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The purpose of this paper is to review and develop stochastic models for the evaluation of the expected warranty cost, from dealer's viewpoint, for second hand items sold under different warranty policies.

This study makes a useful contribution to the warranty literature by developing a framework to study one dimensional warranty policies for second‐hand products from dealer's viewpoint. Also, numerical examples are provided to illustrate the application of these models.

Despite the fact that warranties for second‐hand products are commonly used, the accurate pricing of warranties in many situations remains an unsolved problem, for both the dealer and customer. The proposed framework allows the dealer to analyze the cost of alternative warranty policies before deciding on the policy to be offered with the sale of a second‐hand item.

The policies and models developed in this paper can be useful in managerial decisions making related to second‐hand products such as automobiles, home appliances, helicopters, electronic equipment and electronics.

This article deals with the problem of cost estimation for increased warranty time of a multi‐module product. The warranty policy of interest is two‐dimensional involving warranty limits on both age and usage of the product. Failure of the product is caused due to malfunctioning of its module(s). Warranty service is rendered through repair or replacement of the respective module(s). From the past data, it is observed that age and usage are highly correlated. Based on life (age) data, the joint life distribution of the modules is well described by multivariate exponential distribution of Marshall and Olkin. The same is utilized to estimate cost for desired warranty times by the method of simulation.

The purpose of this paper is to develop a model that incorporates the effect of rejection cost on optimal maintenance planning decisions. Such a model will help in further modelling the interrelationships between preventive maintenance and quality control policy.

In this paper a model is developed for obtaining optimal preventive maintenance interval based on block replacement policy to incorporate the effect of rejection cost. An illustrative example is presented to compare economic performance of the proposed model (M2) and the conventional model (M1). Model M1 stands for optimal preventive maintenance interval without considering the rejection cost and model M2 stands for optimal preventive maintenance interval considering the rejection cost. The comparison is done for different production rates, costs of rejection and cost of lost production. The impact of control chart parameters on preventive maintenance decision is also studied.

In this paper it is found that model M2 gives better results as compared to model M1. The improvements are more significant at higher production rate, lower cost of lost production and higher rejection cost. The impact of control chart parameters on preventive maintenance planning decision becomes significant as the cost of rejection increases.

Conventionally only the down time cost and the cost of repair/replacement are considered for optimal maintenance interval determination. However in the case of machine tools, failure may not always bring the system immediately under complete breakdown but may lead to the functioning of system with degraded performance like process shift from in‐control state to out‐of‐control state. It results into poor quality and thus may lead to higher rejection cost. The cost of rejections may be significantly high in some production systems and, if not incorporated properly during maintenance planning decision may adversely affect the effectiveness of the maintenance planning. Hence the approach presented in this paper gives a better way of maintenance planning. Though the work presented here is illustrated through a simple example considering a single component operating as a part of machine, the approach can be extended to multi‐component system.

The outcome is of significant value as it opens up a new perspective into the development of integrated model for maintenance planning and quality control decisions for reducing the operating costs associated with the manufacturing processes.

Budgetary Standards for University Libraries. Hearings were held during the ALA Annual Conference on a proposed draft for “Standards for University Libraries.” Of particular interest are the standards set forth for budgetary support and “sources.” Included is the provision that university libraries make “appropriate budgetary provision… for repair, replacement, renovation, and investment in new and improved means of information acces and delivery.”

For certain consumer durables, such as automobiles, warranty policies involve two attributes. These could be the time elapsed since sale of the product and usage of the product at a given point in time. Warranty may be invoked by the consumer if both time and usage are within specified warranty parameters when a product failure occurs. In this chapter, we assume that usage and product age are related through a random variable, the usage rate, which may have a certain probabilistic distribution as influenced by consumer behavior patterns. Additionally, product failure rate is influenced by the usage rate and product age. The integrated model includes expected unit warranty costs, expected unit research and development costs, and expected unit production costs. It is assumed that in production, there is a learning effect with time. A multiobjective model is incorporated with the objectives being market share and proportion of expected warranty costs relative to total manufacturing expenditures per unit. The goals could be conflicting in nature. The problem then is to determine the warranty policy parameters while attaining certain desirable values of the two objectives.

