Application of Failure Mode Effect Analysis (FMEA) for Efficient and Cost-effective Manufacturing: A Case Study at Bahir Dar Textile Share Company, Ethiopia

The aim of this paper is to show the application of Failure Mode Effect Analysis (FMEA) for efficient and cost-effective manufacturing. Companies need better economic gains from enhanced production, but downtime affects this paradigm. Bair Dar Textile Share Company (BDTSC) is no exception. The looming section of the case company faces on average 38.69% of downtime from the total production time which highly affects its production performance, and thus profitability. The research tries to show the economic gain from the reduced high downtime in the case company by taking the advantages of Failure Mode Effect Analysis (FMEA). As a result FMEA, failure modes, cause, and their effects on the specific section of the company were identified and prioritized using their Risk Priority Numbers (RPN). By taking the FMEA on the looming process machines and focusing on the vital few 20% causes of the identified failure modes, the findings of the research show that the company can decrease the total downtime from its 178 loom machines by 299.04hrs/day. As a result, the company can save downtime that can produce 1,672.82 meters of fabric/cloth and enhance its performance by 4.18%. This downtime reduction in turn results in a daily profit of 38,220.56 ETB (Ethiopian Birr) or 11,466,168.00 ETB annually.