IDEAS home Printed from https://ideas.repec.org/a/sae/risrel/v225y2011i2p251-265.html
   My bibliography  Save this article

Modelling warranty extensions: a case study in the automotive industry

Author

Listed:
  • P A Scarf
  • H A Majid

Abstract

Warranty extensions are considered for automotive vehicles. In particular, the expected cost to a manufacturer of an extension to a base warranty is determined, while taking account of the effect of services during the warranty period. To model the effect of services, an inspection maintenance model is used that is based on the delay time concept. Therein, failures are preceded by defects, and the inspection of a vehicle while in the defective state facilitates the correction of such defects. Thus the typical circumstances in which a warranty places certain requirements on the customer to carry out a standard level of servicing is modelled. A vehicle is regarded as a complex system, with defects arising according to a counting process. Other defects that are present are allowed to be corrected when a vehicle fails. A case study carried out for Malaysian Truck Berhad is used to illustrate these concepts.

Suggested Citation

  • P A Scarf & H A Majid, 2011. "Modelling warranty extensions: a case study in the automotive industry," Journal of Risk and Reliability, , vol. 225(2), pages 251-265, June.
    • Handle: RePEc:sae:risrel:v:225:y:2011:i:2:p:251-265
    DOI: 10.1177/1748006X11401801
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1748006X11401801
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1748006X11401801?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. D.N. Prabhakar Murthy & Wallace R. Blischke, 2006. "Warranty Management and Product Manufacture," Springer Series in Reliability Engineering, Springer, number 978-1-84628-258-4, March.
    2. Scarf, Philip A. & Cavalcante, Cristiano A.V., 2010. "Hybrid block replacement and inspection policies for a multi-component system with heterogeneous component lives," European Journal of Operational Research, Elsevier, vol. 206(2), pages 384-394, October.
    3. Herbert Moskowitz & Young Hak Chun, 1994. "A poisson regression model for two‐attribute warranty policies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(3), pages 355-376, April.
    4. A H Christer, 1999. "Developments in delay time analysis for modelling plant maintenance," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(11), pages 1120-1137, November.
    5. Wang, Wenbin & Banjevic, Dragan & Pecht, Michael, 2010. "A multi-component and multi-failure mode inspection model based on the delay time concept," Reliability Engineering and System Safety, Elsevier, vol. 95(8), pages 912-920.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Flage, Roger, 2014. "A delay time model with imperfect and failure-inducing inspections," Reliability Engineering and System Safety, Elsevier, vol. 124(C), pages 1-12.
    2. Wang, Wenbin & Syntetos, Aris A., 2011. "Spare parts demand: Linking forecasting to equipment maintenance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1194-1209.
    3. Wang, Wenbin & Banjevic, Dragan, 2012. "Ergodicity of forward times of the renewal process in a block-based inspection model using the delay time concept," Reliability Engineering and System Safety, Elsevier, vol. 100(C), pages 1-7.
    4. Wang, Wenbin, 2011. "A joint spare part and maintenance inspection optimisation model using the Delay-Time concept," Reliability Engineering and System Safety, Elsevier, vol. 96(11), pages 1535-1541.
    5. Wang, Wenbin, 2011. "An inspection model based on a three-stage failure process," Reliability Engineering and System Safety, Elsevier, vol. 96(7), pages 838-848.
    6. Wang, Wenbin, 2012. "An overview of the recent advances in delay-time-based maintenance modelling," Reliability Engineering and System Safety, Elsevier, vol. 106(C), pages 165-178.
    7. Yang, Li & Ma, Xiaobing & Zhai, Qingqing & Zhao, Yu, 2016. "A delay time model for a mission-based system subject to periodic and random inspection and postponed replacement," Reliability Engineering and System Safety, Elsevier, vol. 150(C), pages 96-104.
    8. Alotaibi, Naif M. & Scarf, Philip & Cavalcante, Cristiano A.V. & Lopes, Rodrigo S. & de Oliveira e Silva, André Luiz & Rodrigues, Augusto J.S. & Alyami, Salem A., 2023. "Modified-opportunistic inspection and the case of remote, groundwater well-heads," Reliability Engineering and System Safety, Elsevier, vol. 237(C).
    9. Cavalcante, C.A.V. & Lopes, R.S. & Scarf, P.A., 2018. "A general inspection and opportunistic replacement policy for one-component systems of variable quality," European Journal of Operational Research, Elsevier, vol. 266(3), pages 911-919.
    10. Wang, Wenbin & Zhao, Fei & Peng, Rui, 2014. "A preventive maintenance model with a two-level inspection policy based on a three-stage failure process," Reliability Engineering and System Safety, Elsevier, vol. 121(C), pages 207-220.
    11. Cavalcante, Cristiano A.V. & Scarf, Philip A. & de Almeida, Adiel T., 2011. "A study of a two-phase inspection policy for a preparedness system with a defective state and heterogeneous lifetime," Reliability Engineering and System Safety, Elsevier, vol. 96(6), pages 627-635.
    12. Berrade, M.D. & Scarf, P.A. & Cavalcante, C.A.V., 2018. "Conditional inspection and maintenance of a system with two interacting components," European Journal of Operational Research, Elsevier, vol. 268(2), pages 533-544.
    13. Wang, Wenbin, 2012. "A stochastic model for joint spare parts inventory and planned maintenance optimisation," European Journal of Operational Research, Elsevier, vol. 216(1), pages 127-139.
    14. Seyedhosseini, Seyed Mohammad & Moakedi, Hamid & Shahanaghi, Kamran, 2018. "Imperfect inspection optimization for a two-component system subject to hidden and two-stage revealed failures over a finite time horizon," Reliability Engineering and System Safety, Elsevier, vol. 174(C), pages 141-156.
    15. Wang, Wenbin, 2013. "Models of inspection, routine service, and replacement for a serviceable one-component system," Reliability Engineering and System Safety, Elsevier, vol. 116(C), pages 57-63.
    16. Xiaolin Wang & Wei Xie, 2018. "Two-dimensional warranty: A literature review," Journal of Risk and Reliability, , vol. 232(3), pages 284-307, June.
    17. Wang, Wenbin, 2012. "A simulation-based multivariate Bayesian control chart for real time condition-based maintenance of complex systems," European Journal of Operational Research, Elsevier, vol. 218(3), pages 726-734.
    18. Zhang, Fengxia & Shen, Jingyuan & Liao, Haitao & Ma, Yizhong, 2021. "Optimal preventive maintenance policy for a system subject to two-phase imperfect inspections," Reliability Engineering and System Safety, Elsevier, vol. 205(C).
    19. Ye, Xiong-Fei & Zhang, Yi & Harutoshi, Ogai & Kim, Chul-Woo, 2019. "Hierarchical probability and risk assessment for K-out-of-N system in hierarchy," Reliability Engineering and System Safety, Elsevier, vol. 189(C), pages 242-260.
    20. Liu, Yiliu & Liu, Zixian & Wang, Yukun, 2013. "Customized warranty offering for configurable products," Reliability Engineering and System Safety, Elsevier, vol. 118(C), pages 1-7.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:risrel:v:225:y:2011:i:2:p:251-265. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.