Some Risk Factors in Processes and Projects

Production planning and management, as well as management of relationships with suppliers, is closely linked to the expected demand, to the point that demands that are higher or lower than expected may cause delay in processing orders, 

In the order cycle area, errors during order processing may cause delays in meeting the demand, which in turn negatively affects the downstream service level. 

It is fair to conclude therefore that all areas of the logistic process are connected with one another in the achievement of common goals. The occurrence of errors, adverse events or intermptions at selected stages may have a rebound effect and thus seriously compromise the overall performance. 

Additional risks are related to products maturity or obsolescence. In fact, if on the one hand a mature product has generated a level of experience, which in part reduces risks correlated with its development, on the other hand in some instances managing the technological refreshment of a product or process may be particularly critical. In fact, extra production costs may ensue, the level of performance of the product may drop or continuity of deliveiy service to customers may be jeopardized. 

In a dynamic and competitive environment, companies are related to other entities -such as suppliers, third parties, customers - which should share common objectives. Furthermore, companies include sub-systems - such as processes and projects -which are constantly subject to change and have a specific set of objectives. 

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