Search results

1 – 10 of over 2000
To view the access options for this content please click here
Article
Publication date: 1 February 2005

S. Gary Teng, S. Michael Ho and Debra Shumar

To show that handling warranty returns is essential in a supply chain for product/process improvement and that the major step in resolving warranty return problems is to…

Downloads
2189

Abstract

Purpose

To show that handling warranty returns is essential in a supply chain for product/process improvement and that the major step in resolving warranty return problems is to correctly classify the returned parts and identify the problem(s).

Design/methodology/approach

Demonstrates two classification processes that separate available warranty returned parts into correct categories.

Findings

The result of these two processes provides pertinent parties in the supply chain more accurate warranty failure information, so the companies involved can precisely pin‐point the source of the failure cause in the products and improve the product's design and manufacturing. Meanwhile, it also resolves potential conflicts in a supply chain and assigns responsibility to the right party to cover incurred warranty repair cost. Its applications can enhance quality and reliability management in a supply chain and streamline the reverse logistics operations in the chain.

Originality/value

This paper offers companies an effective procedure in reducing wrongly classified warranty returns and makes root cause analysis of warranty returns more efficient.

Details

International Journal of Quality & Reliability Management, vol. 22 no. 2
Type: Research Article
ISSN: 0265-671X

Keywords

To view the access options for this content please click here
Article
Publication date: 5 August 2019

Ahmed M. Aljazea and Shaomin Wu

The purpose of this paper is threefold: first, to analyse the existing work of warranty risk management (WaRM); second, to develop a generic WaRM framework; and third, to…

Abstract

Purpose

The purpose of this paper is threefold: first, to analyse the existing work of warranty risk management (WaRM); second, to develop a generic WaRM framework; and third, to design a generic taxonomy for warranty hazards from a warranty chain perspective.

Design/methodology/approach

To understand the top warranty hazards, the authors designed a questionnaire, received 40 responses from the warranty decision makers (WDM) in the automotive industry in the UK and then analysed the responses.

Findings

The assembly process capability at suppliers is the top contributor to warranty incidents from the suppliers’ and original equipment manufacturers’ (OEMs’) viewpoints. The human error at different stages of the product lifecycle contributes to the occurrence of warranty incidents. The collaboration among parties, particularly, the accessibility to warranty-related data between parties (i.e. suppliers, OEM and dealers), is limited. Customers’ fraud contributes more to warranty costs than warranty services providers’ fraud. The top contributors to customer dissatisfaction relating to warranty are the warranty service time and service quality.

Research limitations/implications

The questionnaires were used to collect data in the UK, which implies the research outcomes of this paper may only reflect the UK area.

Practical implications

The WaRM framework and taxonomy proposed in this paper provide WDM with a holistic view to identifying the top contributors to warranty incidents. With them, the decision makers will be able to allocate the required fund and efforts more effectively.

Originality/value

This paper contributes to the literature by providing the first work of systematically analysing the top contributors to warranty incidents and costs and by providing a WaRM framework.

Details

International Journal of Quality & Reliability Management, vol. 36 no. 7
Type: Research Article
ISSN: 0265-671X

Keywords

To view the access options for this content please click here
Article
Publication date: 10 November 2020

Azmat Ullah, Muhammad Ayat, Hakeem Ur Rehman and Lochan Kumar Batala

The purpose of this paper is to develop a model that determines whether how much effort of preventive maintenance action is worthwhile for the consumer over the post-sale…

Abstract

Purpose

The purpose of this paper is to develop a model that determines whether how much effort of preventive maintenance action is worthwhile for the consumer over the post-sale product life cycle of a repairable complex product where the product is under warranty and subject to stochastic multimode failure process, that is, damaging failure and light failure with different probabilities.

Design/methodology/approach

The expected life cycle cost is designed for a warranted product from the consumer perspective. The product failure is quantified with failure rate function, which is the number of failures incurred over the product life cycle. The authors consider the failure rate function reduction method in their model where the scale parameter of a failure rate function is maximized by applying the optimal preventive maintenance level. The scale parameter of any failure distribution refers to the meantime to failure (MTTF). The first-order condition is applied with respect to the maintenance level in order to achieve the convexity of the nonlinear function of the expected life cycle cost function.

Findings

The authors have found analytically the close form of the preventive maintenance level, which can be used to find the optimal reduced form of the failure rate function of the product and the minimum product expected life cycle cost under the given condition of multimode stochastic failure process. The authors have suggested different maintenance policies to consumers in order to implement the proposed preventive maintenance model under different conditions. A numerical example further illustrated the analytical model by considering the Weibull distribution.

Practical implications

The consumer may use this study in the accurate modeling of the life cycle cost of a product that is under warranty and fails with a multimode failure process. Also, the suggested preventive maintenance approach of this study helps the consumer in making appropriate maintenance decisions such as to minimize the expected life cycle cost of a product.

