Accendo Reliability

Your Reliability Engineering Professional Development Site

  • Home
  • About
    • Contributors
  • Reliability.fm
    • Speaking Of Reliability
    • Rooted in Reliability: The Plant Performance Podcast
    • Quality during Design
    • Way of the Quality Warrior
    • Critical Talks
    • Dare to Know
    • Maintenance Disrupted
    • Metal Conversations
    • The Leadership Connection
    • Practical Reliability Podcast
    • Reliability Matters
    • Reliability it Matters
    • Maintenance Mavericks Podcast
    • Women in Maintenance
    • Accendo Reliability Webinar Series
  • Articles
    • CRE Preparation Notes
    • on Leadership & Career
      • Advanced Engineering Culture
      • Engineering Leadership
      • Managing in the 2000s
      • Product Development and Process Improvement
    • on Maintenance Reliability
      • Aasan Asset Management
      • AI & Predictive Maintenance
      • Asset Management in the Mining Industry
      • CMMS and Reliability
      • Conscious Asset
      • EAM & CMMS
      • Everyday RCM
      • History of Maintenance Management
      • Life Cycle Asset Management
      • Maintenance and Reliability
      • Maintenance Management
      • Plant Maintenance
      • Process Plant Reliability Engineering
      • ReliabilityXperience
      • RCM Blitz®
      • Rob’s Reliability Project
      • The Intelligent Transformer Blog
      • The People Side of Maintenance
      • The Reliability Mindset
    • on Product Reliability
      • Accelerated Reliability
      • Achieving the Benefits of Reliability
      • Apex Ridge
      • Metals Engineering and Product Reliability
      • Musings on Reliability and Maintenance Topics
      • Product Validation
      • Reliability Engineering Insights
      • Reliability in Emerging Technology
    • on Risk & Safety
      • CERM® Risk Insights
      • Equipment Risk and Reliability in Downhole Applications
      • Operational Risk Process Safety
    • on Systems Thinking
      • Communicating with FINESSE
      • The RCA
    • on Tools & Techniques
      • Big Data & Analytics
      • Experimental Design for NPD
      • Innovative Thinking in Reliability and Durability
      • Inside and Beyond HALT
      • Inside FMEA
      • Integral Concepts
      • Learning from Failures
      • Progress in Field Reliability?
      • R for Engineering
      • Reliability Engineering Using Python
      • Reliability Reflections
      • Testing 1 2 3
      • The Manufacturing Academy
  • eBooks
  • Resources
    • Accendo Authors
    • FMEA Resources
    • Feed Forward Publications
    • Openings
    • Books
    • Webinars
    • Journals
    • Higher Education
    • Podcasts
  • Courses
    • 14 Ways to Acquire Reliability Engineering Knowledge
    • Reliability Analysis Methods online course
    • Measurement System Assessment
    • SPC-Process Capability Course
    • Design of Experiments
    • Foundations of RCM online course
    • Quality during Design Journey
    • Reliability Engineering Statistics
    • Quality Engineering Statistics
    • An Introduction to Reliability Engineering
    • Reliability Engineering for Heavy Industry
    • An Introduction to Quality Engineering
    • Process Capability Analysis course
    • Root Cause Analysis and the 8D Corrective Action Process course
    • Return on Investment online course
    • CRE Preparation Online Course
    • Quondam Courses
  • Webinars
    • Upcoming Live Events
  • Calendar
    • Call for Papers Listing
    • Upcoming Webinars
    • Webinar Calendar
  • Login
    • Member Home

by Fred Schenkelberg Leave a Comment

Product Reliability Participants part 5

Product Reliability Participants part 5

Continuing the series where we examine various roles within an organization and the ways in which each role interacts and affects product reliability, this post will start off with procurement engineers and managers. Since each role hereafter is a bit less involved, multiple roles will be grouped together. After procurement, we’ll take a look at warranty managers.

 

The role of a procurement engineer and manager

Procurement entails working with suppliers to obtain a supply of components or materials that meet the design requirements. The procurement team comprises engineers, managers, and support staff. One of its primary goals is to minimize cost. Often this means procuring the lowest price for a component that meets the design requirements.

The reliability role for procurement professionals is to obtain the best price for a component that meets or exceeds the reliability requirements. They should know the specific goal, including the probability of success, duration, local environment, and use, along with the design specifications. The conversations with suppliers should include conveying the reliability requirements along with learning about potential failure mechanisms.

Unfortunately, the focus on price often outweighs the perceived value of focusing on component reliability. Rather than building a working relationship with suppliers to quickly solve field issues, the focus should be on preventing design and component selection errors. Adding the cost of failure to the price equation often resets the procurement focus to include finding the most reliable components.

 

The role of a warranty manager

Products with warranties often include a warranty policy (terms and conditions of the offered warranty) plus some means to estimate future warranty costs and monitor warranty returns and payments.

The reliability role may include the following:

  • creating and using accurate predictions of future failure rates,
  • minimizing the costs of the reverse supply chain, and
  • conducting failure analysis of returns and working to eliminate future failures.

A critical role is the feedback function that warranty tracking provides for the organization, as it represents the customer experience of the product’s reliability performance. Warranty acts as the scorecard.

 

Why is warranty so important?

Consider a medical device organization in which no one managed warranty. The Chief Financial Officer explained that warranty was not a major issue because it was an insignificant annual expense. However, about half of the products sold were returned within the warranty period. Although the manufacturing cost of each product was thousands of dollars, the cost of warranty was limited to the cost of the spare parts consumed during repair. Thus, senior management was unaware of the very large field failure rate. A warranty manager would have been responsibility for providing clear and appropriate measures of field performance. By increasing the warranty expense to include a call center, field service engineers, and the cost of replacement units, warranty for this organization would have accurately reflected the impact of such a high field failure rate.

 

Filed Under: Articles, Musings on Reliability and Maintenance Topics, on Product Reliability Tagged With: Product Reliability, team, warranty

About Fred Schenkelberg

I am the reliability expert at FMS Reliability, a reliability engineering and management consulting firm I founded in 2004. I left Hewlett Packard (HP)’s Reliability Team, where I helped create a culture of reliability across the corporation, to assist other organizations.

« Talented and Professional
Markov Inequalities »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Article by Fred Schenkelberg
in the Musings series

Join Accendo

Receive information and updates about articles and many other resources offered by Accendo Reliability by becoming a member.

It’s free and only takes a minute.

Join Today

Recent Articles

  • test
  • test
  • test
  • Your Most Important Business Equation
  • Your Suppliers Can Be a Risk to Your Project

© 2025 FMS Reliability · Privacy Policy · Terms of Service · Cookies Policy