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Modelling warranty extensions: A case study in the automotive industry

Scarf, PA and Majid, HA 2011, 'Modelling warranty extensions: A case study in the automotive industry' , Proceedings of the Institution of Mechanical Engineers, Part O: Journal of Risk and Reliability, 225 (2) , pp. 251-265.

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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.

Item Type: Article
Uncontrolled Keywords: Inspection, Modelling, Delay time modelling
Themes: Built and Human Environment
Schools: Colleges and Schools > College of Business & Law > Salford Business School > Operations and Global Logistics Management
Journal or Publication Title: Proceedings of the Institution of Mechanical Engineers, Part O: Journal of Risk and Reliability
Publisher: SAGE journals
Refereed: Yes
ISSN: 1748-006X
Funders: Non funded research
Depositing User: Dr Philip Scarf
Date Deposited: 11 Dec 2012 12:43
Last Modified: 18 Sep 2013 15:10
URI: http://usir.salford.ac.uk/id/eprint/27335

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