Manufacturing Insights Calls for Auto Executives to Reevaluate Warranty Repair Process

FRAMINGHAM, MA – JUNE 5, 2006 – A recent survey by Manufacturing Insights (an IDC company), conducted among the nation's top manufacturing companies, reveals there are many unnecessary costs incurred after the initial warranty event is triggered. Warranty expert and research analyst, Joe Barkai, will unveil survey findings and discuss what this means for business executives at the second annual Automotive Industry Action Group's (AIAG) Early Warning Systems conference in Novi, MI on Tuesday, June 6, 2006.

According to a recent Manufacturing Insights' report, the North American Automotive Industry spends nearly $14 billion annually on warranty claims. In his presentation, Barkai spotlights the hidden costs contributing to these excessive warranty expenses.

"The survey results support our hypothesis that there are several contributing factors to the increase in warranty expenses subsequent to the warranty event," states Joe Barkai, director of research for Manufacturing Insights' Warranty and Quality Management program. "The No Fault Found (NFF) and first time fix (FTF) data that we collected should persuade auto executives to reevaluate their current warranty repair process and their ability to meet the increasing demand for accurate first time repair."

In addition to announcing the survey results, Barkai will also make recommendations and share what actions to consider to create a more efficient warranty repair process. The study indicates that cost recovery could be one area of improvement.

Adds Barkai, "This data suggests that there is a disconnect between executive perceptions of warranty costs and those actually managing the warranty process. It's time for executives to incorporate warranty management into their daily dashboard."

Barkai will present the entitled, Shadow Drivers of Warranty Costs: How People, Process & Technology Influence Warranty Costs, as well as facilitate the closing panel comments at tomorrow's event.

About Manufacturing Insights (an IDC company)

Manufacturing Insights, an IDC Company, provides business and IT decision-makers with fact-based research and analysis to inform and support critical business decisions. The global independent research and advisory firm closely follows processes associated with the design, development and distribution of goods across markets including Discrete Manufacturing, Process Manufacturing, High Tech/Electronics Manufacturing, Consumer Packaged Goods and Retail. Manufacturing Insights' research and analysis is critical for end-users, as well as hardware and software vendors, service providers, and purveyors of IT outsourcing. Founded in January 2005, Manufacturing Insights is headquartered in Framingham, Mass.

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