Risk Management and Assessment Hybrid Framework for Business Process Reengineering Projects: Application in Automotive Sector

Abstract

This study introduces an integrated method for managing process risks in a business process reengineering (BPR) project using robust data envelopment analysis (RDEA) and machine learning (ML). The goal is to prioritize risks based on three standard factors of PFMEA (severity, occurrence and detection (S-O-D)) and incorporating two additional factors (breakdown cost and breakdown duration) seen as undesirable outputs. The model also accounts for the effect of uncertainty on expert-estimated values by applying disturbance percentages in the linear PFMEA-RDEA model. A machine-learning model is proposed to predict new values if partial or total modifications have been made to the processes. The approach was implemented in an automotive sector company, and the results showed the impact of uncertainty on values by comparing different approaches, such as RPN, PFMEA-DEA and PFMEA-RDEA. A new reduced risk categorization was achieved, which allowed for decision makers to focus on the necessary actions for reengineering.