Warranty Cost Reduction Training
for Employees and Customers
Training in the quality operating system always makes the system
work more smoothly and eciently. is just stands to reason. e bet-
ter the employees know the system, the better they can work within it.
Training employees to properly use your company’s management system
enables them to take advantage of the benet of having the system in the
Many companies are either certied to or compliant with ISO 9001 or
one of its sector- specic variants, like AS 9100 or TS 16949. ese sys-
tems, when properly planned and used, provide integrated procedures and
methods to accomplish every service- related task. Training employees in
the system means training them how to access and use the procedures
applicable to their occupational responsibilities, including the access and
use of any forms and knowing what records to keep and where to keep
them. e training will also enable them to identify opportunities to
improve the system itself by using the prescribed procedure revision pro-
cess and document revision methods that any system based on ISO 9001
or its variants must have. One advantage of training the employees to
use the system properly as described in the system documentation is that
the employees will work consistently and maintain the records necessary
for warranty data input. It is also easier to audit, and therefore evaluate,
the eectiveness of the system if it is being carried out as documented.
Another advantage is the new employees can get up to speed faster and
have on- the- job training that is more consistent.
Of course, making sure the employees properly perform the service
operations themselves is another goal in training. Proper execution of
all operations necessary to process a warranty claim not only prevents
60 • Warranty Claims Reduction
money- wasting errors, but also assures that the end result is satisfactory.
Knowing well what is expected and necessary to properly perform the
warranty processing activities also enables the employees to plan ahead
more accurately and to a greater degree than they otherwise could. is
reduces labor time (and therefore labor cost) and speeds up the whole
claims processing system, making it less likely to fall behind schedule, or
more likely to recover if it is already behind. Training is not just a mat-
ter of knowing how to follow the procedures. A properly planned system
denes who to go to for direction and who is responsible for what. is can
increase the employee’s ability to handle situations not encountered previ-
ously because of the procedure. A well- planned procedure includes direc-
tions to follow for the most common and anticipated situations, as well as
providing a goal and guidelines for dealing with unanticipated situations.
e procedures themselves are living documents subject to improvement
and revision. Be sure to train the applicable employees on any revision
that aects what they do. e procedures should also be readily available
to all employees for reference if needed.
e surest way to permanently reduce warranty claims is to improve
quality so that the customer simply does not receive product that is defec-
tive or in need of service. It pays to have, as a minimum, your engineering,
manufacturing, quality, and service employees trained in the most com-
mon quality methods. ese are well-known and there is a great deal of
literature on what they are and how to use them. A multitude of training
courses for them exist as well.
ey are suitable for people with little formal training in statistics and
because they can be used to solve the vast majority of quality- related issues.
e most common quality methods in general use are:
• Checklists and record sheets
• Statistical process control (SPC) charts
• Process ow diagrams
• Ishikawa (shbone) diagrams
• Pareto analysis
• Scatter diagrams
A further explanation of what these tools are and how to use them is found