The Study On The Optimization Of Product Warrant Planning And Controlling For FAW-VW

This dissertation studies the mechanism of quality warranty provision in the after-sale service system of FAW-VW, and it targets at a reasonable provision solution that both meets the claim request for vehicles within warranty period and contributes to the profits binding to current budget system of FAW-VW.FAW-VW manufactures and sells products of two brands, Volkawagen and Audi, from Volkswagen Group. The domestic and imported vehicles of these two brands cover all the classes of passenger cars. Product quality warrant, in the angle of customers, stands for claim, the purpose of which is to ensure satisfaction for both the products and the after-sale services from the authorized dealers. The quality warrant system is a powerful support for the after-sale departments to improve the relationship with customers.After-sale warranty cost is composed of First Maintenance, Regular Warranty, Goodwill, Recalls and others according to the contents of payments to the dealers, and divided into Provision, Payment, Regression and Spare-parts Profit in the item details. Warranty cost is one of the expenses for a company, and it offsets the overall profit. FAW-VW makes provision for warranty cost along with products sale, and the provision is considered as liability and offsets the yearly profit.Strictly binding to Volkswagen Konzern norms, FAW-VW develops the next five-year rolling business plan in the third quarter of each year, and starts the next annual budget in between the 3rd and 4th quarter. The planning of all kinds of resources for the next or the coming five years is based on a series of premises, among which warranty cost is a contributing factor. The current warranty cost planning is mainly based on historical data, focusing on the value per car and introducing risk coefficient.However, the statistical method of historical value per car is controversial. The current car number in calculation is that of First Maintenance, which is inappropriate and does not reveal the practical value per car. And the value per car covers also part of the spare-part profit, which interferes in the real statistics.The goal of the model optimization is to minimize the gap between the warranty provision and the practical payments to maximize the profit and reduce risks. Take Audi C6 in 2011as example, comparing the result from the calculating model in this dissertation and that from the traditional way, the advantage of this new model is well proved. The next move is to apply this prognosis model in the real budget arrangement.