Managing development risk in product design processes

Product development has become the focal point of industrial competition and is the cornerstone of long-term survival for most firms. One of the major management challenges in product development is to deal with development risk in the design process. In this paper we provide a strategic guideline as to how the design process should be managed and controlled. We describe how design reviews and engineering resources can be scheduled as the control mechanisms to operationally manage development risk. the methodologies developed are an integral part of a project to fundamentally restructure product design processes at Rocketdyne Division of Rockwell International, which designs and develops liquid-propellant rocket propulsion systems.