1st Edition

Warranty Claims Reduction A Modern Approach with Continuous Improvement Techniques

By Ronald Blank Copyright 2014
    181 Pages 11 B/W Illustrations
    by Productivity Press

    Reduced market share, lack of repeat customers, and added costs are just a few ways warranty claims can hurt an organization. Avoiding complex mathematics or accounting terminology, Warranty Claims Reduction: A Modern Approach with Continuous Improvement Techniques explains how to boost profits through the reduction of warranty expenses in your organization.

    Outlining a multifunctional approach for reducing claims, the book begins by summarizing the traditional and most common strategies for warranty cost reduction. Next, it explains how you can reduce warranty costs even further by taking a more complete approach. The comprehensive approach described arms you with less conventional, yet powerful, approaches for reducing warranty costs such as improving warranty processing productivity, clarifying installation and usage instructions, and streamlining supply chain management.

    The book emphasizes the improvement of efficiencies and productivity in addition to cost reductions. It outlines methods that can help you reduce warranty costs, improve processing activity, reduce wasted time, and improve training of OEM and warranty service personnel. It also describes methods for providing feedback to those in the engineering, manufacturing, and quality control departments.

    The text details methods that are fully compatible with ISO 9001 systems and its sector-specific variations, like AS 9100 and TS 16949. Covering concepts that are applicable across all industries and retail markets, it is an ideal reference for anyone involved in the management of warranty claims processing.

    The multifaceted approach described in the book will help you broaden your view on how warranty costs can be controlled—allowing you to achieve more cost reductions than are possible through conventional thinking.

    Warranty Claims

    Understanding the Real Warranty Costs

    Traditional Methods of Reducing Warranty Cost
    Automated Claims Approval, Tracking, and Paperwork
    Improving Outgoing Quality
    Improving Reliability
    Preservation and Packaging Improvement

    Principles of the Modern Approach

    Other Warranty Reduction Actions
    Supplier Cost Recovery
    On-Site Claims Processing
    Rotating Product Exchange
    Customer Training
    Other Warranty Reduction Actions
    Record Keeping

    Warranty System Productivity Improvement
    Streamlining Service Operations
    Communications and Paperwork
    Process Flow
    Ergonomics and the Warranty Service Area Layout
    Material Handling and Flow
    Tool and Equipment Availability

    Improving the Service Department Itself
    Optimizing Mobile Service Activities
    Replacement Parts Availability
    Diagnostic and Repair Equipment Calibration
    Suitability of Diagnostic and Repair Equipment
    Inspecting and Testing

    Warranty Cost Reduction Training for Employees and Customers

    Reducing Warranty Claims by Quality Improvement
    Continuous Improvement
    Feedback to the Quality Department
    Data Collection and Analysis
    Improving Defect Detection
    Improving Supplier Quality

    Feedback to Manufacturing
    Sources of Feedback
    Feedback about Defects
    Supply Chain Management
    Feedback from Audits
    Other Feedback

    Reducing Warranty Claims by Reliability Improvement
    Reliability Measurement
    Failures in Time
    Reliability Improvement
    Reliability Program Planning

    Determining Causes for Developing Corrective Actions
    Determining Defect Root Causes
    Common Quality Methods for General Use
    Other Tools for Determining Root Cause
    Difficulties and Errors in Determining Root Causes

    Developing Corrective and Preventive Actions
    8-D Method
    The DMAIC Process

    Feedback to Engineering
    Design Verification and Validation
    Designing for Reliability
    Kansei Engineering

    Planning and Implementing Your Improvements
    Change Management
    Implementing Corrective and Preventive Actions
    Appendix A: Warranty Cost Tracking Chart
    Appendix B: Gauge R&R FORMS
    Appendix C: Worksheets for Determining Root Cause



    Ronald Blank has more than 30 years of experience in management and engineering. Approximately half of his experience is in aerospace and the other half is in the automotive industry. His education includes statistics, quality assurance, and mechanical and electronic engineering. He also has much experience in supervision and training of employees, as well as productivity enhancement and warranty claims reduction. He earned a bachelor of science degree and a doctor of engineering degree. Dr. Blank is the author of several books on various management and engineering topics, including reliability and productivity improvement.