Risk assessment using Failure mode and effects analysis
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Explanation of tool and risk assessment | Explanation of tool and risk assessment | ||
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| − | In-depth explanation of how and when to apply the tool as well as detailed examples. | + | ''In-depth explanation of how and when to apply the tool as well as detailed examples.'' |
=== When to apply FMEA === | === When to apply FMEA === | ||
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What the tool cannot do or where it meets its limitations | What the tool cannot do or where it meets its limitations | ||
Revision as of 14:13, 19 February 2023
Failure mode and effect analysis (FMEA) is an important tool in project management used for risk assessment. This tool is used to systematically identify and eliminate known or potential failures in complex systems to provide data and information for risk management decisions. The tool can be traced back till the 1940’s where it originated in the US military and were used for complex development projects. The tool identifies possible failure modes, causes and resulting effects in relation to either a product, process, or service. First the article will explain the purpose of risk assessment and hereby also the purpose of the tool usage. The article contains a thorough explanation of the application of the FMEA tool as well a discussion of the limitations of the tool based on when and how it is applied. [1]
The tool is a semi-quantitative method and therefore in relation to risk assessment must provide the user with a numerical value. The way of doing this is using the risk priority number (RPN), which in the aspect of risk assessment is a vital part of the FMEA. In brief the 3 parameters of the RPN are discussed: severity (the consequence of the failure happening), occurrence (probability/frequency of the failures occurrence) and detection (the likelihood that the failure is detected before the impact of it happens), these numbers can all be between 1-10. The scale of these numbers has been criticized in other articles and therefore a standard scale for evaluation of the parameters is presented [2] . As the knowledge of the people using the tool also effects the outcome a discussion of how and what project managers should do to get the most useful outcome from the tool is explained together with the importance of diversity in relation to the tool.
Contents |
Big idea
Describe the tool, concept or theory and explain its purpose. The section should reflect the current state of the art on the topic Explanation of tool and risk assessment
Introduction
Before we dive into an explanation of the tool itself a broader reasoning on why to use it follows below. This begins with a description of what risk assessment is. However, to understand what this means we must set a baseline for what risk is using the definition from the PRINCE2. An uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives. A risk is measured by a combination of the probability of a perceived threat or opportunity occurring, and the magnitude of its impact on objectives. [3]. Having defined what a risk is this now leads us to a description of what risk assessment is and why we use it.
Purpose and reasoning for making a risk assessment
All projects undergo phases and parts that include uncertainties in the form of risks. This is inevitable and certain. Therefore, part of the project managers task is to be able to manage these risks. The risk management process involves assessing threats, vulnerabilities, and risk. From this information the project manager must ensure that counter measures are implemented to reduce the risks. Thereby to be able to manage and respond the best way on any risk there must be a strong foundation. This is what makes risk assessment so important to able to manage risk properly.
What is a risk assessment
To further describe the risk assessment process the following quote with the perspective of security management describes it well: “A risk assessment is a quantitative, qualitative, or hybrid assessment that seeks to determine the likelihood that an adversary will successfully exploit a vulnerability and the resulting impact (degree of consequence) to an asset.” [4]. So, in the perspective of risk assessment in project management the only difference is that the adversaries are what can go wrong in the process and the asset is the project. Thereby the risk assessment set out to discover what can go wrong and how big the impact will be if it happens.
How to make a risk assessment
Mention and explain types of risk assessments.
Quantitative risk assessments
Evidence based with objective results as each risk gets assigned numerical values. Usually requires more time and bigger investment. Used for larger projects.
Qualitative risk assessments
Might use descriptive scales instead, as high medium low. Solely based on the individual’s perception on what risks are most important. Is usually quicker and requires a smaller investment. Might be used where no data is available. Used for smaller low value projects.
FMEA for risk assessment
Purpose of FMEA
What a FMEA consist of
Application
Provide guidance on how to use the tool, concept or theory and when it is applicable
In-depth explanation of how and when to apply the tool as well as detailed examples.
When to apply FMEA
How to apply FMEA
Identify the possible failure modes
Consequence if failure happens and severity rating
Cause of failure and occurrence rating
Detection rating
RPN number usage
Limitations
Critically reflect on the tool/concept/theory. When possible, substantiate your claims with literature
What the tool cannot do or where it meets its limitations
Discuss the importance of diversity in the team using the tool. How to get the most useful outcome based on limitations.
The weaknesses of the FMEA tool
Despite the advantages of FMEA, there are a number of weaknesses with the method: Bullet points:
• Multiple Failures: It is not possible to consider where multiple failures occur at once as there is no linking between failures.
• Time Consuming and people dependent: I might be very time consuming to list all potential failure modes and I relies heavily in the expertise of the people identifying them.
• Updates Required Frequently: Even with the best people and staff FMEA might miss some failure modes or new ones will be discovered as people gain experience and knowledge during the project development. This means frequent assessment ant updates.
• Underestimating Risk: If the people performing the analysis fails to consider a possible failure mode the associated risk might be underestimated.
• Potential Waste of Resources: Conversely, it might be that the analysis is to time consuming compared to what is gained from it and resources thereby are wasted.
Best usage of tool based on weaknesses
Annotated bibliography
- ↑ Ben-Daya, M. (2009). Handbook of Maintenance Management and Engineering
- ↑ Nuchpho, P. (2014). Risk Assessment in the Organization by Using FMEA Innovation: A Literature Review.
- ↑ AXELOS. Managing Successful Projects with PRINCE2, The Stationery Office Ltd, 2017.
- ↑ Risk assessments. (2007). I: Karim H.. Vellani (Red.), Strategic Security Management. Elsevier Inc.
