Warranty Analysis

Why

Customer Value Proposition Improve field reliability of the products Reduce downtime of products

Supplier Value Proposition Reduced warranty costs Better planning of funds, inventory & logistics because to more

accurate warranty forecasts (while estimating and setting targets for EBIT, net working capital, etc)

Profitable pricing of extended warranty/services Increase brand reputation & customer loyalty Useful as lesson learnt for next generation products

How

Utilizing field failure data collected during warranty period Improve products

Identify and prioritize field failures which can increase reliability and reduce warranty cost significantly

Initiate design/process changes and implement them to mitigate or contain priority field failures

Forecasting warranty Create stochastically models to capture failure trends at failure

mode level Generate forecasts from the models at failure model level and

roll them up to product levels Forecasts should based on requirements like failure count for

inventory planning or recall strategy, costs for reserving amount to pay warranty, costs of extending warranty

Forecasting

Improve Products

ExtendedWarranty

Field Failures

Data

Identify Prioritize Fix

Imp

rove

Model Estimate

Mak

e D

ecis

ion

Recall ?