Using fuzzy FMEA and fuzzy logic in project risk management

Risk management is one of the most important phases of project management which is most recently used by many researchers. In this paper, a fuzzy based method is proposed 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 other two factors namely project phase weights and risks weights. So considering these two factors in addition to risk priority number (RPN) factors can lead to apply better risk management. Based on the project risk magnitude, the appropriate risk response should be selected. The proposed model covers three parts of risk management process: Risk identification, Quantitative risk analysis and Risk response planning. Finally, this model is applied by a numerical example, and project risk magnitude is calculated for an assumed company to verify the proposed method.

Analytical Hierarchy Process, Project Risk Management, Fuzzy Rules, Failure Mode and Effects Analysis (FMEA).