Analyze Numbers Warranty For Free

A warranty analysis uses information about past warranty claims to predict the number and cost of warranty claims in the future. By fitting a distribution to your warranty data, you can estimate the number of expected failures in the next month, the next year, or other period of time.

This measure calculates the total value of warranty claims paid in the 12-month period as a percentage of total business entity revenue for the period. A warranty claim is a claim by a customer/product owner for a product under warranty, and usually entails either repair or replacement.

A warranty analysis is the analysis of time-to-event/failure data. In our example, the individual part is followed from the car sold time to its failure. As in typical model building, we split the data into train and test datasets.

5 Ways to Decrease Your Business's Warranty CostsAutomate Claims Processing. Manual processes are time consuming and manpower intensive.Eliminate Fraudulent Claims Using Predictive Technologies.Improve Product Quality.Improve Processes.Go Fully Online.10 Nov 2015

A common and poor technique to gather field data is to count the number of returns by week or month. This can provide a graph showing the number of returns over time. It hides information you need to understand your field failures.

Warranty data analysis relies on the estimation of a failure distribution based on data including the age and number of returns and the age and number of surviving units in the field.

5 Ways to Decrease Your Business's Warranty CostsAutomate Claims Processing. Manual processes are time consuming and manpower intensive.Eliminate Fraudulent Claims Using Predictive Technologies.Improve Product Quality.Improve Processes.Go Fully Online.Nov 10, 2015