Warranty Cost Prediction Using the Mahalanobis-Taguchi System

2009 ◽  
Author(s):  
Rodney Kestle ◽  
Elizabeth Cudney
Keyword(s):  
Poor Quality ◽  
Correlated Data ◽  
Data Sets ◽  
Cost Prediction ◽  
Cost Avoidance ◽  
System A ◽  
Multiple Characteristics ◽  
Warranty Cost ◽  
The Cost

In any competitive market, businesses need to differentiate their offerings. Many industries use a warranty as an offering that not only differentiates the product or service, but also extends the customer’s expected durability of the product or service. By offering to share the risk of a customer’s purchase in the form of a warranty, a business assumes the cost of poor quality and therefore should have a vested interest to reduce this cost thus maximizing its profits. Warranty cost prediction methods are used by many leading companies, but these methods typically only focus on failure reduction as cost avoidance. Additional dimensions should be considered when predicting warranty cost. This paper presents the application of the Mahalanobis-Taguchi System to forecast warranty cost based on multivariate data. Using Mahalanobis-Taguchi System, a product or service’s warranty cost can be predicted using multiple characteristics thus providing a more complete estimate. The Mahalanobis-Taguchi System also enables businesses to estimate their warranty cost as early as conceptual design, due to the method’s ability to forecast based on small, correlated data sets. A case study utilizing warranty data is also provided to illustrate the technique.

Analyzing the Return on Investment Associated With Prognostics and Health Management of Electronic Products

2008 ◽  
Author(s):  
Kiri Feldman ◽  
Peter Sandborn
Keyword(s):  
Health Management ◽  
Discrete Event ◽  
Prognostics And Health Management ◽  
Potential Cost ◽  
Product Usage ◽  
Cost Avoidance ◽  
Event Simulation ◽  
Business Cases ◽  
The Cost

Prognostics and Health Management (PHM) provides an opportunity for lowering sustainment costs, improving maintenance decision-making and providing product usage feedback into the product design and validation process. The adoption of PHM approaches requires consideration and planning for integration into new and existing systems, operations, and processes. However, PHM must provide a significant advantage in order to add value for the maintenance process and commitments to implement and support PHM approaches cannot be made without the development of supporting business cases. The realization of PHM requires implementation at different levels of scale and complexity. The maturity, robustness, and applicability of the underlying predictive algorithms impact the overall efficacy of PHM within an enterprise. The utility of PHM to inform decision-makers within tight scheduling constraints and under different operational profiles likewise affects the cost avoidance that can be realized. This paper presents a case study conducted using a stochastic discrete event simulation model to determine the benefits and potential cost avoidance offered by electronics PHM (e-PHM). The case study of a multifunctional display in a Boing 737 compared the life cycle costs of a system employing unscheduled maintenance approaches to the same system using a precursor to failure PHM approach.

Modelling the Cost of Poor Quality in a Five-State Part Manufacturing Operation: A Case Study

1998 ◽  
Vol 49 (12) ◽  
pp. 1249
Author(s):  
B. R. Feiring ◽  
T. C. P. Sasfri ◽  
V. M. Rao Tummala ◽  
R. W. Mak
Keyword(s):  
Poor Quality ◽  
The Cost ◽  
Cost Of Poor Quality

WARRANTY AND OPTIMAL UPGRADE STRATEGY FOR USED SYSTEMS: AN ELECTRIC DRILL CASE STUDY

2012 ◽  
Vol 29 (04) ◽  
pp. 1250023 ◽  
Author(s):  
MAHMOOD SHAFIEE ◽  
STEFANKA CHUKOVA ◽  
MAXIM FINKELSTEIN
Keyword(s):  
Functional State ◽  
Additional Cost ◽  
Practical Application ◽  
Trade Off ◽  
Action Strategies ◽  
Electric Drill ◽  
Warranty Cost ◽  
The Cost

Offering warranty for a second-hand item stimulates the sales of the item, but at the same time, it accumulates additional warranty servicing cost. This additional cost can be reduced through actions that improve the reliability of the item, such as overhaul and upgrade. An upgrade action brings the second-hand item to an improved functional state and it effectively reduces the age of the item. In this paper, we propose a model aiming to determine the optimal upgrade action strategies that achieve a sensible trade-off between the cost of an upgrade action and the reduction of the expected warranty cost due to this action. A practical application case on electric drills is used to illustrate our findings.

Modelling the cost of poor quality in a five-state part manufacturing operation: a case study

1998 ◽  
Vol 49 (12) ◽  
pp. 1249-1253 ◽  
Author(s):  
B R Feiring ◽  
T C P Sasfri ◽  
V M Rao Tummala ◽  
R W Mak
Keyword(s):  
Poor Quality ◽  
The Cost ◽  
Cost Of Poor Quality

scholarly journals Coverage for the cost of outpatient nursing procedures by the Unified Health System: a percentage analysis

2021 ◽  
Vol 55 ◽  
Author(s):  
Elisabete Finzch Sportello ◽  
Valéria Castilho ◽  
Antônio Fernandes Costa Lima
Keyword(s):  
Health System ◽  
Unit Cost ◽  
University Hospital ◽  
Actual Cost ◽  
Descriptive Case Study ◽  
Unified Health System ◽  
System A ◽  
Percentage Difference ◽  
The Cost

