A FMEA-aided Project Bidding Decision System


Chee-Cheng Chen

Author affiliation

Department of Business Administration, National Pingtung University of Science & Technology, Taiwan


This paper studies risk elimination of risk in the current bid evaluation process, addressing the problem of frequent accidents and disadvantages of the popular “lowest-price” bid policy. Failure mode and effect analysis (FMEA), a systematic analysis technique successfully applied in electronic industries, is introduced. A FMEA-aided model for project bidding evaluation is developed through analyzing and applying FMEA factors and methods to project bidding. An actual case is used to prove the applicability and suitability of the proposed approach. The FMEA-aided model was applied to effectively support the lowest-expected-cost (LEC) bidding decision method beneficial for meeting project goals to reduce the risk of decision making.


FMEA, Project bidding evaluation, Risk management, lowest expected cost