Identifying, analyzing, and assessing risk in the strategic planning of a production network: the practical view of a German car manufacturer

This paper addresses the issue of identifying and assessing risk relevant to production networks. The objective is to create a systematic, comprehensive record of the risks relevant to the planning of car manufacturer’s production networks and to analyze these risks. The paper also discusses the methodology for assessing relevant risk in terms of the probability that the risk will materialize and the scale of the potential loss. A further objective is to assess the options for mitigating the risk through the use of a flexibly structured production network and to evaluate the associated options for responding to a change in market conditions. A case study demonstrates the possible impact of the main risk factors on performance if the organization concerned does not build flexibility into the network. Copyright Springer-Verlag Berlin Heidelberg 2013