SUPPLY CHAIN RISK MANAGEMENT AT PT ARGA ARTA UTAMA

• Main Author: Hasna Fahrizi, Alisya
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42789
• Institution: Institut Teknologi Bandung

PT Arga Arta Utama (PT AAU) is involved in the manufacturing industry, producing gas stoves conforming to the SNI 7469:2013 standard. The standard mandates the company to possess the ISO 9001:2015 certification, in which the company is required to conduct risk management practices on its business activites. As a manufacturer, the majority of its business processes are strongly related to the supply chain as well as the risks associated with it. Thus, it is important for the company to carry out supply chain risk management practices so that it may be well prepared if a risk materializes as well as deal with potential losses that follows. The purpose of this study is to conduct risk identification and assesment as well as designing the appropriate risk mitigation and recovery plans for PT AAU. This study utilizes the supply chain risk management framework developed by Waters (2007) that can be seperated into three primary stages. The first stage involves identification of risks based on the supply chain business process using the Supply Chain Operations Reference (SCOR). The next step involves assessment of the consequence, probability, and detection of each identifed risk based on the management's consideration using an assesment form. Using the Risk Failure Mode and Effect analysis (RFMEA), a list of priority risks are then determined. These risks are then grouped into different classifications based on their similarites, on which mitigation and recovery plans are then designed and proposed. The research discovered a total of 122 risks associated with PT AAU based on 94 supply chain business processes. Based on the risk assessment conducted, 56 critical risks classifed into 20 risk groups were determined. The proposed responses for each risk group is then documented on PT AAU's Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP).