Modeling uncertainty in risk assessment: An integrated approach with fuzzy set theory and Monte Carlo simulation

Modeling uncertainty during risk assessment is a vital component for effective decision making. Unfortunately, most of the risk assessment studies suffer from uncertainty analysis. The development of tools and techniques for capturing uncertainty in risk assessment is ongoing and there has been a substantial growth in this respect in health risk assessment. In this study, the cross-disciplinary approaches for uncertainty analyses are identified and a modified approach suitable for industrial safety risk assessment is proposed using fuzzy set theory and Monte Carlo simulation. The proposed method is applied to a benzene extraction unit (BEU) of a chemical plant. The case study results show that the proposed method provides better measure of uncertainty than the existing methods as unlike traditional risk analysis method this approach takes into account both variability and uncertainty of information into risk calculation, and instead of a single risk value this approach provides interval value of risk values for a given percentile of risk. The implications of these results in terms of risk control and regulatory compliances are also discussed.     

Combining the cost of reducing uncertainty with the selection of risk assessment models for remediation decision of site contamination

The decision as to whether a contaminated site poses a threat to human health and should be cleaned up relies increasingly upon the use of risk assessment models. However, the more sophisticated risk assessment models become, the greater the concern with the uncertainty in, and thus the credibility of, risk assessment. In particular, when there are several equally plausible models, decision makers are confused by model uncertainty and perplexed as to which model should be chosen for making decisions objectively. When the correctness of different models is not easily judged after objective analysis has been conducted, the cost incurred during the processes of risk assessment has to be considered in order to make an efficient decision. In order to support an efficient and objective remediation decision, this study develops a methodology to cost the least required reduction of uncertainty and to use the cost measure in the selection of candidate models. The focus is on identifying the efforts involved in reducing the input uncertainty to the point at which the uncertainty would not hinder the decision in each equally plausible model. First, this methodology combines a nested Monte Carlo simulation, rank correlation coefficients, and explicit decision criteria to identify key uncertain inputs that would influence the decision in order to reduce input uncertainty. This methodology then calculates the cost of required reduction of input uncertainty in each model by convergence ratio, which measures the needed convergence level of each key input's spread. Finally, the most appropriate model can be selected based on the convergence ratio and cost. A case of a contaminated site is used to demonstrate the methodology.     

Understanding innovation diffusion and adoption strategies in megaproject networks through a fuzzy system dynamic model

Innovation and knowledge diffusion in megaprojects is one of the most complicated issues in project management. Compared with conventional projects, megaprojects typically entail large-scale investments, long construction periods, and conflicting stakeholder interests, which result in a distinctive pattern of innovation diffusion. However, traditional investigation of innovation diffusion relies on subjective feedback from experts and frequently neglects inter-organizational knowledge creation, which frequently emerges in megaprojects. Therefore, this study adopted project network theory and modeled innovation diffusion in megaprojects as intra- and inter-organizational learning processes. In addition, system dynamics and fuzzy systems were combined to interpret experts’ subject options as quantitative coefficients of the project network model. This integrated model will assist in developing an insightful understanding of the mechanisms of innovation diffusion in megaprojects. Three typical network structures, namely, a traditional megaproject procurement organization (TMO), the environ megaproject organization (EMO), and an integrated megaproject organization (IMO), were examined under six management scenarios to verify the proposed analytic paradigm. Assessment of project network productivity suggested that the projectivity of the TMO was insensitive to technical and administrative innovations, the EMO could achieve substantial improvement from technical innovations, and the IMO trended incompatibly with administrative innovations. Thus, industry practitioners and project managers can design and reform agile project coordination by using the proposed quantitative model to encourage innovation adoption and reduce productivity loss at the start of newly established collaborations.     

A combined fuzzy DEMATEL and cloud model approach for risk assessment in process industries to improve system reliability

Decision-making trial and evaluation laboratory (DEMATEL) analysis is an effective and comprehensive method for identifying accident factors and converting the relationships among them into a visual structural model. Traditionally, the mean value method is adopted to summarize the initial direct-relation matrix, but it ignores the errors caused by differences in expert knowledge. In addition, a single qualitative risk assessment may not be sufficiently comprehensive and persuasive. The qualitative risk assessment results may not play a complete role in helping industrial plants carry out safety management. Therefore, this study proposes a quantitative risk assessment model based on the cloud model (CM) called the fuzzy DEMATEL-CM. An assessment index model is established by identifying the hazards associated with a converter steelmaking system. Subsequently, fuzzy DEMATEL analysis is applied to determine the relationships among the assessment indices and calculate their weights. Then, the CM is utilized to calculate the risk levels of the assessment indices and determine the comprehensive risk level. Finally, a case study is introduced to verify the practicability and validity of this model, and it is observed that the model has a certain superiority in solving uncertain problems. The quantitative risk assessment results are helpful for preventing accidents to improve the reliability of converter steelmaking plants.     

