Boeing Innovation Fellows Project MBA@ UNC Class 973

Matthew T. Nilson

A Targeting Approach to Supply Chain Risk Management

Boeing Innovation Project

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Boeing Innovation Fellows Project MBA@ UNC Class 973

Statement of the problem

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Proposals: • Implement a risk management framework using a targeting methodology—CARVER matrix• Use a multi-layered risk management approach to develop spatial and temporal visualization tools.

Today Modern Risk Management is about visualization of the risk and better visualization enhance value extraction throughout the supply chain.

Boeing Innovation Fellows Project MBA@ UNC Class 973

Case Comparison & AnalysisBoeing 787Operation Eagle Claw

Operation Restore Hope North Charleston Plant

Internal System Risk

External Environment Risk

Attributes• Implementation of a new process, product, or service• Top-Down Decision• Prone to group think• Crisis management

Attributes• Limited scope• External influencers• Change in operational parameters overtime (mission creep)• Consequence Management

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Boeing Innovation Fellows Project MBA@ UNC Class 973

CARVER Framework CARVER Analysis into Risk Management Process • Criticality: Target Value or importance of component to the

manufactured product (can be measured as an indexed cost/price)

• Accessibility: level of system exposure to failure/disaster (Can be measured in Distance from supplier to manufacturer)

• Recuperability: speed to repair, replace, or bypass system or supply shortage (measured in time)

• Vulnerability: lack of redundancy in the system (network analysis)

• Effect: on the company’s value, brand, customers, and regulators (measured in terms of profit / variable cost)

• Recognizability: degree to which potential failure can be recognized /identified (level of visibility of suppliers)

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Boeing Innovation Fellows Project MBA@ UNC Class 973

Risk Management VisualizationSpatial & Temporal VisualizationData Management & Communication

Risk Visualization

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Boeing Innovation Fellows Project MBA@ UNC Class 973

Summary1. Apply the CARVER framework when analyzing supply chain risks2. Enhance Supply Chain Management Software/Tools:

• Incorporate a multi-layered approach• Develop a detailed virtual model of the supply chain system• Conduct virtual simulations to provide temporal analysis vulnerabilities• Integrate mapping & spatial analysis Tools

Visualization helps reduce failures and gain value from supply chains

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Boeing Innovation Fellows Project MBA@ UNC Class 973

Questions

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