Abstract
This chapter presents an analysis of 2-D warranty claims data on a component of an automobile. The objectives of the study are to (i) present a preliminary analysis of the claims data, (ii) investigate the relationship between age and usage, (iii) select suitable probability models for age conditional on usage rate, (iv) model two variables, age and usage, using a single (composite scale) variable, and (v) discuss the managerial implications that focus on the practical use of the information regarding component reliability and warranty for cost-benefit analysis.
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Notes
- 1.
- 2.
Note that as we move from Level 3 to Level 1, we are losing information. Level 3 is detailed whereas Levels 1 and 2 are aggregated.
- 3.
There are a very small (negligible) number of components on which more than one claim was filed and this information is not given in the database. As a result, each new sale/replacement is identified with a unique customer number. We use the term “customer” to correspond to the identification number.
- 4.
The detailed results of ANOVA and Tukey’s multiple comparison tests are not shown here.
- 5.
Regression analysis is used to find these relationships.
- 6.
Calculation of the empirical distribution function (EDF) is discussed in Sect. 8.5.1.
- 7.
- 8.
- 9.
Another choice can be the lognormal model for age for level 1 analysis.
- 10.
Some findings and managerial implications are also pointed out in Sect. 18.4.
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Blischke, W.R., Rezaul Karim, M., Prabhakar Murthy, D.N. (2011). Case Study 2: Analysis of Automobile Components Warranty Claims Data. In: Warranty Data Collection and Analysis. Springer Series in Reliability Engineering. Springer, London. https://doi.org/10.1007/978-0-85729-647-4_18
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DOI: https://doi.org/10.1007/978-0-85729-647-4_18
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