EPC Projects Risk Analysis Using FMEA-ANP
"Engineering, Procurement, and Construction" (EPC) is a particular form of contracting arrangement used in some industries where the EPC Contractor is made responsible for all the activities from design, procurement, construction, to commissioning and handover of the project to the End-User or Owner. In this method of execution, the employer transfers the risk of the operation to the contractor by transferring all the project activities, including the design, procurement and provision of equipment. As a result, identifying and prioritizing risks in these projects is very important for contractors in order to properly manage these risks. One of the most widely used techniques in the risk priority is FMEA. In this paper, we identify and prioritize the risks of an EPC project by combining this technique with the Analytical Network Process (ANP), which is one of the most commonly, used methods in multi criteria decision-making. The FMEA-ANP method, taking into account the cross-risk relationships, evaluates the priority of risk as compared to the FMEA method in a different way, which has a better and higher sensitivity than FMEA scores.
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