Project risk planning in high-tech new product development

2016 ◽  
Vol 29 (2) ◽  
pp. 110-124 ◽  
Author(s):  
Jorge Ayala-Cruz
Keyword(s):  
Risk Management ◽  
New Product Development ◽  
New Product ◽  
High Tech ◽  
Project Risk ◽  
Content Type ◽  
Management Framework ◽  
Risk Management Framework ◽  
Project Risks

Purpose The purpose of this paper is to present the implementation and testing of a modified project risk management framework that integrates PMI’s framework with Monte Carlo simulation to improve the effectiveness in high-tech new product development (NPD) projects. Design/methodology/approach The modified framework considers three bodies of knowledge: project management, risk management, and Monte Carlo simulation to produce an enhance project risk management framework. Its application is shown through a case study. Findings Using the integrated framework in a recent case study project and prior NPD projects measures (as benchmarks), it was shown that it could help to enhance risk responses caused by task durations and costs’ uncertainties. The framework proved to be better than segregated generic best practices and was key in providing insight to the issue of early project risk assessment. Research limitations/implications More experimental replications are required for enhancement effectiveness assertions of the framework, through the application of the framework to similar case studies. Furthermore, this could improve its reliability and soundness. Practical implications Future directions for research could include case and empirical studies that include hypothesis’s testing, and the integration of optimization procedure for improved NPD project’s planning and execution. Originality/value This paper outlines a way to close the gap of project risks management planning in NPD’s initiatives. It was motivated by a relatively new tendency in exploring integrated frameworks to deal with complex project risks issues.

scholarly journals A Risk Management Framework for New Product Development: A Case Study

2014 ◽  
Vol 13 (2) ◽  
pp. 203-209 ◽  
Author(s):  
Chompoonoot Kasemset ◽  
Jaruwan Wannagoat ◽  
Wassanai Wattanutchariya ◽  
Korrakot Y. Tippayawong
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Management Framework ◽  
Risk Management Framework

Failure mode and effects analysis (FMEA) in the context of risk management in new product development

2008 ◽  
Vol 25 (9) ◽  
pp. 899-912 ◽  
Author(s):  
André Segismundo ◽  
Paulo Augusto Cauchick Miguel
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Single Case ◽  
Essential Element ◽  
New Product ◽  
Decision Making Process ◽  
Content Type

PurposeEffectively managing risk is an essential element of successful project management. In this sense, the present study seeks to propose a systematisation of technical risk management through the use of FMEA to optimise the decision making process in new product development (NPD).Design/methodology/approachThe methodological approach adopted in this paper is a case study at an automaker in Brazil. Data were gathered from various sources, mostly participant observation and document analysis of two important NPD programmes. The risk management system was described and its influence on programs development analysed.FindingsResults included a reduction in the number of project and test planning loopings as well as a reduced number of prototypes needed to approve product components. In addition, there was a positive influence on the product development decision‐making process, evidenced by better allocation of resources among projects at the programme.Research limitations/implicationsThe study is limited to a single case study which considers two major NPD programmes. Replications among other units of analysis are needed to further validate current findings.Originality/valueThis paper is one of the few published studies that report and discuss the FMEA within a broad context of risk analysis.

Improving new product development performance by risk management

2016 ◽  
Vol 31 (3) ◽  
pp. 418-425 ◽  
Author(s):  
Mehran Salavati ◽  
Milad Tuyserkani ◽  
Seyyede Anahita Mousavi ◽  
Nafiseh Falahi ◽  
Farshid Abdi
Keyword(s):  
Risk Management ◽  
Product Development ◽  
New Product Development ◽  
Small Sample Size ◽  
New Product ◽  
Small Sample ◽  
Content Type ◽  
Total Performance ◽  
The Relationship ◽  
Npd Performance

Purpose The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance. Design/methodology/approach Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance. Findings Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance. Research limitations/implications First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings. Practical implications The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization. Originality/value Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

Integration of Islamic bank specific risks and their impact on the portfolios of Islamic Banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Syed Alamdar Ali Shah ◽  
Raditya Sukmana ◽  
Bayu Arie Fianto
Keyword(s):  
Risk Management ◽  
Portfolio Diversification ◽  
Islamic Banks ◽  
Content Type ◽  
Management Framework ◽  
Risk Return ◽  
Islamic Bank ◽  
Risk Management Framework ◽  
Impact Risk ◽  
Conventional Banks

