Warranty program engineering

A process is developed that contributes to the successful engineering of a warranty program. The process utilizes a combination of analytical techniques to define a window of ranges for factors impacting warranty program cost. To create a tighter target, a simulation-based algorithm called programmed optimization of warranty (POWer) is introduced. The POWer algorithm converts factors from production, field service, marketing, and reliability into easily digestible units of dollars. The algorithm uses the Monte Carlo simulation technique to project warranty performance. The results are linked with engineering/economic factors to provide a solution in dollars