A Risk Mitigation Methodology for New Product and Process Design in Concurrent Engineering Projects

Based on earlier work on risk quantification, a new risk mitigation methodology is developed for new product and process design in concurrent engineering projects. First the most prominent risks in the product life cycle are identified and quantified. Then five computational algorithms are developed and used to find feasible solutions for mitigating these risks: Least-Cost-First, Highest-Risk-First, Minimum-Cost-Risk-Ratio- First, Random-Search and a Genetic Algorithm. Based on the available mitigation budget and strategic objectives of the project the best mitigation strategy is then recommended to the project managers. Actual financial outcomes of an industry project were used to successfully validate the methodology.