Cost-based FMEA and ABC concepts for manufacturing process plan evaluation

Cost management and quality analysis methods currently contribute to the decision support in product design and manufacturing process. One of the objectives is to evaluate a process plan in order to choose the most efficient solution in economic and qualitative terms. This study proposes a methodology based on Failure Mode and Effect Analysis (FMEA) with the financial aspects of risk, and Activity-Based Costing (ABC) in the purpose of economical evaluating the process plan. It shows how ABC and cost-based FMEA concepts can be adapted to measure quality-related costs and prioritize quality improvement efforts. Information modeling for this methodology is provided; and a case example is presented to illustrate its application.