Develop an Action Plan Using Failure Mode and Effects Analysis

  • by Jawad Akhtar, Head of SAP Delivery, AbacusConsulting
  • January 2, 2014
Failure mode and effects analysis (FMEA) and Control Plan (CP) enable companies to improve their products, processes, and services to ensure greater customer loyalty and minimize customer returns. These also help to minimize or eliminate product failures and help with business processes optimization.
Learning Objectives

Reading this article, you will learn how to:

  • Develop an action plan using failure mode and effects analysis (FMEA) to identify the potential for product or process failure
  • Integrate a control plan (CP) with FMEA for quality management
Key Concept

The Risk Priority Number (RPN) quantifies the overall risk of failure on a scale of 1 to 1,000. It is calculated based on the likelihood, detectability, and severity of potential product or process failures.

Companies are constantly in search of new ways to improve their products, processes, and services. Failure mode and effects analysis (FMEA) is an analytical method for early detection of problems that could lead to the failure of a product or process. FMEA is available in SAP ERP from enhancement package 3.0 and above, and in the inspection planning node of the Quality Management (QM) component.

I cover the factors involved in calculating the Risk Priority Number (RPN), which identifies the amount of risk of failure, and show the FMEA components in the SAP ERP system. I also cover how to integrate FMEA with a control plan (CP) to ensure closed-loop inspection planning as an integrated approach to quality management.

Jawad Akhtar

Jawad Akhtar earned his chemical engineering degree from Missouri University of Science and Technology. He has 17 years of professional experience, of which nine years are in SAP. He has completed eight end-to-end SAP project implementation lifecycles in the areas of PP, QM, MM, PM, and DMS in the steel, automobile, chemical, fertilizer, FMCG, and building products industries. He also has worked as an SAP integration manager and an SAP project manager. He has been proactively involved in a business development and solution architect role for seven years. He is the author of Production Planning and Control with SAP ERP, it's filled with in-depth infomation on discrete, process, and repetitive manufacturing types. His profile on LinkedIn is at You may follow Jawad on Twitter @jawadahl. Currently, he is associated with AbacusConsulting as Head of SAP Delivery.

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