Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 August 2014 Vol. 3(8), pp 366-380
Copyright © 2014 Global Advanced Research Journals
Original Research Articles
Importance of Full Product Lifetime Analyses in Parts and Materials Selection ProcessWarranty Coverage and Its Relation to Customer Satisfaction and Business Profits
Sebastian B. Olejnik1 and Bashir Al-Diri, PhD2
1Cummins Generator Technologies Peterborough, UK email@example.com
2Lincoln School of Computer ScienceUniversity of Lincoln Lincoln, UK firstname.lastname@example.org
Accepted 01 August 2014
A new combining customer and business objectives method of parts and materials selection process based on quality cost ratio is proposed and discussed. It is shown that pure reliability and cost approaches are biased and do not cover the main customer and business objectives. The impact of failures after warranty expires is analyzed, discussed and explored in relation to customer satisfaction and business profits. A paradox where increased warranty costs contribute to both higher business profits and customer satisfaction is discussed showing how the costs of lifetime warranty become an alternative to goodwill and sales losses. Conclusions are made based on analysis of real warranty data of three electronic temperature sensors.
Keywords: Quality; Reliability; Warranty; Cost; Lifetime; Weilbull; Monte Carlo; TQC; Parts; Materials; Selection; impact of failures.
- Sebastian Olejnik B on Google Scholar
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- Bashir Al Diri on Google Scholar
- Bashir Al Diri on Pubmed
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