tgurunat
July 28th, 2008, 05:13 PM
Warranty cost around the world is growing. According to Bearing Point " ...Estimates of Global spend on warranty claims run between $45- 50 Billion. In the United states, automotive manufacturers and suppliers spent $13 Billion on warranty claims in 2006, according to Warranty Week...."
Warranty is a good measure for management matrix as it goes directly to Gross Margin. According to Warranty Week top 50 US companies have Warranty cost expressed in percentage of revenue, varies from .3% at Johnson controls, .6% at Delphi and Tyco International to 6.2% at Microsoft, 8.6% at Palm, 13% at Lexmark International . Does any of you have information about reliability program at Johnson Controls, Delphi Corporation and Tyco International? What do they do diffirent from others? Do they practice Physics of Failure and Accelerated testing in their product design process. I know Delphi uses Reliasoft Software extensively. How do we help corporations like Lexmark, Palm Inc, and Microsoft realize the benefit of Reliability programs, DFSS program, Shainin techniques, etc
Please note Stock analyst watch Gross margin closely, the company which has higher Gross Margins, in their products sell for higher stock price. Since Warranty cost flows directly to Gross Margin, we have a way to communicte to senior management the power of Design For Reliability process to reduce warranty cost and improve Gross Margin.
Warranty is a good measure for management matrix as it goes directly to Gross Margin. According to Warranty Week top 50 US companies have Warranty cost expressed in percentage of revenue, varies from .3% at Johnson controls, .6% at Delphi and Tyco International to 6.2% at Microsoft, 8.6% at Palm, 13% at Lexmark International . Does any of you have information about reliability program at Johnson Controls, Delphi Corporation and Tyco International? What do they do diffirent from others? Do they practice Physics of Failure and Accelerated testing in their product design process. I know Delphi uses Reliasoft Software extensively. How do we help corporations like Lexmark, Palm Inc, and Microsoft realize the benefit of Reliability programs, DFSS program, Shainin techniques, etc
Please note Stock analyst watch Gross margin closely, the company which has higher Gross Margins, in their products sell for higher stock price. Since Warranty cost flows directly to Gross Margin, we have a way to communicte to senior management the power of Design For Reliability process to reduce warranty cost and improve Gross Margin.