K Company's Risk Management In The Development Stage Of Auto Components Program

Thanks to the recent years' rapid growth of the auto industry,China has emerged as the biggest country of auto manufacturing and consumption,accompanying with the continuing development of the auto parts companies.Even though,China's auto parts companies still perform poorly in the project management,especially in terms of risk management.Rarely such companies can apply risk management theory to practical situation.Many companies fail to analyze the potential risks arising during the development period of some projects and manage them efficiently.Frequent failures during the period of project development may be caused by this.The projects may get delayed and product quality or engineering capabilities fail to achieve the anticipated results.The actual investment is far beyond what was once planned,which may make the company suffer from a loss.So for these auto parts companies,a well-suited risk management system should be worked out during the development period.By doing this,the management level on the company operation will be improved and the risk on the project development will be under control.Based on the research of risk&project management theory and the actual situation of the writer's K Company,the essay takes a specific project as an example and focuses on the set-up of the risk management team and applying Delphi method,Checklist method and other methods to figuring out the risks during project development from a broad perspective.Some risks may come from the outside including competitors,markets,customer demands and supply chains.Other risks may be caused inside such as human resources,production capability,development cycle,quality and cost.Meanwhile the risks during the product processing period may be detected from the micro perspective.WBS method will be applied in this regard.The detected risks caused by the whole development process will be leveled by using AHP method and FMEA analysis method.The summary lists and tracking lists will be created from the valuation on the whole and partial side which can help summarize and monitor the risks.Through such analysis and assessment,can offer theory basis and data support in taking risk-control measures.The primary analysis on the cause for the risks will be carried out and can be used as reference to the further solutions.