Risk Evaluation for FMEA

FMEA Analysis has an auto-function to help the users quickly complete the risk evaluation through the Risk Evaluation pane. To access the Risk Evaluation pane from Excel’s ribbon, select Risk Evaluation from the Task Pane group.

This is how it looks

1. Specify the risk index column

The section Index Columns of the task pane allow the users to set up the index columns in the worksheet. You can specify the risk index columns before the recommended actions (first rating) and/or after the recommended actions are taken (re-rating).

1. Severity: Specify the column used for severity ranking.
2. Occurrence: Specify the column used for occurrence ranking.
3. Detection: Specify the column used for detection ranking.
4. Risk Indicator: Specify the column used as the risk indicator column. Risk indicator can be Risk Priority Number, Critical Number, SOD,…
5. Re-Severity: Specify the column used for severity ranking after the recommended actions are taken.
6. Re-Occurrence: Specify the column used for occurrence ranking after the recommended actions are taken.
7. Re-Detection: Specify the column used for detection ranking after the recommended actions are taken.
8. Risk Indicator: Specify the column used as the risk indicator column after the recommended actions are taken.

In the built-in template, the index columns were specified and you don’t need to do it again.

2. Risk Indicator

Next, you need to specify the risk indicator number you use from the below list:

1. RPN stands for Risk Priority Number. RPN formula: Severity x Detection x Occurrence.
2. SOD stands for Severity – Occurrence – Detection. SOD formula: 100 x Severity.
3. CN stands for Critical Number. CN formula: Severity x Occurrence.
4. None means not using a number indicator, but you can use other kinds of indicators. For example, a color indicator.

Note: If you select None, you can not evaluate with Top Risks or Threshold method because those methods are quantitative methods. However, Risk Matrix method will work

3. Auto Evaluation Method

Next, you must specify how you want to evaluate the risk from the below list:

Top Risks

For example, due to the limitation of your resources, you only want to focus on the 5 highest risks in your FMEA and consider the next 5 risks that have lower risk levels.

Here is how to evaluate with Top Risks

1. Check the Top Risks under Auto Evaluation Method section.
2. On Quantity of item to be improved, input the number of items you want to improve.
3. On Quantity of item to be considered, input the number of items you want to consider.

Threshold

This option prioritizes the risks that need to be addressed by defined limitations. Here is how to do it:

1. Select Threshold in Auto Evaluation Method
2. from Acceptable if lower than, specify the limit that risk will be acceptable by your team or organization.
3. from Need improvement if larger than or equal to, specify the limit that risks will need to be addressed by recommended action.

Risk Matrix

This option prioritizes the risk by a defined matrix of Severity and Occurrence.

1. Select the Risk Matrix option in Auto Evaluation Method.
2. In the Risk Matrix, select a cell representing the combination of Severity (horizontal axis) an Occurrence (vertical axis) you want to change.
3. Select the risk level in three 3 categories: High Risk (Red), Medium Risk (Yellow) and Low Risk (Green).
   1. High Risk: Must be reduced or eliminated.
   2. Medium Risk: To be considered.
   3. Low risk: Acceptable risk. No action required.

4 Evaluate

OK, now you can hit the button. You have can use one or both of the evaluation buttons:

1. Evaluate before improvement: Evaluate before recommended actions are taken.
2. Evaluate after improvement: Evaluate after recommended actions are taken.