• Title/Summary/Keyword: Warranty Analysis

Search Result 108, Processing Time 0.025 seconds

Cost analysis on renewable warranty policies subject to imperfect strategies using inter-failure intervals

  • Park, Minjae
    • International Journal of Reliability and Applications
    • /
    • v.14 no.1
    • /
    • pp.41-54
    • /
    • 2013
  • In this paper, cost analysis is conducted using inter-failure interval under renewable warranty subject to imperfect repair for multi-component system. One way to model the imperfect repair is to use the quasi-renewal process (Wang and Pham 1996). Two alternative quasi-renewal processes were suggested by Park and Pham (2010) using quasi-renewal process; first is an altered quasi-renewal process with random variable parameter and second is a mixed quasi-renewal process considering replacement service and repair service, simultaneously. In this study, we use the altered and mixed quasi-renewal processes and develop the warranty cost model to obtain the expected value of warranty cost and to help company make important decisions regarding the warranty policy. Numerical examples are used to demonstrate the applicability of the methodology derived in the paper.

  • PDF

Warranties for Products with Varying Usage Intensity

  • Kim, Jae Soong;Kim, Ji Sung
    • Journal of Korean Society of Industrial and Systems Engineering
    • /
    • v.24 no.64
    • /
    • pp.29-38
    • /
    • 2001
  • Most warranty studies assume that the usage intensity is the same for all buyers. However, in real life the usage intensity varies across the population of buyers. In the general case, one can divide the population into $\kappa$ categories. This has implications for manufacturers of products. Should a manufacturer produce one product and offer different warranties for the $\kappa$ groups or produce different products (one for each group) and offer the same warranty. A warranty cost analysis is needed to choose between these options. The analysis complicated by factors such as adverse selection , buyers attitude to risk and the price structure. In this paper we develop models to study the expected warranty cost for products with free replacement warranty with varying usage intensity. Numerical examples are presented.

  • PDF

Cost Models for Warranty and Preventive Maintenance

  • Kim, Che-Soong
    • Journal of Korea Society of Industrial Information Systems
    • /
    • v.7 no.1
    • /
    • pp.66-74
    • /
    • 2002
  • Warranty cost analysis for one-dimensional warranties assumes that the usage intensity (or rate) is the same for all buyers. In real life the usage intensity varies across the population of buyers. Also for products sold with warranty, preventive maintenance actions by manufacturers and buyers have a significant impact on the total costs for both parties. In this paper we deals with models to study the expected warranty cost for products with free repairable warranty with varying usage intensity and three types of preventive maintenance. We also review the literature which links warranty and maintenance and develops a framework to define new topics for research in the future and examines a new model formulation. It then develops a new model and carries out its analysis.

  • PDF

Optimal Burn-in Time under Cumulative Pro-Rata Replacement Warranty

  • Yun, Won-Young;Lee, Yang-Woo;Chung, Il-Han;Luis Ferreira
    • International Journal of Reliability and Applications
    • /
    • v.2 no.4
    • /
    • pp.241-251
    • /
    • 2001
  • In this paper, optimal bum-in time to minimize the total mean cost, which is the sum of manufacturing cost with burn-in and cumulative warranty-related cost, is obtained. When the products with cumulative pro-rata warranty have high failure rate in the early period (infant mortality period), a burn-in procedure is adopted to eliminate early product failures. After burn-in, the posterior product life distribution and the warranty-related cost are dependent on burn-in time; long burn-in period may reduce the warranty-related cost, but it increases the manufacturing cost. The paper provides a methodology to obtain total mean cost under burn-in and cumulative pro-rata warranty. Property of the optimal burn-in time is analyzed, and numerical examples and sensitivity analysis are studied.

  • PDF

A Study for Reliability Target Setting Considering Warranty Cost and Reliability Analysis Result of Process Controller in Nuclear Power Plant (원자력 발전소용 공정 제어기의 보증 비용을 고려한 신뢰도 목표치 설정과 신뢰도 분석 결과에 대한 연구)

  • Kim, Gun Myung
    • Journal of Applied Reliability
    • /
    • v.15 no.3
    • /
    • pp.145-148
    • /
    • 2015
  • The products to meet the requirement of are installed in nuclear power plant and the reliability target should be provided in the requirement. However, it is not easy to set a reliability target using quantitative analysis. The objective of this paper is to propose a method of reliability target setting considered warranty cost for process controller and then compare a reliability target with reliability analysis result.

