FMERA - Failure Modes, Effects, and (Financial) Risk Analysis
Continuous Improvement activities are often based on a list of top concerns, such as highest RPN (Risk Priority Number) on the PFMEA (Process Failure Modes and Effects Analysis), warranty items, or scrap rates. But a company is in business to make a profit for its stockholders. Therefore, money should be considered, rather than just technical engineering tools and RPNs. Current PFMEA methodology (See references 1 and 2) focuses on delivering quality parts to the customer. The financial impact of various potential process problems is not considered directly. A new and extended technique called FMERA (pronounced Fuh-MAIR-uh) can identify and prioritize the process part of potential problems that have the most financial impact on an operation. Alternatives can be evaluated to maximize the financial benefits. FMERA is a method for getting the voice of the stockholder into process decisions.