In this highly connected world, hard-earned competitive advantages and reputation can easily slip away when customer expectations are not met. Understanding and minimising these risks is vital to ensure customer and stakeholder confidence is maintained, along with making the right decisions in responding to a failure in the market.
By strengthening reliability management, manufacturers are using extended warranty terms to drive top-line growth while simultaneously reducing costs and enhancing reputation.
Extending warranty terms is proven to increase sales, but increasing underlying shareholder value means improving product reliability. It’s an important source of competitive advantage, but many firms seem reticent to fully exploit its significant potential.
While the specific strategy required depends on the company’s current position and future aspirations, the tools and techniques to deliver it are well established. Businesses need to invest to build capability in these tools and techniques so they can make positive changes and position themselves for the future.
This paper is relevant for the entire leadership team, and all those involved with reliability, at industrial manufacturers of electromechanical devices and components, where there is a real desire to enhance reliability and increase shareholder value.
Applying a rigorously researched and tested, proprietary approach to model the risks of extending product warranty periods
Analysing data from failures to quantify real reliability risk and creating a plan to reduce risk and cost of dealing with potential fall-out
Building the right approach to design reliability using principles of Advanced Product Quality Planning (APQP) and Advanced Service Quality Planning (ASQP)
Understanding the systemic quality issues and sources of failure to build appropriate recovery and improvement plans
It was costing us £300k a month in liquidated damages as we were not delivering on the key performance indicators. The contract was extremely challenging and we could not see our way to delivering to target. Oakland came in and within six weeks we were down to zero liquidated damages and have now ‘saved’ £4m over the last 12 months.
International outsourcing company