Abstract
M.Ing. (Engineering Management)
The South African Hydraulic industry has an estimated market value of R4.63 billion [1]. Without the use of hydraulic equipment certain production processes would be impossible [2] [3]. A vast quantity of hydraulic systems are specifically designed and built to a user’s specific requirements and specification [4].
With the hydraulic market becoming more competitive, hydraulic equipment manufacturers are required to maintain higher standards of quality with increasingly stringent safety regulations.
The onset of poor performance of a hydraulic system can tarnish a manufactures’ reputation and influence future business opportunities [5]. The purpose of this study was to determine the cost implication claims have on the Original Equipment Manufacturer (OEM). Unsatisfactory performance within the standard guarantee period was investigated to determine the root causes of the systems failures.
The investigation used existing claim data lodged against a hydraulic equipment manufacturer. It was made available by the hydraulic equipment manufacturer to be analyzed. Each particular claim lodged, was sorted into categories pertaining to the claim initiators and the roots causes identified.
The financial implication due to the claims were calculated and presented in terms of total cost, claim initiators and root cause of failures.
The primary claim initiators were found to be system malfunction due to insufficient system performance. The major root causes of equipment failure identified poor assembly procedures and incorrect system design.
The investigation concluded with recommendations that can reduce insufficient system performance due to poor assembly and system design.