Madan M. Jagtap and S.N. Teli/ Elixir Mech. Engg. 75 (2014) 27477-27479 27477
Introduction
To improve profit margin, it is require estimating warranty
of a product. Warranty itself explain secure life of a product,
simultaneously it carries cost which make product price.
Decision related to warranty varies from manufacturer to
manufacturer though functional availability of product
materially exist identical behavior. Any industry decides
warranty of their product based on available data.
An industry has strategy to analyze product performance in
market. Every manufacturer develops own database, which is
assisted by dealers and suppliers related with industry. Dealer
collects warranty related data i.e. defect occurred, direct from
customer and compare it with Standard data available with
them. Dealer stores data in computer system and they share it
with vehicle manufacturer using network. Manufacturer decide
whether to go for replacement of product by new one or repair is
sufficient. Problem started with data storage and capture as this
data varies from dealer to dealer. It creates dilemma in
customers as every dealer has its own point of view, this
particular situation results in bad impression of industry in
Business. To avoid this kind of situation manufacturer can
standardize warranty data acquisition and warranty data flow.
Warranty analysis
Different reserchers find methodologies to analys warranty.
Kazuyuki Suzuki [1], explained that when date specific data
is not available for the situation total sale quantity can be
calculated
From other sources, for non-repairable warranty a non-
parametric maximum likelihood estimator of claim frequency
based on a multinomial model. These estimators are
mathematical and effective in repairable case.
Stefanka Chukova[2], proposed warranty cost analysis
model based on non renewing warranty with repair time, this
research work contribute to allow non-zero repair time and
associate a cost with it, also it explains about time in resolving
warranty claim is an important component in product warranties
as it is part of warranted time and it may be connected with very
costly penalties.
Hongzhou Wang[3], suggested four models for warranty
cost analysis to be realistic, relationship of preventive
maintenance and corrective maintenance with warranty policies
and developed models imperfect repair, quasi-renewable
processes are effective tool and based on purely failure rates can
be used for model design, all these models explains
i) Warranty cost estimation before selling
ii)Warranty cost for projected demand
iii) Additional warranty cost for extended warranties
iv) Design for warranty
v) Win-Win situation for customer and supplier
Ruey Huei Yeh[4], proposed K-product inspection scheme
for a deteriorating production system when all the products are
sold with free minimal repair warranty, this method helpful to
determine optimal lot size and number of products so that there
should be reduction in expected total cost per unit time.
Shaomin Wu[5], analyzed warranty cost for products with a
dormant state, building products before commissioning undergo
aging deterioration and other causes, manufacturer and
contractor find corrective maintenance and preventive
maintenance suitable for building products under warranty.
Maintenance cost are considered in warranty.
Zhefang Zhou [6], modeled dynamic nature of pricing and
warranty policies, according to author, dynamic nature of
warranty helps manufacturer to improve his profit. Continuous
dynamic programming used to model changing price and
warranty policies. Basically this research makes manufacturer
ready solution for managerial decisions in case of high-tech
products with heterogeneous nature of customer, also it
personalized risk attitude of customer to provide with particular
warranties, lastly competing world can use this methodology to
optimize their strategies regarding warranty policies.
Chung-Ho Chen [7], investigated existing model of Pulak
and Al-Sultan’s (1996) and Ladany and Shore’s (2007) modified
model with quality loss and inspection error. Warranty period
and expected life of product simultaneously calculated. It shown
that expected profit depends on processing, demand and selling
price.
Hong-zhong Huang [8], suggested that diagnostic features
can be used to reduce warranty cost. A diagnostic design
decision model can help in to predict and rectify more common
faults therefore it reduces number of times servicing needed for
Warranty analysis - A review
Madan M. Jagtap and S.N. Teli
Department of Mechanical Engineering, Saraswati College of Engineering, Kharghar, Navi Mumbai, India.
ABSTRACT
This paper is a review on Warranty analysis, it basically explain about how warranty cost is
important to handle carefully by all element of organization. Warranty cost needs uniformity
to analyze throughout its user. Warranty cost analysis is challenging procedure as data
become complicated when it consider different real life situations. Warranty claims are also
part of effective warranty analysis. Different models explained by researches discussed to
understand warranty analysis aspect. It studied different model for warranty analysis.
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ARTICLE INFO
Article history:
Received: 30 August 2014;
Received in revised form:
20 September 2014;
Accepted: 29 September 2014;
Keywords
Warranty data, Manufacture,
Dealer, Warranty Analysis,
Reliability.
Elixir Mech. Engg. 75 (2014) 27477-27479
Mechanical Engineering
Available online at www.elixirpublishers.com (Elixir International Journal)
Tele:
E-mail addresses: jagtap.aero@gmail.com
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