Jet Engine Development Project and Risk Management
What would be your line of action?
Initiating this project of investing 100 billion for the company to develop a jet engine for commercial aircraft is not easy. This is due to the risks associated with the operation management of the project. However, my line of action would be proceeding with the project despite the expected challenges. To begin with, I would formulate policies and strategies to be followed in the management of the whole process to avoid loss. Secondly, the decision of where the new engine will be produced will depend on where the competitive companies produce their first engines. Our objective would be to produce the most competitive engine in America. The approximate time required for the whole production would also be estimated. Consultation from different manufacturers would also help avoid a long-term risk in the company.
We know that projects that involve product development have risks. I would therefore formulate a strategy that would assist in avoiding such risks associated with my engine development project. I would use tools and methods to measure and estimate the risk in the whole project. The next step would be assessing the risk’s critical areas. Organizing an open folium talk on the project will also help to manage the risk before starting the project. This would also help in understanding the project opportunities and risks. The company’s past experience is another factor that I would use to manage the risks associated with this engine development project. After this initial assessment, the project can now start, following the formulated strategies.
In the case of lengthy product design and development time, what kinds of risks are there?
A lengthy production process is always associated with great risk in the whole production process. In case of a lengthy production and development time, necessary risk measures should be implemented to avoid great loss in production. Several researchers have found that, if an organization spends a lot of time in planning the production of a given product, it first risks having insufficient time to accomplish its task, and therefore, failing to meet its needs and objectives. Concentrating on one project makes the producers risk its cost of production due to poor management. Such simple mistakes result in a great risk, from which it is not easy to recover.
Every product development involves risk management. Poor risk management results in project failure or delayed projects when the management realizes and tries to take corrective measures. This clearly indicates the importance of managers being aware of their project well and the risks associated with them. Apart from the above risks, there are risks associated with the management of product development such as producing low-quality products. The low-quality engine will be less competitive in the global market and therefore, we must consider the quality in the production process.
Other risks include a lack of capital, which results in an incomplete project. This may also result in the consumption of a lot of time while trying to amend the problems experienced before the whole process is complete. Lack of market due to the stiff competition is another problem that may affect the production process at the marketing stage. There are existing competitive companies that may threaten our engines and, therefore, the company should take into consideration this risk assessment. When the company is focusing on this engine product development and management, other sectors of production may be negatively affected. This may be as a result of scars recourses or poor management. Despite all these risks associated with the production of this engine, proceeding with the project is the best option for the growth of the company.