Warranty and Maintenance

Businesses use equipment to deliver their outputs (products and/or services) and individuals use consumer products to satisfy their personal needs and provide entertainment. Both types of item are getting more complex due to rapid advances in technology and to the increasing expectations of customers (businesses and individuals). These customers need to be assured that the items will perform satisfactorily over their useful lives and one way of providing this assurance is through a product warranty. Most countries have either enacted or are in the process of enacting stricter warranty legislation to protect customers’ interests. Manufacturers are required to rectify all failures that occur over the warranty period and this is referred to as warranty servicing. Warranty servicing results in additional costs to the manufacturer and it has been reported in the literature that these costs can vary between 2% and 10% of an item’s sale price depending on the product and manufacturer.

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