Expected Warranty Servicing Cost Research Articles

A two-dimensional preventive maintenance strategy for items sold with warranty

Conventional preventive maintenance (PM) strategies under two-dimensional (2D) warranties are usually age-based or usage-based, which means that the implementation of PM activities is based solely on item age or usage. In this paper, a new PM strategy, called 2D PM strategy, is proposed for items sold with a 2D warranty. Under this strategy, the item is preventively maintained every K units of age or L units of usage, whichever occurs first. The marginal approach is used to describe the effect of age and usage on item reliability by treating usage as a random function of age. Besides, the effect of PM is characterised by the reduction of virtual age. The objective of this study is to identify the optimal 2D PM strategy under fixed warranty terms so as to minimise the total expected warranty servicing cost from the manufacturer’s perspective. A numerical example is provided to demonstrate the effectiveness of the proposed PM strategy. It is shown that the 2D PM strategy contains the age-based and usage-based strategies as special cases, and outperforms them in terms of warranty servicing cost. Finally, how to implement the proposed PM strategy in practice is discussed with an illustrative case.

Optimal preventive maintenance strategy for repairable items under two-dimensional warranty

For repairable items under the two-dimensional warranty, the manufacturer expenses warranty costs for rectifying the failures occurring over the warranty coverage. Preventive maintenance actions reduce the occurrence intensity of item failures, and hence the warranty cost resulted from corrective maintenance, but bring additional preventive maintenance cost. In this paper, we investigate a periodic and imperfect preventive maintenance strategy for an item covered by a fixed and combined base warranty and extended warranty region from the manufacturer׳s perspective. After the base warranty expires, the buyer purchases an extended warranty service contract from the same manufacturer for extra protection. Over the whole warranty coverage, the item failures are minimally repaired by the manufacturer at no cost to the buyer. The effect of preventive maintenance action is characterized by reducing the item׳s failure intensity proportionally to the maintenance degree at each preventive maintenance action. Then a mathematical model is proposed to derive the optimal preventive maintenance strategy so as to minimize the total expected warranty servicing cost to the manufacturer. A numerical example is presented to illustrate the application of the proposed model and evaluate the impact of different model parameters on the optimal solutions and the corresponding warranty servicing costs.

Maintenance models in warranty: A literature review

Along with increasing the warranty period for complex systems, reducing the warranty servicing costs has become an issue of great importance to the manufacturers. One possible way to reduce the expected warranty servicing cost is by making sound decision on the product warranty and maintenance strategies. Therefore, warranties (basic warranty and extended warranty) and maintenance (corrective and preventive) are strongly interlinked and of great interest to both manufacturers and customers. This paper is the first identifiable academic literature review to deal with warranty and maintenance. It provides a classification scheme for the articles that link warranty and maintenance published between 2001 and 2011 covering 44 journals and proposes a taxonomy scheme to classify these articles. Nine hundred articles were identified for their relevance to warranty and were carefully reviewed. One-hundred and twenty-two articles were subsequently selected for their relevance to maintenance and included in the classification.

An imperfect repair strategy for two-dimensional warranty

The objective of this study is to develop a warranty servicing strategy, based on imperfect and minimal repairs, that minimises the total warranty servicing cost. For pre-specified degrees of repair, the expected warranty servicing cost is minimised by optimally partitioning a two-dimensional rectangular warranty region into n disjoint subregions. We numerically illustrate the imperfect repair strategy and provide a comparison with previously studied warranty repair strategies.

Warranty servicing for discretely degrading items with non-zero repair time under renewing warranty

This paper considers a repair-replacement strategy for a special class of discretely degrading and repairable products under renewing free replacement warranty. Each product may experience N different working states with different exponential hazard functions, before the warranty contract expires. Once the item enters working state i (i=1,2,…,N), it can either fail or move to any of the subsequent working states with different probabilities, given that a transition has been made. In the former case, the best rectification action, replacement or minimal repair, regarding the failure status, i.e., the product degradation level at the failure time and the remaining warranty time, should be conducted to put the item into operation. It is assumed that replacement of the faulty item occurs instantly and the product warranty is renewed, but non-zero repair time has been included in the model. We derive the optimal replacement-repair policy to minimize the manufacturer’s expected warranty servicing cost per item sold. The Adomian decomposition method is used to find an analytic approximate solution for a special case with two working states. For N>2, a simulation based optimization method has been developed to analyze the expected warranty cost. Some numerical examples in each section are given to clearly demonstrate the application of this model.

