COMPREHENSIVE RISK MANAGEMENT USING FUZZY FMEA AND MCDA TECHNIQUES IN HIGHWAY CONSTRUCTION PROJECTS

Abstract

This paper presents a comprehensive framework to manage the main risk events of highway construction pro­jects within three stages: (1) identification of potential risks; (2) assessment and prioritisation of identified risks based on fuzzy FMEA; (3) identification of appropriate response. The main criteria analysed for prioritising potential risk events are cost, time and quality which are quantified and combined using fuzzy AHP. A new expert system is suggested for identifying an appropriate risk response strategy for a risk event based on risk factor, control number and risk alloca­tion. The best response action for a risk event is then identified with respect to the same criteria using “scope expected deviation” (SED) index. The proposed methodology is demonstrated for management of risk events in a construction project of Bijar-Zanjan highway in Iran. For the risk event of “increase in tar price”, deviation from the target values of the criteria is analysed for business-as-usual state plus two risk response actions using SED index. The results show that the response action of “changing paving construction technology from asphalt pavement to RCC pavement” can success­fully cope with the risk event of “increase in tar price” and have the minimum deviation.