Originality/value

This study proposes an accurate estimation of a life cycle cost for a product that is under the support of warranty and fails with multimode. Furthermore, for such a kind of product, which is under warranty and fails with multimode, this study suggests a new preventive maintenance approach that assures the minimum expected life cycle cost.

Details

International Journal of Quality & Reliability Management, vol. 38 no. 5
Type: Research Article
ISSN: 0265-671X

Keywords

To view the access options for this content please click here
Article
Publication date: 8 July 2019

Ata Allah Taleizadeh and Mahtab Sherafati

This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between…

Abstract

Purpose

This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter.

Design/methodology/approach

Three-echelon supply chains with marketing and warranty services are studied. Game-theoretic approaches (non-cooperative and cooperative) are presented. The non-cooperative approaches are static (NE) and dynamic (Stakelberg) models. The cooperative approach is related to bargaining models (Nash bargaining games). The authors develop a sensitivity analysis of some parameters and their effect.

Findings

Based on the mentioned drawbacks (i.e. lack of a model containing warranty, marketing and pricing), despite their importance, a developed model is proposed in this research to cover one of the research gaps. In addition, main contributions of this paper that differentiate it from the existing papers are regarding inventory, lost sale and lost goodwill, which are significant in the comparison environment. Another advantage of this study is related to the solution approach, the game theory. Twofold of the games theoretical, i.e. cooperative (in three forms) and non-cooperative are considered, because of their importance. Three types of non-cooperative games are presented as follows: Nash equilibrium – each echelon decides respectively and simultaneously; manufacturer-Stackelberg – the manufacturer has more power than the agent and the agent has more power than the customer; and customer-Stackelberg – customer is leader of the agent and the agent is the leader of manufacturer. The involved cooperative game in this paper is the bargaining problem that the participants can determine how to share the additional profits.

Originality/value

In this paper, various three-level service contracts will be presented among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Several numerical examples are used to illustrate the models presented in this paper. Finally, the authors develop a sensitivity analysis of some parameters and their effects on the objective functions.

Details

Journal of Modelling in Management, vol. 14 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Content available
Downloads
425

Abstract

Details

Strategic Direction, vol. 28 no. 10
Type: Research Article
ISSN: 0258-0543

Keywords

To view the access options for this content please click here
Article
Publication date: 12 April 2013

A. Ben Oumlil

This case study aims to develop and empirically test a general framework for the implementation and evaluation of a warranty policy (i.e. implementation, support…

Abstract

Purpose

This case study aims to develop and empirically test a general framework for the implementation and evaluation of a warranty policy (i.e. implementation, support structure, and evaluation stages) within the context of a high‐tech global firm.

Design/methodology/approach

The sample consisted of the employees of an anonymous US‐based global high tech firm.

Findings

The findings for the implementation stage report that the cost and profit centers should have their costs allocated on the basis of activity. For the support structure, there is a negative response to outsourcing as an option for implementing the warranty policy. For the evaluation, findings report that US firms should reevaluate their pricing, quality, and warranty strategy for domestic and international markets.

Research limitations/implications

This case study can be expanded by examining how companies balance the cost/quality/warranty ability of the product, the techniques used to allocate warranty costs, and to evaluate multiple companies/industries, perhaps with a longitudinal focus.

Practical implications

Findings report that the budgeted costs should be allocated depending on the type of incident. The majority of outsourcing opponents consisted of service personnel while those in favor were from product marketing departments. Also, the US firms need to provide written warranty information to their customers.

Originality/value

The proposed framework will satisfy a current, critical need to provide guidelines for the steps needed to implement and evaluate a warranty policy within a context of a high tech global company. Additionally, this case research study's key contribution lies in its attempt to address warranty management processes within a multitude of a firm's departments. Furthermore, the anonymous high tech company used in this study was chosen as a sample because the company offered a wide range of products, warranties, and service options. The company also utilized a vast reseller base to sell and service its products. This method offered the potential to gain better insight with regards to the role of resellers in a warranty program. It also marketed products and services to six specific industries: financial, retail, transportation, manufacturing, communications, and the public. This broad industrial perspective gave the study added cross‐industries' insight in reference to implementation and evaluation of a good warranty policy since the anonymous high tech company considers these industries to be sustainable industries in the USA and abroad.

Details

Journal of Product & Brand Management, vol. 22 no. 2
Type: Research Article
ISSN: 1061-0421

Keywords

To view the access options for this content please click here
Article
Publication date: 29 May 2019

Kiran Karande and Mahesh Gopinath

Product failures can lead to customer dissatisfaction, negative brand attitudes and a loss of brand equity. The purpose of this paper is to investigate whether extended…

Abstract

Purpose

Product failures can lead to customer dissatisfaction, negative brand attitudes and a loss of brand equity. The purpose of this paper is to investigate whether extended warranties offer a mechanism to mitigate the negative effects of product failure and the mediating role of positive and negative self-directed emotions.

