His model which was developed using Weibull distribution, has great flexibility in solving problems of reliability and warranty due to shape and scale parameters, and it can be extended in various issues.
Hyundai's products have come a long way in recent years, and the Santa Fe was the top-scoring Small SUV in Strategic Vision's 2007 Total Value Awards, which measure classes of cars based on reliability, a solid warranty, strong anticipated resale value, durability and innovation.
These features contribute to Panasonic's reputation for producing the industry's most reliable notebooks, with in-warranty reliability rates multiple times better than the estimated industry average for notebooks.
Although in reliability studies from automobile warranty data, several authors have addressed the well-recognized issues of incomplete and unclean nature of warranty data, the issue of 'spikes' has not received much attention.
The model allows the manufacturer to set the optimal combination of the product design (reliability), sale price and warranty period which maximizes the discounted profit over the product lifecycle for each option and for the two scenarios of pricing and warranty.
Cost benefit analyses are carried out in order to evaluate costs and benefits; while the evaluation of costs is straightforward, the quantification of benefits is a complex task, due to the nature of benefits such as improvement of product reliability and related reduction of warranty costs.
Designing warranty policies based on reliability estimates obtained by using only failure/warranty data can be unrealistic and incur a huge cost due to inaccurate estimates.
A mathematical model of the proposed complex system is designed using Markov process and supplementary variable technique by introducing the concept of the warranty period and the reliability characteristics is analyzed by the deliberation of the Laplace transformation.
One response to this has been the creation of insurance and warranty products that guarantee reliability of new facilities, thereby reducing the risk for lenders, leading to better financing terms from banks and bond investors, and increasing customer adoption.
But they have to be prepared to act quickly and forgo considerations such as resale value and vehicle reliability, and also ignore the uncertainties around warranty repairs and the availability of spare parts.
