According to FMEA, what does Impact x Probability x Detection equal?

In Failure Mode and Effects Analysis (FMEA), the formula of Impact x Probability x Detection is used to calculate what is referred to as Risk Value. This metric is crucial in evaluating the potential risks associated with various failure modes in a project or process.

The components of this calculation are as follows:

• Impact: This refers to the severity of the effect that a failure would have on the system or project. A higher impact indicates more serious consequences.

• Probability: This represents the likelihood of the failure occurring. Higher probabilities signify a greater chance of the failure happening.

• Detection: This assesses the likelihood that the failure would be detected before it causes harm. A lower detection capability suggests a higher risk.

When these three factors are multiplied together, the resulting Risk Value gives a quantifiable measure of risk, allowing project managers to prioritize which failure modes to address based on their potential impact on project success. This calculated value helps teams focus their resources where they are most needed to mitigate risks effectively.

Understanding this relationship is vital for effective risk management and decision-making processes in project management contexts.