The development and maintenance of software projects to make them failure free is one of the core challenges in software industries. There exist various system reliability engineering approaches to identify and recover from software failures. Failure Mode Effect Analysis (FMEA) and Fault Tree Analysis (FTA) have provided their clear merits for reliability analysis. These two safety and reliability analysis techniques are widely used in many software industries. They are used to derive failures, prioritize these failures based on user perception to perform sensitivity analysis of different components of the system architecture. This paper provides a case study of a sampled project developed with real time embedded systems from the sampled software industry. This paper further presents an extension to reliability analysis by integrating FMEA and FTA to analyze and diagnose the different causes of failure. The study provides a comparative analysis of above stated tools and subsequently integrates them to enhance the efficiency of the system reliability. The results thus obtained from the integrated approach when applied on the project indicate 30-50% of improvement at various phases of software development process. This approach thus ensures the effective failure management strategy in order to enhance software quality, productivity and sustainability.