Applying a risk assessment approach for cost analysis and decision-making: a case study for a basic design engineering project

Abstract

Many uncertainties and cost variations occur in the work activities of a project, thereby causing many possibilities of under-estimating or over-estimating for a bid price. A comprehensive study for each process of risk management should be investigated to achieve project objectives. However, a limited number of studies have a comprehensive viewpoint to indicate the benefits of risk management and the effect on project performance for the engineering design stage of engineering–procurement–construction (EPC) projects, especially in the basic design stage. This research was conducted to identify and analyze the risks associated with a Basic Design Engineering (BDE) project for a high value-added petrochemical plant in Taiwan. First, a project risk management work flow was proposed as an effective tool to minimize the project risks and maximize the management capacity of practitioners. Second, the cost effect of project risks was described by conducting a case study for the design process of a high value-added petrochemical plant using a Monte Carlo simulation. A risk register was identified to support the data required for conducting simulation analysis. The results of this paper provide reference points for risk management planning of project execution and help project managers evaluate particular risks at the engineering design stage of EPC projects to avoid cost overruns.     

Supply chain risk assessment during new product development: a group decision making approach using numeric and linguistic data

Companies strive to minimise supply chain related risks during new product development as any glitch while developing new products can lead to considerable delay in product launch with severe financial implications. However, many organisations face difficulty in properly assessing the vulnerabilities of their globally dispersed supply chains during the product development stage as no suitable procedure for that purpose seems to be readily available in the literature. The present research is an attempt to fulfil this requirement. A step-by-step approach for supply chain risk assessment during new product development, involving group decision making, is suggested. This approach can use both numeric and linguistic data and helps in determining vulnerability scores for various sub-systems and for each supplier of the most vulnerable sub-system. This is followed by failure mode effect analysis (FMEA) which helps prioritise failure modes of vulnerable suppliers and thus create specific control plans to mitigate supply related failures. Using this approach, organisations can devise control plans to alleviate the supplier related risks during new product development. Although, the methodology is illustrated through an application in aircraft manufacturing, it can also be used in other discrete and process manufacturing industries.     

Improved FMEA based on IVF and fuzzy VIKOR method: A case study of workpiece box system of CNC gear milling machine

Failure mode and effect analysis (FMEA) is a tool used to define, identify, and prevent known or unknown potential risks. An improved FMEA based on interval triangular fuzzy numbers (IVF) and fuzzy VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method is proposed in this study to solve problems of expression and processing of uncertain information, weights of risk factors, and ranking of failure modes in traditional FMEA. Linguistic variables are used to evaluate failure modes level and relative importance of risk factors and are expressed via interval-valued triangular fuzzy number. Determining the subjective weights of risk factors using fuzzy AHP, calculating the objective weights of risk factors using the extended VIKOR method, and obtaining the comprehensive weights of risk factors via ICWGT are proposed for solving the weight problem of risk factors. Finally, the fuzzy VIKOR method is used to rank risk priority of failure modes. The proposed method is used to evaluate workpiece box system of CNC gear milling machine and the results are compared with the findings of other methods to verify effectiveness and rationality of the proposed method.     

A data-driven fuzzy approach for predicting the remaining useful life in dynamic failure scenarios of a nuclear system

This paper presents a similarity-based approach for prognostics of the Remaining Useful Life (RUL) of a system, i.e. the lifetime remaining between the present and the instance when the system can no longer perform its function. Data from failure dynamic scenarios of the system are used to create a library of reference trajectory patterns to failure. Given a failure scenario developing in the system, the remaining time before failure is predicted by comparing by fuzzy similarity analysis its evolution data to the reference trajectory patterns and aggregating their times to failure in a weighted sum which accounts for their similarity to the developing pattern. The prediction on the failure time is dynamically updated as time goes by and measurements of signals representative of the system state are collected. The approach allows for the on-line estimation of the RUL. For illustration, a case study is considered regarding the estimation of RUL in failure scenarios of the Lead Bismuth Eutectic eXperimental Accelerator Driven System (LBE-XADS).     

Forward and backward risk assessment throughout a system life cycle using dynamic Bayesian networks: A case in a petroleum refinery

In this paper, risk modeling was conducted based on the defined risk elements of a conceptual risk framework. This model allows for the estimation of a variety of risks, including human error probability, operational risk, financial risk, technological risk, commercial risk, health risk, and social and environmental risks. Bayesian network (BN) structure learning techniques were used to determine the relationships among the model variables. By solving a bi-objective optimization problem applying the genetic algorithm (GA) with the Pareto ranking approach, the network structure was learned. Then, risk modeling was performed for a petroleum refinery focusing on HydroDeSulfurization (HDS) technology throughout its life cycle. To extend the model horizontally and make it possible to evaluate the risk trend throughout the technology life cycle, we developed a dynamic Bayesian network (DBN) with three-time slices. A two-way forward and backward approach was used to analyze the model. The model validation was performed by applying the leave-one-out cross-validation method.