Research On Project Supply Chain Risk Transmission And Response Strategies

Many abilities of project are the key successful factors under the new economicenvironment, such as quick response ability, resource optimum combination ability,learning ability, forward-looking exploration ability and so on. But the traditionalproblems of project management (ex, quality accident, duration dragging, expenseoverspending, and engineering claim) are still very serious, and the primary cause isproject participants share an oppositional and short-term relationship to each otherwhich results by one-off custom-made production mode cored by project.Consequently, project integration management emerges as the times require under thesupply chain circumstance. But this production organization mode increases thelinkage of project risk and brings serious risk transmission problem. The risk of onelink may transmit with the project deliverable to the related enterprises in the supplychain, so affection scope of risk is expanded and the difficulty of risk control is addedand the entire project performance is affected. The goal of this paper is to discover thedynamic rule of risk transmission and propose the corresponding risk managementcountermeasure.With the combination of supply chain management and project character, thispaper presents the concept of project supply chain and the characters of riskmanagement factors which include the change of risk source, risk channel, the changeof risk valve value, anti-risk ability, effort level of anti-risk and so on. And this paperformally gives a qualitative description of risk transmission process in project supplychain.Considering the transmission mode, the risk transmission in project supply chaincan be divided into two kinds: one-way transmission and feedback transmission. Thedynamic process of these two kinds risk transmission can be illuminated by projectduration and project quality which are the two main goals in project management. Wefind that, in the one-way transmission, risk valve value is the maincontrollableparameter.Therefore, the paper proposes the optimized distribution of risk reserve. It turns outthat assigning more risk reserve in the initial work can reduce the risk of entire projecteffectively, that means the later performance of a project is determined by the qualityof initial planning work. And in the feedback transmission, making sure the feedbackeffective is essential. So this paper presents modularization method, which means dividing the project into many modules which has high interior relation and effectivefeedback but has relative exterior independence. It can reduce the invalid iteration inthe entire project and keep more uncertainty within the module, and statisticalknowledge can prove the value of modularization.With introducing monitoring mechanism into one-off cooperation process,one-off cooperation becomes multi-stage incentive process and project manager canbe clear about how to control the anti-risk effort of each participant. And at last thispaper demonstrates that it would be helpful to the improvement of overall benefit iffocusing incentive on the link which has high anti-risk ability.