The Three Gorges Water Turbine Stayring Fabrication Transnational Outsourcing Project Risk Management

Transnational outsourcing projects usually have high quality, but they facegreat complexity and plenty of lifecycle risk. There is no doubt that projectmanagers need to pay attention to these potential project risk management. Thispaper aims on The Three Gorges Water Turbine Stayring fabricationtransnational outsourcing project risk management which should be conducted byHarbin Electric Group.First The Three Gorges Water Turbine Stand Ring manufacturing featuresare discussed, then a set of different delivery methods are selected. Thedecision-making tree method is applied to find an optimal delivery method, andon the basis of that, the utility function theory is used to enure the specificmanufacturing planning or the project scope. After that, risk events of theparticular transnational outsourcing project type are identified and categorizedinto technical risk, project scheduling risk, project cost risk and project qualityrisk. And these risks are analyzed using Analytic Hierachy Process method sothat a list of risk events ordered by importance is created. Meanwhile ProgramEvaluation and Review Technique is applied to decide the critical path riskmanagement.Then according to the analyzed transnational outsourcing risks, riskcontrolling approaches need be made, which includes actual monitoring report,emergency plan, as well as the special detailed regualatory measures in relationto transnational outsourcing project fabrication process. At the same time, thesesrisk control approaches are changing dynamically as the project goes on, sodynamic monitoring and early alarming means is put forward. Also theinstitutional settings are regularized with experts maintaining and renewing riskmanagement database, which will minimize the potential risks.By identifying, analyzing, evaluating and controling the The Three GorgesWater Turbine Stand Ring transnational outsourcing risks, a set of systematicproject risk management measures need be established in order to raise theattention of project managers. When measures are effectively carried out, projectrisk loss will probably be avoided and profit will be improved within stakeholders.