Analysis of the article

Article: Supply Chain Risk Management Framework: A Fishbone Analysis Approach

Authors: Desai, Kiran J., Mayur S. Desai, and Lucy Ojode

Journal: SAM Advanced Management Journal 80.3 (2015): 34.

Analysis of the article

Fishbone diagram is a cause and effect models developed by Kaoru Ishikawa in the 1960s in his efforts of quality management. The diagram is a graphical representation of causes and effects under investigation. The diagram allows potential causes of a problem to be broken down into smaller elements and assign a solution to the problem.  This article adapts the fishbone analysis approach to identify causes of common business risks in a supply chain. Often, business problems are characterized by multiple causes.  The fishbone diagram is a structured way to establish potential risks as well as break down each cause to basic elements. The fishbone diagram approach is mainly ideal for a multi-prong problem since the graphical representation of the cause-effect provides a comprehensive view of the firm’s supply chain.

The supply chain is likened to complex biological systems that have potentially flexible and self-healing, yet vulnerable to some particular weakness.  The fishbone diagram is a more appropriate form of analyzing supply chain risks as it is a systematic approach to solving complex multifactor problems.  As a supply chain risk management tool, the fishbone diagram has been used in the article to show how businesses predisposed to risks such as counterfeit products, defective parts or products, compromised warehousing and storage, delays in delivery, and others can use the management tool to avoid compromises of their supply chain. Hence, firms need a structured approach to aid the analysis of relationships in the supply chain to enable a clear pointer of the link between the compromised segment and the rest of the supply chain to evaluate the damage. The fishbone diagram technique is suitable for such complex problems as it allows graphic labels and displays for each part of the chain for a methodical overview of possible effects and equivalent causes.  The study also discusses four categories of likely effects: delay, defect, counterfeit, and common errors. Each of the problems is likely influenced by several factors.  The fishbone diagram shows the underlying causes or significant factors of the specific impact. The factors are discussed in the fishbone diagram and a corresponding redress afforded in the responsibility and action planning matrices. The potential causes and effects are presented separately in a fishbone diagram-thus the four diagrams in the study.

How it relates to Supply Chain and Operations

Today's competitive business is characterized by global sourcing and virtual corporations. The result is that firms are exposed to ferocious hypercompetitive dynamics heightened by unanticipated natural disasters and economic instability.  Firms tend to tighten and secure their input sources in the upstream while focusing on revenue bases downstream. This result in a broad global sourcing of inputs, processes, and systems that gives organizations access to global suppliers with embedded flexibility. At the same time, reach to global customers increases revenue and enables firms to stay competitive. These capabilities with complex networks aid global firms to get quickly on track after disasters and uncontrollable events. However, the benefits are accompanied by challenges of coordinating sustained value creation to global customers and diverse global sources. 

The firms operating on a global scale relate to stakeholders such as suppliers and customers through a supply chain. A supply chain is made of a network of factories, suppliers, distribution centers, warehouses and retailers, through which raw materials are purchased, produced, transformed and delivered to customers. Due to the diversity of firms and their activities, firms require an effective supply chain management for them to reap its benefits, Hence, the significance of supply chain management. Supply chain management is comprised of the set of synchronized activities and decisions to effectively integrate suppliers, transporters, manufacturers, retailers, warehouses and customers. Effective management should ensure that the right product reaches its location in the right quantities and quality and in a timely manner.

Effective supply chain management is important in integrating the management of partners in the chain and processes through cooperative relationships.  Given the exposure to risk that characterize today’s firms from complex synchronized coordination of processes with networks; the importance of supply chain management cannot be overemphasized.  Effective management allows firms to reduce the form and magnitude of potential risks.  The starting point of effective management is to design a supply chain that has alternative ways of operating in the case of disrupted. The process is more complex than just planning for contract manufacturing and identifying other suppliers. A Fishbone Analysis Approach is importance as Potential risks that may affect a supply chain are fundamentally embedded in multi-faceted relationships given that global supply chain is a complex business phenomenon due to its interrelated and integrated parts. A Fishbone Analysis Approach takes into consideration that the modern supply chain is extremely complex with numerous tradeoffs. To approach this problem, a fish bone analysis model helps the firm to graphical represent causes of specific effects under investigation. It allows potential causes of risks to be broken down into simpler elements.

Work cited

Desai, Kiran J., Mayur S. Desai, and Lucy Ojode. "Supply Chain Risk Management Framework: A Fishbone Analysis." SAM Advanced Management Journal 80.3 (2015): 34.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in cheap term papers if you need a similar paper you can place your order from top research paper writing companies.