Risk Analysis of Goods Delivery Discrepancies in Manufacturing Companies Using the Failure Mode and Effects Analysis (FMEA) Method

Abstract

Risk management in the manufacturing supply chain is crucial for maintaining product quality and customer satisfaction. This study aims to identify potential risks of shipping non-conformity, determine problem-handling priorities, and formulate effective improvement strategies at two manufacturing companies, PT XYZ and PT ABC. The research method employed is Failure Mode and Effects Analysis (FMEA), which integrates assessments of Severity (S), Occurrence (O), and Detection (D) to generate a Risk Priority Number (RPN). Data were collected through literature review, field observations, and in-depth interviews with logistics operational staff. The results identified five main failure modes in the shipping process: wrong item specifications, incorrect address labels, damaged goods, barcode scanning errors, and shipping delays. Based on the analysis, wrong item specification emerged as the highest priority risk with an RPN value of 336, followed by incorrect labeling with an RPN of 270. Dominant causal factors identified through the Fishbone diagram indicate that human error due to operator oversight and sub-optimal verification procedures are the primary root causes. As a solution, the study proposes a 5W+1H improvement plan, including standardizing picking SOPs, implementing barcode-based double-check systems, regular employee training, and routine maintenance of scanning devices. Implementing these strategies is expected to reduce the current non-conformity rate of 0.0178% and enhance the companies' operational efficiency.