Productivity is one of the main concerns of manufacturing companies and there are several factors that limit their productivity. Losses in production are the inabilities of the productivity; and downtime is significant among the role players for significant production loss and low productivity. Bahir Dar Textile Share Company is experiencing high downtimes and it is producing less than 48% of its capacity. In the weaving section of the company, the recorded downtime is very high compared to actual operation time. The loom machines are down daily for 38.69% of the total production time on average which highly affects the productivity. This study aims to improve the productivity of the case company by reducing the high downtime through the application of Failure Mode Effect Analysis (FMEA). For this purpose, both secondary and primary data are collected through documentation assessments, observations and discussions. FMEA as an analysis and productivity improvement tool is applied. As a result, the failure modes, their effects and cause of the warping, sizing and loom subsection of the weaving section of the company are prioritized using the RPN. The corrective actions that the company should take to improve its productivity are articulated. In addition, a simplified framework is developed to help the company to easily and consistently apply FMEA. Taking the FMEA result of the loom machines processes and focusing on the vital few causes of the identified failure modes that contribute more than 50% of the RPNs, the company can decrease the downtime of the subsection by 299.04hrs/day. The subsection can use this saved downtime to produce at least 1,672.82 meters of fabric/cloth based on the current production rate of the subsection, which is 4.18% of its daily efficiency and the performance of the loom subsection is improved from 37.56% to 41.74%% and the subsection saves 84,800.46 birr of sales to earns 29,315.79 birr of profits daily. Finally, important concluding remarks and recommendations that help the company to improve its productivity are forwarded.