FMEA is the most commonly used risk analysis method in the automotive industry tool box and helps suppliers predict and prevent failures in both the product development and part production processes. The new AIAG & VDA FMEA Handbook provides consistent direction and guidance to all automotive suppliers, including best practices and examples from AIAGâÂÂs and VDAâÂÂs previous handbooks and real world experiences. The most noticeable change in the AIAG & VDA FMEA Handbook is a new 7-Step approach for FMEA development, which provides a framework for documenting technical risks in a precise, relevant manner. The 7-Step Approach includes Planning & Preparation, Structure Analysis, Function Analysis, Failure Analysis, Risk Analysis, Optimization, and Results Documentation. With this new framework, product design and process risk become more transparent and can be anticipated, calibrated and managed in a more comprehensive manner. Additional changes include a new chapter on Supplemental FMEA for Monitoring and System Response (FMEA-MSR), totally revised Severity, Occurrence and Detection Tables, the Action Priority (AP) methodology and Tables to replace RPN, new Form Sheets (spreadsheet users) and Software Report Views (software users) and change point highlights from both the AIAG 4th edition FMEA Manual and the VDA Volume 4 FMEA Manual.