Warranty management

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IQZ-GmbH_Warranty-ManagementA number of companies have turned their attention to warranty management – also called guarantee management – particularly through the offer of extended warranties – e.g. in the automotive sector – or “flat-rate contracts” in the field of MRO (Maintain, Repair and Operations) services. A valid database is hereby of crucial importance – alongside a well-coordinated organisational structure – so as to be able to quantify technical, and consequently also financial risks on the warranty management process. The challenges in warranty management are diverse and usually entail high risks for the companies involved. Risks that are hard to quantify, such as the loss of image due to large-scale product recall and the negative reports on the company that often follow these in the media, are particularly critical.

Challenges facing warranty management

Figure: Challenges facing warranty management

In order to cope with these challenges, an integrated warranty management concept has to be internalised in an early phase of the product development process and carried on through to the follow-up phase. This ensures that knowledge from the individual phases of the product development process as well as the product life-cycle can be collected, processed and then provided as a source of information in the other phases. Warranty management is thus not just the professional response to recourse, recall or spare parts stocking, but a company-wide strategic approach to avoiding risks and costs.

Warranty management in a life cycle

Figure: Warranty management in a life cycle

Integrated warranty management considers not only the technical, legal and financial challenges, but also the organisational requirements (warranty culture), because an effective approach can only lead to success if it is also an interdisciplinary one. The job of warranty management is then to provide functioning processes, collect information from the departments involved and make this available for internal needs, and to come up with decision-making aids for management.

Parties involved in warranty management

Figure: Parties involved in warranty management

IQZ helps its partners establish and optimise warranty management systems and answer time-sensitive questions, e.g. within the scope of a special recourse or when evaluating critical failures in the field. The Wuppertal reliability forecast model allows you to make valid statements on the future failure behaviour of technical systems and this provides a sound basis for all further questions. It can be preceded by other methods as an analytical process.