Methodology and software for quantitative warranty evaluation

A methodology along with implementing software has been developed to make rapid and precise estimates of warranty effectiveness. The methodology and software required to select a warranty and to determine the associated risk are described. The following questions are addressed: (1) How does one candidate warranty compare with another or with no warranty in determining the risk of not achieving system reliability requirements? (2) How does one verify warranty compliance with a stated level of confidence? (3) How does one candidate warranty compare with another or with no warranty in determining economic risk? (4) How does one determine the net benefit and return on investment of warranty insurance? (5) How does one determine the impact of a warranty on mission effectiveness? Both classical and Bayesian risk analyses are presented for both active and dormant systems throughout their life cycles