The PCNet Project (B): Dynamically Managing Residual Risk

Development project selection is a key link between company strategy and the development of new products. Project selection is an integral part of the overall product development process and should be done systematically. The case presents a company where project selection is divorced from strategy and performed ad hoc.

This case study serves to discuss a class of risk management strategies in supply chains.

The case describes a car development project falling behind schedule because of engineering changes in the design of the body stamping dies. The engineering changes can be traced to the parallel execution of several engineering activities.