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Risk Management Webinar for Materials Professionals

IMPROV is a consulting and training organization specializing in strategic and operational solutions for business growth and risk management, serving over 700 organizations since 2004. The document outlines a webinar on risk management, focusing on the ISO 31000 framework, case studies, and key techniques for materials professionals. It emphasizes the importance of integrating risk management practices to improve quality and reduce costs in various industries.

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snehalkarnik
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0% found this document useful (0 votes)
8 views25 pages

Risk Management Webinar for Materials Professionals

IMPROV is a consulting and training organization specializing in strategic and operational solutions for business growth and risk management, serving over 700 organizations since 2004. The document outlines a webinar on risk management, focusing on the ISO 31000 framework, case studies, and key techniques for materials professionals. It emphasizes the importance of integrating risk management practices to improve quality and reduce costs in various industries.

Uploaded by

snehalkarnik
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

E V O LV E | S C A L E | T H R I V E

[Link]
[Link]

Who We Are

IMPROV is a consulting and training organization offering strategic and operational solutions that drive business growth,
process excellence and sustainable development. Since 2004, we've empowered 700+ organizations across industries.

IMPROV Risk
“ Your Partner in Predicting the Unpredictable”

EARTHSUN Sustainability Solutions


IMPROV Risk is a dedicated vertical
is a division of IMPROV Consulting
of IMPROV Consulting and
and Knowledge Solutions Private
Knowledge Solutions Pvt Ltd
Limited, provides services ranging
specialized in Risk Management
from advisory, assessments,
Services ranging from process safety
training, certification assistance and
and industrial hygiene to fire,
legal handholding in the
construction, and logistics safety.
sustainability and ESG domain.

Chemical Financial Services Automotive Oil & Gas Public Sector FMCG Energy &

Aerospace & Machinery & Infrastructure & Technology, Media & Media & Natural
Healthcare Defense Mining Construction Telecommunication Entertainment Resources

Industries We Serve
Webinar Protocol
• Participation: Use the chat or Q&A feature to ask questions or share comments.

• Respect Webinar Etiquette: Please be courteous by refraining from interrupting the speaker. Kindly hold
your questions until the Q&A session, which will be conducted at the end of the presentation.

• Recording: The webinar may be recorded for later reference.

We look forward to your active participation!

3
Webinar on

Risk Management made easy


for Materials Professionals
Subject Outline

Case study of ISO 31000 adoption at Suppliers of Oil & Gas OEM
Tiered ecosystem of materials and a scenario to Discuss
Overview of Risk Management ISO 31000:2018 Framework
How to integrate ISO 31000 with your existing practices
Key techniques and templates
Case study for live discussions
Q&A

5
Poll Question

Which area do you associate most with ‘risk’ in your work?

• R&D and testing


• Manufacturing process
• Supplier quality
• Regulatory compliance

6
Case Study 1
A global Oil & Gas OEM producing pressure vessels and subsea components relies on a
tiered ecosystem:
Results After One Year
Tier 1: Metal mills (forging ingots, high-strength alloy plates)
Tier 2: Component manufacturers (rings, flanges, pressure vessel shells)
Tier 3/OEM: Assembly, welding, testing, and final certification • 67% reduction in heat-treatment related
defects
The OEM faced repeated issues with variability in material toughness values and
weldability during long-term sour service applications. • Zero alloy composition deviations
• Lead time for quality approval reduced by
Trigger for ISO 31000 Implementation
30%
A catastrophic weld failure occurred during hydrostatic testing of a large subsea • OEM adopted ISO 31000 formally into
component.
supplier qualification
Investigation revealed: • Tier 1 & Tier 2 suppliers began integrating
Chemical composition drift in alloy plates due to variation in ore batches (Tier 1)
Inconsistent heat-treatment cycle parameters at a Tier 2 fabricator risk thinking into daily operations
OEM’s incoming inspection did not include low-temperature impact testing for certain
batches

This resulted in:


4-month delivery delay
$3.5M cost due to rework
Potential loss of a major EPC client
7
Tiered ecosystem of Materials

Final Product • Extended timelines


Org • Material quality issues
• Increased cost over period of time
Direct Suppliers
Providing • Excess inventory
component of • Production halts
Final Product • Stockouts

Supplier to Tier 2 • Natural disaster


Providing materials or • Financial issues
service • Quality control

Risk Originates here more often due to lack of


Supplier to Tier 2 visibility and control by final organisation
Raw material

8
Poll questions

Which tier do you interact with most in your role?

• Raw material supplier


• Component manufacturer
• OEM / Customer-facing
• Testing / Certification

9
Scenario to discuss

A rare-earth supplier in East Asia suddenly stops production. An electronics manufacturer faces a 3-week
production delay.

Questions:

• What are the primary risks (technical, operational, reputational)?

