Warranty Data Analysis: A Review

Warranty claims and supplementary data contain useful information about product quality and reliability. Analysing such data can therefore be of benefit to manufacturers in identifying early warnings of abnormalities in their products, providing useful information about failure modes to aid design modification, estimating product reliability for deciding on warranty policy and forecasting future warranty claims needed for preparing fiscal plans. In the last two decades, considerable research has been conducted in warranty data analysis (WDA) from several different perspectives. This article attempts to summarise and review the research and developments in WDA with emphasis on models, methods and applications. It concludes with a brief discussion on current practices and possible future trends in WDA

Estimating a Service-Life Distribution Based on Production Counts and a Failure Database

Problem: A manufacturer wanted to compare the service-life distributions of two similar products. These concern product lifetimes after installation (not manufacture). For each product, there were available production counts and an imperfect database providing information on failing units. In the real case, these units were expensive repairable units warrantied against repairs. Failure (of interest here) was relatively rare and driven by a different mode/mechanism than ordinary repair events (not of interest here). Approach: Data models for the service life based on a standard parametric lifetime distribution and a related limited failure population were developed. These models were used to develop expressions for the likelihood of the available data that properly accounts for information missing in the failure database. Results: A Bayesian approach was employed to obtain estimates of model parameters (with associated uncertainty) in order to investigate characteristics of the service-life distribution. Custom software was developed and is included as Supplemental Material to this case study. One part of a responsible approach to the original case was a simulation experiment used to validate the correctness of the software and the behavior of the statistical methodology before using its results in the application, and an example of such an experiment is included here. Because of confidentiality issues that prevent use of the original data, simulated data with characteristics like the manufacturer\u27s proprietary data are used to illustrate some aspects of our real analyses. We note also that, although this case focuses on rare and complete product failure, the statistical methodology provided is directly applicable to more standard warranty data problems involving typically much larger warranty databases where entries are warranty claims (often for repairs) rather than reports of complete failures

Product Component Genealogy Modeling and Field‐failure Prediction

Many industrial products consist of multiple components that are necessary for system operation. There is an abundance of literature on modeling the lifetime of such components through competing risks models. During the life‐cycle of a product, it is common for there to be incremental design changes to improve reliability, to reduce costs, or due to changes in availability of certain part numbers. These changes can affect product reliability but are often ignored in system lifetime modeling. By incorporating this information about changes in part numbers over time (information that is readily available in most production databases), better accuracy can be achieved in predicting time to failure, thus yielding more accurate field‐failure predictions. This paper presents methods for estimating parameters and predictions for this generational model and a comparison with existing methods through the use of simulation. Our results indicate that the generational model has important practical advantages and outperforms the existing methods in predicting field failures

Modeling the number of hidden events subject to observation delay

This paper considers the problem of predicting the number of events that have occurred in the past, but which are not yet observed due to a delay. Such delayed events are relevant in predicting the future cost of warranties, pricing maintenance contracts, determining the number of unreported claims in insurance and in modeling the outbreak of diseases. Disregarding these unobserved events results in a systematic underestimation of the event occurrence process. Our approach puts emphasis on modeling the time between the occurrence and observation of the event, the so-called observation delay. We propose a granular model for the heterogeneity in this observation delay based on the occurrence day of the event and on calendar day effects in the observation process, such as weekday and holiday effects. We illustrate this approach on a European general liability insurance data set where the occurrence of an accident is reported to the insurer with delay

A pseudo-likelihood analysis for incomplete warranty data with a time usage rate variable and production counts

The most direct purpose of collecting warranty data is tracking associated costs. However, they are also useful for quantifying a relationship between use rate and product time-to-first-failure and for estimating the distribution of product time-to-first-failure (which is modeled in this article as depending on use rate and a unit potential life length under continuous use). Employing warranty data for such reliability analysis purposes is typically complicated by the fact that some parts of some warranty data records are missing. A pseudo-likelihood methodology is introduced to deal with some kinds of incomplete warranty data (such as that available in a motivating real case from a machine manufacturer). A use rate distribution, the distribution of time to first failure, and the time associated with a cumulative probability of first failure are estimated, based on the proposed approach and available data

Component Reliability Estimation From Partially Masked and Censored System Life Data Under Competing Risks.

