AbstractWith advances in technology and the growing complexity of technological systems, the job of the reliability/system analyst has become more challenging as they have to study, characterize, measure and analyze the behavior of systems with the help of various traditional analytical (mathematical and statistical) techniques, which require knowledge of the precise numerical probabilities and component functional dependencies, information which is difficult to obtain. Even if data are available they are often inaccurate and are thus subject to uncertainty, i.e. historical records can only represent the past behavior and may be unable to predict the future behavior of the equipment. To cope with such situations, the knowledge‐based approximate reasoning methodologies (KBARMs) provide necessary help. Among them, the fuzzy and grey methodologies are the most viable and effective tools for coping with imprecise, uncertain and subjective information in a consistent and logical manner. In this paper, the authors present a methodological and structured approach (which makes use of both qualitative and quantitative techniques) to model, analyze and predict the failurebehavior of two units, namely the forming and press units of a paper machine, using KBARMs. Various system parameters such as repair time, failure rate, mean time between failures, availability and expected number of failures are computed to quantify the system behavior in terms of fuzzy, crisp and defuzzified values. Furthermore, a risk ranking approach based on fuzzy and grey relational analysis is discussed to prioritize various failure causes associated with the components in failure mode and effects analysis (FMEA). Copyright © 2007 John Wiley & Sons, Ltd.