The business case for reliability and warranty costs

Abstract

A simulation model has been developed using an Excell sheet. It allows a company to simulate a number of different strategies concerning reliability, quality and warranty costs and quickly see the effect. For training it is possible to have teams compete against each other in a simulated market. The model is illustrated by an example comparing 3 different project plans. Companies can modify the simulation tool to fit their reliability and warranty cost structure depending on their main business parameters and market conditions.