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Role of Warranty Data in New Product Development

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Book cover Warranty Data Collection and Analysis

Part of the book series: Springer Series in Reliability Engineering ((RELIABILITY))

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Abstract

Manufacturers have tended to make decisions about warranty during the marketing stage and warranty has been ignored during the early stages of the new product development process. Because of the importance of warranty and the cost implications of offering a warranty, a broader approach to warranty issues is necessary. In this chapter, we discuss a framework for dealing with warranty issues from the very beginning of the new product development process and highlight the importance of dealing with warranty issues at this stage of the product life cycle.

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Notes

  1. 1.

    This is the basis for the “exploitative theory” of warranty proposed by [27].

  2. 2.

    This is the basis for the “signaling theory” theory of warranty proposed by [29] and leading to a considerable amount of subsequent research papers in economic journals.

  3. 3.

    Reference [32] was one of early papers dealing with warranty as an element of competitive strategy. Since then, several papers have appeared on this topic in the marketing literature. See the review by [18] for examples.

  4. 4.

    Details of these can be found in most books on strategic management. See for example, [31].

  5. 5.

    For more on technology management, see [4] and [6].

  6. 6.

    A product is designated by its characteristics and attributes. The distinction between these two is best explained by the statement “product characteristics physically define the product and influence the formation of product attributes; product attributes define consumer perceptions and are more abstract than characteristics” [30]. Consumers view products in terms of attributes whereas design engineers are more concerned with characteristics.

  7. 7.

    For a case study on warranty planning and development framework in a high-tech firm, see [7].

  8. 8.

    See [10] for further discussion as well as additional references.

  9. 9.

    New York Times, August 4, 2002.

  10. 10.

    Contracts involving multiple parties with different interests and objectives are the concern of agency theory. For more on this, see [1, 12].

  11. 11.

    The data and information aspects for the different phases of the NPD process are discussed in [20].

  12. 12.

    For Phases 6ᾢ9, warranty data are useful for initiating changes to the process and operations. Warranty data collected after the product is launched are used for continuous improvements, as discussed in Chap. 15.

  13. 13.

    Reference [11] deals with some issues relating warranty management.

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Authors and Affiliations

  1. 5401 Katherine Avenue, 91401-4922, Sherman Oaks, Los Angeles, CA, USA

    Wallace R. Blischke

  2. Department of Statistics, Rajshahi University, Rajshahi, Bangladesh

    M. Rezaul Karim

  3. School of Mechanical and Mining Engineering, The University of Queensland, Brisbane, QLD, 4072, Australia

    D. N. Prabhakar Murthy

Authors
  1. Wallace R. Blischke
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  2. M. Rezaul Karim
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  3. D. N. Prabhakar Murthy
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Correspondence to Wallace R. Blischke .

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Blischke, W.R., Rezaul Karim, M., Prabhakar Murthy, D.N. (2011). Role of Warranty Data in New Product Development. In: Warranty Data Collection and Analysis. Springer Series in Reliability Engineering. Springer, London. https://doi.org/10.1007/978-0-85729-647-4_16

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  • DOI: https://doi.org/10.1007/978-0-85729-647-4_16

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  • Publisher Name: Springer, London

  • Print ISBN: 978-0-85729-646-7

  • Online ISBN: 978-0-85729-647-4

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