• What risk treatments are possible? (dual sourcing, stockpiling, design alternatives)

• How do you track and monitor such risks over time?

10
Why Risk Management Matters?

Materials failures → high cost, safety issues

Supply chain disruptions → delays, penalties

Testing variability → compliance challenges

Lack of information → Poor decision making

11
Key Success Factors for Matured Risk
Management Practices

• Leadership sponsorship and risk-aware culture


• Unified terminology and templates across departments
• Regular communication and visibility to decision-makers
• Ongoing training and maturity assessments
• Linking levels – Strategic, Tactical and Operational
• Continual Process improvement
• Tools & templates matter
• Tailoring is essential

12
Overview of ISO 31000
A global standard providing principles
& guidelines for managing risk.

13
Integrate ISO 31000… don’t replace existing practices

How to integrate ISO 31000 (Risk Management) and ISO 9001 (Quality
Management)?
ISO 31000
& ISO 9001
Lab QA
Systems
• Unified Risk Assessment – ISO 31000 as single methodology for all

IATF16949
Objectives as defined in ISO 9001
• Address threats as well as opportunities – Threats to quality and
improvement opportunities both can addressed using ISO 31000

Enterprise wide robust and • ISO 31000 can manage inherent risks, residual risks and secondary
scalable Risk Management
risks to overall quality management objectives
• ISO 31000 and ISO 9001 both drive the continual improvements
addressing the quality issues and process optimisation

14
Key Techniques and Templates
Define context & Identify threats and Prioritise Assess Plan Implement Review
objectives opportunities risks and
adapt

Balanced scorecard X X

Benefits mapping X

Cause and effect diagrams X X X

Generic risk responses X

Horizon scanning X X

Individual assessment X

Johari window X

PESTLE analysis X X

Risk breakdown structure X X

Risk Matrix X X

Swiss Cheese model X

SWOT analysis X X

Trend reporting X

Maturity assessment X

Sizing contingency X

15
Risk Responses
making an uncertain situation certain
by removing the risk. removing the
cause of a threat, or by implementing Threats Opportunities
a factor that leads to an opportunity.

Avoid Exploit
Making the threat less likely
to occur or reduce the impact
if it occurs. Making the Reduce Enhance
opportunity more likely to
occur or increase the impact
if it did occur. Transfer aims to impart part of the risk to a third party.

it seeks for multiple parties, typically within a supply


Share chain, to share the risk on a pain or gain share basis.

the business ‘takes the chance’ that the risk will


Accept occur, managing its full
impact if it did.
preparing plans but waiting to take action. Prepare contingent plans

Reference from PRINCE2© v7 by Axelos 16


Key Risk Techniques – Swiss Cheese Model

Reference from M_o_R © v4 by Axelos 17


Key Risk Techniques – Stakeholder Analysis

Reference from M_o_R © v4 by Axelos 18


Key Risk Techniques – Johari Window

Reference from M_o_R © v4 by Axelos 19


Key Techniques and Templates

Risk Register Template Implementation Roadmap

20
Poll Question

Which tool/technique do you currently use most often to


manage risks?

• FMEA
• 8D Reports
• CAPA System
• Excel/Manual tracking
• Other

21
Case Study 2
A shipbuilder specializing in high-speed ferries uses complex composite materials for hulls
and superstructures. The ecosystem involves:
Tier 1: Resin manufacturers, fiber suppliers Results After Nine months
Tier 2: Composite panel fabricators
Tier 3/OEM: Shipyard assembling hull sections
• Reduction of composite panel defects by
The shipbuilder faced unpredictable quality issues with delamination and incomplete 72%
curing of composite panels.
• Improved consistency of cure profiles
Trigger for ISO 31000 Implementation • Faster certification from classification

During final inspection of two ferries, ultrasonic tests revealed extensive voids and weak society
bonding in composite panels. Root cause investigation showed: • Stronger supplier relationships due to
• Tier 1 resin supplier altered the curing accelerator due to REACH compliance changes
(uncommunicated to Tier 2) improved risk visibility
• Tier 2 panel fabricator had inconsistent vacuum bagging parameters • ISO 31000 adopted as central framework for
• OEM skipped random destructive tests due to pressure to meet delivery timelines
• Environmental conditions (humidity) were not monitored adequately all material-related decisions

This led to:

• 6-month project delay


• Full stripping and refabrication of panels
• Negative audit report from classification society

22
Q & A, Open Discussion

This is the time for:

- open discussions and questions


- your own scenarios, examples to discuss

23
Contact us :

IMPROV Consulting and Knowledge Solutions Pvt Ltd

info@[Link] | 9004 532 946

To know more about us visit our website :

[Link]

24
Thank You
<<IMPROVE NAME AND ADDRESS>>

25

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