Beginning in the early 1980s, the skyrocketing of product liability cost and non-ending court activities made the FMEA become a vital tool in the occurrence of failures. Since then, the FMEA process has been spreading among the fortune 500 companies. This has been transitioned from in-house concerns to supply base. In 1993, the Automotive Industry Action Group (AIAG) which includes, and the American Society of Quality Control adopted a standard approach to FMEAs
FMEA is an analytical technique used to ensure that potential problems in product design or process have been considered and addressed. Ideally, a Design FMEA should be carried out in the early stages of design and a process FMEA should be carried out before tooling or manufacturing equipment is purchased. FMEA can also be applied to non-production areas. FMEA tools are widely used by Fortune 500 companies and finds particularly wider use in automobile (e.g. Ford, GM and Chrysler) and engineering industries.