Using fuzzy FMEA and fuzzy logic in project risk management

Abstract

Risk management is one of the most important phases of project management and isthe most recently used by many researchers. In this paper, a fuzzy based method wasproposed 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 twoother factors namely project phase weights and risks weights. These two factors inaddition to risk priority number (RPN) factors can lead to the application of betterrisk management. Based on the project risk magnitude, the appropriate risk responseshould be selected. The proposed model covers three parts of risk managementprocess: 1. Risk identification, 2. Quantitative risk analysis and 3. Risk responseplanning. Finally, this model was applied by a numerical example, and project riskmagnitude was calculated for an assumed company, to verify the proposed method.