Risk management in manufacturing refers to many of the unique challenges that the industry faces.
„The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome.“
Peter L. Bernstein
Manufacturing risks can arise due to the nature of the materials in use, the equipment, the people, or even the location of the factory. It is at all times important to know the risks and identify all the various risks that can arise.
One must know and understand the probability of the risks arising and the potential impact it has on the business, the workers, customers and suppliers.
Risk Management Plan
Have a plan. Do risk audits. It is important to have a risk management plan with the criteria for risk acceptability defined in the plan and how the effectiveness of those controls will be verified.
„The key to risk management is never putting yourself in a position where you cannot live to fight another day.“
Richard S. Fuld, Jr.
Globalization & Technology
Increased globalization and advancing technology offer new opportunities for manufacturers worldwide. With the opportunities there are also new potential risks along. One must remain competitive embracing new developments and implementing risk management in the manufacturing process.
Some of the risks to look at are:
- Supply chain risk – influenced by natural disaster, covid, etc.
- Labor risk – injuries, special labor, etc.
- Material quality risk
- Financial risk
Lowering Risk in Manufacturing
Do you wish to lower the risks in manufacturing? Global Trade Specialists will help you. We work with many manufacturers in China matching your request with the best manufacturer for your job. In this way we secure the quality of the material used, the price, production of your custom items to the specific sizes, amounts, tolerances, and quality requested.