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Identifying and ranking risks using combined FMEA-TOPSIS method for new product development in the dairy industry and offering mitigation strategies: case study of Ramak Company

Author

Listed:
  • Farzad Sharifi

    (Yazd university)

  • Mohammad Ali Vahdatzad

    (Yazd university)

  • Behrad Barghi

    (Rochester Institute of Technology)

  • Nasibeh Azadeh-Fard

    (Rochester Institute of Technology)

Abstract

Food industry as one of the most important and influential industries plays an important role in the health and well-being of the community. It is also important for the country’s economy, export, and inter-state relations. As the industry expands and competition becomes tougher, the development of new products that can compete in this competitive market has become a major concern for manufacturers but the production of new products is always associated with uncertainties and risks, the management of which is the core of the new product development process and plays an important role in the success of industries. Risks occur in different shapes at every stage of the new product development process from design to consumption. In this study, the new product development process in a dairy company is investigated. A quantitative approach is proposed to identify and rank the risks affecting this process using the combined Failure Mode and Effects Analysis (FMEA) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. Shannon entropy method is also used to weight the criteria in the TOPSIS method. Identified risks by considering expert’s opinion were scored from 0 to 10 regarding FMEA method factors (Severity, Occurrence, Detective), then by utilizing Shannon entropy method in TOPSIS each risk was weighted and ranked. 14 risks are first identified and then ranked based on 30 experts opinions from different parts of the company such as marketing, accounting, engineering, staff, management etc. and prior studies. The results show that ’Mismatching product Specifications with costumer needs and tastes’ and ’The emergence of a new rival’ are the most important risk factors for new product development. Risk reduction strategies based on the standard of project management, firm strengths and weaknesses and expert opinions on all risk factors are provided. At the end, some recommendations are provided to the managers of the company. The proposed approach is applied in Ramak Company and the results are approved by experts, more importantly, they are agree that the proposed approach can be used to identify, evaluate and present risk reduction strategies in the food industry.

Suggested Citation

  • Farzad Sharifi & Mohammad Ali Vahdatzad & Behrad Barghi & Nasibeh Azadeh-Fard, 2022. "Identifying and ranking risks using combined FMEA-TOPSIS method for new product development in the dairy industry and offering mitigation strategies: case study of Ramak Company," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2790-2807, October.
    • Handle: RePEc:spr:ijsaem:v:13:y:2022:i:5:d:10.1007_s13198-022-01672-8
    DOI: 10.1007/s13198-022-01672-8
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    References listed on IDEAS

    as
    1. Antonella Certa & Mario Enea & Giacomo Maria Galante & Joaquín Izquierdo & Concetta Manuela La Fata, 2018. "Food safety risk analysis from the producers' perspective: prioritisation of production process stages by HACCP and TOPSIS," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 17(4), pages 396-414.
    2. Tai-Wu Chang & Huai-Wei Lo & Kai-Ying Chen & James J. H. Liou, 2019. "A Novel FMEA Model Based on Rough BWM and Rough TOPSIS-AL for Risk Assessment," Mathematics, MDPI, vol. 7(10), pages 1-20, September.
    3. Aven, Terje, 2016. "Risk assessment and risk management: Review of recent advances on their foundation," European Journal of Operational Research, Elsevier, vol. 253(1), pages 1-13.
    4. Kuei-Hu Chang & Yung-Chia Chang & Yu-Tsai Lee, 2014. "Integrating TOPSIS and DEMATEL Methods to Rank the Risk of Failure of FMEA," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 13(06), pages 1229-1257.
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    1. Janpriy Sharma & Mohit Tyagi & Arvind Bhardwaj, 2024. "Valuation of inter-boundary inefficiencies accounting IoT based monitoring system in processed food supply chain," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(4), pages 1374-1396, April.

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