Risk Assessment Introduction

This Risk Assessment tool is designed to provide a simple but systematic approach to assessing Quality, Schedule, & Technical Risks
at the Quotation Stage of Product Realization.
Carrying out a Risk Assessment is simply a process of identifying what in the Product Realization Process could cause Your Company to not meet
Customer and/or System Requirements; and then determining what Risk Factors need further mitigating actions to minimize the risk.

This Risk Assessment process involves 5 steps which are as follows:

Step 1 Identify if Risk Factors are Presented in the Quotation by the Potential Customer for the Potential Job

Step 2 Identify if there are Major Risk Factors for Your Company if Awarded the Job

Step 3 If there are Risk Factors presented in the Quotation and/or there are Major Risk Factors for Your Company,
Then Estimate the Likelihood (Probability) of Ocurrence & the Severity of the Consequence
Then enter the numbers that correspond with the appropriate descriptions for Likelihood (probability) and Severity.

The Risk Value is calculated automatically on the spreadsheet

(Probability or Likelihood of Occurrence X Severity of Consequence).
A Risk Value Greater Than 6 (see Risk Rating Matrix) requires Adding Further Mitigating Actions

Step 4 Determine if Your Company can Mitigate the Risk Factors if Awarded the Job

Step 5 Re-Estimate the Likelyhood / Probability that Your Company can Mitigate the Risk if Awarded the Job.

The New Risk Value is a "quantifiable" measurement of risk reduction

F071-004 Your Company's Risk Management Workbook - At Quotation Rev. 02-10-2012

 RISK ASSESSMENT FORM

Hold cursor over the red corners in each column for guidance
RISK POINT IN PRODUCT REALIZATION Quotation RISK - An undesirable situation or circumstance that has
COORDINATED BY: both a likelihood of occurring and a potentially negative
REVIEW BY: consequence. AS9100C
Phase 1 Phase 2

Probability

Probability
Risk Revised

Severity

Severity
Present in Can Your Company
Would Be for Your Value Risk Value
CUSTOMER / PART NUMBER RISK FACTORS Customer's Mitigate the Risk Upon
Company
Quotation Request Order Receipt?

Special Requirements - High Risk to Being Achieved.

This includes the factors: product or process complexity;
past experience, and product or process maturity.
0 0
Examples include those performance requirements that
are at the limit of the industry's capability, or at the limit of
Your Company's technical or process capabilities.

Critical Items - Those items (e.g., functions, parts,

software, characteristics, processes) having significant
effect on the Product Realization and use of the Product;
including safety, performance, form, fit, function,
0 0
producibility, service life, etc.; that require specific actions
to ensure they are adequately managed. Examptes of
critical items include safety critical items, fracture critical
items, mission critical items, key characteristics, etc.

Key Characteristics - An attribute or feature whose

variation has a significant effect on product fit, form,
function, performance, service life or producibility, that 0 0
requires specific actions for the purpose of controlling
variation. Typically Identified as requiring KPC.

0 0

0 0

F071-004 Your Company's Risk Management Workbook - At Quotation Rev. 02-10-2012 1 of 1 Date Reported:
 Risk Assessment Tables
LEVELS OF LIKELIHOOD / PROBABILITY CRITERIA LEVELS AND TYPES OF CONSEQUENCE CRITERIA
PROBABILITY TECHNICAL /
DELIVERY
Level LIKELIHOOD Description RANGE of LEVEL QUALITY TECHNOLOGICAL
SCHEDULE
OCCURRENCE REQUIREMENTS

Incidental.
Could occur, but only Requires No Sorting & No Re-
Minimal or No Impact to Internal No NEW Technology(ies)
1 Not Likely under exceptional < 10% 1 Adjustment of Set-Up to Bring
Schedule. Required
circumstances. Product & Process into Full
Conformity.
C
L
O Minor.
I May occur at some time
N Requires Minimal Sorting, Minor
Additional Resources Required to
Minor Update(s) /
K 2 Low Likelihood under just the right < 30% 2 Rework, & an Adjustment to Set-Up
meet Original Delivery Schedule.
Modification(s) to Currently
circumstances. S to Bring the Product & Process into Established Technology(ies)
E Full Conformity.
E
L
Q
I Can occur at some time Moderate. Moderate Impact to Internal
U Requires Moderate Sorting & Rework Schedule (> 15 but <30 days) that
Moderate Change(s) to
H 3 Likely under normal < 50% 3
outside the Workcell to bring Product will Impact the Original Delivery
Currently Established
circumstances. E Technology(ies)
O into Full Conformity. Schedule.
N
O
C
D
E Major.
Major Impact to Internal Schedule (> Major Change(s) in the
Will probably occur under Extensive Rework, or Remake; OR
4 Highly Likely < 70% 4 30 days) that will Impact Customer Currently Established
normal circumstances. Requires Customer Concession to
Production Schedule Technology(ies)
"Repair" or "Use-As-Is".

It's expected to occur Severe. Technological Requirements are

All parts scrapped. Unable to produce Severe Impact to Customer Beyond Current State of the Art
5 Near Certainty under almost any < 90% 5
conforming parts. Unable to obtain Production / Program Milestones in Machining & Assembly
circumstances. required materials or services. Industries

F071-004 Your Company's Risk Management Workbook - At Quotation Rev. 02-10-2012

 RISK ASSESSMENT SCORING
5
NEAR L M H H H
CERTAINTY
L
I 4
L M M H H
K HIGHLY LIKELY
E
L 3
L L M M H
I LIKELY

H
2
O LOW L L L M M
O LIKELIHOOD
D
1
L L L L L
NOT LIKELY

1 2 3 4 5
INCIDENTAL MINOR MODERATE MAJOR SEVERE

CONSEQUENCE

F071-004 Your Company's Risk Management Workbook - At Quotation Rev. 02-10-2012