Claim rate

Warranty claims per unit per year, per model, age band and production batch, from the claims file joined to the installed base register. A batch at three times the model's rate across many customers is the product; one customer at three times the rate across batches is the application.

DefinitionWarranty claims per unit per year, per model, age band and production batch, from the claims file joined to the installed base register. A batch at three times the model's rate across many customers is the product; one customer at three times the rate across batches is the application.

Batch-adjusted customer rate

The customer with the bad batch is at norm once the batch is removed. Do not charge them for engineering's finding.

Two lists

Engineering gets the batches; the field gets the customers.

How it is computed

Warranty claims divided by units under warranty, per year, by model, age band and production batch, with claim cost beside the count.

Example

Model B has 1,200 units under warranty and 96 claims in a year: 8 percent, against 3 percent for the range. 61 of the claims are from one production quarter.

Where it goes wrong

A single claim rate for the whole range. The batch and the customer causing most of the cost disappear into it.

Articles that use this term

Data quality and reconciliation

Product taxonomy for analytics: lines, families and SKUs, and which level each measure uses

Why a product list with four hundred SKUs produces whitespace everywhere and a concentration figure that means nothing, the three levels a product taxonomy needs, line, family and SKU, which measure is computed at which level, the rule that a SKU belongs to exactly one family and a family to exactly one line, the dated mapping that survives a range change, and the identity that revenue sums identically at every product level.

16 Sept 20263 min read Wallet share and penetration · Industrial manufacturers

Ten questions a manufacturer's VP of aftermarket asks, and the table that answers each

The ten questions a vice president of aftermarket at an industrial manufacturer puts to the service and parts teams, which customers run our equipment on someone else's parts, which units come off warranty next quarter with no contract offer, is the installed base register complete, which batches are claiming above the model's rate, which customers claim above the norm across batches, which quotes convert and which are price checks, which distributors and direct accounts double count, what is catalogue fit per customer, which service contracts renew with a bad claims history, and what changed, each with the table from the installed base register, the claims file and the ledger, and the answer to send back.

16 Sept 20263 min read Board and management reporting · Industrial manufacturers

Warranty claims by customer and product: the installed base that costs the most

How an industrial manufacturer reads its warranty claims against the installed base register and the ledger: claims per unit per model, claim cost per customer against the revenue the customer brings, the customers whose claim rate is well above the model's norm, the models whose rate rose with a production batch, and the two findings, a product problem by batch and a customer application problem, that the same claims file separates.

16 Sept 20263 min read