Design/methodology/approach

The hypotheses are tested using two 2 × 2 between-subjects experiments with product failure and warranty purchase as the two factors, attitude toward the brand as the dependent variable, positive and negative self-directed emotions as mediating variables and attitude toward warranties as a covariate.

Findings

It is found that the decline in attitude toward the brand due to product failure is greater among customers purchasing an extended warranty, than among those who do not. Moreover, positive and negative self-directed emotions mediate this relationship.

Originality/value

Manufacturers are for the most part not involved in distribution or administration of extended warranties, which are mainly sold through retailers and administered by companies that specialize in extended warranties. The study findings indicate that contrary to industry practice, consumer-durable manufacturers should consider more active management and promotion of extended warranties to protect their brand’s equity from the negative effects of product failure.

Details

Journal of Product & Brand Management, vol. 28 no. 7
Type: Research Article
ISSN: 1061-0421

Keywords

To view the access options for this content please click here
Book part
Publication date: 6 November 2013

Amitava Mitra and Jayprakash G. Patankar

Various types of warranty programs are offered for consumer products. The two most common are a linear pro-rata warranty or a lump-sum warranty, if product failure occurs…

Abstract

Various types of warranty programs are offered for consumer products. The two most common are a linear pro-rata warranty or a lump-sum warranty, if product failure occurs prior to the specified warranty time. In this chapter we consider additional types of warranty programs that allow the consumer to purchase a one-time extended warranty in the event of no failure within the initial warranty period. For the extended period, warranty may be linearly pro-rated, starting at an amount that is lower than the initial purchase price. Alternatively, for the extended period, warranty may be a lump-sum amount, that is less than the initial warranty amount. Expressions for the expected costs under each of the programs are derived. Guidelines are provided for determining the parameters of each warranty program under relevant constraints. Sensitivity analysis is also conducted to determine the effect of the problem parameters on the expected warranty costs.

Details

Applications of Management Science
Type: Book
ISBN: 978-1-78190-956-0

Keywords

To view the access options for this content please click here
Article
Publication date: 2 July 2018

Emerson D. Pacheco, Flávio I. Kubota, Eduardo K. Yamakawa, Edson P. Paladini, Lucila M.S. Campos and Paulo A. Cauchick-Miguel

Increased competition and access to information are forcing companies to provide quality to their products and services, aligned with a growing society pressure for less…

Downloads
1858

Abstract

Purpose

Increased competition and access to information are forcing companies to provide quality to their products and services, aligned with a growing society pressure for less harmful environmental practices. The purpose of this paper is to demonstrate how the adoption of reverse logistics (RL) may contribute to the generation of competitive advantage and improved quality in a part substitution process of a household appliance company.

Design/methodology/approach

This paper carried out a single case study in a household appliance company. The study collected data through semi-structured interviews in addition to document analysis and observation.

Findings

The implemented practices enhanced service maintenance and customer services and provided a more effective monitoring of defective parts. Moreover, such practices reduced unnecessary part substitutions, consumer dissatisfaction and undesired disposal in the environment. RL in the studied company has offered a potential contribution to the company quality strategies by providing more part returns, assuring cost savings, and reducing time to solve field problems.

Research limitations/implications

The study was limited to a single case study. Thus, the study findings are not subject to generalization for other similar organizations.

Originality/value

This paper is one of the few studies on RL in a household company in the context of an emerging economy. Such feature denotes in a singular scenario in RL investigations about recovering defective parts.

Details

Benchmarking: An International Journal, vol. 25 no. 5
Type: Research Article
ISSN: 1463-5771

Keywords

To view the access options for this content please click here
Article
Publication date: 17 February 2012

Pamela J. Zelbst, Kenneth W. Green, Victor E. Sower and Pedro M. Reyes

The purpose of this paper is to examine the impact of radio frequency identification (RFID) technology utilization in manufacturing firms on manufacturing efficiency and…

Downloads
5929

Abstract

Purpose

The purpose of this paper is to examine the impact of radio frequency identification (RFID) technology utilization in manufacturing firms on manufacturing efficiency and effectiveness.

Design/methodology/approach

Using systems theory as a basis, a RFID utilization and outcome(s) performance model was developed from the literature. Data from a sample of 155 manufacturers were collected and the model was assessed using a structural equation methodology.

Findings

Findings indicate that utilization of RFID technology leads to improved manufacturing efficiency and manufacturing effectiveness. Improvements in efficiency lead directly to improved organizational performance, and improvements in effectiveness lead directly to improved supply chain performance.

Research limitations/implications

Data were collected during the growth stage of RFID technology adoption and were only collected from firms in the manufacturing sector. Results should be interpreted with these limitations in mind.

Practical implications

The implementation of RFID technology can result in improved manufacturing efficiency and effectiveness. Practitioners considering adoption of the technology should fully account for these potential efficiency and effectiveness related benefits when determining the justification for adoption of this technology.

Originality/value

The paper describes one of the first empirically‐based studies investigating the impact of RFID technology implementation on supply chain and organizational performance in manufacturing organizations.

1 – 10 of over 2000