FMEA (Failure Mode and Effects Analysis)

Failure Mode and Effects Analysis (FMEA) is a risk management tool used in procurement to anticipate potential problems that may occur during the production or delivery of goods and services. By proactively identifying risks, FMEA helps organizations plan for contingencies and eliminate as much uncertainty as possible. The methodology consists of three key steps: systematically analyzing each component of the process, developing an understanding of potential failure modes, and determining the impacts and likelihoods associated with each mode. Organizations are then able to prioritize and address any risk factors before any issues arise, ensuring a smoother procurement process.