Customized Preventive Maintenance Strategies for Products Sold with Two-Dimensional Warranty

Two-dimensional warranty has played a significant role in improving product quality and competitiveness. However, two-dimensional basic warranty (BW) and extended warranty (EW) have not yet been combined effectively, and the customized maintenance strategies based on the consumers’ heterogeneity have been quite limited, which result in high maintenance costs. In this paper, the possibility of reducing warranty cost over BW and EW is explored by classifying customers based on their usage rates and then offering them with customized preventive maintenance (PM) strategies. By considering the purchasing ratio of EW contracts, the PM strategies for BW and EW are closely combined by the bi-level programming model. Numerical analysis is given to show the application of the proposed warranty strategy, and the significant findings and sensitivity of the main parameters are analyzed in the end. The findings demonstrate that the customized PM strategies combining BW and EW can effectively reduce warranty costs within the warranty period and provide a scientific guidance for manufacturers to design a more reasonable PM strategy.

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Research on Pricing of Flexible Two-Dimensional Extended Warranty Considering Preventive Maintenance

Xibei Gongye Daxue Xuebao/Journal of Northwestern Polytechnical University ◽

10.1051/jnwpu/20193720393 ◽

2019 ◽

Vol 37 (2) ◽

pp. 393-400

Author(s):

Xiaolei Zhang ◽

Chun Su

Keyword(s):

Preventive Maintenance ◽

Two Dimensional ◽

Maintenance Strategy ◽

Pricing Model ◽

Reduction Model ◽

Warranty Period ◽

Extended Warranty ◽

Warranty Cost ◽

Usage Rates

Facing the uncertainty in transaction of two-dimensional extended warranty, a flexible pricing model is presented considering imperfect preventive maintenance combined with the degradation characteristics of item. The measure of two-dimensional preventive maintenance is carried out based on specified age interval or usage interval, the effect of imperfect preventive maintenance is described by age reduction model. The extended warranty cost is modeled from the perspective of manufacturer and customer, the method of gridding search is employed to optimize the maintenance strategy under different cases. Moreover, customized extended warranty price and warranty services are proposed on the basis of consumer usage rates. The results demonstrate that it is helpful to maximize the benefit of vendor by providing customized warranty strategy, the implementation of preventive maintenance during the whole warranty period can effectively reduce warranty cost for both sides.

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Two-dimensional preventive maintenance optimum for equipment sold with availability-based warranty

Proceedings of the Institution of Mechanical Engineers Part O Journal of Risk and Reliability ◽

10.1177/1748006x18813821 ◽

2018 ◽

Vol 233 (4) ◽

pp. 648-657

Author(s):

Chun Su ◽

Longfei Cheng

Keyword(s):

Preventive Maintenance ◽

Two Dimensional ◽

Maintenance Strategy ◽

Maintenance Policy ◽

Numerical Example ◽

Warranty Period ◽

Warranty Cost ◽

Complex Equipment ◽

Object Of Study ◽

Preventive Maintenance Policy

Selecting complex equipment with availability requirements as the object of study, this article investigates an availability-based warranty policy. Under this policy, apart from providing repairs or replacements upon failures, the manufacturer guarantees a negotiated availability level of products during the warranty period. In order to satisfy the availability requirement of the warranted products with rational cost, two-dimensional preventive maintenance strategy is carried out by the manufacturer, which is scheduled by considering the age and usage of the warranted items. By optimizing two-dimensional preventive maintenance strategy, this study aims to meet products’ availability requirement with the lowest cost from the manufacturer’s perspective. Moreover, customized preventive maintenance programs are designed for different customer categories. Finally, we provide a numerical example to verify the effectiveness of the proposed availability-based warranty policy. The results demonstrate that two-dimensional preventive maintenance strategy is superior in terms of warranty cost and operational availability. Meanwhile, customized preventive maintenance policy is more beneficial to both the transaction sides.

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Availability Optimization of Multicomponent Products with Economic Dependence under Two-Dimensional Warranty

Discrete Dynamics in Nature and Society ◽

10.1155/2021/2492430 ◽

2021 ◽

Vol 2021 ◽

pp. 1-17

Author(s):

Enzhi Dong ◽

Zhonghua Cheng ◽

Rongcai Wang ◽

Xiaona Zhang

Keyword(s):

Simulated Annealing ◽

Preventive Maintenance ◽

Simulated Annealing Algorithm ◽

Single Component ◽

Two Dimensional ◽

Economic Dependence ◽

Warranty Period ◽

Warranty Cost ◽

Annealing Algorithm ◽

Availability Model

For multicomponent products, the maintenance of every component separately will increase the downtime and reduce the availability of products during the warranty period. To solve this problem, the economic dependence between the components is considered in this paper. Firstly, a single-component two-dimensional (2D) preventive maintenance (PM) availability model is established, and the simulated annealing algorithm is adopted to calculate the optimal 2D PM interval to achieve the maximal availability of any single component. Then, to ensure that the warranty cost of each component does not exceed the budget, the PM benchmark interval is introduced, and the PM work is optimized following the method of grouping maintenance. Based on this, the 2D preventive grouping maintenance availability model of multicomponent products is established. Finally, an example is given to verify the proposed method, and the results indicate that the proposed method increases the availability of multicomponent products during the 2D warranty period.

