Automotive Supply Chain Risk Model Driven By Interpretive Structural Modelling With Fmea

This paper aims at analyzing the risks that may disrupt the supply chain of automotive manufacturer. To analyze and further model the risks in supply chain, an automotive manufacturer company has been studied. First phase of the study is to identify various risks in the supply chain through literature review and expert's opinion from automotive industry. Further, Failure Mode and Effect Analysis (FMEA) is used to prioritise the risk elements based on the risk priority number. 18 risk elements have been identified as critical to the supply chain. In the next phase, interrelationships among these risk elements have been identified through Interpretive Structural Modelling (ISM). MICMAC analysis helped identifying the driving and dependency power of these risk elements. The ISM model suggests that supplier's failure to provide material, malfunctioning of IT system, data miscommunication, insufficient/ delayed information flow, and import/ export limitations are the drivers in the whole supply chain network of automotive manufacturing. Transportation infrastructural congestion, supplier failure, limited rail cars due to the surge in demand, lower production than expected are the variables that have high dependability.