Risk Assessment of Factors Affecting Production Planning in an Automotive Parts Manufacturer
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Abstract
The research purposes are as following: (1) to evaluate risk factors affecting production planning in an automotive parts manufacturer, and (2) to prepare an effective risk control plan. This research is a participatory action research. There are six workers in the production planning department who participated in the research at every stage. Based on risk identification and risk assessment, the risk assessment form divides the risk factors into five internal risk factors and six external risk factors. Data analysis involved descriptive statistics such as mean and standard deviation for analyzing the probability and impact of risk factors. The result of this research revealed that the internal factors regarding the high level of risk affecting production planning are sequentially as follows: damaged machinery, lack of manpower, inefficiency in coordination, raw material quality control problems, and unstable information systems. The external factors regarding the high level of risk are fluctuating orders, inaccurate demand forecasting, express purchase order, sudden order cancellation, delayed delivery, and customs clearance problems, respectively. Therefore, the organization’s production strategies and planning procedures should realize both internal and external risk factors. To achieve the organizational goals, risk factors should be categorized into monitored and controlled factors.
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The manuscript submitted for publication must be the original version, submitted only to this particular journal with no prior acceptance for publication elsewhere in other academic journals. The manuscript must also not violate the copyright issue by means of plagiarism.
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