Book contents
- Frontmatter
- Contents
- List of figures and tables
- Forewords
- Preface
- Acknowledgments
- Layout of book at a glance
- PART 1 UNDERSTANDING ENGINEERING PROCESS MANAGEMENT
- PART 2 APPLYING ENGINEERING PROCESSES TO PROGRAM MANAGEMENT
- 4 Roles and responsibilities
- 5 Approach to program and project management
- 6 An integrated team member's guide to performing a task
- 7 Program structuring and planning
- 8 Risk assessment
- 9 Program initiation and execution
- 10 Program reviews
- 11 Engineering change management and product data management
- PART 3 DEPLOYING ENGINEERING PROCESS MANAGEMENT
- PART 4 APPENDIXES
- Glossary
- References
- Index
8 - Risk assessment
Published online by Cambridge University Press: 05 April 2014
- Frontmatter
- Contents
- List of figures and tables
- Forewords
- Preface
- Acknowledgments
- Layout of book at a glance
- PART 1 UNDERSTANDING ENGINEERING PROCESS MANAGEMENT
- PART 2 APPLYING ENGINEERING PROCESSES TO PROGRAM MANAGEMENT
- 4 Roles and responsibilities
- 5 Approach to program and project management
- 6 An integrated team member's guide to performing a task
- 7 Program structuring and planning
- 8 Risk assessment
- 9 Program initiation and execution
- 10 Program reviews
- 11 Engineering change management and product data management
- PART 3 DEPLOYING ENGINEERING PROCESS MANAGEMENT
- PART 4 APPENDIXES
- Glossary
- References
- Index
Summary
In an engineering product development program, risk is the likelihood that the new product will not meet the customer's needs, be completed on time, or be completed within budget. This chapter focuses on these risks. It presents an overview of the risk assessment procedure and discusses the risk assessment questionnaire. Then it takes a detailed look at some risk factors common to engineering development programs and offers some strategies for managing them. The risk assessment questionnaire, summary sheet, and risk management strategy tables can be found in Appendix E.
PERFORMING A RISK ASSESSMENT
Advanced product development engineering programs are among the most complex activities conducted by mankind. They often involve millions of dollars of investment and thousands of hours of work by highly educated people. Risk is therefore high. Shareholders are willing to accept the risks involved in such an effort providing the potential returns are high. Yet even under the guidance of an experienced director, a program may fail because of inherent risks. By actively assessing a program's risks, however, you can reduce the likelihood of failure.
Risk assessment is a systematic method of identifying a program's risks and then determining appropriate strategies for managing them. It is also a mechanism for communicating the program risks to the customer/partner and to corporate executives. It sets the stage forworking with the customer/partner to reach agreement on risks that are acceptable and in line with the organization's tolerance.
- Type
- Chapter
- Information
- Engineering and Product Development ManagementThe Holistic Approach, pp. 119 - 125Publisher: Cambridge University PressPrint publication year: 2001