On optimal replacement-repair policy for multi-state deteriorating products under renewing free replacement warranty

In this paper a replacement-repair model is developed to study a renewing free replacement warranty (RFRW) for a class of multi-state deteriorating repairable products. After a replacement, the product warranty is renewed. Two parameters affect the manufacturer’s decision to minimally repair or replace a failed item: the product deterioration level at the time of failure and the remaining warranty time. We derive an optimal replacement-repair policy to minimise the expected warranty servicing cost per item sold. In the case of a product with two different working states, we are able to explicitly find the optimal values of the replacement-repair parameters using the Adomian decomposition method. In general, for N > 2 , it is impossible to find the optimal parameter values analytically. Hence, a computational procedure for finding these optimal values is proposed. For more clarification, numerical examples are also presented.

Optimal two-dimensional warranty repair strategy

For repairable products, the warrantor has options in choosing the type of repair performed to an item that fails within the warranty period. The focus is on a particular warranty repair strategy, related to the degree of the warranty repair, under a non-renewing two-dimensional warranty policy that is free of charge to the consumer. A rectangular warranty region, as in the automotive industry, is considered and partitioned into disjoint subregions. Each of these subregions has a preassigned degree of repair for a faulty item. First, for a partition of size n, an expression is derived for the associated expected warranty servicing cost per item sold. Second, using an example, for a given discretization of the warranty period, the way in which the number of subregions and their shape can be determined, so that the expected warranty servicing cost per item sold is minimum, is demonstrated.

Imperfect repair policies under two-dimensional warranty

For repairable items, the manufacturer is required to rectify all item failures through minimal repair, replacement, and imperfect repair should failures occur within the period specified in the warranty. In this paper, a new warranty servicing strategy is examined, considering imperfect repair with a two-dimensional warranty where the failed item is imperfectly repaired when it fails for the first time in a specified period of the warranty and all other failures are repaired minimally. The optimal servicing strategy is obtained to minimize the total expected warranty servicing cost. The proposed repair policy is compared numerically with existing strategies reported in the literature.

Two-dimensional warranty repair strategy based on minimal and complete repairs

For repairable products, the warrantor has options in choosing the degree of repair applied to an item that has failed within the warranty period. We focus on a particular warranty repair strategy, related to the degree of the warranty repair, for non-renewing, two-dimensional, free of charge to the consumer warranty policy. We consider a rectangular warranty region and divide it into three disjoint subregions, so that each of these subregions has a preassigned degree of repair for a faulty item. Our main goal is to determine the subregions, so that the associated expected warranty servicing cost per item sold is minimised. A comparison between our strategy and previously studied, more restrictive, ones is provided.

A new repair–replace strategy for items sold with a two-dimensional warranty

For repairable items, the manufacturer has the option to either repair or replace a failed item that is returned under warranty. In this paper, we look at a new warranty servicing strategy for items sold with two-dimensional warranty where the failed item is replaced by a new one when it fails for the first time in a specified region of the warranty and all other failures are repaired minimally. The region is characterised by two parameters and we derive the optimal values for these to minimise the total expected warranty servicing cost. We compare the results with other repair–replace strategies reported in the literature.

Replacement–repair policy for multi-state deteriorating products under warranty

In this paper we study a warranty servicing policy for a class of multi-state deteriorating and repairable products. The manufacturer's decision to repair or replace a failed item depends on two parameters, the deterioration degree of the item and the length of the residual warranty period. We examine the optimal value of these two parameters to minimize the manufacturer's expected warranty servicing cost per item sold.

Warranty and optimal redundancy with uncertain quality

The expected warranty servicing cost is critically dependent on the reliability of the product. One way of improving product reliability is through redundancy but this is achieved at the expense of increased manufacturing cost. Redundancy is worthwhile if the reduction in expected warranty servicing cost exceeds the increase in the manufacturing cost. This paper examines optimal strategies with quality uncertainty where nonconforming items have inferior performance characteristics relative to conforming ones. It also examines the effect of life testing on the optimal strategies.