Nowadays, people are always on the move and the need for completing their works efficiently is increasing. To keep up with this lifestyle, maintaining physical health is very important. The demand for vitamins, health supplements, and other nutritious food is increasing rapidly. Long cherished as an important part of Chinese culture for its purported health benefits and class marks, EBN consumption has become a trend in recent years. EBN that traditionally consumed in the soup now being turned into food and drink as well as in cosmetics. The existence of a significant increase in the number of exports shows that interest in the market for EBN from Indonesia is often increasing.
This research suggests the use of the Failure Mode and Effects Analysis (FMEA) risk management methodology for the development of ready to drink EBN production. Failure Mode and Effect Analysis (FMEA) is a methodology that helps classify actions that cause potential risks when a new product, process, or service is applied (Stamatis, 2003).
The achievement of this research is that the company is saving lots of time and resources on deciding risk on every step of production is calculated. The company can finally identify priorities, actions to control and reduce the highest priority failures in the ready to drink EBN processing as the price of EBN is so high. The company also establishes effective management for the ready to drink EBN processing as RPN in each process is calculated. A new product is also established by the company using FMEA analysis.

Chapter 1 Introduction 1
1.1 Research Background and Motivation 1
1.2 Research Objectives 3
1.3 Research Contribution 4
1.4 Research Scope 4
1.5 Research Procedure 4
Chapter 2 Literature Review 7
2.1 Food Processing 7
2.2 Edible Bird’s Nest Market 8
2.3 Failure Mode and Effect Analysis (FMEA) 9
Chapter 3 Methodology 13
3.1 Problem Statement 13
3.2 Edible Bird’s Nest Processing 13
Chapter 4 Computational Result 17
4.1 Data Collection 13
4.2 Potential Failure in EBN Processing 17
4.2 FMEA Analysis for ready to drink EBN Processing 20
Chapter 5 Conclusion and Suggestion 25
5.1 Conclusion 25
5.2 Managerial Implication 26
5.3 Research Limitation 27
5.4 Sugestion for Future Research 27
References 28

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