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Importance of maintenance data quality in extended warranty simulation

Research output: Contribution to journalArticleScientificpeer-review


Original languageEnglish
Pages (from-to)3-10
Number of pages8
JournalInternational Journal of COMADEM
Issue number1
Publication statusPublished - 1 Jan 2016
Publication typeA1 Journal article-refereed


As manufacturing industries are transforming towards service orientation, predicting the costs of product-service systems is becoming essential. Simulation is one possibility for evaluating the costs and risks involved in product-service systems, such as extended warranty agreements. We conducted a case study with a globally operating manufacturer of industrial goods who also provides services for the equipment. We created equipment performance simulation (EPSi) models and a tool, EPSitor, for using the models in predicting extended warranty costs. However, reliable simulation results require good quality maintenance and operation data from existing installations. We discovered that it is difficult to collect the data needed for simulations and there were many challenges with data quality. Quality problems were mainly observed in manually collected data. Insufficient data quality leads to a wider margin of error in the simulation models, which increases business risk. Identifying these challenges is the first step in transforming the data collection routines to support equipment performance simulations. The key to long-term business benefits of simulation is to acknowledge the importance of data quality and to establish efficient data collection routines. Future research should find ways to motivate maintenance technicians to collect good quality data. This would contribute to more accurate cost analysis and thus to better profitability of extended warranty contracts.


  • Asset management, Data quality, Hitman factors

Publication forum classification

Field of science, Statistics Finland