Development of Risk Management in Supply Chain Activities Using FMEA Method and Improvement Program Through Focus Group Discussion

Abstract

This research analyses the application of the Supply Chain Risk Management (SCRM) model. The aim of this research is to identify risk management at PT. XYZ then analyses the risks that have the potential to cause losses to the company and evaluates the priorities of the company's performance improvement program. This research is a category of business research that uses qualitative research methods. The population in this study is all problems in SCRM that occur with a sample size of risk data for all aspects from January to December 2021. The analysis technique used in this research is the House of Risk (HOR) and Focus Group Discussion (FGD) approaches. to prioritize risk sources with the aim of comparing which decisions should be chosen in order to reduce potential risks from risk sources. This research shows that the risks identified include errors in production planning, delays in delivery of raw materials, and product non-conformity with operational standards. The impact of this risk event is significant on PT. XYZ, such as production delays, increased operational costs, and decreased customer satisfaction. Mitigation strategies implemented include routine scheduling checks, stricter implementation of SOPs, and increased coordination between departments.