The Evolution Of The Study Of Risk Essay
Risk as part of Quality Management Systems Some aspects of quality management systems inherently access risk; such as failure mode and effect analysis (FMEA); which is a method and documentation process that predicts the risk of failure at every manufacturing step or process by identifying and rating each potential outcome (Ványi, 2016). Ványi defines FMEA as a “first line risk analysis method in design, which has been implemented in development and production” (2016, p. 82).
Use of FMEA as a tool for quality management applications is a common application in order to ascertain operational uncertainties (Cagnin, Oliveira, Simon, Helleno, & Vendramini, 2016), however from an economic perspective; FMEA analysis is being applied to different aspects of risk. For example, FMEA is applied to business risk assessment such as disruption risk in the supply chain as a result of natural, political or economic disasters (Cagnin et al., 2016).
This evolving and newer application for FMEA systems is to apply the methodology to supplier selection. Chen and Wu (2013) propose using FMEA for selecting new suppliers and Cagnin et al. also repurpose FMEA in this environment to select suppliers with the lowest…