Predicting Customer-Expectation-Based Warranty Cost for Smaller-the-Better and Larger-the-Better Performance Characteristics

Abstract

The quality loss function assumes a fixed target and only accounts for immediate issues within manufacturing facilities whereas warranty loss occurs during customer use. Based on the two independent variables, product performance and consumers' expectation, a methodology to predict the probability of customer complaint is presented in this paper. the formulation presented will serve as a basic model for predicting warranty loss for larger-the-better and smaller-the-better characteristics which is dependent on both product performance and customer expectation. as an example, warranty cost is estimated for automotive disc brakes to demonstrate the methodology for the smaller-the-better case. Another example of solar panels is considered for demonstrating the prediction of warranty loss for the larger-the-better characteristic.

Department(s)

Mathematics and Statistics

Second Department

Engineering Management and Systems Engineering

Keywords and Phrases

Customer Expectation; Larger-The-Better (LTB); Product Performance; Quality Loss Function (QLF); Smaller-The-Better (STB); Warranty Cost (WC); Warranty Loss Function (WLF); Warranty Probability

Document Type

Article - Journal

Document Version

Citation

File Type

text

Language(s)

English

Rights

© 2008 Iranian Institute of Industrial Engineering, All rights reserved.

Publication Date

01 Jun 2008

Link to Full Text

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