Economic impact analysis tool for equipment under warranty
First Claim
1. A method of quantifying the economic effect of providing a product with a product warranty, comprising the acts of:
- developing a statistical model of a product”
s failure rate;
developing a model of the cost over time of a product having a product warranty; and
calculating an effective cost of the product from the statistical model of a product”
s failure rate and the model of the cost over time of a product having a product warranty.
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Accused Products
Abstract
The present technique provides a method and system for analyzing the economic effect of a product warranty associated with a product. The technique utilizes a statistical model of the failure rate of the product. The technique also utilizes economic data associated with the product and the warranty. The technique performs convolutions of the economic data and the statistical model of the failure rate of the product to identify an effective cost of the product and an effective selling price for a replacement product for a failed product. The effective cost, effective selling price data, and variation in profit margin for the product are determined for a range of warranty durations and warranty types. This data enables a user to quantitatively analyze the effect of variations in product warranties.
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Citations
44 Claims
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1. A method of quantifying the economic effect of providing a product with a product warranty, comprising the acts of:
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developing a statistical model of a product”
s failure rate;
developing a model of the cost over time of a product having a product warranty; and
calculating an effective cost of the product from the statistical model of a product”
s failure rate and the model of the cost over time of a product having a product warranty. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A method of quantifying the economic effect of providing a product with a product warranty, comprising the acts of:
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developing a statistical model of a product”
s failure rate;
developing a model of the actual selling price of a replacement product over time; and
calculating an effective selling price for a replacement product from the statistical model of a product”
s operating life and the model of the actual selling price of a replacement product over time. - View Dependent Claims (13, 14, 15, 16, 17, 18, 19, 20, 21, 22)
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23. An analysis tool for a product having a warranty, comprising:
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a computer system;
a statistical model of a product”
s life stored in the computer system; and
economic data for the product stored in the computer system;
wherein the analysis tool is operable to provide a user with quantified economic information for a plurality of warranty scenarios based on the statistical model of a product”
s life and the economic data for the product. - View Dependent Claims (24, 25, 26, 27, 28, 29, 30)
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- 31. A computer program stored in a tangible medium, wherein the program enables a computer system to provide a user with quantitative economic data for a product as a function of a warranty on the product.
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33. The computer program stored in a tangible medium as recited in 31, wherein the quantitative economic data is an effective selling price of a replacement product as a function of warranty.
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34. The computer program stored in a tangible medium as recited in 31, wherein the quantitative economic data is a variation in profit margin of a product as a function of the warranty.
- 35. The computer program stored in a tangible medium as recited in 31, wherein the computer program directs the computer system to perform a convolution of a first model representing the cost over time of a product having a warranty and a second model representing the unreliability over time of the product.
Specification