In reliability engineering, failure reporting, analysis, and corrective action system (FRACAS) is an useful tool for effective failure reporting and related operations. FRACAS is generally mainly focused on implementation of its closed-loop process, but also includes various related information which has to be effectively managed such as failure types, failure modes, failure mechanisms, and corrective actions. In this study, we adopt and utilize the concept of process knowledge, and create it through abstraction of FRACAS information. At each step of closed-loop process, the necessary type of knowledge, priority and usability are clearly defined. This study also suggests corresponding management tools such as business process management system, knowledge management system, and their key elements and functions to deal with process knowledge. A prototype system using simple closed-loop process with its process knowledge is presented to demonstrate the feasibility of the proposed work.