The FMEA method in project risk management

Every project faces uncertainties all along its life cycle. Dealing with risks is then a fundamental aspect for a successful project management: uncertainties can affect the possible outcomes and project effectiveness The risk management's objective is to assure uncertainty does not affect the project goals. This article aims to show how

The concept of loop of control in risk management is a comprehensive model consisting of applicable methods, implying a dynamic and countinous model. The loop of control is built upon 4 phases: individuation, assessment, controlling and monitoring.

FMEA in project life cycle

The project Management Institute (PMI) defines a project as “a temporary endeavour undertaken to create a unique product, service, or result. The temporary nature of projects indicates that a project has a definite beginning and end. The end is reached when the project's objectives have been achieved or when the project is terminated because its objectives will not or cannot be met, or when the need for the project no longer exists”. (PMI) Every project passes through a series of phases all along its life, from the start to the closure: all these phases represent the project life cycle. While every project life cycle is determined or shaped by the specific nature, industry and technology employed by the specific organization, all projects can be mapped to the following generic life cycle structure (PMI standards): - Starting the project, - Organizing and preparing, - Carrying out the project work, and - Closing the project

In this article, the specific case of new product development is analysed. New product development (NPD) is the process by which an organization uses its resources and capabilities to create a new product or improve an existing one(L.P. Cooper. Product development is seen as “among the essential processes for success, survival, and renewal of organizations, particularly for firms in either fast-paced or competitive markets”) (Brown and Eisenhardt, 1995, p. 344). A key challenge faced by new product development projects is how to acquire knowledge and manage sources of uncertainty in order to reduce the risk of failure of either the project or the resulting product (cooper). In order to take into account this aspect, the product design phases should be considered. PD processes are unlike typical business and production processes in several ways. Instead of doing exactly the same thing over and over, PD seeks to create a design that has not existed before. (Browning) The goal of PD is approached by producing useful information that reduces uncertainty and risk. (browning) As the graph shows, the risk are higher at the beginning of the product development, precisely in the conceptual design phase.

Especially with novel products, designers learn much along the way about what will and will not work. (Nightingale)

Model description

FMEA is an analytical methodology used to ensure that potential problems have been condìsidered and adressed throughout the product development cycle. - qualitative risk analysis