ABSTRACT Objective: To analyze the percentage of the coverage of transfers from the Brazilian Unified Health System regarding nursing procedures conducted in the Outpatient facility of a University Hospital. Method: Quantitative, exploratory, descriptive case study. The sample for calculating the mean total direct costs was composed of non-participant observations of 656 procedures. The obtained costs were compared to transfers from the Unified Health System by multiplying the amount of procedures agreed upon by the unit cost in the Unified Table of Procedures in 2016 and 2017. Results: The Unified Health System transferred a percentage corresponding to 11.13% of the actual cost in 2016 and to 16.02% in 2017. In these two years, transfer values covered only a mean of 13.4%, resulting in a percentage difference in revenue significantly smaller than the actual cost. Conclusion: The higher the productivity of the performed procedures, the higher was the hospital deficit and, consequently, the higher were the costs not covered by the Unified Health System.

Managing Cost of Quality in Supply Chains

2020 ◽  
pp. 231-249
Author(s):  
Ali Ghandour
Keyword(s):  
Supply Chain ◽  
Poor Quality ◽  
Chain Process ◽  
Cost Of Quality ◽  
The Past ◽  
The World ◽  
Key Factor ◽  
Supply Chain Process ◽  
The Cost

The purpose of this case study is to analyze the cost of quality (COQ) in the supply chain process at Arctic North Inc., one of the winter jackets manufacturers in Montreal, Canada. In addition to the case study, some proposed solutions and recommendations will be chosen based on the studied performance of the company. Over the past decades, quality is becoming more and more a key factor in customers' expectations. Organizations and businesses around the world are very interested in applying methodologies and techniques to reach higher quality levels since this will distinguish them from other competitors in the market. Furthermore, measuring the COQ in an organization is very important in order to be able to identify the problem of poor quality, quantify it, and analyze its causes to be able to solve it.

Determining the cost of poor quality and its impact on productivity and profitability

2014 ◽  
Vol 4 (3) ◽  
pp. 296-311 ◽  
Author(s):  
Shahid Mahmood ◽  
Syed M. Ahmed ◽  
Kamalesh Panthi ◽  
Nadeem Ishaque Kureshi
Keyword(s):  
Labor Productivity ◽  
Construction Projects ◽  
Data Entry ◽  
Poor Quality ◽  
Measuring System ◽  
Appraisal System ◽  
Content Type ◽  
The Cost ◽  
Cost Of Poor Quality

Purpose – The purpose of this paper is to examine how effectively the cost appraisal system proposed measures the cost of poor quality (COPQ) in a construction project. The paper first formulates how COPQ can be measured and later clarifies the relationship between COPQ, labor productivity, and profitability. Design/methodology/approach – In order to measure COPQ, the researchers prepared data entry forms for recording COPQ items on a daily basis and formulated the cost contribution of lost material, lost man-hours, lost machinery hours, and lost overhead on the overall COPQ for the project. The proposed method was then applied in a case study. Findings – The results showed that, for the 60-days study period, COPQ decreased by about 24 percent while labor productivity and profitability increased by about 17 and 11 percent, respectively, after the implementation of COPQ measuring system. This study further supports the use of the COPQ system in construction projects as a mechanism to facilitate continuous improvement. Originality/value – COPQ is a major cost that is often ignored in construction projects due to the difficulty of measuring it. This paper presents a COPQ measuring and recording system capable of identifying COPQ. The implementation of the system is shown to increase productivity and profitability as demonstrated by the project used for the case study.

scholarly journals Cost-Effectiveness of Carbon Emission Abatement Strategies for a Local Multi-Energy System—A Case Study of Chalmers University of Technology Campus

Energies ◽  
2020 ◽  
Vol 13 (7) ◽  
pp. 1626
Author(s):  
Nima Mirzaei Alavijeh ◽  
David Steen ◽  
Zack Norwood ◽  
Le Anh Tuan ◽  
Christos Agathokleous
Keyword(s):  
Cost Effectiveness ◽  
District Heating ◽  
Energy System ◽  
Emission Abatement ◽  
System A ◽  
University Of Technology ◽  
Abatement Strategies ◽  
The Cost ◽  
Carbon Prices

This paper investigates the cost-effectiveness of operation strategies which can be used to abate CO 2 emissions in a local multi-energy system. A case study is carried out using data from a real energy system that integrates district heating, district cooling, and electricity networks at Chalmers University of Technology. Operation strategies are developed using a mixed integer linear programming multi-objective optimization model with a short foresight rolling horizon and a year of data. The cost-effectiveness of different strategies is evaluated across different carbon prices. The results provide insights into developing abatement strategies for local multi-energy systems that could be used by utilities, building owners, and authorities. The optimized abatement strategies include: increased usage of biomass boilers, substitution of district heating and absorption chillers with heat pumps, and higher utilization of storage units. The results show that, by utilizing all the strategies, a 20.8% emission reduction can be achieved with a 2.2% cost increase for the campus area. The emission abatement cost of all strategies is 36.6–100.2 (€/tCO 2 ), which is aligned with estimated carbon prices if the Paris agreement target is to be achieved. It is higher, however, than average European Emission Trading System prices and Sweden’s carbon tax in 2019.

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