Question

A senior manager at a large bank performs a Failure Mode and Effects Analysis (FMEA) on its online banking transaction process. One of the failure modes identified is Incorrect Data Entry with Severity=4, Occurrence=6, and Detection=8.

Another failure mode is Server Downtime, with Severity=9, Occurrence=3, and Detection=8.

What are the Risk Priority Numbers (RPN) of the two failure modes, and which one of them should receive higher priority than the other?
A. RPN(Incorrect Data Entry) = 192, RPN(Server Downtime) = 216, Server Downtime receives higher priority

B. RPN(Incorrect Data Entry) = 24, RPN(Server Downtime) = 27, Server Downtime receives higher priority

C. RPN(Incorrect Data Entry) = 24, RPN(Server Downtime) = 27, Incorrect Data Entry receives higher priority

D. RPN(Incorrect Data Entry) = 192, RPN(Server Downtime) = 216, Incorrect Data Entry receives higher priority

Answer 1

The RPN values for the failure modes are calculated and the failure mode with the higher RPN value should receive higher priority for mitigation.

Step-by-step explanation:

First, let's calculate the Risk Priority Number (RPN) for each failure mode. RPN is calculated by multiplying the Severity, Occurrence, and Detection ratings. For Incorrect Data Entry, the RPN is 4 x 6 x 8 = 192. For Server Downtime, the RPN is 9 x 3 x 8 = 216.

So, the RPN of Incorrect Data Entry is 192 and the RPN of Server Downtime is 216. The failure mode with the higher RPN value should receive higher priority for mitigation.

Therefore, the correct answer is: RPN(Incorrect Data Entry) = 192, RPN(Server Downtime) = 216, Incorrect Data Entry receives higher priority.