Warranty Fraud Management: Reducing Fraud and Other Excess Costs in Warranty and Service Operations

Praise for WARRANTY FRAUD MANAGEMENT

"Excellent publication which explains in detail the opportunities and pitfalls encountered with managing a global service operation. A must read for anyone that is responsible for warranty management. I have used these principles while employed at several different consumer electronics manufacturers and the savings have been astounding."
Rudy Koch, Director, Reverse Logistics, Amazon Devices

"Considering the amount of money that companies invest in warranties it is surprising that a seminal book on the subject of warranty fraud hasn′t existed previously. Thankfully, the deep knowledge and experience of the three authors in this subject has been harnessed in this book and any person involved in warranty management can benefit from that on a continual basis."
Keith Littler, General Manager, Product Support, Samsung

"After 20 years of managing warranty I have seen almost all the tricks companies and people use to deliberately abuse the system. If you are responsible for warranty and you want to know what best practice is, then this is definitely a book to read. Fraud is significant within the OEM/OE world; you need to know what the full extent is and what you can do to minimize it. A great insight and contribution toward this subject."
Malcolm Youll, Managing Director, Samson Materials Handling

"Just another book about services issues? Definitely not! This book has the ability to become a real benchmark to all people affected by the outcomes of fraud. It is of value for both theoretical people and practitioners."
Kraft Schumann, Chairman, International Service Logistics Association

"Management of the after–market has become ever–increasingly important for global supply chains. This has raised service management and warranty management to be among the major topics in today′s supply chain discussions. This book provides tremendous insight into one of the dark corners of Supply Chain, and I can strongly commend it for its clarity, depth, and insight. Getting this right can save significant costs, without a negative impact on customer experience."
Mark Pearson, Senior Managing Director, Accenture Strategy – Operations

Foreword

Preface

Acknowledgments

About the Author(s)

Chapter 1: OverviewAppendices

Chapter 2: Products and Product Warranty

Chapter 3: Warranty Servicing

Chapter 4: Warranty Costs

Chapter 5: Warranty Management

Chapter 6: Warranty Fraud

Chapter 7: Warranty Control Framework

Chapter 8: Customer Fraud Management

Chapter 9: Service Agent Fraud Management

Chapter 10: Fraud Management with Other Parties

Chapter 11: Structures Influencing Warranty Fraud

Chapter 12: Implementing a Warranty Control Framework

Chapter 13: Epilogue

Appendix A: Detailed Claim Data

Appendix B: Agency Theory

Appendix C: Game Theory

Glossary

ACRONYMS

References

Index

Matti Kurvinen is an independent consultant focusing on service strategy and operations in general and warranty management in particular. After twenty–three years and various leadership and content expert positions in an international top–tier management consultancy, he started his own consulting practice in 2014.

Ilkka Töyrylä, Dr.Sc., is a management consultant with over twenty years of both industry and consulting experience. His key areas of expertise include service operations and warranty management. His doctoral thesis on traceability studied different opportunities for utilization of item level product and serial number data, warranty management being one of the application areas.

D.N. Prabhakar Murthy is professor emeritus at the University of Queensland in Brisbane, Australia, where he lectured on various topics in engineering and technology management for over 30 years. He has researched many different topics in reliability, maintenance, and warranty, resulting in many books and technical papers.