Advertisement

What Value for Whom in Risk Management?—A Multi-value Perspective on Risk Management in an Engineering Project Supply Chain

  • Pelle Willumsen
  • Josef Oehmen
  • Monica Rossi
  • Torgeir Welo
Chapter
Part of the Springer Series in Supply Chain Management book series (SSSCM, volume 7)

Abstract

When supply-chain risk management (SCRM) is implemented as a highly formalized, compliance-driven activity, it easily ends up disconnected from the actual value creation and value perspectives of the relevant stakeholders. SCRM is embedded in a complex stakeholder landscape, and as a consequence, the value of SCRM is perceived differently by different stakeholders. We argue that when employing a value-based approach, risk management can be tailored to specific stakeholder needs at each step in the supply chain, while maintaining coherence with the overall objectives of the supply chain. Based on a combination of case studies carried out over 1 year in engineer-to-order project environments and arguments from literature, this chapter presents a conceptual model for developing supply-chain risk management activities that are based on the value perspectives of key stakeholder groups in a customer–supplier relationship. The value perspectives collected are positioned in the stakeholder landscape and fall into two categories. One related to the outcome and one related to the process quality of risk management. The model presented in this chapter can be used recursively to model up-stream and down-stream value perspectives of stakeholders in the supply chain. It is established to facilitate a conversation with the stakeholders, elicit their value perspectives and identify alignments and misalignments in order to customize the SCRM.

References

  1. Beyer, H., & Holtzblatt, K. (1998). Contextual design: Defining customer-centered systems. Burlington, Massachusetts: Morgan Kaufmann.Google Scholar
  2. Blessing, L. T. M., & Chakrabarti, A. (2009). DRM, a design research methodology. London: Springer.  https://doi.org/10.1007/978-1-84882-587-1.CrossRefGoogle Scholar
  3. Cagliano, A. C., Grimaldi, S., & Rafele, C. (2015). Choosing project risk management techniques. A theoretical framework. Journal of Risk Research, 18(2), 232–248.  https://doi.org/10.1080/13669877.2014.896398.CrossRefGoogle Scholar
  4. Cambridge Dictionary, C. (2016). Cambridge dictionary. Meaning, (entry 124), 138–138.Google Scholar
  5. Chopra, S., & Sodhi, M. S. (2004). Managing risk to avoid supply-chain breakdown. MIT Sloan Management Review, 46, 53–61.  https://doi.org/10.1108/IJOPM-10-2012-0449.CrossRefGoogle Scholar
  6. Gallarza, M. G., & Gil, I. (2006). Value dimensions, perceived value, satisfaction and loyalty : An investigation of university students’ travel behaviour. 27, 437–452.  https://doi.org/10.1016/j.tourman.2004.12.002.CrossRefGoogle Scholar
  7. Gaudenzi, B. (2009). Assessing risks in projects and processes. International Series in Operations Research and Management Science, 124.Google Scholar
  8. Hallikas, J. (2009). Risk management in value networks. International Series in Operations Research and Management Science, 124.Google Scholar
  9. ISO. (2009). ISO 31000:2009 Risk management—Principles and guidelines. Retrieved from http://www.iso.org/iso/home/standards/iso31000.htm.
  10. Kutsch, E., Browning, T. R., & Hall, M. (2014). Bridging the risk gap: The failure of risk management in information systems projects. Research Technology Management, 57(2), 26–32.  https://doi.org/10.5437/08956308X5702133.CrossRefGoogle Scholar
  11. Lehtiranta, L. (2014). Risk perceptions and approaches in multi-organizations: A research review 2000–2012. International Journal of Project Management, 32(4), 640–653.  https://doi.org/10.1016/j.ijproman.2013.09.002.CrossRefGoogle Scholar
  12. Oehmen, J., Olechowski, A., Robert Kenley, C., & Ben-Daya, M. (2014). Analysis of the effect of risk management practices on the performance of new product development programs. Technovation, 34(8), 441–453.  https://doi.org/10.1016/j.technovation.2013.12.005.CrossRefGoogle Scholar
  13. Olechowski, A. (2012). Characteristics of successful risk management in product design. In Proceedings of International Design Conference, Design, DS 70.Google Scholar
  14. den Ouden, E. (2012). Innovation design: Creating value for People. Organizations and Society: Springer.  https://doi.org/10.1007/978-1-4471-2268-5.CrossRefGoogle Scholar
  15. Petetin, F., Bertoluci, G., & Bocquet, J. C. (2011). Decision-making in disruptive innovation projects: A value approach. In International Conference on Engineering Design (August).Google Scholar
  16. Ritchie, B., Brindley, C., & Brindley, C. (2007). Supply chain risk management and performance. International Journal of Operations & Production Management, 27(3), 303–322.  https://doi.org/10.1108/01443570710725563.CrossRefGoogle Scholar
  17. Škec, S., Štorga, M., Rohde, D., & Marjanović, D. (2014). Tailoring risk management approach for the product development environment. In Proceedings of the 13th International Design Conference (DESIGN 2014) (pp. 385–396).Google Scholar
  18. Slack, R. A. (1999). The lean value principle in military aerospace product development. The Lean Aerospace Initiative, 17.Google Scholar
  19. Thomas, J. (2008). Researching the value of project management. PM Network, 22(12), 79.  https://doi.org/10.1002/pmj.20105.CrossRefGoogle Scholar
  20. Vasconcellos, V., Grubisic, F., & Gidel, T. (2011, August). Recommendations for risk identification method selection according to product design and project management maturity, product innovation degree and project. Design.Google Scholar
  21. Waters, C. D. J. (2009). Supply chain management: An introduction to logistics. London: Palgrave Macmillan. Retrieved August 30, 2017, from http://findit.dtu.dk/en/catalog?utf8=✓&locale=en&search_field=all_fields&q=donald+waters+supply+chain.CrossRefGoogle Scholar
  22. Welo, T., & Ringen, G. (2016). Beyond waste elimination: Assessing lean practices in product development. Procedia {CIRP}, 50, 179–185. http://dx.doi.org/10.1016/j.procir.2016.05.093.CrossRefGoogle Scholar
  23. Willumsen, P., Oehmen, J., Rossi, M., & Welo, T. (2017). Applying lean thinking to risk management in product development. In Proceedings of the International Conference on Engineering Design, ICED (Vol. 2).Google Scholar
  24. Willumsen, P. L., Oehmen, J., & Ernstsen, S. K. (2018). Reconceptualizing design risk management as a learning strategy. International Design Conference-Design, 2018, 5, 2529–2540. https://doi.org/10.21278/idc.2018.0224
  25. Zhai, L. (2009). Understanding the value of project management from a stakeholder’s perspective: Case study of mega-project management. Project Management Journal—Project Management Institute.  https://doi.org/10.1002/pmj.
  26. Zsidisin, G. A. (2003a, January). Managerial perceptions of supply risk. The Journal of Supply Chain Management, 14–26.CrossRefGoogle Scholar
  27. Zsidisin, G. A. (2003b). A grounded definition of supply risk. Journal of Purchasing & Supply Management, 9, 217–224.  https://doi.org/10.1016/j.pursup.2003.07.002.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Pelle Willumsen
    • 1
  • Josef Oehmen
    • 1
  • Monica Rossi
    • 2
  • Torgeir Welo
    • 3
  1. 1.Technical University of Denmark (DTU)Kongens LyngbyDenmark
  2. 2.Politecnico di MilanoMilanItaly
  3. 3.Norwegian University of Science and Technology (NTNU)TrondheimNorway

Personalised recommendations