SAS: Detecting Claim Fraud and Improving Product Quality Case studies in reducing warranty costs

Globally, manufacturers spend more than $70 billion to cover warranty expenses each year (Warranty Week, 2009). That’s more than 2 percent of revenue for most companies, but that is only the beginning. The impact of indirect costs, such as increased government scrutiny, tarnished brand image, reduced stock prices and lost sales, can quickly dwarf the direct costs. The billions lost by companies such as Toyota, Firestone and Ford clearly manifest this impact.

In good economic times, these

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