A Dynamic Risk Analysis on New Product Development Process

In the dynamic and competitive market, managers seek to find effective strategies for new product development. Since there has not been a thorough research in this field, this study is based upon the review of the risks existing in the NPD process and on the analysis of the risks through FMEA approach. Therefore, we can prioritize existent risks and then model the behavior of the NPD process and main risks through system dynamics. At first, we present new product development concepts and the key definitions. We base our study on the literature review of the NPD risks and then provide an FMEA approach to define risks priority. Using the obtained main risks, we model the NPD process risks applying system dynamics to analyze the system and the risk effects. A safety clothing manufacturer is considered as a case study