Two-attribute warranty policies are considered that incorporate, for example, the time elapsed since sale of the product and product usage at a given point in time. Such policies occur in consumer products, such as automobiles, where warranty may be exercised if both time and usage are within specified warranty parameters when a product failure occurs. In this chapter, it is assumed that usage and product age are related through a random variable, the usage rate, which may have a certain probabilistic distribution as influenced by consumer behavior patterns. Product quality is modeled through the product failure rate, which is influenced by unit research and development expenditures as well as the usage rate and product age. The attained market share of the product is modeled as a function of the warranty policy parameters of price, warranty time, and usage limit, with product quality also having an influence. Attainment of single and multiple objectives are explored. Such objectives encompass expected total unit costs as a proportion of unit product price and market share.

This chapter considers warranty policies involving two attributes, such as the time elapsed since sale of the product and product usage at a given point in time. Examples of such policies are found for automobiles, where warranty may be invoked by the consumer if both time and usage are within specified warranty parameters when a product failure occurs. Here, we assume that usage and product age are related through a random variable, the usage rate, which may have a certain probabilistic distribution as influenced by consumer behavior patterns. Furthermore, product failure rate is influenced by the usage rate and product age as well as research and development expenditures per unit. It is assumed that, in production, there is a learning effect with time. The attained market share of a product will be influenced by the warranty policy parameters of warranty time and usage limit and also by the product price and product quality. An integrated model is developed to address multiobjective goals such as attainment of a specified level of market share and net profit per unit when manufacturing and warranty costs are taken into account. The impact of the goal priorities are investigated on the attained warranty policy parameters.

Some consumer durables, such as automobiles, involve warranties involving two attributes. These are time elapsed since the sale of the product and the usage of the product at a given point in time. Warranty may be invoked by the customer if both time and usage are within the specified warranty parameters and product failure occurs. In this chapter, we assume that usage and product age are related through a random variable, the usage rate, which may have a certain probabilistic distribution as influenced by consumer behavior pattern. Further, product failure rate is influenced by the usage rate and product age. Of importance to the organization is to contain expected warranty costs and select appropriate values of the warranty parameters accordingly. An avenue to impact warranty costs is through research on product development. This has the potential to reduce the failure rate of the product. The objective then becomes to determine warranty parameters, while constraining the sum of the expected unit warranty costs and research and development (R&D) costs per unit sales, under a limited R&D budget.

To examine the need to develop, practice and implement such maintenance practices, which not only reduce sudden sporadic failures in semi‐automated cells but also reduce both operation and maintenance (O&M) costs.

A case‐based approach in conjunction with standard tools, techniques and practices is used to discuss various issues related with TPM implementation in a semi‐automated cell.

The findings indicate that TPM not only leads to increase in efficiency and effectiveness of manufacturing systems, measured in terms of OEE index, by reducing the wastages but also prepares the plant to meet the challenges put forward by globally competing economies to achieve world class manufacturing (WCM) status.

The paper presents an interesting investigation of TPM implementation issues which may help the managers/practitioners to prepare their plants/units to meet the challenges of competitive manufacturing in twenty‐first century by adopting and implementing TPM.

Manufacturers and remanufacturers strive to maximize supply chain effectiveness by eliminating wastes in all their forms. This line of research extends the effectiveness during the products' working lives. Fraud in the warranty service chain (WSC) is one such source of waste that leads to revenue losses in the short term but when left unchecked leads to far worse results in the long term. Warranty frauds in the new product industry have received significant attention in recent literature. Addressing fraud issues in the remanufacturing industry have not been a high priority. Previous studies considered the primary parties in the WSC as possible sources of fraud. However, several unique opportunities exist for the secondary parties when it comes to fraud. This chapter considers fraud originating from one of the secondary parties of the WSC, namely the warranty administrator. The chapter models this fraud scenario using discrete event simulation and explores a possible fraud mitigation scenario.