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Two-dimensional warranty period optimization considering the trade-off between warranty cost and boosted demand

Computers & Industrial Engineering ◽

10.1016/j.cie.2019.03.014 ◽

2019 ◽

Vol 130 ◽

pp. 575-585 ◽

Cited By ~ 3

Author(s):

Zhaomin Zhang ◽

Shuguang He ◽

Zhen He ◽

Anshu Dai

Keyword(s):

Two Dimensional ◽

Trade Off ◽

Warranty Period ◽

Warranty Cost

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Analysis of a two-dimensional stair-case warranty policy with preventive maintenance

IMA Journal of Management Mathematics ◽

10.1093/imaman/dpaa005 ◽

2020 ◽

Vol 32 (1) ◽

pp. 51-67

Author(s):

Jinting Wang ◽

Sheng Zhu ◽

Simiao Du

Keyword(s):

Mathematical Model ◽

Preventive Maintenance ◽

Optimal Strategy ◽

Optimal Solution ◽

Two Dimensional ◽

Rectangular Region ◽

Numerical Example ◽

Warranty Cost

Abstract We develop a mathematical model to study optimal preventive maintenance (PM) strategy under a two-dimensional stair-case warranty policy considering both age and usage of a product. During the warranty term, sellers implement preventive maintenance within the stair-case region of the warranty policy and upon failure a product is repaired minimally and immediately. Our objective is to find the optimal PM strategy that minimizes the seller’s cost of warranty while jointly considering the age and usage intervals of the PM policy and the level of PM executed. We also discuss how our results compare to those in a two-dimensional warranty policy with a rectangular region, and we find that the stair-case policy is preferable for sellers. An algorithm is provided to find the optimal solution and a numerical example is presented to illustrate how to find an optimal strategy with our proposed method. We show numerically that the expected total warranty cost is convex both in the age and the usage of the product under certain conditions.

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An availability-based warranty policy considering preventive maintenance and learning effects

Proceedings of the Institution of Mechanical Engineers Part O Journal of Risk and Reliability ◽

10.1177/1748006x17746005 ◽

2017 ◽

Vol 232 (6) ◽

pp. 576-586 ◽

Cited By ~ 4

Author(s):

Chun Su ◽

Longfei Cheng

Keyword(s):

Preventive Maintenance ◽

Learning Effects ◽

Wind Turbine Gearbox ◽

Cost Rate ◽

Maintenance Schedule ◽

Warranty Period ◽

Hazard Rate Model ◽

Equipment Failures ◽

Warranty Cost ◽

Maintenance Plan

By considering learning effects during the process of maintenance, this article investigates an availability-based warranty policy from the manufacturer’s perspective. Imperfect preventive maintenance activities are implemented to reduce the number of equipment failures so as to meet the product’s availability requirement and minimize warranty servicing cost during the warranty period. Hybrid hazard rate model is used to describe imperfect preventive maintenance actions; maintenance plan and warranty servicing cost are optimized by considering learning effects. Preventive maintenance schedule within a warranty period is optimized cycle by cycle, and the warranty cost rate is minimized under the requirement of availability within each cycle. Numerical example of a wind turbine gearbox is provided to verify the effectiveness of the proposed availability-based warranty policy. Sensitivity analysis shows that by considering learning effects on maintenance, the gearbox can maintain a higher availability level with a lower warranty cost than the case without consideration of learning effects.

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Warranty cost analysis with an alternating geometric process

Proceedings of the Institution of Mechanical Engineers Part O Journal of Risk and Reliability ◽

10.1177/1748006x18820379 ◽

2019 ◽

Vol 233 (4) ◽

pp. 698-715 ◽

Cited By ~ 1

Author(s):

Richard Arnold ◽

Stefanka Chukova ◽

Yu Hayakawa ◽

Sarah Marshall

Keyword(s):

Life Cycle ◽

Real Data ◽

Repair Time ◽

Repair Cost ◽

Geometric Process ◽

Warranty Period ◽

Warranty Cost ◽

Warranty Costs ◽

Warranty Claims ◽

Operational Time

In this study, we model the warranty claims process and evaluate the warranty servicing costs under non-renewing, renewing and restricted renewing free repair warranties. We assume that the repair time for rectifying the claims is non-zero and the repair cost is a function of the length of the repair time. To accommodate the ageing of the product and repair equipment, we use a decreasing geometric process to model the consecutive operational times and an increasing geometric process to model the consecutive repair times. We identify and study the alternating geometric process, which is an alternating process with cycles consisting of the item’s operational time followed by the corresponding repair time. We derive new results for the alternating geometric process in a finite horizon and use them to evaluate the warranty costs over the warranty period and over the life cycle of the product under a non-renewing free repair warranty, a renewing free repair warranty and a restricted renewing free repair warranty. Properties of the model are demonstrated using a simulation study and by fitting the models to real data from an automotive manufacturer.

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Warranty Costs Assessment for Automotive Applications

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.433-440.6108 ◽

2012 ◽

Vol 433-440 ◽

pp. 6108-6115

Author(s):

Zdenek Vintr ◽

Michal Vintr

Keyword(s):

Mathematical Model ◽

Automotive Industry ◽

Two Dimensional ◽

Automotive Applications ◽

Product Reliability ◽

Warranty Period ◽

Warranty Costs ◽

The Mathematical Model ◽

The Relationship

The article deals with current problems of warranty costs in automotive applications. The two-dimensional warranty widely used in automotive industry is presented. The relationship between warranty costs and product reliability is also presented. The article analyses problems with estimation of a number of failure occurrence over a warranty period and estimation of costs related to repair failures. The mathematical model enables to predict warranty costs for two-dimensional warranty is presented. The article also deals with problems of estimation of an instant of warranty period expiration and demonstrates its estimation on an example of a vehicle.

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