Post on 08-May-2015
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transcript
RISK MANAGEMENT IN PINISI RELAXATION USING ANALYTICAL
HIERARCHY PROCESS
Wisnumurti Rahardjo
Presentation Roadmap
Background
Business Issue Exploration
Business Solution
Implementation Plan
12
34
Back
grou
nd “32% of startups fail in their first year operation, and 90% of the business failures were due to management inadequacy” W. Reynold 1994
Pinisi Relaxation established in September 2012
risk management handle events that already happened and possibly happen in the future
every decision must be taken appropriately based on its purpose and the capability of the company
Analytical Hierarchy Process could decompose the problem into sub-problems, which are easier to be analized independently
Busi
ness
Issu
e Ex
plor
ation
Establish Context
Identify Risk
Business Risk
Financial Risk
Operational Risk
Human Resource Risk
Market Risk
Monitor and R
eview
Business Issue
Analyse Risk
Evaluate Risk
Treat Risk
Com
mun
icat
e an
d C
onsu
lt
Business Implementation
Business Solution
Theory and Concept
Analytical Hierarchy Process
Busi
ness
Issu
e Ex
plor
ation
Business RiskDemand RiskCapacity RiskReputation RiskSocial Risk
Financial RiskPayment RiskAccounting RiskLiquidity RiskMacroeconomic Risk
Operational RiskRisk of ElectricityRisk of Water DischargedRisk of Broken DeviceRisk of Unavailable Raw MaterialsRisk of Unavailable Supporting ToolsRisk of Room CleanlinessHuman Resource Risk
Risk of Absent EmployeesRisk of Sick EmployeesRisk of Saturated EmployeesRisk of Employees CrimeSalary RiskRisk of Hijacked Employees
Marketing RiskPromotion RiskRisk of Customer Perception
RISK IDENTIFICATION
Busi
ness
Issu
e Ex
plor
ation
No Risk L C Total
1 Demand Risk 5 3 15
2 Capacity Risk 5 2 10
3 Reputation Risk 5 4 20
4 Social Risk 1 5 5
5 Payment risk 4 2 8
6 Accounting risk 5 3 15
7 Liquidity risk 3 5 15
8 Macroeconomic risk 2 3 6
9 Risk of electricity 2 5 10
10 Risk of water discharged 2 4 8
11 Risk of broken instruments 3 4 12
12 Risk of unavailability raw materials 4 5 20
13 Risk of unavailability supporting tools 4 5 20
Likelihood Level Description Explanation
1 Rare Happen yearly or above2 Unlikely Happen every 6 month3 Moderate Happen monthly4 Likely Happen weekly5 Almost certain Happen everyday
ConsequencesScore Description Explanation
1 Insignificant Decrease service level to customers2 Minor Lost sales or cost less than IDR 1.000.000 3 Moderate Lost sales or cost more than IDR 1.000.0004 Major Damage company’s image5 Catastrophic The company stop running
No Risk L C Total
14 Risk of room cleanliness 5 1 5
15 Risk of absent employees 4 2 8
16 Risk of sick employees 4 3 12
17 Risk of saturated employee 5 1 5
18 Risk of employees crime 5 5 25
19 Salary risk 2 4 8
20 Risk of hijacked employees 3 3 9
21 Promotion risk 3 3 9
22 Risk of customer perception 3 2 6
RISK ANALYSIS
Busi
ness
Issu
e Ex
plor
ation RISK ANALYSIS
Score Category1 – 4 Low risk5 – 9 Moderate risk10 – 16 High risk17 – 25 Extreme risk
C
o
n
s
e
q
u
e
n
c
e
s
4 9 7 12, 13 18
10, 19 11 3
8 20, 21 16 1, 6
22 15 2, 14
5, 17
Likelihood
No Risk
1 Demand Risk
2 Capacity Risk
3 Reputation Risk
4 Social Risk
5 Payment risk
6 Accounting risk
7 Liquidity risk
8 Macroeconomic risk
9 Risk of electricity
10 Risk of water discharged
11 Risk of broken instruments
12 Risk of unavailability raw materials
13 Risk of unavailability supporting tools
14 Risk of room cleanliness
15 Risk of absent employees
16 Risk of sick employees
17 Risk of saturated employee
18 Risk of employees crime
19 Salary risk
20 Risk of hijacked employees
21 Promotion risk
22 Risk of customer perception
Busi
ness
Issu
e Ex
plor
ation Analytical Hierarchy Process
Pairwise ComparisonCost Effectiveness Time
Cost 1 3 5Effectiveness 1/3 1 3Time 1/5 1/3 1
Cost Effectiveness Time Normalized EigenvectorCost 0.65 0.69 0.56 0.63
Effectiveness 0.22 0.23 0.33 0.26
Time 0.13 0.08 0.11 0.11
Best alternative
Time (0.11)Effectiveness (0.26)Cost (0.63)
Alternative 2 Alternative 3Alternative 1
Busi
ness
Sol
ution
Risk AlternativesCost
Effectiveness
Time
Weighted Score
Demand RiskCooperate with tour agent 4 5 4 4.26Price promotion in a certain time 5 3 4 4.37Become other company's incentive 3 5 2 3.41
Capacity RiskIncrease room capacity 3 5 5 3.74Develop reservation system 5 3 3 4.26More comfortable waiting room 4 4 4 4.00
Reputation RiskAsk customer’s body condition 5 4 5 4.74Therapist training periodically 4 4 4 4.00Tell the impact of treatment to the customers 5 3 5 4.48
Social RiskChanging the name of the company when something goes wrong 3 5 3 3.52Cooperate with the media 4 3 5 3.85Relationships with nearby residents 5 4 3 4.52
Payment riskProvide additional payment methods 5 4 4 4.63Upfront payment 5 3 5 4.48Double check the price list 5 3 5 4.48
