Warranty Analysis

1
Warranty Analysis
2
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

3
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

4
Improve Products
Field Failures
Improve
Prioritize
Fix
Identify
Forecasting
Recall ?
Data
Make Decision
Extended Warranty
Model
Estimate