A Compound-Options-Based Approach to Determine R&D Project Portfolio

• Main Authors: Wen-Long Huang, 黃文龍
• Other Authors: Juite Wang
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/34657373792277551194

碩士 === 逢甲大學 === 工業工程學所 === 92 === Product development has become a focus of competition in many industries. One of the critical success factors in product development is to invest R&D and new product resources effectively, since improper selection of projects will result in the failure of the R&D and new product projects that cause the loss of product market-share and reduce the business revenues in the future. Portfolio management addresses the above issues by selecting suitable set of projects and allocating scarce resources to the projects to meet the business product strategies. However, it is difficult to select and manage the project portfolio, because the product and market information, especially the expected return of a project, at the early stage of R&D or new product development are difficult to predict and quantify. The objective of this thesis is to develop an approach based on fuzzy set theory for managing R&D portfolio. The imprecise and uncertain information regarding project portfolio is represented by fuzzy sets. The value of each project is evaluated by fuzzy compound options method. A fuzzy optimization model is developed to select optimal sets of projects for maximizing the R&D investment benefit subjected to the restriction of budget constraints and the balance of product strategies. An example is used to illustrate the concept developed. It is concluded that the proposed method is able to model uncertain portfolio information and estimate possible project value. In addition, it also can help project managers to maximize the R&D investment benefit of the chosen projects and achieve a strategically aligned portfolio.