Risk Assessment of New Product Development Process With Concurrent Engineering Based on Stochastic Network Model
New Product Development (NPD) is a process of bringing a new product into the market. Often, large enterprises like Samsung, Apple and Huawei are carrying out NPD from time-to-time to maintain their market share. Speed-to-market has slowly dominating NPD and becoming one of the most important aspect in NPD. Concurrent Engineering (CE) provides an alternative approach to integrate concurrent design into NPD to reduce the overall process completion time. However, the combination between CE and NPD is complicated and involved various risks and uncertainties. In order to deal with the complication and risks in CENPD, a risk assessment model of CENPD based on stochastic Graphical Evaluation and Review Technique (GERT) network model is proposed. A novel simulation approach by using Simul8 is also proposed to solve the GERT model as it is too difficult to be mathematically computed. This research aims to identify the tradeoff analysis between project time and cost and provide useful managerial insights in CENPD project planning.
Keywords - Project Management, New Product Development (NPD), Concurrent Engineering (CE), Graphical Evaluation and Review Technique (GERT), Overlapping and Rework