×
INTELLIGENT WORK FORUMS
FOR ENGINEERING PROFESSIONALS

Log In

Come Join Us!

Are you an
Engineering professional?
Join Eng-Tips Forums!
  • Talk With Other Members
  • Be Notified Of Responses
    To Your Posts
  • Keyword Search
  • One-Click Access To Your
    Favorite Forums
  • Automated Signatures
    On Your Posts
  • Best Of All, It's Free!
  • Students Click Here

*Eng-Tips's functionality depends on members receiving e-mail. By joining you are opting in to receive e-mail.

Posting Guidelines

Promoting, selling, recruiting, coursework and thesis posting is forbidden.

Students Click Here

Jobs

Cost of warranty for new product

Cost of warranty for new product

Cost of warranty for new product

(OP)
Dear all,
I need estimate cost of warranty for new product (mechanical device). Is there any economical formula to do that? Of course from technical point of view we must know everything about product but how it is loking from economic point of view?
Best regards for everyone

RE: Cost of warranty for new product

First, I would look at similar products that you have a warranty history on as well as take a good look at the new product to determine what is likely to fail (basically a product FMEA).  From there, I have been able to use the following with reasonable success.

W.C. = %Failure * A.R.C * M.F.

Where:

W.C. is your warranty cost
%Failure is your field failure rate vs sales or shipments
A.R.C is your average repair cost
M.F. is a product "maturity" factor which allows you to mimic a typical product launch cycle.  Typically costs will be higher during initial runs (infant mortality) and then decrease as the product design and manufacture matures.  How often you change this factor depends on your product life cycle.  I typically start out using 1.25 and eventually reduce it to .8 for a "stable" product.  Costs can also begin to increase again near the end of product life due to loss of component availability or lower product volume.

Regards,

RE: Cost of warranty for new product

(OP)
Thank you very much for PSE!!!
This product is gas boilers up to 50 kW. The warranty is for a few year (let say 5). I tried find something in economic literature for engineers but I could find anything.
Best regards

Red Flag This Post

Please let us know here why this post is inappropriate. Reasons such as off-topic, duplicates, flames, illegal, vulgar, or students posting their homework.

Red Flag Submitted

Thank you for helping keep Eng-Tips Forums free from inappropriate posts.
The Eng-Tips staff will check this out and take appropriate action.

Reply To This Thread

Posting in the Eng-Tips forums is a member-only feature.

Click Here to join Eng-Tips and talk with other members!


Resources