Purpose This study aims to propose a risk management framework for Islamic banks to address specific risks that are unique to Islamic bank settings. Design/methodology/approach A unique methodology has been developed first by exploring the dynamics and behaviors of various risks unique to Islamic banks. Second, it integrates them through a series of diagrams that show how they behave, integrate and impact risk, returns and portfolios. Findings This study proposes a unique risk-return relationship framework encompassing specific risks faced by Islamic banks under the ambit of portfolio theory showing how Islamic banks establish a steeper risk-return path under Shariah compliance. By doing so, this study identifies a unique “Islamic risk-return” nexus in Islamic settings as an explanation for the concern of contemporary researchers that Islamic banks are more risky than conventional banks. Originality/value The originality of this study is that it extends the scope of risk management in Islamic banks from individual contract-based to an integrated whole, identifying a unique transmission path of how risks affect portfolio diversification in Islamic banks.

Teaching Case for Addressing Risks with Strategies in an International Airport Project

2013 ◽  
Vol 2 (1) ◽  
pp. 18-35
Author(s):  
Daly Paulose
Keyword(s):  
Risk Management ◽  
Business Strategy ◽  
Theoretical Models ◽  
Management Framework ◽  
Monetary Value ◽  
International Airport ◽  
Risk Management Framework ◽  
South West ◽  
Management Project

This is a case applying risk management, project management, and business strategy theories. The center piece is a successful build-own-operate (BOO) international airport mega-project completed in south-west India. This case study was applied for teaching a university senior-level course in business strategy. The paper explains the risk management framework, expected monetary value (EMV) calculation, and how the theoretical models can be applied to the BOO project. It then presents worked-out solutions to selected EMV problems.

A case study on FMEA-based improvement for managing new product development risk

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Carrizo Moreira ◽  
Luis Miguel D.F. Ferreira ◽  
Pedro Silva
Keyword(s):  
Product Development ◽  
New Product Development ◽  
Early Phase ◽  
Design Methodology ◽  
New Product ◽  
Manufacturing Companies ◽  
User Friendliness ◽  
Content Type ◽  
Development Risk

PurposeThe purpose of this paper is to explore the applicability of the failure mode and effects analysis (FMEA) as an effective tool for decreasing failure risk in the early phase of the new product development (NPD), which adds to existing literature on the application of FMEA in NPD.Design/methodology/approachThrough the application of action research (AR) methodology, it was possible to develop a case study examining the use of FMEA to decrease NPD risk in an early phase of NPD execution.FindingsThe importance and immediate gains of identifying NPD failures support FMEA's usefulness for NPD risk decrease. Moreover, its user-friendliness, timeliness and cost advantages facilitate the introduction of FMEA in the early phase of NPD execution.Originality/valueFMEA is a well-known method used in manufacturing companies to identify and correct failures in products, processes and systems. This article explores the lack of practice-oriented evidence on the use of FMEA in the early phase of NPD execution and provides support to its applicability and effectiveness.

scholarly journals How preference markets assist new product idea screening

2016 ◽  
Vol 116 (3) ◽  
pp. 603-619 ◽  
Author(s):  
Giancarlo Lauto ◽  
Finn Valentin
Keyword(s):  
New Product Development ◽  
Early Stage ◽  
New Product ◽  
Management Committee ◽  
Content Type ◽  
Complex Information ◽  
Development Professionals ◽  
Decision Making Processes ◽  
Innovation Contest

Purpose – The purpose of this paper is to examine the different heuristics adopted by a crowd and a management committee to evaluate new product proposals, and whether, in assessing the value of proposals, they emphasize different features. Design/methodology/approach – The study takes a quantitative analysis approach to study an internal innovation contest held by the biotechnology company Novozymes. The contest generated 201 proposals that were evaluated by 109 research and development professionals by means of a virtual preference market, and by a management committee. Findings – The crowd and the committees’ assessments of the value of the proposals were based on different features. The committee emphasized experience and inventors’ seniority; the crowd set more store on informative idea descriptions but penalized overly complex and lengthy proposals. Research limitations/implications – The design of the innovation contest does not allow full comparison of the preference functions of crowd and committee. The findings from this case study cannot be generalized. The early stage of new product development seems fruitful for investigating crowdsourcing and knowledge management. Practical implications – Firms should consider adopting preference markets for idea screening and evaluation since they appraise ideas from different angles compared to managers. However, they complement, rather than substitute managerial evaluation, especially in the case of more detailed proposals. Originality/value – This is one of the first attempts to identify differences in the decision-making processes of crowds and committees. The paper identifies their strengths as evaluators of new product ideas and finds that the “wisdom of crowds” has some limitations in relation to the ability to process complex information.

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