ABSTRACT
The objective of this chapter is to develop and demonstrate a systematic approach for supply chain risk assessment for automotive new product development (NPD). It demonstrates a process for identifying the most vulnerable sub-system of an automobile from the point of view of supply chain risks and how causes of vulnerabilities for the most vulnerable supplier can be identified and mitigation actions planned. Analysis showed that control systems including steering and powertrain were the two most vulnerable sub-systems for the point of view of supply chain related risk for NPD. A further Failure Mode Effect Analysis showed that the failure modes with highest risk priority number were control software for engine, automatic transmission having glitches, supplier lacking knowledge of interfaces with other assemblies/sub-assemblies, impact of drive train components on emission performance not fully understood and increase in raw material costs.
