Risk Management of Outsourcing Projects in Auto Parts Manufacturing Companies by Using Failure Mode Analysis Method and Decision-Making Technique

This research deals with the risk management of outsourcing projects in automotive component manufacturing companies. The study has shown that automotive companies outsource many of their product sub-categories to external suppliers due to various constraints. This issue affects the risk management in the quality, productivity and profitability of the organization. The present research examines the risk management of outsourcing projects in automotive component manufacturing companies by using failure mode analysis and its effects and multi-criteria decision-making technique. The scope of this research includes companies that operate in the field of automotive component manufacturing. To collect information, the opinions of experts, managers and experts of outsourcing projects in automotive component manufacturing companies have been used. According to the analysis, seventy sub-criteria have been identified and the level of each risk has been examined using the failure mode analysis and its effects method. Then, ten criteria and seventeen sub-criteria were identified and prioritized using the DANP weighting method. The results showed that the most important criteria include infrastructure management, commercial, management, and contractor, and the most important sub-criteria include increased repair time, lack of awareness in plans and lengthening project time, errors in rejection or acceptance, and loss of key employees.