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 Opportunity Advances Reduced Risk Political Barriers Global Business Terrorism Practices

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 on likelihood and severity of event Redundancy High Likelihood Contingency Planning of Do Disruption Nothing Crisis Low Management Light Severe Consequences

Redundancy in a supply chain can be either inventory or capacity Suppliers Subassembly Supplier Redundancy Safety Manufacturer Stock Insight: usually Distributors optimal to place protection at a single level in the supply chain Customers

Flexible buffers are more effective than rigid ones Full Flexibility Chained Flexibility Sub-Chained Flexibility 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5 6 6 6 6 6 6 production plant demand type

Supply chain disruptions can have both tactical and strategic consequences Philips Ericsson Nokia

Impact of a supply chain disruption on sales revenue Pre Event Disruption Pent-Up Post Event Event Sales Sales Revenue Market Share Loss Short Term Sales Loss Time

Impact of maintaining an inventory buffer Pre Event Disruption Pent-Up Post Event Event Sales Sales Revenue Time

Impact of securing a backup capacity supply Pre Event Disruption Pent-Up Post Event Event Sales Sales Revenue Time

Contingency Planning is one way to prepare for risky events Update Anticipate Plan Prepare Execute Event

We can use network theory to measure structural flexibility in organizations Call Center Queue of Call Center Queue of Call Center Queue of Call Center Queue of Agents Arriving Calls Agents Arriving Calls Agents Arriving Calls Agents Arriving Calls Type A Type A Type A Type A 1 1 1 1 Type B Type B Type B Type B 2 2 2 2 The smaller the average path length Type C Type C Type C Type C of the worksharing matrix, the more 3 3 3 3 robust the system is to routine Type D Type D Type D Type D 4 4 4 4 variation and exceptional (I) (II) (III) (IV) Specialists Zones Chaining Full disruptions. 2 2 2 2 0.25 0.25 0.5 1 1 0.25 1 3 1 3 1 3 1 3 0.25 0.25 0.25 0.5 1 1 4 4 4 4 (IV) (I) (II) (III)

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

Thank you on behalf of the OPEM Research Group! Taylan Ilhan Bilal Gokpinar Rob Lien Vehicle Innovative Team Flexible Transshipment Routing Structure Systems Zigeng Yin Yao Cheng Robust Supply Chains Crisis Management Social Operations Networks Mgmt Wally Hopp Seyed Iravani www.opem.northwestern.edu Wendy Lu Xu Fang Liu Terrorist Supply Chains Innovation Networks Jie Xu Gigi Yuen Bora Kofal Integrated Product and White Collar Work Flexibility in Production Supply Chain Design Systems and Service Systems