A Study on the Rule of Warranty in the English Law of Marine Insurance (영국 해상보험법상 담보(warranty)에 관한 연구)

  • Shin, Gun-Hoon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
    • /
    • v.42
    • /
    • pp.275-305
    • /
    • 2009
  • Marine insurance contracts, which intended to provide indemnity against marine risks upon the payment of price, known as a premium, originated in Northern Italy in the late 12th and early 13th centuries. The law and practice were later introduced into England through the Continent. It is, therefore, quite exact that English and European marine insurance law have common roots. Nevertheless, significant divergences between English and European insurance systems occurred since the late 17th century, mainly due to different approaches adopted by English courts. The rule of warranty in English marine insurance was developed and clarified in the second part of the 18th century by Lord Mansfield, who laid the foundations of the modern English law of marine insurance, and developed different approaches, especially in the field of warranty in marine insurance law. Since the age of Lord Mansfield, English marine insurance law has a unique rule on warranty. This article is, therefore, designed to analyse the overall rule of the rule of warranty in English marine insurance law. The result of analysis are as following. First, warranties are incorporated to serve a very significant function in the law of insurance, that is, confining or determining the scope of the cover agreed by the insurer. From the insurer's point of view, such the function of warranties is crucial, because his liability, agreed on the contract of insurance, largely depend on in, and the warranties, incorporated in the contract play an essential role in assessing the risk. If the warranty is breached, the risk initially agreed is altered and that serves the reason why the insurer is allowed to discharge automatically further liability from the date of breach. Secondly, the term 'warranty' is used to describe a term of the contract in general and insurance contract law, but the breach of which affords different remedies between general contract law and insurance contract law. Thirdly, a express warranty may be in any form of words from which the intention to warrant is to be inferred. An express warranty must be included in, or written upon, the policy, or must be contained in some document incorporated by reference into the policy. It does not matter how this is done. Fourthly, a warranty is a condition precedent to the insurer's liability on the contract, and, therefore, once broken, the insurer automatically ceases to be liable. If the breach pre-dates the attachment of risk, the insurer will never put on risk, whereas if the breach occurs after inception of risk, the insurer remains liable for any losses within the scope of the policy, but has no liability for any subsequent losses. Finally, the requirements on the warranty must be determined in according to the rule of strict construction. As results, it is irrelevant: the reason that a certain warranty is introduced into the contract, whether the warranty is material to the insurer's decision to accept the contract, whether or not the warranty is irrelevant to the risk or a loss, the extent of compliance, that is, whether the requirements on the warranty is complied exactly or substantially, the unreasonableness or hardship of the rule of strict construction, and whether a breach of warranty has been remedied, and the warranty complied with, before loss.

  • PDF

Cost analysis for minimal repair model in stepdown warranty policy (단계별 보증제도에서 응급수리 모형에 관한 보증비용 분석)

  • 김재중;김원중
    • Journal of Korean Society of Industrial and Systems Engineering
    • /
    • v.16 no.27
    • /
    • pp.21-25
    • /
    • 1993
  • This article is concerned with cost analysis in stepdown warranty policy. The repair of item is divided into two policies. First, perfect repair can be considered that the failurerate is the same as new item. Second, minimal repair is shown that the failurerate is the same as just before the item failure In this paper, the minimal repair model is introduced. And it is assumed that manufacturers repair the item failure within the warranty periodn. But warranty period is not renewed at all. At this point the warranty cost is analyzed in manufacturer's and customer's point of view.

