Optimizing Quality Management Across Stakeholders to Reduce Risk and Warranty Costs: An Interview with Jason Payne, Founder, JPSI


When Jason Payne graduated with a bachelor’s degree in mechanical engineering, he also sold the web design business he started in his sophomore year. “There weren’t a lot of people doing web design back then and it taught me how to develop new business and customer relationships while focusing on solving problems my customers had. the business intelligence side of things. By the time he had finished school, Jason wanted to move on and use his degree as he had intended, and being in Michigan, many companies were interested in young engineers, especially those with entrepreneurial experience. and a thorough understanding of business practices. .

The MAPconnected Vehicle Service and Warranty Lifecycle Summit 2022 is approaching. A collaborative conversation, led by some of the industry’s brightest minds, will take place at the Westin Southfield Detroit on October 25-26. We had the opportunity to meet Jason Payne, Founder and Director of Intelligence at JP Strategy and Intelligence.

The professional path: the engineer entrepreneur

Jason’s problem-solving ability, cultivated during his college years, would work throughout his career to his advantage. He was recruited by Advanced Accessories Systems as a design engineer and this would be his introduction to what was to become a creative and non-traditional engineering journey through the vehicle service and warranty space.

“I could see the areas of the business that were not efficient; the company had doubled in size in a short time and there was an opportunity to build strong quality systems. The business has given Jason the freedom and opportunity to explore customer warranty requirements and systems, which has allowed him to develop an understanding of how the business operates beyond the role of ‘engineering.

Jason saw what data was available and available at the time, then created frameworks on how best to use the information, which was new at the time. “I saw it as an interesting part of the automotive industry because warranty allows you to touch many different parts of an organization,” Jason explained. “You can work with engineering, with quality, with the business side of the business, the legal; every part of the organization has some interest in what’s going on with their parts from a warranty perspective.

By the end of 2007, Jason had established himself in the warranty industry, someone very active within the community and recognized outside of his organization. He was highly sought after and chose to join Schrader Electronics, later acquired by Sensata Technologies, a large, multi-billion dollar electronics company with operations in automotive, aerospace, heavy industrial, medical and commercial electronics. As the recession began to take hold and severely affected auto sales, tire pressure monitoring, Schrader Electronics’ core product, became federally mandated and Jason found himself in a privileged position. after joining a company that was doubling in size, again.

With that kind of growth, came huge collateral exposure. “Their products were exploding in terms of usage overnight and there would potentially be a lot of exposure,” Jason explained. “I was able to build systems and mechanisms to prepare the structures that would protect the company and its customers.”

When Sensata acquired Schrader in 2016, there were people within the warranty division, but it wasn’t large or large scale. Jason was perfectly positioned to step into a global leadership role and take control of warranty issues that were significant in scale and potential impact. Jason had the opportunity to branch out into aerospace and heavy industrial manufacturing, “although the concepts are similar to automotive, the landscapes differ,” he said. This transition allowed him to apply his years of experience on a much larger scale.

OESA and contribution to the guarantee community

At this point, Jason had also been part of the OESA (Original Equipment Supplier Association) for several years as part of their warranty management board. He was elected by the members to lead their board of directors as president in 2013.

A collective of warranty professionals, brought together to share information and support each other, OESA has played an important role in the development of the warranty network and vehicle service landscape. “I liked that,” Jason said, “it’s always a great way for vendors to have a method of comparing ratings.” Regular meetings and interactions developed an understanding of what was working in the industry and what was not. “I learned a lot and also tried to transfer my knowledge,” says Jason. This type of engagement allowed attendees to see and understand how the vehicle maintenance landscape was changing and where it was headed, especially with electrification. “It gave organizations the ability to adapt and prepare for things that could have serious impacts” down the road.

On Launching JPSI Guarantee, Strategy and Intelligence

Jason had been thinking about starting his warranty-focused consultancy for some time and decided once the timing had aligned both personally and professionally. He wanted to “work on the proactive side of collateral data,” he explained. “The interesting thing about the warranty is that it is an extremely critical function. However, when it comes to allocating resources to do things proactively, it’s always an uphill battle.

Jason is currently working with several OEMs, EV startups, and companies that are building from the ground up. Whether it’s the potential business they could lose if they don’t resolve issues quickly, or the illegal financial aspects of them, Jason develops strategies to not only address the issues currently being faced, but also to focus on “how to build business cases for senior management to say here’s what we need, here’s why we think we need it and here’s the data behind it and here’s what we can save.

On “Why? by Jason

“I help companies understand where the gaps are in their existing systems and what processes and resources are available to help them close those gaps,” says Jason.

In the US, as well as other parts of the world, there have been huge warranty issues. There have been stiff fines, people have gone to jail and Jason goes on to say that “their impact would have been significantly minimized if a more proactive stance had been taken in the way data and tracking was monitored”.

After doing all the research before launching JPSI, one area of ​​the business that Jason hadn’t considered became critical in his consulting work: third-party companies. “Companies such as software companies that are thriving with unique capabilities in big data analytics,” says Jason, “whether it’s predictive analytics, artificial intelligence, machine learning, areas where you can take huge subsets of data and find trends that are extremely difficult to identify manually” have become an interesting component of its service offering. “Helping these companies understand who their capabilities can serving and making those introductions” was another way Jason proactively served the automotive service community.

On the guarantee and its development on the market

There are many people working in the field of warranty, but there are few experts in the field. Things are changing though, “you see companies starting to create real warranty services, for the first time,” says Jason. “I like to see companies taking this more seriously and understanding the value of it.” Historically, it was an “extra hat that people wear”. A Quality Manager will also be in charge of warranty returns or a Quality Technician will analyze the data on a case-by-case basis. Many companies think that a warranty “just defends against cost recovery,” says Jason, or that it’s primarily a financial item.

“There is a real impact on real human beings and real people.”

Jason goes on to explain that “we have to look at it from a human perspective and say that what we are doing is not just protecting ourselves from the financial implications, but also protecting the people driving the vehicle. »

What helps to design and build a better product is “to take the data and understand what we see, what the information tells us”. Jason stresses the importance of sharing data with the right people to help them create a better product: “The financial end will solve itself in the long run, because you’ll reduce the number of problems in the field, and you reduce the number of times people have to show up to have their vehicle repaired.

Focusing on a proactive approach means you always have to address things from the past, but then take that information and implement it to avoid downfalls in the future.

Jason will discuss optimizing quality management among stakeholders to reduce warranty risks and costs, at the MAPconnected Vehicle Service and Warranty Lifecycle Summit at the Westin Southfield Detroit on October 25-26.



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