Application of Failure Mode Effect and Critical Analysis for Risk Management: A Case of Road-rail Transport at the Thai-Lao PDR Cross Border

DOI: 10.14416/j.ind.tech.2024.08.007

Abstract

Globalization is the process of increased interconnectedness among countries, resulting in the growth of international trade, investment, and cultural exchange. Transport and Logistics are important for economic growth and development, allowing industries to enter potential customers, reduce costs, and enhance efficiency. The cross-border trade requires good transportation and logistics systems to move products and services across borders through road, rail, air, and water transport. As the railway is an environmentally friendly and sustainable mode of transport, but cannot provide transportation service alone without other modes of transport, this study focuses on risk management in road-rail freight transport. The objectives of the study are to identify risks with respect to road-rail freight transport at the cross border between Thailand and Laos PDR and to provide a guideline for risk management for the case study. The risks were prioritized based on the Failure Mode Effects and Criticality Analysis (FMECA) concept. Findings from this research present that the technology risk, the equipment and operations risk, and the organization and personal risk are among the top priorities in need of risk management.  Lastly, this research suggests proper risk mitigation guidelines to manage those risks.