This study proposes an integrated approach that uses both a fuzzy service FMEA (failure mode and effect analysis) and HOQ (house of quality) matrix algebra in designing and improving a service system. The fuzzy service FMEA methodology applies the customer satisfaction to the fuzzy RPN model. We fuzzify only the service satisfaction that consist in two failure factors, intangible service and tangible service, to more effectively assess the customer satisfactions on service encounters. Proposed fuzzy service satisfactions with triangle membership function are defuzzified by using the Fuzzy Inference System, and these are eventually identified the ranks on the potential fail points. HOQ matrices are constructed from cause-effect relationships. It is possible for these relationship matrix to find a linear approximation solution on the engineering attributes. Thus, in order to demonstrate how the proposed methods work, practical sample of the A/S part in S Electronic Co. provides for the ranking of the engineering attributes which has been successfully implemented.