Transactional failure mode and effect analysis an application to map risks in the service industry

Abstract

This article proposes an extension of the Failure Mode and Effect Analysis (FMEA) methodology to be applied in service industries in genferal, with an emphasis on the transportation services of supply chains in particular. This methodology is called Transactional FMEA (T-FMEA) and its contribution is threefold: 1) provides a comprehensive view of the supply chain risks including transportation services (internal or outsourced), 2) supplies an expanded view that includes internal, outsourcing and customer impacts, 3) delivers a more robust implementation due to the comprehensive scope of the supply chain. T-FMEA is inspired by the evolution of the Six Sigma methodology from manufacturing to services, including the widely reported experience obtained at deployment. T-FMEA is illustrated over real freight transportation of goods case. Critical failure modes are identified, measured and ranked at the service process. This information provides a quantitative and solid background that serves as input for designing and implementing robust solutions to prevent/mitigate these risk elements enabling process/product/device design or improvement