Resilience Index Development for the Manufacturing Industry based on Robustness, Resourcefulness, Redundancy, and Rapidity

The manufacturing industry has always been one of the most significant GDP contributors globally, accounting for approximately 15% of the global GDP. However, with unknown future challenges, the industry must begin to consider and improve its underlying resilience capability in order to survive. This study offers a fundamental resilience index that can be applied to different manufacturing industries to guide them in developing a strategy to increase their resiliency. Resilience refers to a company’s ability to bounce back to its original or targeted state after being disrupted or exposed to a risk. In this study, resilience has four main factors: robustness, resourcefulness, redundancy, and rapidity. This study combines these four factors with the four typical organizational functions in most organizations: operations, finance, strategy, and human resources. Each resilience factor has a set of indicators obtained through literature studies and in-depth interviews with experts. This study indicates that the most influential factor and resilience indicator are redundancy and reserve funds, respectively. Furthermore, this study found that reserve funds, customer satisfaction, and demand forecasts are the top three indicators in terms of the highest weighted value