The Research Of Transfer Project’s Risk Management In Contract Manufacturing

Contract manufacturing as a business model is well recognized worldwide in past few decades; one of most successful and most impacted example is Apple Inc. who is the Original Design Manufacturer outsourced their production to Original Equipment Manufacturer- Foxconn. As a mature business model, contract manufacturing had been labeled as professional in operation management, option of cost reduction. More industries had launched this model for their production, eg medical, military and aerospace. Since year 2000, the last 15 years’ market growth had been very critical for contract manufacturing on revenue growth.And therefore, contract manufacturing has been the industry with most of manufacturing project transfer happened. But project transfer is not simply a change of product build location, but also the system transfer of production, quality system, supply chain, etc, all of those transfer along with huge operation risk. To make certain a successful contract manufacturing project transfer, risk management will require a solid plan and well organized implementation.After a vast material review& study about project risk management, writer had noticed that even risk management had been introduced into China in quite few industries, but it’s mainly focus on construction engineering, financing, network setup, etc.Even in manufacturing industry, the study is really about daily operation and its risk management; we had not yet detected any risk management on international transfer project; also Analytic Hierarchy Process Theory is not yet well developed to study of CM transfer project; finally, there was yet no study of risk management by subject of project transfer. This article would study all of above issues.The study of risk management has showed that, the risk fact could be classified in many different ways according to the purpose of study. This article would focus on the risk management of main character in transfer project. They are Risk of Project Planning, Risk of Knowledge Transfer, Risk of Engineering Transfer, Risk of Quality Transfer, Risk of Production Transfer, Risk of Supply Chain, and Risk of Logistics Redesign. This article will have a full study on Risk Identification, Risk Analysis, and Risk Disposal on Contract Manufacturing.The main contribution of this article is(1) Risk Management Study on International Project Transfer,(2) Utilization of Analytic Hierarchy Process & Theory on Contract Manufacturing Transfer Risk Analysis,(3) classified the transfer project by Customer Initialized & CM Competitor Initialized and their difference on risk management.