Project Cost Risk Analysis on National Road Preservation in Bali Province Using FMEA Method

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Ni Kadek Dessy Antari
Universitas Udayana
Anak Agung Gde Agung Yana
Universitas Udayana
Dewa Ketut Sudarsana
Universitas Udayana

Abstract: National roads that have a larger size and capacity than provincial roads or district roads to accommodate a high volume of vehicles make national road projects can contribute to greater cost risks. Failure Mode and Effect Analysis (FMEA) can identify and prioritize risks by generating a Risk Priority Number (RPN), which is used to determine the priority of risks that need to be addressed first. The results of the study show that there are 55 risk indicators including material risks, geographical, technical, human resources, environmental, and cost risks. From the results of FMEA, 2 low-level risks, 8 medium levels, 24 high levels, and 21 very high levels were obtained. High and very high risks are priority risks because they have a relatively large RPN value, so they have the potential to have a significant impact on the cost and smooth running of the project (Mascia et al., 2020). The risk with the highest RPN value is the increased cost of mobilizing tools and labor due to the increase in fuel prices during the project with an RPN of 360. The risks identified through FMEA have a direct impact on the additional cost of the project. It is hoped that a time management strategy that is adaptive to the weather and coordination between stakeholders must be strengthened so that the risk of cost overruns can be reduced.


Keywords: Risk Analysis, Road Preservation, FMEA, Project Costs