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Article
Publication date: 14 June 2022

Swee Kuik, Joowon Ban, Li Diong and Xiaolie Qi

This paper proposes optimisation models to evaluate and examine the selling of extended warranty policies in terms of improved profits in producing/marketing remanufactured…

Abstract

Purpose

This paper proposes optimisation models to evaluate and examine the selling of extended warranty policies in terms of improved profits in producing/marketing remanufactured products. These models are numerically solved using a quadratic programming solution approach and implemented in the decision support system (DSS).

Design/methodology/approach

The purpose of this paper is to develop the optimisation models for a DSS and evaluate different warranty policies for buyers.

Findings

This study has demonstrated the flexibility and usefulness of a model-driven DSS for the quality and warranty management, which is applied to examine and evaluate different configurations (i.e. component reuse, rebuild and recycle) for remanufactured products and propose the selling of extended warranty policies for buyers.

Research limitations/implications

The developed model-driven DSS can assist manufacturers to select and increase the number of components, e.g. to be reused, rebuilt, and recycled for producing a remanufactured product and propose suitable warranty policies for buyers. However, this study focusses only on the evaluation of warranty policies for specific remanufactured products in a DSS, i.e. types of air compressors for production operations in manufacturing industry.

Originality/value

This study developed optimisation models to be used in a DSS for proposing the selling of extended warranty of a remanufactured product to improve customer satisfaction and maximise the gained profits for manufacturers.

Details

The TQM Journal, vol. 35 no. 6
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 22 April 2022

Lijun Shang, Qingan Qiu, Cang Wu and Yongjun Du

The study aims to design the limited number of random working cycle as a warranty term and propose two types of warranties, which can help manufacturers to ensure the product…

Abstract

Purpose

The study aims to design the limited number of random working cycle as a warranty term and propose two types of warranties, which can help manufacturers to ensure the product reliability during the warranty period. By extending the proposed warranty to the consumer's post-warranty maintenance model, besides the authors investigate two kinds of random maintenance policies to sustain the post-warranty reliability, i.e. random replacement first and random replacement last. By integrating depreciation expense depending on working time, the cost rate is constructed for each random maintenance policy and some special cases are provided by discussing parameters in cost rates. Finally, sensitivities on both the proposed warranty and random maintenance policies are analyzed in numerical experiments.

Design/methodology/approach

The working cycle of products can be monitored by advanced sensors and measuring technologies. By monitoring the working cycle, manufacturers can design warranty policies to ensure product reliability performance and consumers can model the post-warranty maintenance to sustain the post-warranty reliability. In this article, the authors design a limited number of random working cycles as a warranty term and propose two types of warranties, which can help manufacturers to ensure the product reliability performance during the warranty period. By extending a proposed warranty to the consumer's post-warranty maintenance model, the authors investigate two kinds of random replacement policies to sustain the post-warranty reliability, i.e. random replacement first and random replacement last. By integrating a depreciation expense depending on working time, the cost rate is constructed for each random replacement and some special cases are provided by discussing parameters in the cost rate. Finally, sensitivities to both the proposed warranties and random replacements are analyzed in numerical experiments.

Findings

It is shown that the manufacturer can control the warranty cost by limiting number of random working cycle. For the consumer, when the number of random working cycle is designed as a greater warranty limit, the cost rate can be reduced while the post-warranty period can't be lengthened.

Originality/value

The contribution of this article can be highlighted in two key aspects: (1) the authors investigate early warranties to ensure reliability performance of the product which executes successively projects at random working cycles; (2) by integrating random working cycles into the post-warranty period, the authors is the first to investigate random maintenance policy to sustain the post-warranty reliability from the consumer's perspective, which seldom appears in the existing literature.

Details

Journal of Quality in Maintenance Engineering, vol. 29 no. 2
Type: Research Article
ISSN: 1355-2511

Keywords

Article
Publication date: 13 August 2021

Sebastien Royal, Nadia Lehoux and Pierre Blanchet

Construction defects in residential buildings are causing significant impacts both on consumers and the industry. As a consequence, several countries have established new home…

Abstract

Purpose

Construction defects in residential buildings are causing significant impacts both on consumers and the industry. As a consequence, several countries have established new home warranty schemes. However, designing a public policy for domestic building warranties can become a difficult task. In fact, many of these programs in the past have failed, collapsed or gone bankrupt. Therefore, the purpose of the current research is to provide a systematic comparative representation of various active programs internationally.

