Wcm2011cross Functionalwarrantymanagement Aclosedloopapproachtoboostprofitability Ss 120215055704 Phpapp02

7/29/2019 Wcm2011cross Functionalwarrantymanagement Aclosedloopapproachtoboostprofitability Ss 120215055704 Phpapp02

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PEOPLE. PASSION. EXCELLENCE.

> Cross-functional Warranty

Management A Closed LoopApproach to Boost ProfitabilityPresented by Tavant Technologies at Warranty Chain

Management Conference 2011, San Diego, CA

Author: Devendra Malekar and Roshan Pinto


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Tavant Proprietary & Confidential

Why This Discussion?

The importance of Effective Warranty Management to the

Companys Overall Performance

Satisfaction with the Companys Current Approachto Warranty Management

Market Pressures Driving Warranty Management Process Used in Support of Warranty Management

Over 80% OEMs feel that Warranty Management is extremely or

very important to the companys performance

67% OEMs are not completely satisfied with their companys

approach to Warranty Management

Customer Satisfaction, Warranty Costs and Profitability are the top

concerns

79% OEMs have manual or partially automated Warranty

Management process


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Warranty A Critical Value Chain

Revenues

Cash flow

Competitive Edge

Shareholder Value

Profitability

Trust & Loyalty

Customer

Satisfaction


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Warranty A Critical Value Chain

> Superior Product Quality

> High Reliability & Uptime

> Comprehensive Warranty

> Speed & Quality of service

Ever Exceeding

Customer

Expectations

Controlling warranty spend and ensuring customer

satisfaction is always a critical balance


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Factors Affecting Total Warranty Cost

Administration

Material

Labor

Repair jobs

Logistics

Rentals


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Warranty in Cost of Quality


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Direct CoPQ

> Deficiencies in product engineering / design

and analysis

> Manufacturing processes and workmanship

defects

> Delay in detection of field issues


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Direct CoPQ

> Field service troubleshooting errors and

inefficiency

> Inefficiencies in parts return increase logisticscosts and affects reverse logistics processes

> Supplier warranty accountability not defined /

apportioned well



Direct CoPQ

> Increasing No Fault Found instances with no

collaborative dispute management

> Inefficiencies in warranty software system

High processing times and lack of automation

> Extended Warranties and Service Contractscost overrun due to lack of dynamic visibility

into cash flow



Losses Caused by Indirect CoPQ

> Customer satisfaction and goodwill

> Time with dissatisfied customers

> Customer confidence in products

> Loyalty to the brand

> Recurring business

> Shareholder value

Good news travels fast;

bad news travels faster!



Enablers for Closed Loop System

Closed LoopWarranty

End-to-EndWorkflow

Automation

Intelligence

Integration



Process Transformation

Integration Automation

End-to-EndWorkflow



Leverage Intelligence

To Analyse KPIs in -

> Product & Service Performance

> Warranty Costs

> Top Warranty Cost Drivers

> Top Field Service Issues

> Workmanship

> Products & Parts Reliability

> Returns and Recalls

> Supplier Performance> Reserves & Cash flow

> Aftermarket Sales & Profitability

Metrics and

KPIs

Expenses

Reliability

FMEA

Reserves /Cash Flow

Quality

Volume

Operational Efficiency



Intelligence Hidden in Warranty Data

Warranty Cost as a % of sale Warranty Cost by Product Family Warranty Cost by Product Model



Top Causal PartsParts return Cycle Time Mean time between Failures (MTBF)





Top Business Rule FailuresOpen Claims Status

EW / Contract Profitability


Top Causal PartsParts return Cycle Time Mean time between Failures (MTBF)




Initiatives from Intelligence> Product engineering / redesign

> Design for warranty selfrepair / Remote fixes

> Design for serviceability

> Improve field diagnostics

> Review Supplier Performance

> Reduce instances of no fault found> Increase service limits

> Enhance repair intervals

> Refine sales pricing

> Data for financial audits

> Predictive analysis of costs and reserves

> Reduce Detection to Correction cycle time

> Cross-selling and Up-selling of Services



Close the Loop for Crossfunctional

Improvements!

Integrate warranty organization more closely with other business functions



Leverage Technology Process

Automation

User Convenience through Configuration

Ad-hoc Query

Routing Rules

Validation Rules

Processing Rules

Limits of Authority

Policy Evaluation

Cost Modifiers

Business Rules Engine

QueryBuilder

Rules Editor

JBPM

Business Conditions

Business Entities OGNL



Leverage Technology Warranty Intelligence

Business

Results

Strategic and Operational Decision

Making

Integrated

Analytics

Dashboards

Early Warning

System

Predictive

Analysis

Actionable

Insight

Collaborative

Approach

Real-Time

Monitoring



Conclusion

Intelligence

End-to-End Integrated Work

flow

Automation

Stakeholder Collaboration

Dealer

Supplier

Customer

OEM

Closed Loop

Warranty Integrated

Processes Automated System

Dynamic

Intelligence

Steering Committee

for Cost Reduction


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PEOPLE. PASSION. EXCELLENCE.

>Thank You!Contact Us:-

W: www.tavant.com/warranty

E: [email protected]

T: (866) 9- TAVANT
http://www.tavant.com/warrantymailto:[email protected]:[email protected]://www.tavant.com/warranty

Documents

Wcm2011cross Functionalwarrantymanagement Aclosedloopapproachtoboostprofitability Ss 120215055704 Phpapp02