Strategic decision-making in NPD projects according to risk: Application to satellites design projects

In this paper we present a method for making strategic decisions in New Product Development (NPD) projects based on risks. In NPD the complexity of the process depends both on the nature of the design problem and the difficulties associated with managing the project (activities, risks). To design a complex product several different teams, having different competencies, work on the project. Not one among them controls the entire process. The interactions between product subsystems in NPD often lead to technological arbitration between alternative solutions In selecting one solution over another, the risk management concerns and the overall project plan are affected. Therefore, the objective is to give the project manager the means to evaluate the effects of strategic decisions, including those that influence the selection of technological solutions for the project plan as well as those for risk treatment strategies. We propose an integrated process that comprises design, project management and risk management. It takes into consideration the design activities and risk activities to generate a design project planning where design activities and risk activities are folded into the overall design project plan. During the process of project design two different types of strategies are required: one relates to the problem design, the other to the assessment of project risks. Each strategy leads to different possible scenarios. We present a decision tree that shows the decision steps and possible project scenarios. A generic decision support system is proposed. We demonstrate its applicability by applying it to a satellite design project.