Design/methodology/approach

The methodology relied on a multiple-case study research design. The case selection covered a total of nine jurisdictions with compulsory home warranty programs. Those included Japan, France, United Kingdom, three provinces in Canada (Ontario, British Columbia and Alberta), and three states in Australia (New South Wales, Victoria and Queensland). The study applied a data collection protocol to gather all the evidence in a replicable manner for each individual case. Subsequently, a cross-case analysis was conducted to identify similarities and variations between programs.

Findings

The findings unveiled institutional practices that aimed to resolve, compensate, or rectify defects in residential constructions within these countries. The review mostly suggested that every home warranty program presents certain unique characteristics. At the end, this paper proposed an analytical illustration representing the diversification of components adopted by each jurisdiction.

Originality/value

Nowadays, there is still not a consensus within the academic community on what is an optimal solution when conceiving a new home warranty program. Hence, the current study aims to fill this knowledge gap by presenting the plurality of methods employed by several countries. This paper seeks to help policy makers and industry leaders to improve their home warranty scheme based on awareness derived from observations and analyses of what has been accomplished elsewhere in the world.

Details

International Journal of Building Pathology and Adaptation, vol. 41 no. 4
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 16 January 2023

Intekhab Alam, Ahteshamul Haq, Lalit Kumar Sharma, Sumit Sharma and Ritika

In this paper, the authors design accelerated life test and provide its application in the field of accelerated life test. The authors use maximum likelihood estimation method as…

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Abstract

Purpose

In this paper, the authors design accelerated life test and provide its application in the field of accelerated life test. The authors use maximum likelihood estimation method as a parameter estimation method.

Design/methodology/approach

In this paper we design accelerated life test and provide its application in the field of accelerated life test. The authors use maximum likelihood estimation method as a parameter estimation method.

Findings

In this study, the authors design accelerated life test under Type-I censoring when the lifetime of test items follows PID and also provides its application in the field of warranty policy. The following conclusion is made on the basis of this study. (1) An inverse relationship is shown between the shape parameter with the expected total cost and expected cycle time, while the shape parameter directly relates to the expected cost rate (see Table 5). (2) A direct relationship is shown between the scale parameter with the expected total cost and expected time cycle, while the inverse relationship is shown with the expected cost rate (see Table 5). (3) An inverse relationship is shown between the replacement age and the expected cost rate, while there are direct relationships between expected total cost and expected time cycle (see Table 5).

Originality/value

This paper is neither published or neither accepted anywhere.

Details

International Journal of Quality & Reliability Management, vol. 40 no. 8
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 13 December 2022

Jimut Bahan Chakrabarty, Soumya Roy and Shovan Chowdhury

In order to reduce avoidably lengthy duration required to test highly reliable products under usage stress, accelerated life test sampling plans (ALTSPs) are employed. This paper…

Abstract

Purpose

In order to reduce avoidably lengthy duration required to test highly reliable products under usage stress, accelerated life test sampling plans (ALTSPs) are employed. This paper aims to build a decision model for obtaining optimal sampling plan under accelerated life test setting using Type-I hybrid censoring scheme for products covered under warranty.

Design/methodology/approach

The primary decision model proposed in this paper determines ALTSP by minimizing the relevant costs involved. To arrive at the decision model, the Fisher information matrix for Type-I hybrid censoring scheme under accelerated life test setting is derived. The optimal solution is attained by utilizing appropriate techniques following a nonlinear constrained optimization approach. As a special case, ALTSP for Type-I censoring is obtained using the same approach. ALTSP under Type-I hybrid censoring using the variance minimization approach is also derived.

Findings

On comparing the optimal results obtained using the above mentioned approaches, it is found that the cost minimization approach does better in reducing the total cost incurred. Results also show that the proposed ALTSP model under cost function setting has considerably lower expected testing time. Interesting findings from the sensitivity analysis conducted using a newly introduced failure dataset pertaining to locomotive controls are highlighted.

Originality/value

The research introduces a model to design optimum ALTSP for Type-I hybrid censoring scheme. The practical viability of the model makes it valuable for real-life situations. The practical application of the proposed model is exemplified using a real-life case.

