Discovery: A proposed integrated design indicated that a lower R/1000 incidence rate would be offset by a much higher Cost Per Repair. ICG’s analysis showed that adopting this design in luxury vehicles would create negative outcomes:

• Increased cost due to replacements for leather trim and cover flaws.
• Parts and service resisted having to “warehouse explosives.”
• Use of special tools required by the new design would drive up standard labor time rates.

Discovery: Clockspring supplier had high warranty charges but zero defects on 100% replacement inspection. Clockspring was being automatically replaced as a “safety issue” when dealerships replaced airbag.

Result: Business process for dealer warranty reimbursement was revised.

Discovery: ICG’s analysis revealed that reprogramming the RKE fob was prevalent due to the assembly plant’s lack of understanding of supplier’s process: marriage of RKE fobs and receiver before delivery to assembly plant. RKE fobs found “failed” due to separation from the appropriate receiver and could not be reprogrammed at the plant due to excessive RF interference. Vehicles are shipped with non-operable fobs. Also, ICG discovered an error in standard labor rate for reprogramming promoted excessive dealer reprogramming.

Result: Process for keeping “married pairs” together was instituted at the plant. Business process for dealer warranty reprogramming was revised.

Discovery: Two seat suppliers had similar quality but radically different warranty claim costs. One packaged seats as a “vehicle set” so that any flaw required the replacement of the entire set. As the expensive set would have to be set aside on the line, the set was installed and the offending seat marked for repair. The other palletized seats with reported lower warranty costs allowed an easy substitution of a single seat before the flawed seat was installed into the vehicle.

Result: Supplier seat palletizing was revised and assembly process was commonized.