Track 1 Session 1

9:20 to 10:20 a.m. Wednesday, October 13, 2010

Warranty Extension – A Practical Approach for Strategic Decisions

Warranty policy defines the built-in reliability and robustness of the product. Typically in the reliability bathtub curve, the warranty expiration point for any product lies somewhere in the zone of constant failure rate or the normal useful life. Competition entering into the market attracts customer attention by giving longer warranties than the existing players. Although the customer’s interest in buying the product is not limited to the warranty period only, it still gives a message to the customer about the manufacturer’s confidence in the product. The key factors for framing the warranty policy lie in taking a systematic approach for failed part study with extensive use of various reliability tools and techniques to arrive at the optimal warranty life for any product.

Key Words: Bathtub Curve, Warranty Cost, Weibull Analysis

Rahul Mishra and Anand Singh

JCB India Ltd