Optimising Risk Management in Wood-based Manufacturing: A Fuzzy AHP-FMEA Framework Approach

Abstract

This study integrates the Fuzzy Analytic Hierarchy Process (AHP) with the Failure Mode and Effects Analysis (FMEA) to enhance risk prioritisation in wood-based manufacturing. Traditional FMEA methods face challenges in handling subjective evaluations and complex environments. By incorporating fuzzy logic, this study refines the Risk Priority Number (RPN) calculation, enabling a more nuanced assessment of failure modes. Critical failure points, such as delays in order processing, production, and delivery, were identified, highlighting their impact on operational efficiency, customer satisfaction, and financial outcomes. Using the Pareto principle, it was revealed that addressing the top 20% of the identified risks could mitigate approximately 80% of the overall risk exposure. Proposed corrective measures, including enhanced employee training, streamlined workflows, and improved communication protocols, provide actionable strategies to optimise processes and ensure sustainability. Conducted within a Croatian wood-manufacturing company, this framework demonstrated its efficacy in refining risk assessments and supporting continuous improvement. The findings advance risk management methodologies and showcase the potential for broader applications in dynamic and complex industrial environments.