Managing Automation - June 2008 - (Page 46)

[ TRANSFORMATION ] Transformation Integration TechWatch warranty claims, however. Better visibility into warranty information means that manufacturers can lower costs by avoiding invalid claims or recovering costs from suppliers that may have been responsible for a defective part. Other benefits include increasing product quality, improving customer loyalty, and, yes, generating revenue. Volvo Trucks, for example, has increased its extended warranty sales with the help of SAS Warranty Analysis software, and it has been able to act on quality problems more quickly. “It allows us to make better business decisions,” Culver says. That’s mainly because of the consistency and accuracy of the data. The SAS software is used by a cross-functional team from the warranty department, the quality department, and the purchasing group. “Without it, people can spend much wasted effort arguing about the validity and the accuracy of the data,” Culver says. “Once you apply analytics and it is consistent, and everyone knows it, you don’t argue about the data anymore.” Every week, Volvo Trucks looks for anomalies within warranty claims submitted. If, for example, there’s never been a failure in a component for which a dealer is submitting a claim, it is flagged as an emerging issue. “This allows the quality engineers to look at the parts, apply analytics, and figure out if it is a supplier problem, a manufacturing problem, or a design problem,” Culver says. Volvo also uses the analytical tools to recognize patterns during warranty periods and analyze extended coverage options for things like seats or air conditioning that the company would be comfortable offering. The SAS analytics didn’t require the company to start from scratch, because the SAS solution layers on top of the existing data coming out of warranty, managingautomation.com quality, reliability, and purchasing applications. RELATED ARTICLES: “We can take data, say, Managing Outsourcing: Ensuring Quality from [the past] two years Across Oceans www.managingautomation.com/managingoutsourcing and run it through our engines without the company If It Ain’t Broke, Fix It? www.managingautomation.com/warranty telling us anything about the data,” says SAS’ NewInnovating the Service Chain (Beyond Repair and Replace) kirk. “We then come back www.managingautomation.com/innovation5 and tell them they should be looking at this particular COMPANIES MENTIONED: product or [period of] time MaintenanceNet Inc. and investigate it because it www.managingautomation.com/maintenancenet looks like problems are Oracle Corp. emerging.” www.managingautomation.com/oracle3 It’s also impor tant to SAS note, Culver says, that the www.managingautomation.com/sas SAS analytics application Industries Volvo is using is a user-friendly tool, which helps widen the scope of usage within the organization. Making warranty management an integrated part of existing applications is another way to ensure usage. Oracle, for example, has embedded warranty management capabilities as part of its core CRM and SCM applications. “The key is having a database, which is the master data of things,” Oracle’s Binsley says. “When an end consumer calls with a problem, it is registered quickly in the customer database so you can track the evolution of something you shipped.” ONE VERSION OF THE TRUTH The point is, in order to get a better handle on warranty issues, you need to create a single version of the truth in the form of a consolidated repository of warranty data, experts say. To that end, SAS is taking the integration model a step further by connecting its warranty management and analytics with business intelligence. In May, the company rolled out its Quality Lifecycle Analysis software, which links quality management with warranty management systems. Like SAS Warranty Analysis, the quality offering is integrated with the SAS supply chain intelligence center, which provides a single view of supply operations. The integration leverages bestpractice KPIs and metrics delivered via a common dashboard. The SAS Warranty Analysis software is offered as an on-premise, licensed model or software-asa-service. Other offerings, such as from MaintenanceNet Inc., are only SaaS. The supply chain can be an obstacle in the warranty management process, as manufacturers often work with distributors and VARs, which can cause confusion in the delivery of aftermarket services. MaintenanceNet’s Service360 program automates service and warranty contract management, enabling all parties in the supply chain to register products and service contracts purchased. On top of that are analytics that organize records and recognize anomalies, and can flag new opportunities to sell extended services. “We call it revenue lifecycle management,” says Scott Herron, CEO of MaintenanceNet. “There’s more than just the asset you sold; there’s an opportunity to upsell, cross-sell, and educate clients on products, services, and consumables over the [customer] lifecycle.” More important, for manufacturers, the use of warranty management applications and analytics can drive quality into products and build trust within the customer base. “If you handle the warranty situation right, it builds customer and brand loyalty,” Culver says. ■ maonline ma June 46 2008 http://managingautomation.com http://www.managingautomation.com/managingoutsourcing http://www.managingautomation.com/warranty http://www.managingautomation.com/innovation5 http://www.managingautomation.com/maintenancenet http://www.managingautomation.com/oracle3 http://www.managingautomation.com/sas

Table of Contents Feed for the Digital Edition of Managing Automation - June 2008

Managing Automation - June 2008 Contents Take 1 SAP Cites Functionality, Cost Structure in Modified On-Demand Product Rollout Dassault Exec Predicts More PLM Consolidation The Blackberry Goes Native with SAP CRM QAD Brings MDM In-House with FullTilt Buy Power Experts Look to End Voltage Sags The Progressive Manufacturers Notes Cover Story: Playing the Globalization Game to Win Special Report Integration Transformation Industries Product Scan Advertiser Index Next

Managing Automation - June 2008

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