Trunk-liner Project Risk Management Study

On 11th May, 2008, Commercial Aircraft Corporation of China was founded which set an official launch of the Chinese trunk-liner program. Trunk-liner generally refers to transport aircrafts whose take-off weight is above 100 tons, including both military and commercial ones and also large aircraft that are above 150 seats. Now in the global market, only a few countries such as the US, four countries in Europe and Russia have the capabilities of manufacturing trunk liners, and only Boeing and Airbus can lead the international market.The Trunk-liner program is on the top of the industry chain of modern manufacturing business. In many countries, it is seen as a strategic industry, its R&D, manufacturing and commercial service are expected to show a country's comprehensive technology strength, and is an industry of strategic importance.The trunk-liner program, which is a strategic national project, features significantly in high-technology, large-scale investment, and long-period R&D process. Thus the study of trunk-liner program's risk management has a significant practical meaning.Risk management, also crisis management is a management process that works on tracking and assessing of the risks and develops strategy controlling risks, in order to minimize the potentially avoidable risks and cost and loss. This essay starts from the history, definition, composition element and classification to help understand the risk management and its connotation; it also says that program risk management now is classified as program overall risk management, continuous risk management and interface risk management and also the methods and tools of integrative program risk management; the study came to conclusions of the contemporary program risk management study methods and trends, which are an integration of systems, multi-dimensions, dynamics, fixed quantity and fixed quality analysis tools.This essay puts an emphasis on the potential risks underlying in the trunk-liner program. Considering the current program development circumstances and the hidden problems in the future, the essay analyzes a series of potential risks in the development process such as strategic risks, operation risks, airworthiness risks, technological risks, capital risks, human resources risks, legal risks and confidential risks. Based on the potential risks and the experience and lessons learnt from both home and abroad airplane programs including Boeing and Airbus, the essay discusses the solutions to the risk control starting from changes in the state's will and management organism innovation, experiences from abroad airworthiness authorities, independent innovation and international cooperation, strengthen supply chain management, human resources management, marketing management, confidential management, legal management and cost management, in order to avoid potential risks to achieve program success.The essay finally proposes suggestions on deepening project study, building up decision-support system, improving organizations, setting management regulations and practice promotion to better serve development of the trunk liner program.