  • PDF

A Study on the Global Management Strategy for Product Quality Assurance Based on Brand Power and Country of Origin Effect (글로벌 품질보증 경영 전략에 관한 연구: 브랜드 명성 및 제조 국가 이미지를 중심으로)

  • Hwang, Hee-Joong
    • Journal of Distribution Science
    • /
    • v.11 no.2
    • /
    • pp.23-33
    • /
    • 2013
  • Purpose - Numerous studies have tried to assess the role of a warranty as an explanatory instrument for product quality. While one study argued that manufacturers signal their superior quality to consumers by extending the duration of a warranty, quality is not necessarily related to warranty and a warranty for a short duration is a sign of high product quality. However, there are limitations to measuring product quality in terms of a single variable such as a warranty. Some other studies have evaluated the influence of brand power or value and price on the supposed quality of a product while the influence of warranty was found to be insignificant. Research design, data, methodology - The study analyzes the influence of brand power and the country of origin effect on consumers' perception of product quality in line with warranty and establishes a priority strategy. Especially, consumer experience has a significant influence on state of the art technology products like applied home electronics as these goods are generally quite expensive and consumers expend significant energy in purchasing them, so the associated warranty and brand can have a critical role in the decision making process. The price of the product was excluded in this discussion as it continually varies with the market share of the product. Results - The results of the analysis are as follows: First, each of the factors such as the standard of the warranty, brand power, and country of origin effect influences the degree of satisfaction of an individual. Second, the factors brand power and quality of the warranty interact both complementarily and synergistically at a time, depending on the brand power. As brand power is more significant, the degree of satisfaction is greater in case of products with low quality warranty compared to those with high quality warranty. Third, the brand power and country of origin effect present a complementary interaction. Fourth, the country of origin effect and quality of a warranty interact synergistically. Conclusions - Thus, the higher the quality of warranty, greater is the increment in the degree of satisfaction. The comprehensive study on the effect of the country of origin on the purchase decision process and the degree of satisfaction compared to the other elements shows that in case of Japanese and Korean markets the brand power of a company is desirable in sustaining the quality of warranty to the industrial average. Also, there is no significant improvement in the perceived quality of the product when the quality of the warranty is lowered. Therefore, the warranty effect diminishes when the value of the brand is known, while it perishes when both the brand power and the country of origin effect are strong enough.

  • PDF

Estimating Failure Rate Using Warranty Claim Data with Delayed Report of Customers (고객의 지연보고를 고려한 보증수리내역자료에서의 고장률 추정)

  • Park, J.H.;Kim, Y.H.;Baek, J.H.;Lie, C.H.
    • IE interfaces
    • /
    • v.23 no.2
    • /
    • pp.176-181
    • /
    • 2010
  • Warranty claim data analysis is a useful tool for the manufacturer because it contains many useful informations regarding reliability of the product in the real-world environments. Because of the nature of uncertainty and the incompleteness of data, some bias patterns are observed on warranty claim rate known as 'spikes'. Two types of spikes are considered. One is due to manufacturing-related failures. The other is caused by customer's behavior. This paper proposes a model by considering two types of spikes. Warranty claim data is analyzed with the proposed model. To represent spikes observed on the early warranty period, we classify failures into manufacturing-related failures and usage-related failures. Uniform distribution is assumed for the time delayed to diagnose and report by customers. By reducing maximum value of the delayed time by customers, the proposed model characterizes customer's rush in the vicinity of the warranty expiration limit. Experimental results by using the real warranty claim data show that the proposed model is better than the existing one in respect to MSE(Mean Squared Error). Moreover it is expected to estimate the failure rate more realistically with proposed model because it considers the delayed time to diagnose and report by customers.

Warranty Cost Analysis and Its Application to Replacement Policy for a Repairable Warranted Item (수리가능한 품목의 보증비용분석과 응용)

  • Son, Eun-Il;Suh, Yong-Sung;Park, Young-Taek
    • Journal of Korean Society for Quality Management
    • /
    • v.22 no.3
    • /
    • pp.54-65
    • /
    • 1994
  • A hybrid warranty policy for a repairable item is considered. Assuming that minimal repairs ar e performed for failures during warranty period, present worth of warranty cost is derived from a supplier's viewpoint. An optimal preventive periodic replacement policy for the case is also derived from a user's viewpoint Numerical examples are presented in order to explain the results.

  • PDF