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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2022-12-11  |  Accepted: 2023-03-20  |  Published: 2023-03-30

Title

Enterprise risk analysis in an engineering company with a focus on custom manufacturing


Abstract

The study details the outcomes of a scientific experiment analyzing enterprise risks in business processes. Examining and getting rid of enterprise risks is one of the most important management tools when it comes to reaching corporate goals. The new proposed strategy is based on the idea of process risk as a part of putting business processes or operations into action to get results that add value. The actual solution algorithm consists of the quantification of the difference between the level of risk and the enterprise's cost, the development of added value, and the operating profit. The experiment focused on a medium-sized engineering company that specializes in piece production. The principal outcomes of the technique are the realization that a smaller proportion of value added connected with the process results in a reduced degree of risk that is proportional to the cost ratio of the various production process activities. The hypothesis that manufacturing automation reduces risk has not been confirmed. It is advised that businesses document and review the time and cost components of each process on a regular basis. The outputs obtained from the solution demonstrate the suitability of the proposed process, with the outputs' validity demonstrated by repeating the analytical activities and comparing them to the actual occurrence of process risks identified by the model enterprise's managers during the execution of a real contract. The newly proposed method is expected to be appropriate for mass production.


Keywords

production process, business objectives, business process, process risks, risk prediction, risk analysis, added value


JEL classifications

G32 , M11


URI

http://jssidoi.org/jesi/article/1072


DOI


Pages

362-382


Funding

This research was funded as a part of an internal research competition at the department of management for 2022 entitled: "The importance of quality and innovation benefits for creating and increasing added value in business processes". PID: IVSUPS002. This research was funded by and participates in the project of the Technology Agency of the Czech Republic: "Optimization of management in made-to-order piece production in real time with the use of IoT and digital technologies". PID: FW01010460

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Kollmann, Jaroslav
University of Žilina, Žilina, Slovakia https://www.uniza.sk
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Straková, Jarmila
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Korauš, Antonín
Academy of the Police Force in Bratislava, Bratislava, Slovakia https://www.akademiapz.sk
Articles by this author in: CrossRef |  Google Scholar

Palinchak, Mykola
Uzhhorod National University, Uzhhorod, Ukraine https://www.uzhnu.edu.ua
Articles by this author in: CrossRef |  Google Scholar

Černák, Filip
University of Prešov, Prešov, Slovakia http://www.unipo.sk
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

10


Number

3


Issue date

March 2023


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1131  |  PDF downloads: 514

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