Risk Analysis of Material Shortage in the Order Planning Process Using the FMEA Method at PT. Y Manufacturing Batam

Abstract

Material shortages can disrupt production due to a mismatch between material demand and availability. This study aims to identify failure modes, analyze their causes and impacts, and determine risk priorities in the order planning process at PT Y Manufacturing Batam using the Failure Mode and Effect Analysis (FMEA) and Pareto Analysis methods. The study employs a descriptive quantitative approach with a case study design, involving interviews with three expert informants and a review of documentation regarding material shortages for the NFLR121-S50 model during August 2025. The results revealed four failure modes, with the highest Risk Priority Number (RPN) associated with delays in material procurement by suppliers (362.26), followed by production schedule changes that were not updated (362.26), errors in calculating material requirements (360.33), and a lack of interdepartmental communication (315.03). A Pareto analysis grouped the first three risks as the “vital few,” accounting for a cumulative 77.50% of the total risk. Recommendations for improvement focus on enhancing monitoring of material procurement, expediting the dissemination of SAP ERP updates, and implementing a double-check mechanism for material requirement calculations. Keywords: material shortage, order planning, FMEA, Pareto analysis