A methodology for design for warranty with focus on reliability and warranty policies

Purpose - The purpose of the paper is to develop a conceptual framework that integrates the technology and commercial issues early at the design stage to minimize warranty costs in the most effective and efficient manner and also to develop a model for optimization of warranty with specific focus on reliability and warranty policies. Design/methodology/approach - The critical issues in warranty are addressed which affect the warranty cost. An optimization model to achieve multiple goals like minimization of the warranty cost and improving the reliability of the product is developed using genetic algorithm as a solution methodology. The model is illustrated with a real case of automobile engine. Findings - The results of the optimization show improvement in mean time between failures (MTBF) which results due to improvement in the product reliability and also the targeted warranty cost is achieved. Research limitations/implications - The model developed needs to be further extended with inclusion of additional decision variable such as support level offered and more objectives such as attractiveness of the warranty from the customer's view point and spares cost to the customer. Originality/value - The paper provides the help to the designers at the design stage to take the decisions related to warranty in deciding the warranty parameters.