Every warranty contract guarantees that the product or service performs as intended. If the product or service does not perform as promised, a manufacturer provides guidance, benefits, and constraints under which the product can be repaired or exchanged.

Typically, a manufacturer offers a basic warranty for each product. Each warranty contract describes the aspects that are covered under the contract between the manufacturer and its customer. Following is a list of the coverages that are considered for a warranty contract.

• Part-level coverages
  • Part coverage contains a list of all parts that are covered, for any reimbursement, under a warranty contract.
  • When a part is not covered under a warranty contract, it is assumed that the cost of the part might still be included in the Repair Order or Claim file if the causal part was another part under warranty.
• Cost coverages
  • Cost
  • Prorated coverage

Pega Warranty processes a part-level coverage on claim by doing the following actions.

• Mapping a part to a product
• Mapping a warranty contract to a product model, a product, or a part
• Displaying all of the warranty contracts that are mapped to a product serial number
• Checking, displaying, and selecting the appropriate warranty contract applicable to a warranty claim
• Checking if a part that is damaged is actually covered under any warranty contract
• Calculating the actual covered part, labor cost, miscellaneous costs, and any prorated part costs, based on the applicable warranty contract
• Adding the cost calculations any prorated part cost based on the applicable warranty contract and configured business rules
• Automatically processing a warranty claim based on the actual covered cost

Parts in the automotive industry in Pega Warranty are broadly classified in to two categories.

1. In-house parts
   • Manufactured in-house by the automobile manufacturer
2. Supplier parts
   • Manufactured by some other manufacturer and supplied to the automobile manufacturer
   • Types of supplier parts:
     • Original Specification part
     • Replacement or Compatible part
     • Refurbished part

The above classification is used to design the data model to support the Part-level coverage functionality and replacement part tracking. The type of part is used to determine if a part is manufactured in-house by the manufacturer or if it is sourced from a supplier.