Using fuzzy FMEA and fuzzy logic in project risk management

Document Type : Research Paper

Authors

1 Faculty of Industrial Engineering, K.N Toosi University of Technology

2 Faculty of Management and Economics, Tarbiat Modares University

Abstract

Risk management is one of the most important phases of project management and is
the most recently used by many researchers. In this paper, a fuzzy based method was
proposed which identifies different kinds of risks through the project life cycle.
Then, the project risk magnitude can be obtained in regards to five factors, namely
“severity”, “occurrence”, and “not detection” which form fuzzy FMEA and also two
other factors namely project phase weights and risks weights. These two factors in
addition to risk priority number (RPN) factors can lead to the application of better
risk management. Based on the project risk magnitude, the appropriate risk response
should be selected. The proposed model covers three parts of risk management
process: 1. Risk identification, 2. Quantitative risk analysis and 3. Risk response
planning. Finally, this model was applied by a numerical example, and project risk
magnitude was calculated for an assumed company, to verify the proposed method.

Keywords

Main Subjects

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Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies)
Volume 8, Issue 3 - Serial Number 3
July
July 2015
Pages 373-395

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