Design for Warranty Cost Reduction

This paper develops a process based cost model for warranty events and applies it to a number of product instances in the computer and related high tech businesses. It identifies the principle support ‘meta-processes ’ that typically contributes>70 % to the total cost of warranty. From this model the key warranty cost drivers are identified and the set of strategies are derived that product development teams can use to reduce the cost of warranty for products under development. Proven frameworks for applying the model and warranty cost reduction strategies during the product development cycle are presented. Case study instances are presented that illustrate how product development teams have applied the model, strategies and frameworks that reduced the total warranty costs by 35 % are discussed