Risk Management

 

Risk Management

Is a process that should perform in daily basis. consist in three main part, they are –

• Risk Identification,
• Risk Assessment
• Risk Control

Risk Management also mentioned as project future. More risk will increase the chance of failure and hazardous factors.

Formula: Risk Rating = Occurrence Scale X Severity Scale

Risk Identification: Management anticipate the future and think of possible event that can happen in production area and effect in negative way when identify risk make sure you involve expert or technical person to uncover different risk they have from their experience. Also risk identification process follow large number of ideas to encouraging people to participant. After completing identification of risk generate a list which contain many possible risks that can happen during production life cycle. Finding out most critical risks is daily work not focus on minor or small risks.

Risk Assessment: First the risk formula then risk depend on two factors the chance of the event happening and its severity. Basic component of risk and thus understand then be more confident & objective analysis them.

It is a tool that design to help calculate the risk formula easily. Its basically a table where the chances of risk will happen indicate the one axis and severity of the event found in the other cells of the table represent the score of the risk which can define in many different ways. There are many different shapes of risk matrix facility need to follow selected one by the management or buyers. Management should make sure proper risk ranking. This can be accomplished by justify way given particular same to specific risk component. After assessment can re-write the risk list to make sure how to control them.

Risk Control: Controlling risk should be fun exercise because management have the opportunity to be creative and select any different tools to control risk. There are few aspects to control risks:

• Eliminating risk to ensure will not happen again or impact in production.
• Reducing risk to decreasing chance of happening or severity.
• Can transfer risk to other who can deal it with experts. (Or) Management can accept the risk knowing that nothing they can do. Therefore, Management can select and apply several techniques. Selecting and controlling techniques will depending on many factors
• Score of the risk.
• The importance of the product or process.
• Ability to actually implement the control of action.

Types of Risks in Garments Industries Production Floor

Based on production floor’s factors like Hazard, Risk rating, Occurrence Scale and Severity Scale risk can be classified into two types.

1. Process Risk
2. Product Risk

Process Risk:

The chance that the execution of the process does not live up to the expectations. Process risks are related to process control like SOP violation, missing process or misconduct of process. Process risk can be classified into two:

• Internal Process Risk
• External Process Risk

Internal Process Risk: Relate with regular production activities happening within the organization and following buyer’s SOP collaboration with company rules and regulation. Such as raw material storing process, relaxation process, sewing process, finishing, quality ensuring process etc.

External Process Risk: Relate with process which can be manipulate from outside or suppliers. Such as External product test, supply chain etc. 

Product Risk:

The product does not live up to the expectations might fail to satisfy or fulfill some reasonable expectation of the customer, user, or stakeholder. Also called the ‘Product risks’ as ‘Quality risks’ as they are risks to the quality of the product. Product risks can be classified in many ways but they fall into one of two main categories –

• Functional Product Risk
• Non-functional Product Risk

Functional Product Risk: Functional product risks relate to how the product may not achieve the activities it is designed to do, such as receiving technical data analysis, performance evaluation, producing production / quality reports and interfacing with other process like supply chain.

Non-functional Product Risk: Non-functional product risks relate to such possible problems as product not performing as expectation the customer, user, or stakeholder like product performance, usability, reliability, etc.

 There are some of the steps to ensure risk assessment given bellow:

Step 1: Identify hazards, i.e. anything that may cause harm. – User type, Product type, Risk level

Step 2: Decide who may be harmed, and how. – Possible hazard, Severity

Step 3: Assess the risks and take action. Severity – based on our action

Step 4: Make a record of the findings.

Step 5: Review the risk assessment. – Review meeting