Warranty Claims Reduction: A Modern Approach with Continuous Improvement Techniques

178 Pages·2014·1.3 MB·English

by  Blank, Ronald

Business Management / Quality & Six Sigma B
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a W a r r a n t y
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Warranty Claims Reduction
A Modern Approach with Continuous C l a i m s
Improvement Techniques
Reduced market share, lack of repeat customers, and added costs are W
just a few ways warranty claims can hurt an organization. Avoiding complex
A
mathematics or accounting terminology, Warranty Claims Reduction: A R R e d u c t i o n
Modern Approach with Continuous Improvement Techniques explains
R
how to boost profits through the reduction of warranty expenses in your
A
organization.
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Outlining a multifunctional approach for reducing claims, the book begins
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by summarizing the traditional and most common strategies for warranty
Y
cost reduction. Next, it explains how you can reduce warranty costs even

further by taking a more complete approach. The comprehensive approach C
described arms you with less conventional, yet powerful, approaches for L A Modern
reducing warranty costs such as improving warranty processing productivity, A
clarifying installation and usage instructions, and streamlining supply chain I
management. M Approach
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The book emphasizes the improvement of efficiencies and productivity in
addition to cost reductions. It outlines methods that can help you reduce with Continuous
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warranty costs, improve processing activity, reduce wasted time, and improve
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training of OEM and warranty service personnel. It also describes methods for
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providing feedback to those in the engineering, manufacturing, and quality Improvement
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control departments.
C
The text details methods that are fully compatible with ISO 9001 systems T Techniques
and its sector-specific variations, such as AS 9100 and TS 16949. Covering I
concepts that are applicable across all industries and retail markets, it is O
an ideal reference for anyone involved in the management of warranty N
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. Ronald Blank
K21621
ISBN: 978-1-4822-0912-9
90000
9 781482 209129

Wa rra n t y
C l a i m s
R e d u c t i o n
A Modern Approach
with Continuous Improvement
Techniques

Wa rra n t y
C l a i m s
R e d u c t i o n
A Modern Approach
with Continuous Improvement
Techniques
Ronald Blank
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
A PRODUCTIV ITY PRESS BOOK
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Version Date: 20140320
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Contents
List of Figures ........................................................................................ix
List of Tables ..........................................................................................xi
Preface .................................................................................................xiii
About the Author. .................................................................................xv
Chapter 1 Warranty Claims ................................................................1
Chapter 2 Understanding the Real Warranty Costs .........................9
Chapter 3 Traditional Methods of Reducing Warranty Cost .........17
Automated Claims Approval, Tracking, and Paperwork ....17
Improving Outgoing Quality ...................................................18
Improving Reliability ...............................................................20
Preservation and Packaging Improvement ............................21
Chapter 4 Principles of the Modern Approach ...............................23
Chapter 5 Other Warranty Reduction Actions ...............................27
Supplier Cost Recovery ............................................................28
On- Site Claims Processing .......................................................29
Rotating Product Exchange ....................................................30
Customer Training ....................................................................31
Other Warranty Reduction Actions .......................................33
Record Keeping ..........................................................................35
Chapter 6 Warranty System Productivity Improvement ................37
Streamlining Service Operations ............................................38
Communications and Paperwork ...........................................38
Process Flow ..............................................................................40
Ergonomics and the Warranty Service Area Layout ...........43
Material Handling and Flow...................................................44
Tool and Equipment Availability ...........................................46
v
vi • Contents
Chapter 7 Improving the Service Department Itself. ......................49
Optimizing Mobile Service Activities ....................................50
Replacement Parts Availability ................................................51
Diagnostic and Repair Equipment Calibration ...................54
Suitability of Diagnostic and Repair Equipment ..................55
Inspecting and Testing .............................................................57
Chapter 8 Warranty Cost Reduction Training for Employees
and Customers ..................................................................59
Chapter 9 Reducing Warranty Claims by Quality Improvement. ..67
Continuous Improvement ........................................................67
Feedback to the Quality Department .....................................69
Data Collection and Analysis ..................................................71
Improving Defect Detection ....................................................73
Improving Supplier Quality .....................................................76
Chapter 10 Feedback to Manufacturing ............................................79
Sources of Feedback ..................................................................79
Feedback about Defects ...........................................................80
PFMEA ........................................................................................82
Supply Chain Management ......................................................83
Feedback from Audits ..............................................................84
Other Feedback ..........................................................................85
Chapter 11 Reducing Warranty Claims by Reliability Improvement ...87
Reliability Measurement...........................................................89
Failures in Time .........................................................................92
Reliability Improvement ...........................................................94
Reliability Program Planning ..................................................97
Chapter 12 Determining Causes for Developing Corrective
Actions ............................................................................103
Determining Defect Root Causes ..........................................103
Common Quality Methods for General Use .......................107
Contents • vii
Other Tools for Determining Root Cause............................110
Difficulties and Errors in Determining Root Causes .........112
Chapter 13 Developing Corrective and Preventive Actions ...........115
8-D Method .............................................................................120
The DMAIC Process ...............................................................129
Chapter 14 Feedback to Engineering ...............................................133
FMEA ........................................................................................136
Design Verification and Validation ......................................138
Designing for Reliability.........................................................140
Kansei Engineering .................................................................141
Chapter 15 Planning and Implementing Your Improvements .......143
Change Management ..............................................................144
Implementing Corrective and Preventive Actions .............146
Appendix A: Warranty Cost Tracking Chart ...................................149
Appendix B: Gauge R&R Forms ........................................................151
Appendix C: Worksheets for Determining Root Cause ...................155