Prediction of potential warranty exposure and life distribution based upon early warranty data

Business desires to address business risks as early as possible. In the automotive industry an early response to an emerging issue can save a tremendous amount of money, help preserve a business reputation, and increase the organizational learning rate. Warranty data is commonly tracked and analyzed in the automotive industry with a greater appreciation that a significant effort exerted in early detection is in the best interest of the business. This paper highlights an analysis method to detect potential product issues early in the production cycle and with this information estimate cost. The method involves estimation of the failure distribution from available warranty data coupled with customer usage and application specific data, to more quickly detect and react to potential business risks and determine the cost impact. Failure distribution analysis is recommended for addition to the standard warranty analysis toolset.