Failure Mode Effect Analysis (FMEA) is a methodology in product development and operations management for analysis of potential failure modes within a system for classification as per the severity and likelihood of the failures. It is an inseparable part of risk management and it supports continuous improvement. The present study makes an attempt to check the importance of FMEA in a manufacturing industry. Various potential failure modes in an industry were analyzed using FMEA. Risk priority number has been calculated before and after making changes. It was found that there is a significant increase in the production rate by about 42.08%, which in turn increased the overall quality level and employees' satisfaction level. Thus, FMEA implementation brings significant improvement in production.