Warranty Claims Cost Reduction
Warranty Claims Cost Reduction, In the high-tech industry, warranty coverage often includes repairing defective products as opposed to crediting or replacing them.
- To Reduce Warranty Claims Cost
- Integrate repair data and identify top 50 SKUs that contribute to 80% or more of warranty cost.
- Once SKUs are identified, drill down to failed units for each SKU and find out factories where these units were manufactured
- Top 10 failure causes, symptoms and top 10 components failing, are identified for each SKU.
- Once SKU or group of SKU is mapped to manufacturing unit, analyze the manufacturing process history and Bill of Material used at the time of manufacturing.
- As part of this analysis, it is important to find patterns for component failures which has caused high field failure rate
ROI (Business Case)
- 5-8% reduction in monthly warranty claims cost within 6 months of system go-live