Accounting riskManual and computer bookkeeping 5 4 4 4.63Daily data online checking 5 4 5 4.74The use of accounting software 3 5 5 3.74
Risk AlternativesCost
Effectiveness
Time
Weighted Score
Liquidity riskWeekly payment plan 5 4 5 4.74Reserved cash 5 4 5 4.74Contract with supplier 4 5 4 4.26
Macroeconomic riskPeriodically increase the price 5 3 4 4.37Eliminate unimportant cost 5 4 5 4.74Contract with supplier 5 5 4 4.89
Risk of electricityBuy electricity resource 3 5 5 3.74Use devices that do not use electricity 4 2 5 3.59Discount when the electricity off 4 3 5 4.48
Risk of water dischargedBuy bigger water reserve 3 5 4 3.63Use drinking water 4 4 5 4.11Periodically checking water 5 2 4 4.11
Risk of broken devicesReserve more devices 3 5 5 3.74Skip the treatment process 5 2 5 4.22Warranty contract with supplier 4 3 3 3.63
Risk of unavailability raw materials
Add safety stock 4 5 5 4.37Use substitute raw materials 3 4 5 3.48Raw materials checking periodically 5 3 4 4.37
Busi
ness
Sol
ution
Risk AlternativesCost
Effectiveness
Time
Weighted Score
Risk of unavailability supporting tools
Add safety stock 4 5 4 4.26Use supporting tools already used 5 4 5 4.74Supporting tools checking periodically 5 3 4 4.37
Risk of room finenessScheduling and checking of employees room duty 5 4 4 4.63Periodically checking the condition of the room 5 4 4 4.63Setting standards of cleanliness 5 4 4 4.63
Risk of employee’s absentFines on employee absenteeism 5 4 4 4.63Exchange off schedule 5 5 4 4.89Recruite part-time employees 3 4 3 3.26
Risk of sick employeesProvision of healthcare money per month 3 5 5 3.74Periodic health checks 3 4 5 3.48Provide common medicines for employees 4 3 5 3.85
Risk of saturated employeeProvide entertainment facilities for employees 4 4 5 4.11Conduct an annual holiday for all employees 3 5 3 3.52Giving training to employees 4 5 4 4.26
Busi
ness
Sol
ution
Risk AlternativesCost
Effectiveness
Time
Weighted Score
Risk of employees crime
Put the customer's valuable things on locker 3 5 5 3.74Put the employee charge into the court despite of company 4 3 3 3.63Valuable belonging is not company’s responsibility 5 4 4 4.63
Salary riskIncrease the percentage variable salary 4 5 5 4.37Conduct overtime 4 5 5 4.37Adding monthly bonus salary 5 5 4 4.89
Risk of hijacked employees
Contract with the employees 5 3 4 4.37Standardize massage technique 4 3 4 3.74Get in touch with employees 5 5 3 4.78
Promotion riskSignpost names and pictures in the street 3 4 5 3.48Radio advertisement 3 4 3 3.26Cooperate with other business field 5 4 3 4.52
Risk of customer perception
Do the black list of the customer 5 3 5 4.48Add the same gender service concept in each media 5 4 5 4.74Finish treatment earlier 5 3 5 4.48
Busi
ness
Sol
ution
Impl
emen
tatio
n Pl
an
Ask customers’ body condition and complain before treatment
Check the condition of the rooms before treatment
Tell the customers to take responsibility of their belongings
Use drinking water if there is no water available
Skip treatment process that couldn’t be proceed with drinking water when the water is not available
Use supporting tools that already used when the supporting tools are unavailable
Therapist for customers
Impl
emen
tatio
n Pl
an
Ask the payment before treatment
Double check the price
Ask the customers to use EDC if there is no charge available
Tell the recent promotion available
Tell the therapist’s name that handle the customer
Tell the customers that they can do reservation for the next treatment
Receptionist for customers
Tell the customers to take responsibility of their belongings
Impl
emen
tatio
n Pl
an
Take responsibility of environment cleanliness
Check the raw material inventory
Check water condition
Do room duty as scheduled and meet the standard of cleanliness
Exchange off schedule when there is an important activity outside the therapist’s off schedule
Buy medicines if the condition of body is not fine
Employees for non-customers
Impl
emen
tatio
n Pl
an
Daily creation of data record
Payment forecast per week
Check contract with supplier
Monthly financial report
Accounting / Branch Manager for non-customers
Impl
emen
tatio
n Pl
an
Cooperation with other business field by exchange promotions
Cooperation with tour agents or tour leaders
Promotion based on the lowest average customer arrival time
Prepare discounts when electricity is off
Owners or Branch Manager
Add same gender service in flyer and brochures
Give discounts for nearby residents
Control the bonus for employees
Control the cleanliness
Scheduling holiday for owners and employees
Giving yearly training for employees
Adding EDC machine
THANK YOU
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