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Management of EWs/MSCs and LCs

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Extended Warranties, Maintenance Service and Lease Contracts

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

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Abstract

Assets (products, plants and infrastructure) are either bought, built or leased to meet some specified performance objectives over a specified time interval. Asset performance depends on the characteristics of the asset (such as reliability and quality), the usage mode and intensity, the operating environment, and on the support service (such as maintenance and maintenance logistics). If the asset is bought (or built), the owner of the asset can either do the maintenance in-house or outsource some or all of the maintenance through an EW or MSC. If the asset is leased, depending on the terms of the lease contract, the responsibility for maintenance either rests with the lessor or rests with the lessee.

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Notes

  1. 1.

    Often terms such as companies, corporations, firms, organisations, etc. are used instead of businesses.

  2. 2.

    For more on this, see Duffuaa et al. (1998).

  3. 3.

    The literature on multicriteria decision-making is vast, see for example, Roy (1996) and Belton and Stewart (2002). In the context of maintenance, see de Almeida (2005, 2007) and de Melo Brito et al. (2010).

  4. 4.

    For more on contract negotiations, see for example, Kumar et al. (2004), and Jackson and Pascual (2008).

  5. 5.

    For more on marketing channels see, Lewis (1968) and on the linkage between product distribution and service support channels see, Loomba (1996).

  6. 6.

    There is extensive literature on customer satisfaction and improving service quality. See, for example, Maxham and Netemeyer (2002), Haugen and Hill (1999), Ehinlanwo and Zairi (1996) and Kurata and Nam (2010).

  7. 7.

    Palfrey and Romer (1983) deal with dispute resolution in the context of BWs and this is also applicable to EWs and MSCs.

  8. 8.

    Murthy et al. (2004) deal with issues and challenges in product warranty logistics.

  9. 9.

    There are many papers dealing with information in the context of service delivery, see for example Berkley and Gupta (1995).

  10. 10.

    The information flow model of McFarlane and Cuthbert contains only the middle four boxes.

  11. 11.

    Also referred to as “permanent ways”.

  12. 12.

    There is a lot of controversy on defining risk. Aven (2010) discusses a vast number of risk definitions.

  13. 13.

    In risk-based decision-making risk analysis is the sole input whereas risk-informed decision-making it is one of many other inputs (such as decision analysis, cost-benefit analysis, etc.).

  14. 14.

    There are many papers that deal with these topics, see for example, Hogart and Kunreuther (1989) for insurance and Chen and Shen (2012) for options contracts.

  15. 15.

    In the sociocultural, political and economic context of western societies, Lupton (1999) defines six pressing risk domains. These are environmental risk, lifestyle risk, medical risk, interpersonal risk, economic risk and criminal risk.

  16. 16.

    Losses due to violation of laws and regulation, breach of contract, entering into improper contracts or other legal factors are not part of the risk as these are deliberate actions.

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Authors and Affiliations

  1. School of Mechanical and Mining Engineering, University of Queensland, Brisbane, Australia

    D. N. P. Murthy

  2. Dundee Business School, University of Abertay Dundee, Dundee, UK

    Nat Jack

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  1. D. N. P. Murthy
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Correspondence to D. N. P. Murthy .

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Murthy, D.N.P., Jack, N. (2014). Management of EWs/MSCs and LCs. In: Extended Warranties, Maintenance Service and Lease Contracts. Springer Series in Reliability Engineering. Springer, London. https://doi.org/10.1007/978-1-4471-6440-1_11

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  • DOI: https://doi.org/10.1007/978-1-4471-6440-1_11

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