Details

International Journal of Quality & Reliability Management, vol. 40 no. 7
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 14 February 2023

Giuseppe Catenazzo and Marcel Paulssen

This study investigates two moderators of the effects of manufacturers' recovery efforts following a product defect on customers' perceptions of product quality: the severity of…

Abstract

Purpose

This study investigates two moderators of the effects of manufacturers' recovery efforts following a product defect on customers' perceptions of product quality: the severity of the product defect and whether the recovery efforts were covered under warranty or not.

Design/methodology/approach

A total of 478 USA customers who purchased a new car from a cooperating manufacturer participated in a survey. Customers reported the most important product defect (if any) the customers had experienced with the customers' vehicle during the past year. Three linear regressions (OLS) were used to test the proposed hypotheses.

Findings

Defect severity moderates the effects of recovery efforts on quality perceptions. The well-known recovery effect occurs only for product defects of minor severity. Experiencing a severe product defect damages the customers' perceptions of product quality even if the product defect is completely fixed. Double deviations (failed recovery of a product defect) do not damage quality perceptions for defects of minor severity. Finally, warranty coverage of repairs can attenuate the adverse effects of a failed recovery of severe defects on customers' quality perceptions. Additionally, only non-complainers who have experienced a severe product defect correspond to the prevailing conceptualization of an at-risk customer group.

Originality/value

Despite the pervasiveness of product defects, research on the effects of experiencing product defects on customers' product quality perceptions is scarce. Furthermore, the authors' findings reconcile inconsistent results and provide a more nuanced understanding of the well-known recovery and double-deviation effects. Finally, the role of warranty coverage in the recovery process as a buffer for customers' perceptions of product quality is novel.

Details

International Journal of Quality & Reliability Management, vol. 40 no. 9
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 15 April 2024

Bin Liu, Jing Sun and Zongsheng Huang

We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.

Abstract

Purpose

We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.

Design/methodology/approach

We construct a supply chain model with a retail platform as the leader and manufacturers as the followers. Manufacturers face differential consumer preferences on the same agency retail platform, and they can sell a bundled extended service product and sell a separate product without any extended service.

Findings

The sale of extended warranty services on the retail platform leads to lower pricing of the manufacturers' products and changes in the product market structure in response to differences in consumer preferences. The retailing platform tends to provide an extended warranty conditionally. The sale of extended warranty services on a retail platform would be detrimental to the interests of the manufacturer who sells products with extended warranty services and in favor of the manufacturer who sells products without them.

Originality/value

The equilibrium results of the retail platform’s non-sales and sales of extended warranty services for the no-extended warranty product under the same commission rate and differential commission rate models are discussed, and the product structure of the market is investigated, respectively.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 15 February 2023

Zahra Sarmast, Sajjad Shokouhyar, Seyed Hamed Ghanadpour and Sina Shokoohyar

Warranty service plays a critical role in sustainability and service continuity and influences customer satisfaction. Considering the role of social networks in customer feedback…

Abstract

Purpose

Warranty service plays a critical role in sustainability and service continuity and influences customer satisfaction. Considering the role of social networks in customer feedback channels, one of the essential sources to examine the reflection of a product/service is social media mining. This paper aims to identify the frequent product failures through social network mining. Focusing on social media data as a comprehensive and online source to detect warranty issues reveals opportunities for improvement, such as user problems and necessities. This model will detect the causes of defects and prioritize improving components in a product-service system based on FMEA results.

Design/methodology/approach

Ontology-based methods, text mining and sentiment analysis with machine learning methods are performed on social media data to investigate product defects, symptoms and the relationship between warranty plans and customer behaviour. Also, the authors have incorporated multi-source data collection to cover all the possibilities. Then the authors promote a decision support system to help the decision-makers using the FMEA process have a more comprehensive insight through customer feedback. Finally, to validate the accuracy and reliability of the results, the authors used the operational data of a LENOVO laptop from a warranty service centre and classifier performance metrics to compare the authors’ results.

Findings

This study confirms the validity of social media data in detecting customer sentiments and discovering the most defective components and failures of the products/services. In other words, the informative threads are derived through a data preparation process and then are based on analyzing the different features of a failure (issues, symptoms, causes, components, solutions). Using social media data helps gain more accurate online information due to the limitation of warranty periods. In other words, using social media data broadens the scope of data gathering and lets in all feedback from different sources to recognize improvement opportunities.

