Research Article

Inclusion of Management Desirability and Risk in Service FMEA-Based Corrective Action Selection Methodology

Table 4

Estimation on the payoff score of corrective actions of case example.

Corrective actionPayoff components
Potential positive consequences Probability of success in achieving goalBenefit category scoreEstimated gain scorePotential negative outcomeProbability of failure in achieving goalLoss category scoreEstimated loss scoreEnd effect categoryPayoff score

Performing supplier evaluation ( )Reduction in unreliable delivery schedule 0.8108Resistance from suppliers0.281.6Direct and opportunity financial loss for company7.4

Improve supplier relationship ( )Possibility on increase in economic transaction 0.472.8Limited knowledge to reveal real suppliers’ desire0.684.8Financial opportunity loss−2

Add adequacy of suppliers ( )Increase in financial opportunity gain 0.441.6Financial hardship moment to obtain banking loan0.674.2Opportunity and sale loss −2.2

Improve technique of marketing research ( )Opportunity gain due to widening market share 0.531.5Nonapproval from top management 0.531.5Loss sale (revenue risk), degrading staff moral0

Facilitate upward communication ( )Increase in working productivity 0.732.1Unfavorable company culture0.552.5Staff productivity loss−0.4

Improve focus on customer relationship communication ( )Increase in customers’ order0.452.0Nonapproval from company owner0.611.6Sale opportunity loss0.4

Air conditioning malfunction (FM2)
 Invest staff on AC
 Training ( )
Speed in alleviating AC problems0.883.6Unresolved AC malfunction problem0.281.6Opportunity loss sale2

 Purchase new AC units ( )Ensuring store convenience 0.281.6Nonapproval from top management0.886.4Opportunity loss sale−5.8

 Empower available crew ( )Improve empathy against aggravated customers0.785.6Resistance to change from staff0.382.1Staff productivity loss3.5