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Multi-objective mathematical model based on fuzzy hybrid multi-criteria decision-making and FMEA approach for the risks of oil and gas projects

Mohammad Khalilzadeh (CENTRUM Católica Graduate Business School, Lima, Peru and Pontificia Universidad Católica del Perú, Lima, Peru)
Rose Balafshan (Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran)
Ashkan Hafezalkotob (Faculty of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran)

Journal of Engineering, Design and Technology

ISSN: 1726-0531

Article publication date: 2 June 2020

Issue publication date: 28 October 2020

174

Abstract

Purpose

The purpose of this study is to provide a comprehensive framework for analyzing risk factors in oil and gas projects.

Design/methodology/approach

This paper consists of several sections. In the first section, 19 common potential risks in the projects of Pars Oil and Gas Company were finalized in six groups using the Lawshe validation method. These factors were identified through previous literature review and interviews with experts. Then, using the “best-worst multi-criteria decision-making” method, the study measured the weights associated with the performance evaluation indicators of each risk. Consequently, failure mode and effects analysis (FMEA) and the grey relational analysis (GRA)-VIKOR mixed method were used to rank and determine the critical risks. Finally, to assign response strategies to each critical risk, a zero-one multi-objective mathematical programming model was proposed and developed Epsilon-constraint method was used to solve it.

Findings

Given the typical constraints of projects which are time, cost and quality, of the projects that companies are often faced with, this study presents the identified risks of oil and gas projects to the managers of the oil and gas company in accordance with the priority given in the present research and the response to each risk is also suggested to be used by managers based on their organizational circumstances.

Originality/value

This study aims at qualitative management of cost risks of oil and gas projects (case study of Pars Oil and Gas Company) by combining FMEA, best worst and GRA-VIKOR methods under fuzzy environment and Epsilon constraints. According to studies carried out in previous studies, the simultaneous management of quantitative and qualitative cost of risk of oil and gas projects in Iran has not been carried out and the combination of these methods has also been innovated.

Keywords

Citation

Khalilzadeh, M., Balafshan, R. and Hafezalkotob, A. (2020), "Multi-objective mathematical model based on fuzzy hybrid multi-criteria decision-making and FMEA approach for the risks of oil and gas projects", Journal of Engineering, Design and Technology, Vol. 18 No. 6, pp. 1997-2016. https://doi.org/10.1108/JEDT-01-2020-0020

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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