Research On Steel Enterprises For The New Product Development Project Selection Based On The FAHP-TOPSIS

The increasing pressure of China’s downturn economy has taken its toll on the developmentof the iron and steel industry, which is now in the dilemma of great loss, traditional productmarketability and profitability declining, and it can’t be changed in the short run. Enterprises aretending to the “Troika”, multispecies, high quality and low-cost for more profit and highefficiency. Their strategic purposes and sustainably competitive advantages are often obtainedthrough increasing technology content and encouraging innovation, outputting high-end productswith added value. However, NPD (new product development) is complicit system engineering,with high risk and high input, yet much more uncertainties and lower success rate. Thus,enterprises, limited to the resources and the current industry predicament, can’t implementseveral projects at the same time. Therefore, it is necessary that the project managers firstlyevaluate and rank the NPD alternatives, providing advisory information for the decision-makingto perform the new product strategy under the circumstance of restricted resources.This research, based on the correlation of new products and the strategies of the enterprises,this study, utilizing the strategic management instrument BSC (Balanced Score Card) establishesthe index system to NPD. Then designed to improve the situation analyzed, combines the FAHPto calculate weight and the TOPSIS to assess the sequence, to construct Optimization Model ofNPD. Y Company is taken as an example to verify the validity of the model and index system.The research consists of seven chapters. Firstly, the research background, purposes andsignificance are introduced by thoroughly studying of the domestic and overseas researches,outlining the theoretical basis and the thesis framework. Secondly, the Optimization Model ofNPD is built. In addition to that, with the BSC and the current state of iron and steel enterprises’project selections, a quantitative and qualitative index system of project selections areestablished. After that, the research is applied to a case study, solving the optimizing YCompany’s new product development project, to verify the feasibility of the index system andthe model. Finally, the study is summarized, pointing out the shortage and innovation of thisresearch and directing the further researches.