Risk Analysis Using the House of Risk Method on Inbound Activities in the Raw Material Warehouse of a Cup Noodle Manufacturing Plant, Semarang, Indonesia

Abstract

The cup noodle manufacturing plant in Semarang, Indonesia, renowned for its "Cup Noodle" brand, faces significant challenges in its inbound logistics process, including inconsistencies in delivered quantities, delays in arrivals, and work-related accidents. This study addresses these issues through the application of the House of Risk (HOR) methodology to systematically identify, analyse, and prioritise risks associated with the inbound logistics of raw materials. Employing a qualitative research approach, the study integrates semi-structured interviews with key personnel from the raw material and beads warehouse departments, non-participatory observations of the inbound process, and the analysis of relevant documentation, such as annual reports, monthly logs, and operational photographs. The HOR methodology was implemented in two phases: Phase 1 focused on the identification and ranking of risk events and risk agents, while Phase 2 concentrated on the formulation and evaluation of mitigation strategies based on their Effectiveness to Difficulty Ratio (ETDk). The research identified several critical risk agents and recommended three principal mitigation strategies: enhancing communication procedures, establishing pertinent Key Performance Indicators (KPIs), and adopting an integrated Enterprise Resource Planning (ERP) system. These strategies are expected to mitigate logistical discrepancies and delays, thereby improving inventory accuracy and reducing operational disruptions. The findings provide actionable recommendations aimed at enhancing the efficiency and reliability of inbound logistics, ultimately contributing to overall operational improvements and reduced disruptions at the manufacturing plant.