1. Automobile Warranty Data Analysis by Anita Rebarchak DSES-6070 HV5 Statistical Methods for Reliability Engineering Professor Ernesto Gutierrez-Miravete 8/11/2008

2. Objective
Use warranty data collected by the manufacturer for 329 cars of the same make, model and year with a 40,000 km warranty
Predict engine failure
Forecast future warranty costs

3. Data
Observations:
Engine is very reliable. Most failures were very minor and accumulated no significant cost.
Data only lists the first failure per engine; additional failures my have occurred over the life of the warranty

4. Limitations
Delay in reporting failure overstates the lifetime of the failed component
Data does not give component details
Data does not account for multiple failures in an engine
Engine is very complex and
the data does not account for
components relying on each
other
Driving environment not considered

5. Conclusions
Wear out

6. Additional Analysis Normal distribution calculations in Maple
Monte Carlo Simulation for MTTF
Censored analysis including all 329 engines
Cost analysis at MTTF