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Warranty Fraud Management. Reducing Fraud and Other Excess Costs in Warranty and Service Operations. Wiley and SAS Business Series

  • ID: 3610010
  • Book
  • 400 Pages
  • John Wiley and Sons Ltd
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"Just another book about service issues? Definitely not!

This book has the ability to become a real benchmark for all people affected by the outcomes of fraud.

Most of us are focused on our internal performance programs having nearly no clue how fraud is organised, what chances fraud gives and how to counter–attack fraud. The clear and very systematic structure here provides you with intensive information about the different perspectives of fraud and helps you to better understand all the implications.

The examples provide in–depth views so you can create your own way forward, and CFOs will be happy because there is an additional new chance to reduce costs and generate results not by only stressing their own organisation.

Don′t be afraid about the volume of the book but take it as an almanac against fraud to improve your business and your results!"
Kraft Schumann, Chairman of the International Service Logistics Association and the Former Head of Service Logistics at Fujitsu Siemens Computers

"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

"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

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Foreword xiii

Preface xvii

Acknowledgments xxiii

About the Authors xxv

Chapter 1 Overview 1

Warranties 3

Warranty Servicing 4

Warranty Costs 5

Warranty Fraud 6

Impact of Warranty Fraud 9

Warranty Fraud Management 10

Study of Warranty 10

Goals of the Book 12

Structure of the Book 12

Note 14

Chapter 2 Products and Product Warranty 15

Products 16

Product Performance, Failure, and Reliability 19

Product Maintenance 24

Product Warranty 26

Maintenance Service Contracts 36

Insurances 37

Notes 38

Chapter 3 Warranty Servicing 39

Parties in the Warranty Service Network 40

Warranty Service Process 46

Outsourcing of Warranty Service 54

Contracts 56

Notes 62

Chapter 4 Warranty Costs 63

Different Perspectives 65

Factors Underlying Warranty Costs 68

Warranty Cost Metrics 72

Warranty Reserves and Accruals 77

Warranty Cost Control 78

Notes 79

Chapter 5 Warranty Management 81

Evolution of Warranty Management 82

Service Life–Cycle Perspective 84

Product Life–Cycle Perspective 95

Organizational Structure 100

Warranty Management Systems 105

Warranty Management Maturity Models 122

Notes 124

Chapter 6 Warranty Fraud 125

Fraud in General 126

Actors and Victims of Warranty Fraud 128

Classification of Warranty Fraud 129

Fraud Patterns 130

Consequences and Impacts of Warranty Fraud 135

Customer Fraud 139

Service Agent Fraud 147

Sales Channel Fraud 162

Warranty Administrator Fraud 166

Warranty Provider Fraud 169

Notes 175

Chapter 7 Warranty Control Framework 177

Contracts 180

Transaction Controls 181

Analytics 183

Service Network Management 187

Chapter 8 Customer Fraud Management 189

Customer Contract 190

Customer Entitlement 200

Material Returns Control 207

Analytics 208

Notes 213

Chapter 9 Service Agent Fraud Management 215

Service Agent Contract 216

Entitlement and Repair Authorization Processes 237

Claim Validation Process 239

Analytics 248

Material Returns Control 278

Service Network Management 280

Notes 291

Chapter 10 Fraud Management with Other Parties 293

Sales Channel Fraud Management 294

Warranty Administrator Fraud Management 299

Warranty Provider Fraud Management 305

Chapter 11 Structures Influencing Warranty Fraud 307

Effective Service Process 308

Service Organization 315

Notes 318

Chapter 12 Implementing a Warranty Control Framework 319

Assessing The Current Situation 320

Crafting an Improvement Plan 322

Defining Policies and Rules 322

Building the Capabilities 323

Deploying the Change 325

Business Case Considerations 327

Implementation Challenges 328

Achieving the Transformation 329

Chapter 13 Epilogue 331

Opportunities to Improve Warranty Control 333

New Research into Warranty Fraud 335

Appendix A Detailed Claim Data 337

Appendix B Agency Theory 343

Appendix C Game Theory 347

Glossary 351

Acronyms 355

References 357

Index 363

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Matti Kurvinen
Ilkka Töyrylä
D. N. Prabhakar Murthy
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