A methodology to assess and manage material and machine tool risks for a manufacturer

Globalization and competition have forced manufacturers to analyze their processes to minute levels in order to improve the quality and on-time delivery of the product. Due to the increased complexity of manufacturing and the associated supply chain, a wide range of additional risk factors have been introduced that impact the manufacturing processes. A process that is constantly exposed to such risks may not be able to meet customer expectations such as the on-time delivery of products. Extensive research has been done on enhancing the capabilities of the manufacturing processes. However the focus of this effort is to develop a methodology to manage risks that have a high impact on the process lead time and will enhance the ability to sustain process performance. The purpose of this study is to identify key risks associated with manufacturing and develop a framework to assist manufacturers mitigate the risks resulting in increasing the manufacturing lead time. The framework takes on the format of an assessment that investigates the multiple risk dimensions associated with material and tooling. Inputs to the assessments are confidence interval of 95%. Finally a mathematical analysis using AHP is done for prioritization of risk mitigation activities. A case study is presented to the methodology.