Title: Experimental study of factors influencing maturing data phenomenon in warranty performance indicators

Authors: Bharatendra K. Rai

Addresses: Department of Decision and Information Sciences, Charlton College of Business, University of Massachusetts – Dartmouth, 285 Old Westport Road, North Dartmouth, MA 02747-2300, USA

Abstract: Warranty performance indicators are extensively used for comparison, prediction, and prioritisation purposes to support warranty cost reduction efforts. These efforts, however, are made challenging due to data maturation phenomena. Data maturation causes value of warranty performance indicators to change as new data become available, making comparison, prediction, and prioritisation tasks complex. Although this phenomena has been discussed in literature, there is a lack of understanding about the contributing factors. This paper provides an experimental simulation study involving three factors viz., staggered entry of vehicles, failure rate and months-in-service, and reports the findings of the study with managerial implications.

Keywords: maturing data; staggered entry; warranty performance; failure rate; simulation; performance indicators; warranty cost reduction; product warranty; automotive warranty; automobile industry; vehicle warranty.

DOI: 10.1504/IJPD.2010.036388

International Journal of Product Development, 2010 Vol.12 No.3/4, pp.220 - 234

Published online: 02 Nov 2010 *

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