Method for the monetary quantification of failure risks in production

Nowadays, manufacturing companies are facing increasing requirements to compete in their global market due to a higher cost pressure, greater product variety and increasing complexity of products. To remain competitive, companies for instance react by shorter product development cycles and higher innovations rates, which are sources of product and process failure risks these companies are exposed to. The preventive identification, assessment and control of product and process risks protect companies from risks that might lead to product recalls and could threaten their existence. Nevertheless especially methods for quantifying technical risks on a monetary basis are missing. Against the background of the mentioned challenges, the Fraunhofer Institute for Production Technology develops an approach to assess and monetarily quantify failure risks in production by the use of process models. This approach is subject to this paper and explained in the following.