Practical application of an Analytic Hierarchy Process for the improvement of the warranty management

Abstract

PurposeThis paper will be focused in one of the stages included in a reference framework proposed for the improvement of the warranty management. Particularly, the Analytic Hierarchy Process (AHP) is a multi‐criteria decision‐making method that will be depicted throughout this document and applied to a particular case study.Design/methodology/approachOnce the warranty program objectives and strategy are defined, the referred stage here considered will be the Criticality Analysis. Those decisions and actions taken from the warranty program will involve the possibility of a certain deviation from business objectives in terms of profit losses, redirection of resources, possible delays etc., or the use of assembly pieces as spares, among others.FindingsThe application is required of a technique which helps systematically to decide which assets should have priority related to the management of the warranty program, in accordance of course with the existing program strategy.Practical implicationsThe paper will show how this method can help and improve the decision‐making related to some aspect of the warranty management, obtaining as a result a criticality matrix, which offers a prioritized view of warranty issues, which allow us to align after sales actions with the business targets.Originality/valueThis paper aims to explore different aspects related to the Analytic Hierarchy Process (AHP), which can influence in the management of warranty assistances. In the process of warranty management for a specific product, many decisions and actions appear presenting a great impact on the total cost of the product warranty service. The paper contains an example study where AHP concepts are applied in a simple way in order to provide a practical application view of the theoretical development, useful to after sales managers as a decision‐making tool.