Benchmarking Warranty Rates - What Rates should Trigger Actions?

[chris23892]

Hello all. GREAT place I've found here.

I'm benchmarking our company with warranty metrics. I'm at the pointv where I have enough data to calculate warranty rates on products and drill down to failure mode and mech.

I'm trying to find information on what rates are normal and at what point should a warranty rate trigger action?

I'm having a heck of a time finding what other companies have benchmarked.
I'm looking to break down rates:
0-2%- good, but keep and eye on the rolling 3,6,12. make sure this is stable or declining.
3-7%- open a corrective action case and have the team rate it
8% and up- All hands on deck. the hight the rate, the more severe and action needs to be NOW!!

Thanks,
-C

Does this look accepatable?

 

[Steve Prevette]

Re: Benchmarking warranty rates- What rates should trigger actions??

Hello all. GREAT place I've found here.

0-2%- good, but keep and eye on the rolling 3,6,12. make sure this is stable or declining.
3-7%- open a corrective action case and have the team rate it
8% and up- All hands on deck. the hight the rate, the more severe and action needs to be NOW!!

Thanks,
-C

Does this look accepatable?

From my perspective (Dr. Deming's 14 points) you are setting yourself up for failure, with arbitrary thresholds and may likely end up reacting to random noise.

Suggestion is to not do rolling 3, 6, 12 (I assume moving averages) but set up p-chart control charts to look to see if you are stable (with random noise) or have a trend. If you are stable, your benchmark data should help you to decide if you are stable where you want to be, or need a systematic change to shift the stable performance.

The SPC analysis will help you tell when there is a shift that needs to be addressed, and/or a shift that shows you that you are getting better.