Volvo Penta Reduces Engine Warranty Costs 30% with ITI’s Reliability Growth Program

MILFORD, OH; NOVEMBER 1, 2005 – Global product development consultant International TechneGroup Incorporated (ITI) announces a successful Reliability Growth program with engine manufacturer Volvo Penta (Gothenburg, Sweden). Volvo’s plan was to adapt and develop a new 12 liter diesel engine that would meet aggressive sales and challenging reliability targets for marine applications for a product with significant sales volumes. Specifically, the company’s goals were a 30% reduction in warranty claims of current product levels and an increase in market share. Through ITI’s Reliability Growth program both targets were effectively met. At the program’s conclusion, failure rate for the new engine in fact exceeded the goal. Bolstered by enhanced reliability, sales of the engine reached twice what was forecasted.

Said Urban Larsson, Product Development Manager for Volvo Penta: "The impact of our reliability growth initiative has been tremendous. Thanks in large part to ITI’s Reliability Growth program we were able to successfully meet our failure rate reduction goal. As a result of this success, Reliability Growth is today a standard part of new product development at Volvo Penta.”

ITI worked with Volvo to understand the reliability behavior of its line of current engines. Rather than look at reliability for the12-liter engine family as a whole, information was sorted by industry and application. This enabled historical performance and future requirements for the entire family of engines to be fully quantified and understood. In this way, realistic yet aggressive targets could set for each engine with specific reliability plans developed for each.

Reliability Growth programs applied on the project:

-- Current product reliability data was analyzed
-- Targets for the new products were established
-- New content resulting from changes in product designs was analyzed & quantified
-- Reliability Growth test & improvement plans were developed
-- Endurance testing, internal vehicle testing, & customer field-testing was completed

Implementing Reliability Growth
ITI and Volvo jointly executed the program. Reliability Growth was first planned – a model was used to determine the amount of new content risk and associated amount of testing required to identify and resolve problems. A process and software to track and manage problems to resolution was developed and implemented for capture, continual monitoring, and management of test data.

Initially, ITI assisted with the first deployment of Reliability Growth test monitoring and management. As supporting teams and individuals were trained, Penta adopted the Reliability knowledge and methodology as a best practice in new product development. Penta has since become self-sufficient and has continued to successfully apply the Reliability Growth methods and technologies to all development programs.

About Reliability Growth
ITI’s product quality and reliability program ensure that desired levels of reliability are achieved and demonstrated during product development -- before new products go into production. This is accomplished through a carefully planned program implemented over the course of the project. The goals are to optimize the overall reliability engineering activity, achieve the best possible starting reliability level in the first product prototypes, and systematically improve reliability by identifying and resolving unanticipated, undetected, or underestimated problems.

About ITI
With global headquarters in Milford, Ohio (USA), ITI is the world’s leading provider of consulting, software products and related integration services that enable clients to dramatically improve their product and manufacturing process development capabilities. ITI is the world’s largest independent provider of product data integration products and services. The Company’s Concurrent Product and Manufacturing Process Development (CPPD) methodology shortens product development time cycles and reduces development costs.

CPPD is a registered trademark of International TechneGroup Incorporated
All other brand names, product names or trademarks belong to their respective holders


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