Risk of Business

Company type : Manufacture Company
Company name: Maesindo Indonesia .ltd

Information
This company produces some goods that use papers and plastics as the raw materials. Its products such as skull-cap (peci), polybag (plastic bags), catoon, etc. This company actually is a big company but it is not really well-known because it is operated in a small village in Bantul, we usually call it Kasongan. This company also has not become a multinational company yet.

Risk of That Business
Risk from inside
1. Production Delay
In manufacturing company, there should be orders from customers. Customers usually give some time limitation to the factory to produce thing that they need. If the factory agrees to fulfill the customers’ needs, the factory should be able to produce the order on time, it means no late. The risk that they might face is production delay. This risk can be happen; first, because of the machine. Factory always use some machine in producing their products. There must be some people that watch the condition and the work of the machine.
Even there are some people those are given a responsibility to the machine, there could be something broken in the machine that is slipped to be watched by those people; Second, human errors can be happen in that kind of factory. In the factory, even there are some machine used, there should be people that do the job that cannot be done by the machine. More people do that job, more chance also for the broken products there. Those two reasons are things that I found in the factory that can make a production delay.
2. Defective Products
As what I have mentioned above, there must be human errors in the production process. In a production process, for example if the customer needs 5000 pieces of the products, the factory will produce more than 5000 pieces. It is used to cover the defective products that could be there. I think it is not efficient because the cost that they spend will be higher than it used to be. It seems like the factory cannot control that defective products and cannot move away from that risk. I think this risk is controllable. It is depend on the people inside the company itself.
This risk (defective products) could be happen because of the machine also. For example in Maesindo Indonesia, there is a big machine that draws some color picture to the skull-cap. What really happen in the factory is the machine is not always does a good job. Sometimes the color that printed by the machine is not good. There are some white dots in the color. It is counted as defective product. Those are risks that could be faced by the manufacturing company from inside of the company.

Risk from outside
Basically I can say that risks from outside the company are uncontrollable but the company can do something to minimize the risks. There are many risks that come from outside the company, such as earthquake, ships drowning, flood, car crash, customers’ denial, incomplete papers, etc. Those risks seem like they cannot be happen or they are very difficult to be happen, but I think those risks might be faced by the manufacturing company.
For example ships drowning. That risk can be happen uncontrollable. Even the manufacturing company has designed everything well, if the wind is very strong suddenly in the shipment process, the ship could be drowning and the company will loose everything. Another example is flood. A view times ago, there is flood happen in Ngawi. If the company’s truck need to pass through Ngawi to deliver the products to Bali, that will make a delay arriving products for the customers. When the products arrived, the customers do not want to accept the products or they just want to pay half of the payment. This risk sound impossible, but is happen in Maesindo Indonesia. Those are the risks that the manufacture company might face from outside the company.