Rail Signaling & Wayside Equipment worked example

Supplier Risk with component severity if supplier defect reaches track of 3 score: a worked example in rail signaling & wayside equipment

Here is what the math looks like when conditions slip. We hold every other input steady and drop component severity if supplier defect reaches track to 3 score, then walk the calculation through step by step. Estimate supplier risk for rail signaling and wayside equipment using production-ready inputs so teams can rank risks and decide which issue needs containment, controls, or escalation first.

The inputs for this scenario

  • Component severity if supplier defect reaches track: 3 score (the input this scenario stresses; the baseline uses 6)
  • Likelihood supplier ships a nonconforming part: 4 score (held at the documented default)
  • Ability to catch supplier defect before install: 3 score (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Supplier risk score = supplier risk severity score × supplier risk occurrence score × supplier risk detection score.
  • Supplier risk score works out to 3.35 score at these inputs, and this is the headline figure for the scenario.
  • Supplier risk severity score works out to 3 score at these inputs.
  • Supplier risk occurrence score works out to 4 score at these inputs.
  • Supplier risk detection score works out to 3 score at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where component severity if supplier defect reaches track sits at 6 score and the headline result is 4.55 score, this scenario comes in 26.37% below the baseline at 3.35 score.
  • The practical read: the gap between this scenario and the baseline is entirely attributable to component severity if supplier defect reaches track, so recovering it is worth quantifying in dollars before considering equipment or staffing changes. RPN treats 6x4x3 and 3x4x6 as equal even though a high-severity defect that also evades detection is far more dangerous, so always review severity on its own before acting on the score.

Results at a glance

  • Supplier risk score: 3.35 score (headline result)
  • Supplier risk severity score: 3 score
  • Supplier risk occurrence score: 4 score
  • Supplier risk detection score: 3 score

Run it with your numbers

  • To rerun this with your own numbers, open the live Supplier Risk calculator, set component severity if supplier defect reaches track to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.