New Design Risk - Risk Index Recipe

In the realm of new product design, leveraging risk management tools is essential to navigate the complexities of today’s supply chains. These tools provide critical insights into potential disruptions related to material availability, supplier performance, and regulatory compliance. By utilizing such tools, organizations can evaluate the risks associated with various design choices, enabling them to make informed decisions that balance innovation with feasibility. This proactive approach not only minimizes the likelihood of costly delays and redesigns but also fosters a more resilient product development process, ensuring that new offerings are both market-ready and aligned with strategic goals in an ever-evolving landscape.

Here is an example of a Risk Index you can create to help evaluate new designs. Check out the article linked below for more information on how to create a new Risk Index:

Risk Index Management in BOMs

YTEOL (Years to End of Life)

Condition	Risk
No Data	50
YTEOL > 3 AND YTEOL < 8	50
YTEOL <= 3	100
YTEOL >= 8	10

Lead Time

Condition	Risk
No Data	80
Lead Time >= 50	80
Lead Time < 50 AND Lead Time >= 20	50
Lead Time < 20 AND Lead Time > 0	30
Lead Time = 0	30

Lifecycle

Condition	Risk
No Data	75
Lifecycle = Obsolete OR Lifecycle = End Of Life (Overwrite)	100
Lifecycle = Active	10
Lifecycle = Not Recommended	80
Lifecycle = Lifetime Buy	80
Lifecycle = Unknown	50
Lifecycle = Transferred	60

Number of FFFs (Form, fit and function)

Condition	Risk
No Data	50
Number of FFFs = 0	100
Number of FFFs > 0 AND Number of FFFs < 3	60
Number of FFFs >= 3	10

Country of Origin

Condition	Risk
No Data	50
N/A	50
Country of Origin =	Specific countries and their associated risk can be set according to your individual needs

Supplier is on Preferred List

Condition	Risk
No Data	50
Supplier is on Preferred List = True	10
Supplier is on Preferred List = False	85