Implementing FMEA in a collaborative supply chain environment

Purpose The aim of this research was to call attention to the implementation of failure mode and effects analysis (FMEA) in a collaborative environment, the issues occurred in the implementation process, and a tool that can be used by all parties in a collaborative environment for FMEA process. Design/methodology/approach The discussion includes the procedure of an integrated FMEA approach, how to implement the procedure in a supply chain, and the common problems occurred in its implementation in automotive industry under a collaborative environment. Findings The research provided an example of inconsistency in the ranking of severity, occurrence, and detection to show that the inconsistency may delay FMEA implementation in a supply chain. Originality/value This study offered guidelines for manufacturing industry in correcting the problems in FMEA applications, so companies can adopt their FMEA process into a collaborative supply chain environment. This paper also demonstrated a Microsoft EXCEL‐based tool that can ease the FMEA process in a collaborative environment for determining sampling size, reliability and confidence level for tests in design verification and control plan as a part of integrated FMEA process.