Case study: Warranty costs estimation according to a defined lifetime distribution of deliverables

  • Vicente González Díaz
  • Juan Francisco Gómez Fernández
  • Adolfo Crespo Márquez


This paper pretends to describe a real case of warranty assistance, analyzing its management in the framework of a manufacturing company which provides deliverables during a specific period of time and following a scheduled distribution. With the sale of a product, the manufacturer is nowadays obliged contractually to perform warranty assistance to the buyer. Decreasing the incurred costs is clearly not the only aspect to achieve, since the decision has to be global and strategical inside the company in order to purchase a reliable and robust product, offering as well an appropriate after-sales service to the user. Therefore, key aspects will be presented along this study in order to estimate costs and, consequently, to take proper decisions for leading correctly the company to a successful goal. For that purpose, not only managers and responsibles in a well-established and controlled organization must take part, it is also of importance to consider the experience given by the technical staff for maintenance and warranty. As result, this paper will show basically how analyzing the past performance is possible to foresee and control the future. In our case, it will be possible to observe how the evolution of costs during the lifetime of a warranty assistance program can help to correct and foresee with more accuracy the expected total cost of the activity considered at the beginning of the program. The paper is based on an usual procedure in special supplies for the public sector (for instance, a fleet of customized vehicles), between companies inside the supply chain or directly to the final user, where this final user is for example a public entity and the budget for the complete warranty assistance is already known from the beginning of the project.


Assembly Line Spare Part Management Board Warranty Service Delivery Schedule 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    V. González Díaz, J.F. Gómez, M. López, A. Crespo, P. Moreu de León. (2009) Warranty cost models State-of-Art: A practical review to the framework of warranty cost management. ESREL 2009, Prague.Google Scholar
  2. 2.
    K. Lyons, D.N.P. Murthy. (2001) Warranty and manufacturing, integrated optimal modelling. Production Planning, Inventory, Quality and Maintenance, Kluwer Academic Publishers, New York. Pp. 287–322.Google Scholar
  3. 3.
    Boyan Dimitrov, Stefanka Chukova and Zohel Khalil. (2004) Warranty Costs: An Age-Dependent Failure/Repair Model. Wiley InterScience, Wiley Periodicals, Inc.Google Scholar
  4. 4.
    J. Gómez, A. Crespo, P. Moreu, C. Parra, V. González Díaz. (2009) Outsourcing maintenance in services providers. Taylor & Francis Group, London. Pp. 829-837. ISBN 978-0-415-48513-5.Google Scholar
  5. 5.
    Stefanka Chukova and Yu Hayakawa. (2004) Warranty cost analysis: non-renewing warranty with repair time. John Wiley & Sons, Ltd. Appl. Stochastic Models Bus. Ind. 20, Pp. 59–71Google Scholar
  6. 6.
    D. Christensen. (1993) Determining an accurate Estimate At Completion. National Contract Management Journal 25. Pp. 17-25.Google Scholar
  7. 7.
    ISO/DIS 14224, ISO TC 67/SC /WG 4. (2004) Petroleum, petrochemical and natural gas industries - Collection and exchange of reliability and maintenance data for equipment, Standards Norway.Google Scholar

Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  • Vicente González Díaz
    • 1
  • Juan Francisco Gómez Fernández
    • 1
  • Adolfo Crespo Márquez
    • 2
  1. 1.Industrial Management PhD Program at the School of EngineeringUniversity of SevilleSevilleSpain
  2. 2.Industrial Management School of EngineeringUniversity of SevilleSevilleSpain

Personalised recommendations