One of the prominent techniques in the field of Total Quality Management (TQM) is Failure Mode and Effects Analysis (FMEA). FMEA facilitates the recording of failures and analysing them to provide solutions for preventing their recurrence. During the early periods of FMEA evolution, there were two types namely Design FMEA and Process FMEA (PFMEA) in practice. In recent days, more types such as System FMEA, Service FMEA and Maintenance FMEA are being prescribed by the researchers. Meanwhile, a number of benefits of FMEA implementation have been reported. Yet, FMEA has not found its implementation in various fields. One among them is service field. This paper reports the examination of FMEA implementation in service industry. This direction of research led to the design of an improved model, named as 'Modified service FMEA'. Its implementation was examined in an Indian State Government owned passenger Transport Company. Despite certain practical hurdles, this exercise was successful in developing modified service FMEA table and pinpointing the seriousness of failures through the portrayal of Service Lost (SL) and Cost Lost (CL).