Track 3 Session 12
1:00 to 2:00 p.m. Thursday June 11, 2009

Reducing Warranty Costs Through Customer-Triggered Product Evolution

Reducing warranty costs can make a significant improvement in a company’s profitability. In many ways, warranty returns are the voice of the customer, clearly signaling the need for product improvement. This presentation traces the experience of collecting and analyzing warranty data using Pareto analysis and FMEA risk assessment to prioritize eight areas of needed product design improvement. Because the magnitude of these product changes was so great, a major change was required in the design approach, involving modular product architecture and locked standards, model-based engineering, global product development and an emphasis on the product and process couple. We will discuss the engineering and validation of several product changes, resulting in locked product standards as well as the high-speed implementation of the changes through global supplier management. For Proliance, listening to the voice of the customer and making a change in design approach has meant a customer-triggered product evolution that has resulted in a 30 percent improvement in warranty payout in two years.