Security Engineering Security Engineering Wallace Hopp Industrial - - PowerPoint PPT Presentation

Security Engineering Security Engineering

Wallace Hopp

Industrial Engineering Department McCormick School of Engineering

A Flat World is an exciting but dangerous world…

Technology Advances Reduced Political Barriers Global Business Practices Opportunity Risk Terrorism

Accidents in remote plants can have large consequences for a supply chain…

Natural Disasters can disrupt business around the globe…

Terrorism has a wider reach than ever before…

A basic principle from Factory Physics is central to security engineering

Buffering Principle: Systems with variability must be buffered by some combination of:

• 1. inventory
• 2. capacity
• 3. time.

Buffer Flexibility Corollary: Flexibility reduces the amount of variability buffering required in a production system.

Strategies for dealing with risks depend

• n likelihood and severity of event

Likelihood

• f

Disruption Consequences High Low Light Severe Contingency Planning Crisis Management Redundancy Do Nothing

Redundancy in a supply chain can be either inventory or capacity

Suppliers Subassembly Manufacturer Distributors Customers

Safety Stock

Supplier Redundancy Insight: usually

• ptimal to place

protection at a single level in the supply chain

Flexible buffers are more effective than rigid ones

1 2 3 4 5 6 1 2 3 4 5 6

Full Flexibility

1 2 3 4 5 6 1 2 3 4 5 6

Chained Flexibility

production plant demand type

1 2 3 4 5 6 1 2 3 4 5 6

Sub-Chained Flexibility

Supply chain disruptions can have both tactical and strategic consequences

Philips Nokia Ericsson

Impact of a supply chain disruption on sales revenue

Time Sales Revenue

Disruption Event Pent-Up Sales Post Event Pre Event Market Share Loss Short Term Sales Loss

Impact of maintaining an inventory buffer

Time Sales Revenue

Disruption Event Pent-Up Sales Post Event Pre Event

Impact of securing a backup capacity supply

Time Sales Revenue

Disruption Event Pent-Up Sales Post Event Pre Event

Contingency Planning is one way to prepare for risky events

Anticipate Plan Prepare Execute Update

Event

We can use network theory to measure structural flexibility in organizations

Call Center Agents Arriving Calls Queue of

(I)

1 2 3 4

Type A Type B Type C Type D

Specialists

Call Center Agents Arriving Calls Queue of

(II)

1 2 3 4

Type A Type B Type C Type D

Zones

Call Center Agents Arriving Calls Queue of 1 2 3 4

Type A Type B Type C Type D

(III)

Chaining

Call Center Agents Arriving Calls Queue of 1 2 3 4

Type A Type B Type C Type D

(IV)

Full

1 2 4 3

(I)

1 2 4 3

0.5 0.5

(II)

1 2 4 3

1 1 1 1

(III)

1 2 4 3

0.25 0.25 0.25 0.25 0.25 0.25

(IV)

The smaller the average path length

• f the worksharing matrix, the more

robust the system is to routine variation and exceptional disruptions.

Globalization, connectivity and complexity are posing serious new security threats

Factory Physics and Network Science are useful tools in the emerging field of Security Engineering

Operations Mgmt Social Networks

Zigeng Yin Robust Supply Chains Wendy Lu Xu Terrorist Supply Chains Rob Lien Flexible Transshipment Systems Bora Kofal Flexibility in Production and Service Systems Bilal Gokpinar Innovative Team Structure Fang Liu Innovation Networks Gigi Yuen White Collar Work Systems Jie Xu Integrated Product and Supply Chain Design Wally Hopp Seyed Iravani

Thank you on behalf of the OPEM Research Group!

www.opem.northwestern.edu

Yao Cheng Crisis Management Taylan Ilhan Vehicle Routing