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Failure mode and effects analysis (FMEA) is a popular risk management tool that has been applied in various industries, including in service sector, to prevent possible failures from happening. The potential failure modes are assessed and reflected via a risk priority number (RPN). The RPN calculation is simple, straightforward, and easy to understand. However, in practice FMEA is internal activity done by a multidisciplinary team. Customers who are a stakeholder group and will be directly affected if any failure modes occur, do not involve. In fact, their viewpoint should be seriously considered because they may see things different from the FMEA team. Customer-oriented FMEA that was not received much attention has been improved recently in order to better reflect customers' point of view on the failure modes. Customer dissatisfaction has been integrated directly into this new approach for risk assessment. Kano model has been applied also to identify how customers perceive failure mode effects. Presented in this paper is the illustration of its application in service and comparison with the conventional approach as well as the previous customer-oriented approach. Movie theater services have been selected for this illustration.
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