Warranty Accruals are an important component of Public 10-K Quarterly Reports and by analyzing this public information across industries as WarrantyWeek has, it is readily apparent that predicted Warranty Accrual amounts do not tract actual amounts over time.
GradeQ offers a new option to calculate and verify estimates by rolling up the Warranty Accrual estimates for every component to the product level. As component quality improves, this will be reflected immediately into the Warranty Accrual calculations providing a more accurate predictive model than the industry standard product based predictive model.
Calculate and align Warranty Accrual amounts immediately with changing factors such as quality improvements, vendor quota allocations, and sales trends that are not factored into current predictive models. Warranty Accruals are based on product quality at the time of sale over the entire warranty period and GradeQ is proposing a new method to predict warranty events.