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Risk Management - Sub-Contractors

Risk management and assessment of manufacturing processes need a high
sub-contractors and suppliers must start degree of careful risk management.Next
early in the life of a bid. As soon as down the chain in terms of risk are
the need for bought in items is specialist items of proprietary hardware.
identified and a list of potential Again, this is likely to be a
sub-contractors created, the risk sole-source item, which in itself carries
management process kicks in.Risk risk.Alternatively, the risk involved in
assessment of sub-contractors becomes buying standard commercial-off-the-shelf
more essential, the more complex the item (COTS) items of either hardware or
of supply and the fewer suppliers there software where there are various similar
are to choose from.The amount and products to choose from, is fairly low,
importance of risk management goes in but still exists and management will be
this order, starting with the most required.In a nutshell, the order of
difficult:If the system requires a risk, starting with the highest is:Sole
complicated piece of modified software source software development
based on an existing proprietary Multiple source software development
software, then due to copyright issues, Sole source complex COTS software
only the original owner of the code can requiring system integration
be approached to change it as required. Sole source hardware development and
This is a sole source supply involving manufacture
software development, which is Multiple source hardware development and
notoriously difficult, and needs to be manufacture
micro-managed in order to COTS Software supply
succeed.Equally, if a complicated bespoke COTS Hardware supplyEach of these
software is needed, even given that there scenarios carry different types and
are a number of sub-contractors capable quantities of risks, making individual
of doing the work, it is a very risky plans for their management absolutely
business and needs careful essential.In our next article we'll look
management.Items of hardware which will and the management of risk associated
be designed and manufactured specifically with selecting potential sub-contractors.
for this project or which require special




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