Using functional analysis diagrams for production cost optimization

This paper presents a methodology combining Failure Mode and Effects Analysis (FMEA) and Value Engineering (VE), assisted by a set of hierarchical Functional Analysis Diagram (FAD) models, and its pilot introduction in a UK-based manufacturing Small Medium Enterprise (SME). The proposed methodology suggests the parallel execution of both processes, using a combination of FAD models and the FMEA tabular tool to yield results for both FMEA and VE. The resulting Risk Priority Number (RPN) is used to identify and prioritize not only the high-risk components requiring improvements (highest RPN values), but also the potentially superfluous components (lowest RPN values) that could be safely downgraded to reduce unnecessary costs.