses are conducted in five major categories of risk sources: internal, global environment, supplier, customer and third-party logistics provider. Moreover, each category is further divided into different sub-categories. The results indicate that the fuzzy-based HOR successfully inferences the inputs of the risk event, risk agents and its occurrence, and can prioritize the risk agents in order to take proactive decisions.Practical implicationsThe proposed fuzzy-based HOR model can be used practically by manufacturers in the global supply chain. It provides a framework for decision makers to systematically analyze the potential risks in different categories.Originality/valueThe proposed fuzzy-based HOR approach improves the traditional approach by more precise modeling of the qualitative decision-making process. It contributes to a more accurate reflection of the real situation that manufacturers are facing.

Mitigation strategies for supply chain risks in cassava chip SME using house of risk method (A case study in Langgeng Jaya Abadi SME, Malang Regency)

Langgeng Jaya Abadi is a small- and medium-scale entreprise (SME) located in Malang Regency with main business entity of producing cassava chips. In the operational of the business activities, the SME faced various issues that need to be immediately tackled or maintained by implementing risk mitigation strategies. Problems occured in Langgeng Jaya Abadi SME include a time-delay in delivery of cassava, planning mistakes, poor quality of cassava chips, and the sales fluctuation in cassava flour and and cassava chip. This study aimed to identify risk, as well as to assess and determine the risk mitigation strategies. The method used in the research was house of risk (HOR). The variables studied include supply risk, internal risk and demand risk. Four expert respondent were employed composed of supplier, SME owner, SME employee, and distribution agent. The results indicated that there were 24 risk events and 26 risk agents were identified. Risk assessment demonstrated that 2 priority risk agents include SME’s employee negligence and planning errors. The study further determined six mitigation strategies such as evaluating employee performance, providing reprimands and sanctions, scheduling activities, improving demand information on cassava chips, establishing inventory controls, and improving internal coordination systems.

ANALISIS KINERJA, NILAI TAMBAH DAN MITIGASI RISIKO RANTAI PASOK AGROINDUSTRI BAWANG MERAH

The supply chain of shallot agroindustry is in urgent situation owing to theimbalance risk and added-value distribution of the actors in the supply chain. The purposes of this research were (1) to identify the mechanism and performance of shallot supply chain; (2) to measure the added-value of supply chain actors; (3) to identify and mitigate the risk in shallot supply chain; and (4) to select the strategy to improve the performances, added-value, and risk mitigation ofshallot supply chain. Supply Chain Operations Reference-Analytical Hierarchy Process (SCOR-AHP)wereemployed to measure the performance of shallot supply chain.Hayami method was used to analyze the added-value.House of Risk (HOR)was used to identify and mitigate the risk, while the strategies for the improvements were formulated using Analytic Network Process-Benefit Opportunity Cost Risk analysis (ANP-BOCR) method. Analysis on the supply chain performance showed those classified as below average were farmer (75.38%), first collector (74.43%), and industry (74.79%), whereasthe second collector hadagood performance (91.97%). Added-value ratios were for the industry of 53.75%, farmer of 46.06%, first collector of 8.88%, and second collector of 5.39%.Total effectivity measurement of risk mitigation to prioritized risk agent resulted the farmer had11 preventive actions,the collectors had9 and the industry had8. The supply chain evaluation resulted in four alternatives for the improvement strategy of the performance, added-value and risk mitigation.The best alternative with the highest BO/CR ratio was the implementation of the SOP of proper cultivation and post-harvesting method.Keywords: shallot agroindustry, risk mitigation, supply chain, value added