Risk management is not only a requirement within many automotive standards, it is also a best practice which is leveraged by companies who lead and outperform the broader industry.
Identifying, classifying, measuring, and finally mitigating or eliminating risk within your organization will yield results across several facets of your business. Consulting firms can support your organization on these risk activities by bringing a precise skillset and experience to meet your needs efficiently and effectively.
Let’s explore a few of the leading risk factors facing the automotive industry today.
Safety
Identifying potential failure points in your processes and manufacturing environments can reduce the types of risk present which may impact your workforce or other personnel stakeholders.
In addition to human factors, technical or material factors may also be identified which can impact product safety and/or the functional safety of your product’s use. By using risk audits, matrices, and other tools, it is possible for organizations to focus on leading indicators to proactively reduce risk.
Quality
The risks to quality can seem endless, but by partnering with the right consulting firm, it is possible reduce risk by focusing on the process, people, and product elements of quality such as:
Process capability – ensuring a robust process exists to support first pass yield and repeatability.
Conformance – ensuring that your processes and system meet the requirements of both customers and industry standards such as IATF, VDA, and ISO.
Problem-solving – dealing with quality defects, complaints, and warranty claims quickly and effectively to prevent recurrence.
Skills
Given the highly specialized skill sets needed in the automotive industry, it comes as no surprise that there is a high demand for skilled and capable people. In South Africa, particularly, there is a notable skills gap that puts every organization at potential risk.
This can be mitigated by ensuring that personnel are kept up-to-date with their training. Investing in training is never a waste, even when a person leaves the organization, as it provides a wider skills pool for the industry to benefit from as a whole. This reduces overall risk of industry collapse while driving skill demand and, consequently, labor costs down over time.
Delivery
Short shipments, expedite fees, extraordinary freight, downtime, overtime, OEM stoppages, missed sales targets – the risks are numerous when it comes to shipping the correct parts, in the correct quality, in the correct quantity, at the correct time.
By allowing a consulting firm to analyze your supply chain capacity, internal capacity, and asset utilization, it’s possible to address risks before they manifest and to improve outcomes if the risks have already been realized. Often, complex problems have simple solutions.
Consulting is not just pointing out risk; it’s rolling up our sleeves and doing something about it. Success lies in executing simple, effective solutions in often seemingly complex and costly conditions.
Do you know the risks to your business? Encona is here to help you navigate the different types of risks in the automotive industry by providing the necessary training and consulting to get your organization to maximum competency. Let’s talk.
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