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