Six Sigma Global Institute (SSGI) Project Management Professional Certification Practice Exam

What equation represents risk value in Failure Mode and Effects Analysis?

1. Impact + Likelihood x Difficulty of detection

2. Impact x Likelihood of occurrence x Difficulty of detection

3. Likelihood x Difficulty + Impact of occurrence

4. Severity + Likelihood of occurrence + Mitigation measures

The correct answer is: Impact x Likelihood of occurrence x Difficulty of detection

The equation that represents risk value in Failure Mode and Effects Analysis (FMEA) is formulated as the product of impact, likelihood of occurrence, and difficulty of detection. This method is critical in assessing potential failure modes within a system, process, or product to prioritize risks based on their severity and likelihood. The impact refers to the consequences or effects of a failure, the likelihood of occurrence measures how probable a failure is to happen, and the difficulty of detection evaluates how easily a failure can be identified before it impacts the customer or the system. By multiplying these three factors, organizations can obtain a Risk Priority Number (RPN), which effectively captures the overall risk associated with each potential failure mode. Higher RPN values indicate a greater priority for addressing certain risks, guiding project managers in resource allocation for risk mitigation efforts. This approach of quantifying risk allows teams to systematically identify which failure modes require more immediate attention and resources, thereby improving overall quality and reliability in processes and products.