ANALYZING CERAMIC TILES SUPPLY CHAIN USING FUZZY ANALYTICAL HIERARCHY PROCESS AND RISK FAILURE MODE EFFECT ANALYSIS

• Main Author: Prasojo, Arie
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/52155
• Institution: Institut Teknologi Bandung

Indonesia is one of the world's leading producers of ceramic. Free trade is a challenge for the national ceramic industry to remain competitive. The ceramic tiles industry has the potential to grow and develop. This study aims to address this research void in the literature on ceramic tiles supply chain risk management. These findings are expected to provide knowledge that can be used by stakeholders to develop the ceramic tile manufacturing industry in Indonesia. This study deals with analyzing the supply chain for the ceramic tile industries, which considers five risk management steps based on risk factors mapping system, risk identification, risk analysis, risk evaluation, and risk treatment. The risk identification was done by conducting a literature review and questionnaire surveys, analyzed through the Fuzzy Analytic Hierarchy Process (AHP), evaluated through Risk Failure Mode Effect Analysis (RFMEA), and treated through literature review. The various types of risks have been identified based on the review of the literature and the consultation with experts in the ceramic tiles industry. Then, these types of risks are clustered into four categories, namely environmental risk, supply risk, demand risk, and process risk. Fuzzy AHP is used to assess and rank the four risks. The supply risk is the most important risk to be managed. Government regulations, product quality, global economic downturns, market changes, quality from supplier, competition with importers, reputation, inability to handle volume demand changes and fluctuating market demand are the most critical factors that need to be tackled in the supply chain, and therefore the risk mitigation strategy has been suggested and required for improving the competitiveness of the ceramic tile industries.