Risk management

Greetings friends,

I am wondering what the community is using in respect to risk management. I am looking for how you enumerate it, like FMEA etc. I know that we have to pick what works best for us as a company but I am looking for how others in the industry are doing it.

Thanks!!

Scott

 

Check the Resource section in this column. I highly recommend it for big and small business because it includes quality and safety.

 

Good day,
im looking for similar risk management, with regards to risk management during a contract review. our company does contract review with every contract coming in. we do identify risk and stamp our floor travelers with the risk level. im looking for a more robust excel system if its out there. there are plenty of different risk management spreadsheets out there and we have our own but i am a new manager at this company and looking to pick others brain. we are a small fastener company in the midwest supplying our fasteners to the military and aerospace industry, your feedback is much appreciated.

 

Good day @Bryan Willemot1 and welcome to the site. I was in the Midwest fastener industry (1st tier automotive) for 14 years. Don't hesitate to reach out if I can every help out (or you simply need to vent. I feel your pain !)

Back to your post....
1- It appears your organization already has a pretty detailed risk review as part of contract feasibility review.
a- Does it serve your organization?
b- What are the actual gaps that it is NOT filling if the answer to "a" is no?

2- Regardless of how /when your organization accesses risks, -- so what? I ask this question somewhat facetiously as result of my experiences with many organizations/many industries. What I often (typically?) see is some type of risk assessment....and/or "Critical Feature" symbolism (as result of risk assessment) subsequently applied to documents to and including the point of work. When, however, I ask the operator "what does that symbol mean?"....the typical answer is "it's real important". I respond with "so what?" In other words, once the risk has been assigned what does your organization do with it? How does it protect your organization and the customer?

In your example, it appears that this is only (?) used during contract review. Is there a numerical threshold at which "no quote" is the response to the customer?

If the risk value is "high" (e.g. just below the the threshold for no quote) and your organization is awarded the business, then "so what?" How is that characteristic/process identified? What do the associates do differently because of it? How is problem reporting/escalation affected by the identification of a "high" risk?

By the way,
c- I don't see any customer driven risk notification...i.e. safety and/or critical characteristic identification. Is there a reason that is not an input into the excel sheet you provided ?
d- What about tight ("impossible") tolerances? Does your quality team have an opportunity to consider if/how the company can meet the drawing? That would certainly be a risk in regards to contract review.
e- What about volume? Does your operations team have an opportunity during contract review to identify the risk regarding available capacity?
f- What about profitability? Does your sales team have an opportunity during contract review to identify risk regarding profitability?

Summary:
It appears your organization is already doing a pretty nice feasibility review during the contract review. I would recommend looking at each of the scoring inputs and see if they are serving your teams. The questions I would ask are not "how can we change our risk analysis", but "are the inputs serving your teams", and "what does your organization do with the results of risk assessment?"

Hope this helps.
Be well.