Risk Assessment System Of New Product Development Projects And Management Research

With the further development of automobile industry in China, the market competitiveis increasing. Faced with such a huge market in China, the vehicle manufacturers haveexpanded production capacity with increasing investment, and increased efforts to issuenew models into market. For the majority of auto part enterprises, there is big opportunitytogether with greater challenges. With the expanding of automotive market, the marketshare of auto parts enterprises are expanding accordingly, also the competition amongenterprises is also becoming intense. Competitive market environment requires auto partsenterprises, especially small and medium enterprises to improve their capabilities againstthe variety of potential risk through management. Because of the special characteristics ofthe automative industry, to enhance the risk assessment capabilities in the new productdevelopment project is not only the factor, how enterprises meet customer demands fornew products promptly and effectively with dealing with the complicated market change,but also the factor, which can affect how enterprises make the profit and then complete thestrategic objectives.In this paper, the research is based on company M. With the introduction about howrisk is managed in its new product development project, we reach the conclusion thatcompany M is not good at evaluation the risk. Based on the deep analysis to the factoraffecting the project and proper principles,31indicators of risk factors divided by6categories are identified and used to establish a completed risk assessment system. Finally,the risk assessment model for new product development project is established with the appropriate method of risk calculation. In this paper, a real case from M company is usedfor an empirical study.The purpose of this study is to establish new product development project riskassessment system, which applies to enterprises similar with company M. Finally, thispaper describes how to implement the risk assessment system in the new productdevelopment projects.