February 28, 2017 - Continuing the previous blogs "How does the manufacturing world look at warranty cost today?" and “The best organizational structure that can lead to lower warranty costs," which described the current worldwide situation and our approach to driving warranty transformation, this blog talks about uncovering data requirements, organizational readiness, and various analyses that we need to focus on in order to drive faster warranty cost reduction.
In today's world, we are generating enormous amount of data every minute — often without even knowing it. But the question is: Are we capturing the same amount of data generated? If yes, then how are we using this data — and is all the data captured necessary?
Well, these are broad questions, which we will try to look into at a later stage, including the question of how we can use this data for the betterment of an organization. However when we ignore the current trends of digital and technology era and look at historical trends on data collection, it has been noted that data collection at any given organization be it a small tier 3/4 supplier or an enormously large OEM happens regularly and data resides almost everywhere.
In addition to this in-house capture, data also resides outside the enterprise — across the value chain with partners on both the supply and the sales sides. The goal of a central warranty management department (CWMD) is to break down organizational, process, data, and system silos and automate the collection of data across operations. In addition, by driving deeper, wider, and smarter analysis of consolidated data, the CWMD can yield big operational dividends and achieve faster warranty cost reduction.
Now let us take a look at the key data variables that need to be captured and pulled on a regular basis from various systems into the centralized repository to achieve the set target faster.
The figure 1 captures the essence of data requirement and organizational readiness, where Each building block talks about the data variables belonging to a specific function of the organization that would contribute to the central warranty management system.
To set up a better and mature central warranty system within the organization, which is highly recommended and backed by executive sponsorship, care has to be taken that the identified key data variables flow seamless into the central repository, which will be our backbone for any analysis we intend to perform to drive warranty cost savings.
After accomplishing the data collection and setting up a central system, it is time for us to use this information to drive impactful analysis that will help us drive down warranty cost.
Below is the high-level snapshot of just a few examples by functions, from the entire laundry list of services, that can help us more quickly identify and prioritize issues, leading to faster resolutions.
For further, more granular details on each of the building blocks driving faster warranty cost reduction and freeing up blocked working capital while uplifting the overall customer experience, feel free to reach out to Genpact.