FMEA technique applied to inbound logistics process as a means of preventive quality management

FMEA (Failure Mode and Effect Analysis) is a systematic and proactive method of preventive quality management. FMEA was first developed and used for US-military in 1949. By 1977, it gained importance in its application to automotive industry. At an automotive manufacturing industry, production system is supported by logistics activities at both the ends i.e. Inbound logistics at up stream which deals with internal customers, in delivering input components needed for production and outbound logistics at down stream which deals with external customer in delivering finished products. In order to achieve better quality of final product which is the primary goal of the firm, there must be smooth flow of input parts from stage of procurement from suppliers to delivering the same to production floor resulting in enhanced internal customer satisfaction, so in order to achieve this above mentioned objectives inbound logistics is selected for application of FMEA technique as a means of preventive quality management to recognize and evaluates the potential failures and identifying suitable actions that could eliminate or reduce the chances of potential failures. FMEA five stages methodology (Structural, Functional, Failure, Actions and Optimization stages) were applied to inbound logistics process at an automotive manufacturing firm. Totally 78 failure modes were screened and among them 12 failure modes with highest product of probability of occurrence rating (O) and probability of detection rating (D) were selected for giving additional preventive and detected actions under optimization stage and hence intensity of risk associated with those failure modes were reduced.