RISK ASSESSMENT AND RISK MANAGEMENT OF PROCUREMENT DEPARTMENT: A CASE STUDY OF ELECTRONICS MANUFACTURING COMPANY

Abstract

          This research aimed to: 1) to identify internal and external risk factors in the procurement department that may occur and 2) affect the production process within the factory. Case study of an electronics manufacturing company in the procurement department the researcher brainstormed and interviewed a group of people with more than 6 years of work experience to find risk factors. Results from brainstorming in the risk identification process. Risk analysis and risk prioritization by evaluating the likelihood of impact and the level of risk: 1) the chance of a risk event occurring, 2) the impact of damage that will occur if a risk event occurs, 3) the level of risk obtained. From evaluating the opportunity and impact of each risk factor, it was divided into 4 levels: very high, high, medium, and low. From the research results, it was found that there were 8 unacceptable risk topics. The topic with the highest risk score was Order for trial work to be assembled, but the supplier was unable to deliver the work on time. This is because the scope of work in this section is a new model that has never been produced before. And there is a limited time factor in the work. Therefore, checking the readiness of suppliers is very important. The researcher therefore proposes that a system should be used to exchange information with suppliers.