Tag Archive for: House of Risk

The cosmetic industry in Indonesia continues to experience rapid growth, in line with high consumer demand and the widening cosmetic market. In 2021, based on data from the Central Statistics Agency (BPS), cosmetics will grow by 9.61%. One of Indonesia’s well-respected cosmetic manufacturing companies is PT. Cedefindo, which is part of the Martha Tilaar Group. Martha Tilaar Group is one of the local pioneers in the Indonesian beauty industry. There are very large numbers and types of packaging in the warehouse of PT. Cedefindo. Due to the wide range of products, there are a number of risks associated. As a result of redesigns and product discontinuation, a lot of unused packaging material has accumulated in the storage facility. Deadstock and unused packaging materials can disrupt the flow in the warehouse, increasing costs and reducing available storage space. Delays in delivering packaging materials to the production line are a further risk that could be triggered by flow disturbances. Given this potential risk, the company must identify potential risks in every packaging material warehouse activity. Currently, PT. Cedefindo has not examined every action in the packaging material warehouse to identify risks. Risk identification is very important because it will enable the company to develop plans to minimize harmful events before they arise, without proper risk identification, no mitigation strategy can be devised. This research was conducted by identifying warehouse activities, mapping them into (SCOR) and identifying risks using House of Risk Phase 1. The first stage of the House of Risk process is the identification of risk events and risk agents. Next, the severity and occurrence levels are measured, and the aggregate risk priority (ARP) value is calculated to determine which risk agents should be prioritized based on the Pareto diagram. There are 18 risk agents and 15 risk events have been identified as a result of this research, 6 risk agents were given the highest priority based on the Pareto diagram, and 2 risk agents were identified as having a high-risk level and being in the red zone, requiring immediate direct action.