The identified bases behind the conducting of ABI’s risk forecasting are given below:
- Forecasting sales of the product
- Applying three scenarios
- Analyzing historical data
- Non-statistical risk measurement
- Identifying feasible competitors as well as Japanese
- Examining present and future market situations that point to use pistons predicting the increase of demand for engines instead of tractors
- Applying Flexible Manufacturing System (FMS) whether the project might fail or lose
- Using learning curve and learning ratio to calculating cost of pistons. “The first unit of output takes 1,000 hours, and the learning rate is 80%.”
- Contrasting forecasted sales with the organizational strategic plan