| Durable products are usually sold with warranty. In consumer’s perspective, this warranty protects consumers from defective and premature failure products. From company’s perspective, warranty protects company from improper claims. Although warranty can protect both parties from certain disadvantages, it causes additional costs, which will be accommodated through product prices. If warranty cost estimation is lower than the actual prices, company will be deficit. If warranty cost is too high, it affects to its uncompetitive selling prices. The purpose of this research is to estimate accurate warranty cost for Z-type car. It is also important to determine the causes of damage tendencies, whether they are caused by age, usability or both of those variables. The damage tendencies are calculated by estimating the parameter of age variable. By knowing the causes of damage tendencies, a preventive maintenance to minimize the risks of failure costs can be conducted. Warranty policies really influence failure probability. The failure probability is calculated by using distribution function approach. After the failure probability is known, warranty cost expectation for each component can be estimated. Next, to calculate a warranty cost for a car unit, we have to add warranty cost expectation for the whole components. Several suggestions scenarios for warranty policies are made as inputs for the company to improve their warranty service. The estimation result of warranty cost for current policy is amounting to Rp 305.785,00 for each year. On the other hand, the estimation result of warranty cost in three suggestions scenarios are bigger that the previously stated amount. |