ABSTRACT

Understanding which parts of the original equipment manufacturer (OEM) organization (Figure 6.1) are responsible for which types of defects allows end users to craft more equitable and productive service agreements. The sales force from the OEM is unlikely to be prepared to delve into this issue and may easily provide misleading or incomplete details. Nor are all OEMs straightforward with buyers as to which types of defects are covered regardless of warranty status, such as “recalls” in the auto industry, or those that are only available within the postwarranty maintenance agreement as a separate contract.