Development of a Resilience Strategy for a Supply Chain of a Tool Manufacturer

Abstract

This paper focuses its study in the generation of a Supply Chain Resilience strategy for a metal-transformation company located in the City of Puebla, Mexico. The study tends to strengthen the capacity of the company, in terms of resilience in case of any logistic or operational disruption caused by the negative impacts of a disaster. It was suggested to start with a Risk Management Analysis (RMA) following by a Business Continuity Plan implementation. Using the (Define, Measure, Analyze, Improve, and Control) DMAIC methodology, disturbing agents from a national federal agency were analyzed to detect potential risks on the complete Mapping Production Process of the company, to sort those risks per weighted damage impact later. The strategy set up would help to the Tool Manufacturer to control risks better and improve the resilience culture of the company. The risk cost impact was estimated to be reduced from 1.2 M USD to USD 500 k USD. In the second scenario, an AHP was used, but considering other aspects like infrastructure, roads, and so forth, the safety sites were found in the northwest, center-west, center-east, southwest, southeastern, and central areas of the state of Puebla.

Appendix 15.1—Complete Risk Matrix Development, Self-production (2018)

No	Impact of Risk	Risk Description	Category						Risk Owner	%			RPN (Prob) (%)
			I	R	S	O	Q	B		Occ (%)	Det (%)	Imp (%)
1	—Absense	Drought Effects		X					HR, Prod	20	80	60	10
2		Low Temp		X					HR, Prod	80	40	60	19
3		Toxic Substances		X					HR, Prod	20	80	60	10
4	—Brakes in the process	Electric Storm	X			X	X	X	HR, Prod	80	40	80	26
5	—Emmisions Excess	Toxic Substances		X		X			HR, Prod	20	80	60	10
6	—Energy over consumption	Low Temp		X		X			HR, Prod	80	40	60	19
7	—Enviromental Legal Problems	Drought Effects						X	HR, Prod	20	80	40	6
8		Low Temp						X	HR, Prod	80	40	40	13
9		Toxic Substances						X	HR, Prod	20	80	40	6
10	—Human Injury	Flooding		X		X			HR, Prod	60	60	20	7
11	—Labor Sickness	Drought Effects		X		X			HR, Prod	20	80	60	10
12		Low Temp		X		X			HR, Prod	80	40	60	19
13		Toxic Substances		X		X			HR, Prod	20	80	60	10
14	—Land Cracks	Flooding				X		X	HR, Prod	60	60	80	29
15	—Machinery Overheat	Drought Effects	X			X		X	HR, Prod	20	80	80	13
16	—Machinery substance leak	Toxic Substances	X			X		X	HR, Prod	20	80	100	16
17	—Material undelivered	Earthquake						X	HR, Prod	40	60	60	14
18		Flooding						X	HR, Prod	60	60	60	22
19		Hard Hails						X	HR, Prod	80	20	60	10
20		Volcanic Eruption						X	HR, Prod	60	60	60	22
21	—Pipe Ropture	Earthquake	X			X		X	HR, Prod	40	60	100	24

