Supplier Quality - Warranty Cost Reduction

Problem Statements

• Fertilizer distribution pump was on the top 10 list of warranty items
  • Warranty claim dollars needed to be reduced for this pump

Solution

• Reviewed warranty claims from the last few years
• Met with the supplier several times to discuss warranty claims
• Many of the claims stated that the entire pump was replaced, because the needed parts were not available through service
• Investigated the lack of service parts and discovered that only a couple of parts have ever been adopted at pump introduction; therefore a common solution to a pump issue was to replace the entire pump
• Researched which serviceable parts were the most common items causing pump replacements in the field
• Consulted with the pump supplier to establish which additional parts should be offered for a service
• Made the suggested parts available though the service network
• Parts catalog was updated with new parts

Results

• Warranty claim dollars were reduced for the following model year machines