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Planning for avian flu disruptions on global operations: a DMAIC case study
1Department of Operations and Supply Chain Management, Opus College of Business, University of St. Thomas, Minneapolis, Minnesota, USA. skumar@stthomas.edu
Avian flu outbreaks pose significant risks to global businesses and supply chains. This study analyzes potential impacts and outlines strategies for corporate preparedness to mitigate losses from pandemics.
Area of Science:
- Business Continuity Planning
- Epidemiology
- Supply Chain Management
Background:
- Avian influenza (H5N1) has caused significant poultry deaths globally and poses a risk to human health.
- A pandemic could severely disrupt global food supply, business services, and operations.
- Understanding these risks is crucial for businesses operating internationally.
Purpose of the Study:
- To assess the global spread and business impact of avian flu.
- To identify necessary measures for corporate preparedness against avian flu pandemics.
- To analyze the disruption potential of avian flu on international business operations.
Main Methods:
- Utilized the Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) process.
- Analyzed the potential impact of an avian flu epidemic on large US businesses with global operations.
- Selected Wal-Mart (retail) and Dell Computers (manufacturing) as case studies.
Main Results:
- Identified specific failure modes for Wal-Mart and Dell's global operations during an avian flu pandemic.
- Revealed factors that exacerbate the negative impact of avian flu on global supply chains.
- Uncovered factors that can help balance the impact of avian flu on global supply chains.
Conclusions:
- Avian flu's unpredictable spread complicates outcome assessment due to numerous influencing factors.
- The full cost to manufacturers and supply chain partners remains largely unknown, with limited quantitative data available.
- Provides guidance for managers on preparing for avian flu events and mitigating operational disruptions and financial losses.
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