Track: Supply Chain Management

Abstract

XYZ Ltd. is a company engaged in the bag-making manufacturing industry. The products produced include various
types of bags such as backpacks, messengers, triangles, body bags, waist bags, and wheeled suitcases. The problems
currently faced by XYZ Ltd. in its business processes, namely requests that are not the same as forecasts, delays in
raw materials sent by suppliers, damage to raw materials during storage in warehouses due to the absence of routine
checks, machine breakdowns that affect production process delays, and returns of finished products from consumers
due to defect at the time of delivery. This causes the company to lose in terms of time and cost. This study uses the
House Of Risk method. The House Of Risk method is a modification of the Failure Modes and Effects of Analysis
(FMEA) method and the Quality Function Deployment (QFD) method. The purpose of this study is to identify
potential risks that may arise in the supply chain at XYZ Ltd, find out the causes of these risks, and design effective
risk mitigation strategies for the company. In the House Of Risk (HOR) stage 1, namely the risk identification stage,
there are 33 risk events and 42 risk agents. Then after being analyzed using a Pareto diagram, 13 dominant risk causes were found based on the Aggregate Risk Potential (ARP) value. In the House Of Risk (HOR) phase 2, 14 mitigation actions (preventive actions) are proposed to overcome the probability of the emergence of risk agents in the supply chain of XYZ Ltd.

Keywords
Supply Chain Management, Risk Mitigation, House of Risk, Bag Manufacturing Industry