Total Risk Value	Initial Risk Values		Action plan mitigation	Investment Req	%			RPN (Prob) (%)	Future Risk Values
	Probability of Occurrence (%)	Predicted Risk Value			Occ (%)	Det (%)	Imp (%)		Probability of Occurrence (%)	Predicted Risk Value
$120,000	10	$11,520	Water/Gatorade dispensers in the worksations	$1100	20	80	20	3	3	$3840
$120,000	19	$23,040	Special cold extractors in strategic manufacturing zones	800	80	40	20	6	6	$7680
$120,000	10	$11,520	Add in the OSHAS risks procidure a Toxic substance control plan for each cell	$0	20	80	20	3	3	$3840
$120,000	26	$30,720	Invest on an energy plant where needed to avoid disaster	$700	80	40	40	13	13	$15,360
$120,000	10	$11,520	Add in the OSHAS risks procidure a Toxic substance control plan for each cell	$0	20	80	20	3	3	$3840
$120,000	19	$23,040	Special cold extractors in strategic manufacturing zones	800	80	40	20	6	6	$7680
$120,000	6	$7680	Preventive action machinery check up	$0	20	80	0	0	0	$0
$120,000	13	$15,360	Special cold extractors in strategic manufacturing zones	800	80	40	0	0	0	$0
$120,000	6	$7680	Add in the OSHAS risks procidure a Toxic substance control plan for each cell	$0	20	80	0	0	0	$0
$120,000	7	$8640	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	10	$11,520	Water/Gatorade dispensers in the worksations	$800	20	80	20	3	3	$3840
$120,000	19	$23,040	Special cold extractors in strategic manufacturing zones	800	80	40	20	6	6	$7680
$120,000	10	$11,520	Add in the OSHAS risks procidure a Toxic substance control plan for each cell	$0	20	80	20	3	3	$3840
$120,000	29	$34,560	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	40	14	14	$17,280
$120,000	13	$15,360	Machine cooler’s	$800	20	80	40	6	6	$7680
$120,000	16	$19,200	Add in the OSHAS risks procidure a Toxic substance control plan for each cell	$0	20	80	60	10	10	$11,520
$120,000	14	$17,280	Set up a contingency plan for earthquakes	$450	40	60	20	5	5	$5760
$120,000	22	$25,920	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	20	7	7	$8640
$120,000	10	$11,520	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	20	3	3	$3840
$120,000	22	$25,920	Plan in place, improve procidure applying a Kizen	$0	60	60	20	7	7	$8640
$120,000	24	$28,800	Set up a contingency plan for earthquakes	$450	40	60	60	14	14	$17,280
$120,000	6	$7680	Invest on an energy plant where needed to avoid disaster	$700	80	40	0	0	0	$0
$120,000	7	$8640	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	7	$8640	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	6	$7680	Special cold extractors in strategic manufacturing zones	800	80	40	0	0	0	$0
$120,000	24	$28,800	Set up a contingency plan for earthquakes	$450	40	60	60	14	14	$17,280
$120,000	10	$11,520	Set up a contingency plan for earthquakes	$450	40	60	0	0	0	$0
$120,000	14	$17,280	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	6	$7680	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	0	0	0	$0
$120,000	14	$17,280	Plan in place, improve procidure applying a Kizen	$0	60	60	0	0	0	$0
$120,000	16	$19,200	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	60	10	10	$11,520
$120,000	6	$7680	Invest on an energy plant where needed to avoid disaster	$700	80	40	0	0	0	$0
$120,000	10	$11,520	Set up a contingency plan for earthquakes	$450	40	60	0	0	0	$0
$120,000	14	$17,280	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	24	$28,800	Set up a contingency plan for earthquakes	$450	40	60	60	14	14	$17,280
$120,000	16	$19,200	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	60	10	10	$11,520
$120,000	36	$43,200	Plan in place, improve procidure applying a Kizen	$0	60	60	60	22	22	$25,920
$120,000	24	$28,800	Set up a contingency plan for earthquakes	$450	40	60	60	14	14	$17,280
$120,000	32	$38,400	Invest on an energy plant where needed to avoid disaster	$700	80	40	60	19	19	$23,040
$120,000	36	$43,200	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	60	22	22	$25,920
$120,000	10	$11,520	Set up a contingency plan for earthquakes	$450	40	60	0	0	0	$0
$120,000	14	$17,280	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	10	$11,520	Set up a contingency plan for earthquakes	$450	40	60	0	0	0	$0
$120,000	14	$17,280	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	6	$7680	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	0	0	0	$0
$120,000	14	$17,280	Plan in place, improve procidure applying a Kizen	$0	60	60	0	0	0	$0
$120,000	13	$15,360	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	40	6	6	$7680
$120,000	26	$30,720	Invest on an energy plant where needed to avoid disaster	$700	80	40	40	13	13	$15,360
$120,000	24	$28,800	Set up a contingency plan for earthquakes	$450	40	60	60	14	14	$17,280
$120,000	36	$43,200	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	60	22	22	$25,920
$120,000	36	$43,200	Plan in place, improve procidure applying a Kizen	$0	60	60	60	22	22	$25,920
$120,000	29	$34,560	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	40	14	14	$17,280
$120,000	29	$34,560	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	40	14	14	$17,280
$120,000	7	$8640	Set a plan for exit emergency and alternative line manufacturer somewhere else by coorporate	1800	60	60	0	0	0	$0
$120,000	5	$5760	Set up a contingency plan for earthquakes	$450	40	60	0	0	0	$0
$120,000	14	$17,280	Set up a contingency plan for earthquakes	$450	40	60	20	5	5	$5760
$120,000	10	$11,520	Fans on workstations	$450	20	80	20	3	3	$3840
$120,000	19	$23,040	Special cold extractors in strategic manufacturing zones	800	80	40	20	6	6	$7680
$120,000	10	$11,520	Add in the OSHAS risks procidure a Toxic substance control plan for each cell	$0	20	80	20	3	3	$3840
$120,000	36	$43,200	Plan in place, improve procidure applying a Kizen	$0	60	60	60	22	22	$25,920
$120,000	13	$15,360	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	40	6	6	$7680
$120,000	36	$43,200	Plan in place, improve procidure applying a Kizen	$0	60	60	60	22	22	$25,920
$120,000	5	$5760	Set up a contingency plan for earthquakes	$450	40	60	0	0	0	$0
$120,000	13	$15,360	Invest on an energy plant where needed to avoid disaster	$700	80	40	0	0	0	$0
$120,000	6	$7680	Wear special protectors for hears when noice surpasses 85 decibels, NOM 011	$100	80	20	0	0	0	$0