Application of Reliability Improvement Warranty (RIW) to DoD procurements.
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Author
Allen, Dennis Jean
Date
1975-03Advisor
Judson, R.R.
Second Reader
Raike, William M.
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Show full item recordAbstract
The existence of a goal conflict in the buyer/seller relationship
is inherent under a profit motivated system where
conventional procurement techniques are used. The buyer
seeks maximum performance at minimum life cycle cost and the
seller seeks to maximize profit which may translate to minimizing
reliability improvement costs. Experience of military
and commercial procurement activities with the use of Reliability
Improvement Warranties (RIW's) has led to the conclusion
that the RIW may be a valuable tool in bringing buyer/
seller goals into agreement by transferring the management of
costs to the seller. Background material on DoD and commercial
warranty experience is used to form the framework for
an evaluation criteria developed by ARINC Research Corporation
to test the applicability of RIW to a particular acquisition. The limited DoD guidance which has been promulgated
is recapitulated for consolidation with the ARINC criteria
and recent experience.
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