Warranty and Diagnostics The Key to Better Performance and Higher Profits

Warranty and DiagnosticsThe Key to Better Performance and Higher Profits

June 3, 2008

© 2008 BearingPoint, Inc. AWaCS 2

Key Contacts

Wayne RelyeaSenior Manager

Technology Solutions

BearingPoint, Inc.25 Independance Boulevard Warren, NJ 07059www.bearingpoint.com

Tel: [email protected]

Jay CappyManaging Director

Technology Solutions

BearingPoint, Inc.1676 International Drive McLean, Virginia 22102www.bearingpoint.com

Tel: [email protected]


Agenda

Objectives

Quality/Warranty Background

AWaCS

– Functionality

– Architecture

– Case Study

Q&A


Objectives

Provide fact based information on the capabilities of a deployed Warranty/Quality Early Warning System.

Describe and discuss the business issues driving the implementation of Early Warning Systems.

Discuss the system architecture and reporting capabilities of a deployed Early Warning System.

Review the proven results from a deployed Early Warning System implementation.


An Early Warning System can Reduce Warranty Costs and Improve Consumer Confidence

“Every day of reduction is a savings of $1M” AMR

Reduction in the Detection-to-Correction is Critical to Improved Performance

Today’s Mission – Customer Satisfaction:Improved Quality and Reduced Warranty Costs

Customers Demand Improvement in the Quality of the Products We Build

Quality Issues are Impacting Customer Satisfaction and Brand Loyalty

Warranty Costs Often Exceed Annual Profits

Competition is Increasing their Investments to Improve Quality

< 120 Days

Time

Co

st o

f W

arra

nty

180 - 220 Days

Not to ScaleTotal Warranty Cost

Cost Reduction

< 120 Days Warranty Claim are not sufficient to identify and

resolve quality issues

Early Warning Systems are needed to identify problems quickly

Diagnostic information provides the most optimal basis for Early Warning

Centralized access to Diagnostic Information facilitates quick Root Cause Analysis


Warranty Analysis is not Enough

What is needed is:

Access to Diagnostic Data as soon as possible after the product is serviced to allow for earlier issue identification

Access to Real-Time Diagnostic Results to detect fault events and proactively report the events

A single access point to the product build, quality, sales, warranty and diagnostic data for analysis and reporting.

Ability to Drill between Warranty and Diagnostic data.

Ability to Analyze Issues by Parts and Suppliers.

Ability to perform Text Mining on Technician and Customer Comments.


AWaCS capabilities reduce the "detection-to-correction" interval, thereby improving both initial and long term quality.

What is AWaCS? (Advanced Warranty Containment System)

AWaCS is a multidimensional web-based system which provides:

combined analysis capabilities using warranty claims and diagnostic information.

AWaCS supports:

the retrieval, integration, reporting and analysis of Production, Sales, Warranty and Diagnostic information.

intuitive, timely, and accurate analysis that is customized to an end user's approach to resolve field problems.


Master Tables Model Year Make & Model Line Series Families Plants Suppliers Parts

Dealers Labor Codes Engine Transmission DTCs PIDs Etc…

Data Warehouse

Input Data VIN Build Record As-Built Record Production Sales Warranty Claims Diagnostics Events Trace Parts Breakpoints

Data Base Server

FTP & ETLServer Application

ServerMappingServer

BI - ReportServer

Modules Warranty Sales Build Change Detection Part Management Fleet Management Regulatory Diagnostics Telematics Traceability(Over 400 Reports

and Templates)

E-Mail and Alerting

SystemAdministration

AWaCS Logical Architecture – Automotive Implementation

Global UserPortal

SupplierPortal


Effective Reporting Observations

Data in and of itself is not information Data is necessary, but not sufficient

Data without structure is overload

Data must be readily accessible to the general user community Report generation must be intuitive.

In general, users do not have Computer Science degrees, and cannot write SQL queries

System validation of user selections is critical to avoid invalid report requests, leading to invalid assessments

Data must be presented in a clear and concise manner to be useful Role based reporting is critical

Different levels of detail are required by different users


Intuitive and Targeted Reporting

Executives

Brand Managers Brand Quality Technical Assistance

Quality ManagersQuality Engineers

Program Quality Managers/Engineers Product Development Engineers Diagnostic Strategists; Engine & Transmission Verification Diagnostic Group Plant/Field Verification Engineers Hardware Technical Experts, Engine, Transmission, EI&S

Product Development EngineersService Operations

Dealerships Technical Assistance Center Warranty, Recalls

Suppliers

• Dashboards• Trends / Projections• Containment Tracking• Pareto Reports• Alerts• Exception Reporting• Ad Hoc Reports


Powertrain Dashboard


DTC Pareto Report


DTC Detail Report


PID Detail Report


Case Study: U.S. Automotive OEMQuality Information System

Client Situation:

A leading U.S. Automotive OEM needed to develop a system for identifying emerging quality issues quickly and focus root cause analysis efforts to resolve problems, improve performance and reduce warranty costs. The early identification of quality issues during development and initial production could reduce the population of recalls. The quality analysis system needed to consolidate vehicle build, sales, warranty and diagnostic data from multiple applications, with daily updates, to provide immediate analysis and visibility to emerging issues.

Client Benefits:

Provided analytics and analysis of issues by multiple vehicle, option, production and DTC attributes

Improved identification of emerging issues, safety problems and critical failures from weeks/months to days

Provided data to support product development to drive improvements in the quality and performance of the vehicles produced

Warranty Cost Avoidance estimated at $100M+ the first 6 months in use.

Chairman’s Global Award for Quality


AWaCS - “The Bottom Line”

Fine Tuning Warranty Systems and Processes is NOT ENOUGH

Manufacturer’s MUST Deploy An Early Warning System Leverage Meaningful Diagnostics Data

Drive Costs Out in Development and Initial Production

AWaCS Delivers a Unique Ability To Identify and Resolve Quality Issues EARLY Proven Cost Avoidance of $10M+ / Month

Improves and Protects Brand Image

Scalability Proven at a Very Large OEM

BearingPoint reduces the RISK of the Project Knowledge and Experience of the Architecture and the Solution

Quicker Implementation -- Lessons Learned

Internal vs External Development -- Skilled and Focused Resources

Build vs Buy -- A Packaged Solution does not exist. Built to meet your business needs.

Documents

Warranty and Diagnostics The Key to Better Performance and Higher Profits