Failure mode and effects analysis (FMEA) in the context of risk management in new product development : A case study in an automotive company

Purpose – Effectively managing risk is an essential element of successful project management. In this sense, the present study seeks to propose a systematisation of technical risk management through the use of FMEA to optimise the decision making process in new product development (NPD). Design/methodology/approach – The methodological approach adopted in this paper is a case study at an automaker in Brazil. Data were gathered from various sources, mostly participant observation and document analysis of two important NPD programmes. The risk management system was described and its influence on programs development analysed. Findings – Results included a reduction in the number of project and test planning loopings as well as a reduced number of prototypes needed to approve product components. In addition, there was a positive influence on the product development decision‐making process, evidenced by better allocation of resources among projects at the programme. Research limitations/implications – The study is limited to a single case study which considers two major NPD programmes. Replications among other units of analysis are needed to further validate current findings. Originality/value – This paper is one of the few published studies that report and discuss the FMEA within a broad context of risk analysis.