Quality, Warranty and Preventive Maintenance
Quality, Warranty and Preventive Maintenance examines the impact of product quality on warranty and maintenance costs and strategies, from the perspectives of both manufacturers and users. In addition, the theories of warranty and preventive maintenance a
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Quality, Warranty and Preventive Maintenance Izzet Sahin School of Business Administration University of Wisconsin-Milwaukee Milwaukee, WI 53201 Hakan Polatoglu Frank Sawyer School of Management Suffolk University Boston, MA 02108
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Springer Science+Business Media, LLC
Library of Congress Caraloging-in-Publication Data Sahin. luet. Quality. warranty. and preventive maintenance f luet Sahin. Hakan Polatoglu. p. cm. -- ( International series in operations research & management science; 15) Includes bibliographical references and index. )SBN 978-1-4613-7541-8 )SBN 978-1-4615-5557-5 (eBook) DOI 10. 1007/978-1-46 15-5557-5 1. Quality control. 2. Quality of proelucts. 3. Warranty. 4. Maintenance. 5. Failure time data analysis. 1. Polatoglu, Hakan. II. Title. III. Series. TS 156.S22 1998 658.5'62-- P2 . Process quality, p, and manufacturing cost per unit, "y, excluding warranty costs, are related to the lot size L by: p = [p(PI - P2)(1- pL)j(l_ p)L] +P2 and"Y = a+ [13+ (1- pL)1]]jL. Here, a, 13 and 1], respectively, are the material and labor cost per unit, cost of check-
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ing to see if the process is out of control at the beginning of each lot, and the cost of bringing the process back in control, if it is found out of control. AB p and '"Y are decreasing in L, decreasing the lot size results in improving conformance quality but increasing production costs. Thus, investment in quality improvement is measured, through the lot size, in a purely operational setting. They then proceed to add a unit warranty cost to '"Y, as induced by a free-replacement warranty based on minimal repair (which is an increasing function of L by virtue of the fact that p is decreasing in L) and characterize the optimal lot size by trading off the unit production cost with unit warranty cost. Quality may also be improved by outgoing inspection to weed out nonconfor
