This paper aims to use the theme of lean philosophy of eliminating the waste and non-value added activities in the healthcare delivery industry by utilizing Failure Modes and Effects Analysis (FMEA) and Fault Tree Analysis (FTA). FMEA is used as a diagnostic tool to identify the failures and risks in the blood transfusion process, whereas FTA is used as a deductive failure analysis tool, to identify the root cause of these failures. Initially, the steps of blood transfusion process are determined and then the potential failure modes are identified. The risk of each failure is represented in terms of three aspects: degree of severity, occurrence, and chance of detection. Therefore, critical failures are highlighted, which help in proposing improvement strategies. Then, FTA is utilized to find the root causes of each one of the critical failures. A blood transfusion unit at local public hospital was studied to show the advantages of the proposed approach in preventing errors, and improving safety. The study shows that 35% of the potential failures in the blood transfusion process are related to workers’ skills and knowledge. Therefore, increasing the awareness of workers, and providing suitable training courses can significantly reduce risks and problems in the blood transfusion process.