Research Of Fawer Automobile Parts Co., Ltd. ERP Project Risk Management

With the development of modem Information Technology and arrival of network economy, the new economic model has all put forward the new request to operation mode and information system of the traditional enterprises . The traditional management model couldn't keep up with the step of economy development. Being developed about fifty years,ERP becomes a necessary tool in modem enterprise. It is important flag of enterprise modernization and information degree. And ERP has become the importance foundation of business operations. The ERP system primarily actualizes resource optimization of enterprise by means of utilizing modern enterprise management concept, operation flow, data base, human resources and material resources, computer software and hardware. Therefore, as means of companies expand their business and enhance effective management, successful implementation of ERP projects might be the key target in the progress of enterprises informationization. The business enterprise carries out ERP project successfully will be brought a huge comprehensive performance for itself, but in the processing of ERP implementation, the business enterprise also faces huge failure risk. Although many companies are actively trying to do and some enterprises have already implemented the ERP project, but the success rate is very low. The main reason is that ERP project is a major input, related many work and a long time projects. At the same time, enterprises lack the concept of risk management, and the scientific risk identification, assessment and control methods. Therefore, we should fully understand various risks that ERP implementation process faced. Then correctly assessed the risks and effective control risks would help the business enterprise reduce risk and probability increase the successful implementation of ERP.The thesis based on project risk management basic theory, and expatiated the concept of project risk management, risk identification, risk assessment, risk control and project life cycle theory. From the different aspect of risk identification, assessment, tracking, control to discuss the process of risk management. It introduced the method of identification and assessment, advanced the basic requirements for risk control, response measures and methods. It introduced the concept of ERP, got the result of ERP project's risk characteristics. Through, Fawer Automobile Parts Co., Ltd. ERP project examples found the existence of ERP project risks, analyzed problems and proposed solutions. Firstly, introduced overview of the company, carried out the project's purpose and significance, then cleared the scope of project implementation. According to project lifecycle theory, the ERP project was divided into four phase: conceptual phase, planning phase, implementation phase and terminal phase. The paper defined the main content and task in each phase. By deeply understanding the project found the element that impacted project success or failure.About risk management of ERP project by Fawer Automobile Parts Co., Ltd., the main research contents are as follows: Using Brainstorming identified the risk factors in the process of project, and classified the risk factors into five aspects: external environment, enterprise self, project management, technology and software hardware of system. After risk identified, it listed all the risk factors in different phase of project lifecycle. By using the Delphi and Analytic Hierarchy Process (AHP), it established the risk factors hierarchy relationship about planning phase, implementation phase and terminal phase. After compared the risk importance of the investigation, it got the importance between risk factors among different hierarchies. After consistency test, if the result is reasonable, it can be accepted. Otherwise, the result will be fed back to the experts. They measured again, till the result can be accepted. After confirmed the result can be accepted, we figured out syntheses weight value of each risk factors in different lifecycle phase and made in order. If the risk is serious risk, considered it to beⅠlevel risk, and analyzed further more, then proposed specific preventive measures. If the risk is common risk, considered it to beⅡlevel risk, and gave sufficient attention. If the risk is slight risk, considered it to beⅢlevel risk, and manage generally. Finally, established risk control figure of different lifecycle phases, and analyzed theⅠlevel risk.In conclusion, the paper's aim was to solve the problem which comes from ERP project risk management in the process of building enterprise information. It applied risk management theory and method to specific cases and solved practical problems. It identified and assessed ERP project risk in the various stages of lifecycle by combining qualitative and quantitative methods. The paper made a deeper research from three aspects, risk identify, risk evaluation and risk control, by putting project risk management into a phased dynamic system. It laid the foundation for further ERP project risk management.