Using FMEA to Assess Outsourcing Risk

Abstract:Although outsourcing is a growing trend among U.S. businesses, there are risks involved and not everyone benefits from such arrangements. The advantages of outsourcing must be weighed against risks and go beyond cost savings. Without a systematic analysis technique, much can go wrong. A modified form of failure mode effects analysis (FEMA), a tool used to collect information related to risk management decisions, can be used to evaluate the risk of outsourcing options. Risks are evaluated in terms of opportunity, probability and severity, and can be grouped into intuitive …

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I'm trying to make a proposal for a risk assessment for major changes to the QMS. This article has given me some clues, e.g. the use of a 1-5 rating scale. Thanks a lot!
--Juan Hector Garcia, 12-03-2009

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