Building a Data-Driven Operating System: Reducing Warranty Claims by 75%

July 9, 2025

A motorized equipment manufacturer was in crisis as warranty failure rates soared to nearly 100% during the coverage period. Poor product quality led to the loss of key dealers, eroding market confidence and threatening the company’s long-term viability. With no clear KPIs or warranty analysis in place, the organization lacked both visibility into root causes and a path to improvement.

Envorso introduced a Manufacturing Quality Operating System (MQOS) anchored in time and data management, defining and tracking critical KPIs to measure and drive quality improvements. We led targeted problem resolution efforts, successfully identifying and correcting the root causes of the highest-priority warranty issues. A Warranty Binning System was developed to efficiently focus resources on the 20% of problems causing 80% of the failures, while a Product Development Quality Operating System helped establish a culture of learning to prevent recurrences. An automated Warranty Analysis System was also implemented, dramatically reducing the time needed to process and analyze warranty data.​

The results were game-changing: internal test stand failures improved by 65%, external warranty claims dropped by over 75% within just 10 months, and dealer satisfaction rebounded, paving the way for future sales growth. The MQOS not only transformed quality performance but also created a significantly more cost-efficient business model, delivering over 10 times the ROI on services provided within a year.​

“The systems Envorso implemented delivered results AND confidence. With streamlined quality operations and rising dealer satisfaction, we’re better positioned than ever for sustainable growth."​

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