Originality/value

This work contributes a DSS model using multi-channel social media mining through supervised machine learning for warranty-service improvement based on defect-related discovery to unravel the potential aspects of social networks analysis to predict the most vulnerable components of a product and the main causes of failures that lead to the inputs for the FMEA process and then, a cost optimization. The authors have used social media channels like Twitter, Facebook, Reddit, LENOVO Forums, GitHub, Quora and XDA-Developers to gather data about the LENOVO laptop failures as a case study.

Details

Industrial Management & Data Systems, vol. 123 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 18 August 2023

Yuan Li and Jacqueline Eastman

Cute products have found market success. The literature has identified various factors of cuteness, but the effect of size is under-addressed. This study aims to investigate…

Abstract

Purpose

Cute products have found market success. The literature has identified various factors of cuteness, but the effect of size is under-addressed. This study aims to investigate whether and how size perception influences consumers’ cuteness perception.

Design/methodology/approach

In three experiments, size was manipulated in terms of visual cue, product description and product name to determine its impact on cuteness perception.

Findings

The results of the three experiments demonstrate that a size cue of smallness can heighten consumers’ perception of product cuteness. The first two studies provided converging evidence for the main hypothesis that smaller objects are evaluated as cuter. Study 3 not only replicated the findings of the first two studies but also revealed that vulnerability acts as the underlying process for the smallness-cuteness relationship. Study 3 also showed that the purchase likelihood for an extended product warranty is higher in the small condition compared to the control condition.

Research limitations/implications

While the findings were robust across product types and size manipulations, possible boundary conditions related to product types or individual characteristics were not tested.

Practical implications

The findings suggest how brand managers can use size perceptions to influence consumers’ perceptions of the cuteness of their products and brands.

Originality/value

The findings inform brand managers about the nuances of size cues that may affect how customers perceive their products and identify a more generally applicable cuteness factor that may have downstream implications for marketing practitioners.

Details

Journal of Product & Brand Management, vol. 32 no. 8
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 19 August 2022

Karthik Bajar, Aditya Kamat, Saket Shanker and Akhilesh Barve

In recent times, reverse logistics (RL) is gaining significant traction in various automobile industries to recapture returned vehicles’ value. A good RL program can lower…

Abstract

Purpose

In recent times, reverse logistics (RL) is gaining significant traction in various automobile industries to recapture returned vehicles’ value. A good RL program can lower manufacturing costs, establish a green supply chain, enhance customer satisfaction and provide a competitive advantage. However, reducing disruptions and increasing operational efficiency in the automobile RL requires implementing innovative technology to improve information flow and security. Thus, this manuscript aims to examine the hurdles in automobile RL activities and how they can be effectively tackled by blockchain technology (BCT). Merging BCT and RL provides the entire automobile industry a chance to generate value for its consumers through effective vehicle return policies, manufacturing cost reduction, maintenance records tracking, administration of vehicle information and a clear payment record of insurance contracts.

Design/methodology/approach

This research is presented in three stages to accomplish the task. First, previous literature and experts' opinions are examined to highlight certain factors that are an aggravation to BCT implementation. Next, this study proposed an interval-valued intuitionistic fuzzy set (IVIFS) – decision-making trial and evaluation laboratory (DEMATEL) with Choquet integral framework for computing and analyzing the comparative results of factor interrelationships. Finally, the causal outline diagrams are plotted to determine the influence of factors on one another for BCT implementation in automobile RL.

Findings

This study has categorized the barriers to BCT implementation into five major factors – operational and strategical, technical, knowledge and behavioral, financial and infrastructural, and government rules and regulations. The results revealed that disreputable technology, low-bearing capacity of IT systems and operational inefficiency are the most significant factors to be dealt with by automobile industry professionals for finer and enhanced RL processes utilizing BCT. The most noticeable advantage of BCT is its enormous amount of data, permitting automobile RL to develop client experience through real-time data insights.

Practical implications

This study reveals several factors that are hindering the implementation of BCT in RL activities of the automobile industry. The results can assist experts and policymakers improve their existing decision-making systems while making an effort to implement BCT into the automobile industry's RL activities.

Originality/value

Although there are several studies on the benefits of BCT in RL and the adoption of BCT in the automobile industry, individually, none have explicated the use of BCT in automobile RL. This is also the first kind of study that has used IVIFS-DEMATEL with the Choquet integral framework for computing and analyzing the comparative results of factor interrelationships hindering BCT implementation in automobile RL activities.

Details

Smart and Sustainable Built Environment, vol. 13 no. 1
Type: Research Article
ISSN: 2046-6099

Keywords

1 – 10 of 476