Warranty Testing & Product Lifecycle Assessment

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The Crucial Value of Product Lifecycle Testing in Determining Warranty Periods

In today’s competitive marketplace, offering a product warranty has become a standard practice. For Original Equipment Manufacturers (OEMs), it’s an indication of the trust they place in their own product’s reliability. Yet, how does one determine the optimum warranty period? The answer lies in “warranty testing” through product lifecycle testing. For companies unaware of their product’s actual lifetime, the costs of an overly generous warranty can be exorbitant. Here, we dive deep into the world of warranty testing and its irreplaceable role in shaping confident and cost-effective warranty policies.

What is Warranty Testing?

At its core, warranty testing is a subset of product lifecycle testing. It specifically focuses on determining a product’s expected lifespan and pinpointing potential points of failure. This type of testing pushes a product to its limits, mimicking the wear and tear it would undergo over its projected lifetime. The data gathered from these tests allows companies to set a realistic warranty period, ensuring that the majority of products won’t fail within that timeframe.

The High Costs of Over-Extended Warranties

While offering a long warranty might seem like a great marketing tool, it comes with its own pitfalls. Without robust warranty testing, companies can inadvertently set themselves up for financial drain. Consider this scenario: An OEM offers a five-year warranty on a product that, unbeknownst to them, generally starts encountering significant issues after just three years. The result? A flood of warranty claims during the fourth and fifth years, leading to:

  1. Increased operational costs: Repairing or replacing products under warranty can lead to a spike in operational costs. From parts and labor to shipping and handling, the expenses add up quickly.
  2. Diluted brand trust: Constant failures and warranty claims can erode consumer trust. Instead of building brand loyalty, an over-extended warranty can backfire, making consumers wary of the brand’s reliability.
  3. Revenue losses: With a large chunk of revenue going into addressing warranty claims, there’s a direct impact on the bottom line. Funds that could have been invested back into R&D, marketing, or other growth opportunities are instead spent on rectifying mistakes.

Warranty Testing

The Value Proposition of warranty testing for OEMs

For OEMs unfamiliar with their product’s lifetime, the implications are clear. Venturing into the market without comprehensive warranty testing is akin to sailing in uncharted waters. By investing in thorough product lifecycle testing, businesses can:

  • Confidently set warranty periods: By understanding a product’s typical lifespan and potential failure points, companies can determine a warranty period that minimizes risk while still offering value to customers.
  • Minimize unnecessary costs: Avoid the exorbitant costs associated with unexpected warranty claims. Testing ensures that most products will outlast the warranty, reducing the number of claims and associated expenses.
  • Strengthen brand image: A well-placed warranty based on concrete testing data not only minimizes failures but also bolsters a brand’s image. Customers value reliability, and when a company delivers on its warranty promises without frequent hitches, trust and loyalty are strengthened.


In the world of manufacturing and sales, there’s no room for guesswork, especially when it comes to warranties. Warranty testing through product lifecycle assessment is an invaluable tool for OEMs. It aids in crafting warranties that balance customer trust and business profitability. By knowing the lifetime of a product, companies can sidestep the pitfalls of over-extended warranties, creating a win-win for both themselves and their customers.

Pipeline Design & Engineering has deep experience with warranty testing. Regardless of the shape, size, or function of your device, we can deliver strategic warranty periods for your product. Contact us today to discuss a lifecycle testing assessment for your product.

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