Surgical Robotics Manufacturing worked example

Warranty Cost at 40% expected annual warranty claim rate: a worked example

Push expected annual warranty claim rate up to 40% and the picture changes. This example computes every intermediate figure at that operating point. A program controller uses this to accrue warranty liability when launching a new robotic platform.

The inputs for this scenario

  • Surgical robotic systems in the covered install base: 120 systems (unchanged)
  • Average cost to resolve one warranty claim: 6,800 $/system (unchanged)
  • Expected annual warranty claim rate: 40 % (raised for this scenario; the documented default is 35)
  • Field recall and safety bulletin reserve: 40,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Total warranty cost = systems under warranty x cost per claim x claim rate % + recall contingency) to the inputs above produces each figure below.
  • At this operating point the engine returns 366,400 $ for total warranty cost, the number this scenario is built around.
  • At this operating point the engine returns 3,053 $ / piece for warranty cost per unit.
  • At this operating point the engine returns 326,400 $ for variable warranty cost.
  • At this operating point the engine returns 40,000 $ for fixed warranty cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where expected annual warranty claim rate sits at 35% and the headline result is 325,600 $, this scenario comes in 12.53% above the baseline at 366,400 $.
  • It computes total warranty cost across the covered install base plus a fixed recall/bulletin reserve, and the resulting warranty cost per covered system. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total warranty cost: 366,400 $ (headline result)
  • Warranty cost per unit: 3,053 $ / piece
  • Variable warranty cost: 326,400 $
  • Fixed warranty cost adder: 40,000 $

Run it with your numbers

  • Every input above is editable in the live Warranty Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.