Prioritizing Supply Chain Risks and Product Defects in an Abon SME: A Sequential House of Risk and Six Sigma Analysis

Abstract

Small food-processing firms often manage demand volatility, limited capacity, supplier dependence, and product-quality problems through informal decisions. This study prioritizes supply-chain risks and product defects in a Yogyakarta-based abon (seasoned shredded-meat) small and medium-sized enterprise using a sequential Supply Chain Operations Reference, House of Risk, and Six Sigma analysis. The dataset comprised a 22-event and 36-agent risk register, 24 proposed mitigation actions, and operational records for 52,000 units with 1,860 product returns from September 2024 to February 2025. House of Risk phase 1 showed that 15 agents accounted for 81.34% of aggregate risk potential. House of Risk phase 2 identified 10 actions accounting for 81.13% of cumulative effectiveness-to-difficulty, led by production-capacity collaboration, a structured defect-reduction program, worker supervision, retraining, and daily capacity control. The return proportion was 3.58%. Based on six recorded defect opportunities per unit, the corrected aggregate performance was 5,961.54 defects per million opportunities and a sigma level of 4.014. A provisional p-chart showed three special-cause signals, while deflated or punctured packaging was the largest defect category at 24.30%. The analysis supports an integrated action portfolio covering capacity, workforce, standard operating procedures, maintenance, supplier backup, and packaging inspection. Because no post-intervention observations were available, the findings establish priorities and a baseline rather than verified improvement effects.