Value-Risk Graph: A decision-making tool for supply chain and industrial system engineering

A value-risk based decision-making tool is proposed for performance evaluation of industrial systems at build-time. For this purpose, stakeholders’ expectations and concerns, respectively expressed in terms of objectives and risks, are identified and transformed into global value and risk indicators using principles, tools and techniques of performance measurement, risk assessment and decision-making disciplines. Moreover, minimum acceptable value and maximum acceptable risk for the scenario understudy are computed. They are then used to demarcate zones of “highly feasible”, “feasible”, “risky” as well as “unacceptable” situations on the proposed Value-Risk Graph in order to facilitate the decision-making process. The proposed decision-making tool is illustrated with an example dealing with manufacturing process design but it can be applied to any kind of product or system evaluation.