Reliability Improvement Warranties for Military Procurement.
RAND CORP SANTA MONICA CALIF
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Consumer and commercial warranty experience does not alone justify optimistic expectations for RIWs the effect of RIWs in completed DoD programs is inconclusive and as a result of inadequate research design the expectation of drawing meaningful conclusions from the ongoing RIW experiment may be over-optimistic. Examination of completed RIW programs, however, suggests the importance of 1 modification after operational use or testing, 2 schedule flexibility, 3 contractor involvement in initial overhaul and repair, 4 and avoidance of RIWs in programs subject to extreme quantity or utilization uncertainty. The design of the DoDs ongoing RIW experiment can be improved by 1 reducing the variation in contractual terms, 2 developing better controlled conditions, and 3 establishing defined limits for the experiment. In addition, the DoD must recognize the multiple objectives of the RIW and establish priority among them to facilitate evaluation.
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