This research presents new approaches to the estimation of component reliability distribution parameters from partially masked and/or censored system life data. Such data are common in continuous production environments. The methods were tested on Monte Carlo simulated data and compared to the only alternative suggested in literature. This alternative did not converge on many masked datasets. The new methods produce accurate parameter estimates, particularly at low masking levels. They show little bias. One method ignores masked data and treats them as censored observations. It works well if at least 2 known-cause failures of each component type have been observed and is particularly useful for analysis of any size datasets with a small fraction of masked observations. It provides quick and accurate estimates. A second method performs well when the number of masked observations is small but forms a significant portion of the dataset and/or when the assumption of independent masking does not hold. The third method provides accurate estimates when the dataset is small but contains a large fraction of masked observations and when independent masking is assumed. The latter two methods provide an indication which component most likely caused each masked system failure, albeit at the price of much computation time. The methods were implemented in user-friendly software that can be used to apply the method on simulated or real-life data. An application of the methods to real-life industrial data is presented. This research shows that masked system life data can be used effectively to estimate component life distribution parameters in a situation where such data form a large portion of the dataset and few known failures exist. It also demonstrates that a small fraction of masked data in a dataset can safely be treated as censored observations without much effect on the accuracy of the resulting estimates. These results are important as masked system life data are becoming more prevalent in industrial production environments. The research results are gauged to be useful in continuous manufacturing environments, e.g. in the petrochemical industry. They will also likely interest the electronics and automotive industry where masked observations are common

Impacts of shared mobility on vehicle lifetimes and on\ua0the carbon footprint of electric vehicles

Shared cars will likely have larger annual vehicle driving distances than individually owned cars. This may accelerate passenger car retirement. Here we develop a semi-empirical lifetime-driving intensity model using statistics on Swedish vehicle retirement. This semi-empirical model is integrated with a carbon footprint model, which considers future decarbonization pathways. In this work, we show that the carbon footprint depends on the cumulative driving distance, which depends on both driving intensity and calendar aging. Higher driving intensities generally result in lower carbon footprints due to increased cumulative driving distance over the vehicle’s lifetime. Shared cars could decrease the carbon footprint by about 41% in 2050, if one shared vehicle replaces ten individually owned vehicles. However, potential empty travel by autonomous shared vehicles—the additional distance traveled to pick up passengers—may cause carbon footprints to increase. Hence, vehicle\ua0durability and empty travel should be considered when\ua0designing low-carbon car sharing\ua0systems

Sustainability via extended warranty contracts: design for a consumer electronics retailer

Warranty is one of the most important attributes of any product, from both manufacturer and consumer points of view. Although the retailers connect manufacturers to customers by selling goods, traditionally, they have isolated themselves from warranty-related matters such as customer complaints and maintenance costs. However, recent trends in consumer behavior toward extended warranty contracts have changed this approach. While retailers have started to generate considerable revenue from the sale of these contracts, sustainability is also achieved by longer product life cycles. This study analyzed the failure behavior of different classes of cell phone products and their related costs through a chain of consumer electronics retailer operating in Türkiye. To compete on pricing and customer service, a novel policy was designed for the retailer to honor the contracts in house rather than underwriting to a third party insurer as the industry standard. The maintenance records of 328 previous failures were analyzed to plot a failure model. Failure mode and effects analysis was carried out to identify failure classes and the respective costs for extended warranty design for cell phones. The expected warranty costs for coverage of the third, fourth, and fifth years of operation were determined. The results show that the retailer may achieve the same level of profit by increasing customer satisfaction along with the sustainability of the product through repair actions.Publisher's VersionQ2WOS:00114030000000