Risk Analysis Tools Successful in Project Management

by Paul S. Ray, Ph.D., PE, CSP, C. Eng. (U.K.),
Surya Prasanna Kumar Chodimella, Balaji Pattabiraman and Ramji Srinivasan
Tuscaloosa, Alabama
 

Conclusion
Traditional risk assessment techniques such as Preliminary Hazard Analysis, Cost/Benefit Risk Analysis and qualitative Fault Tree Analysis are more common in mature industries such as General Construction, Heavy Construction, Motor Freight Transportation, Railroad, Water and Air Transportation, and Manufacturing. The newer industries such as Telecommunication and Information Technology and Logistics, E-Business and Supply Chain Services use more sophisticated software risk analysis and quantitative risk assessment in addition to the qualitative FTA. The newer industries are introducing more sophisticated techniques for risk management, and some of these may be applied to the mature industries for improving their management process. It is of interest to find the use of Human Error Analysis in construction projects. Hazard And Operability Review (HAZOP), a technique used extensively in the chemical industry, was found to be used by a power plant project. From the survey, we find that transfer of risk management techniques has started, although in a limited way, and this transfer process will be helpful for all industries. There may also be another factor, in that employees in newer industries tended to be younger and were exposed to sophisticated techniques, while the employees in the mature industries generally were older and probably were not exposed to the newer techniques to the same extent. This study will help to bring awareness of the various risk analysis techniques currently applied in industries.

Acknowledgment
This study was supported by a research grant from the Marshall Space Flight Center (MSFC) of the National Aeronautical and Space Administration (NASA) in 2001. Their support is appreciated. Opinions, interpretations and conclusions are those of the authors, and are not necessarily endorsed by MSFC/NASA.

An abbreviated version of this article was presented at the annual conference of the International Society of Occupational Ergonomics and Safety and GAF (German Ergonomics Society) held in Munich, Germany, on May 7, 2003.

About the Authors
An Associate Professor of Industrial Engineering at the University of Alabama in Tuscaloosa, Dr. Paul S. Ray previously worked several years in industry, primarily with General Motors, Union Carbide and Bechtel Corporation. Since joining the University, he has conducted research in Occupational Safety and Ergonomics for NASA, the U.S. Air Force and the National Institute of Safety and Health (NIOSH), and has published numerous articles and research papers. Dr. Ray is a registered Professional Engineer (PE) in Texas, a Certified Safety Professional, and a Chartered Engineer (C. Eng.) in Great Britain.

Surya Prasanna Kumar Chodimella, Balaji Pattabiraman and Ramji Srinivasan, the co-authors of this article, were graduate students in the MSIE degree program at the University of Alabama in Tuscaloosa.

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