The document discusses trends in vehicle diagnostics and their implications for warranty management. It provides an overview of GIGATRONIK, a diagnostics consulting firm, and examines use cases and trends in vehicle diagnostics like increasing complexity, standardization, and connected vehicles. The presentation emphasizes how applying diagnostics standards, managing diagnostics value streams, and leveraging big data analytics can help empower warranty management through early issue identification, more accurate root cause analysis, and cost reduction.

1. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
Christian Seiler | GIGATRONIK Stuttgart GmbH
SGS Warranty Managers Symposium | February 28th, 2013
Complexity – Networking – Knowledge

2. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
Agenda
1. The GIGATRONIK Group
2. Warranty – Quality - Diagnostics
3. Use Cases of Vehicle Diagnostics
4. Trends in Vehicle Diagnostics
5. Empowering Warranty Management through Diagnostics
6. Conclusion and Outlook

3. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
1. The GIGATRONIK Group

4. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
GIGATRONIK Group
Company Overview
GIGATRONIK Group is your specialised
development partner in the fields of electronics,
information technology and consulting.
 10 locations in Germany,
Austria and Switzerland
 GIGATRONIK Headquarters in Stuttgart
 Foundation in 2001
 813 employees across all locations
 More than 80 customers in the automotive
and automotive supplier industry

5. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Locations
Alpnach
GrazIngolstadt
Cologne
Munich
Stuttgart
Ulm
Wolfsburg
Böblingen
Magdeburg
Wolfsburg
Kerns
GIGATRONIK Group

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Trends in Diagnostics and Implications for the Warranty Business
Number of Employees 2001-2012
28
108
142
185
228
288
347
419
454
515
613
813
0
100
200
300
400
500
600
700
800
900
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
employees
year
GIGATRONIK Group

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Trends in Diagnostics and Implications for the Warranty Business
Divisions
Information Technology ConsultingElectronics
GIGATRONIK Group

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Trends in Diagnostics and Implications for the Warranty Business
Automotive
Business Segments
System
Integration &
Testing
Vehicle
Integration
Diagnostics
Data
Management
Process &
Project
Management
Component
Development
© dSpace GmbH
System
Architecture &
Electrical Systems

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Trends in Diagnostics and Implications for the Warranty Business
Diagnostics
Service and Solution Portfolio
Cross-Sectional Technology: Diagnostics
Our professionals combine the expertise in IT and vehicle technology and make this expertise
available to our customers on their road to success.
Requirement
Engineering
Diagnostics Knowledge
Engineering
Diagnostics Specification
and Data ManagementE/E
IT
System Configuration
and Operation
Diagnose Knowledge
Engineering
Consulting
Diagnostics
Engineering
Software
Engineering
Technology ProcessesStrategy
Software and
System Engineering

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Trends in Diagnostics and Implications for the Warranty Business
GIGATRONIK Diagnostics Cooperation Network
Trainings & Workshops
Diagnostics
Consulting Service Portfolio
GIGATRONIK Diagnostics Competence Network
Diagnostics Consulting Services
Diagnostics
IT Consulting
Diagnostics
Process Consulting
Diagnostics
Strategy Consulting
Basement
Innovation Management
Methodology
Know-How
Diagnostics
Know-How
Tool
Know-How
Knowledge Management
Lean Management

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Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
2. Warranty – Quality – Diagnostics

12. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Warranty – Quality – Diagnostics
Influencing Factors for the Warranty Business
Costs
 The main objective of warranty management is to reduce warranty costs. This is directly linked
to quality issues arising from the value-add processes of the product.
 Once cost drivers are identified we determine a lever to reduce them.
 During the warranty period the OEM has to bear all costs.
 Worst case:
 Customer: warranty claim.
 Dealer: follows the process defined by the OEM and replaces parts.
 Supplier: no trouble found.

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Trends in Diagnostics and Implications for the Warranty Business
Value-Add Processes Linked to Diagnostics
 The diagnostics value stream runs in parallel with the vehicle development and production
processes.
 The information flow in reverse direction is equally important to create value:
 It delivers quality measures based on existing diagnostics knowledge
 It delivers new knowledge on as yet unknown fault scenarios
Warranty – Quality – Diagnostics
Diagnostics Value Stream Forward
Diagnostics Value Stream Reversed
Development and Production Value Stream
OEM
Supplier Development Production After Sales
Dealership
Network
Customer
Quality
of the
Product
Quality
of the
Service
Processes

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Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
3. Use Cases in Vehicle Diagnostics

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Trends in Diagnostics and Implications for the Warranty Business
Use Cases in Vehicle Diagnostics
Overview
Development
Production
Product
After Sales Service
deliveredreleased
Inspection of correct
assembly
Inspection of correct system
configuration during vehicle
development
Configuration,
commissioning and
vehicle hand-over
Fault finding, maintenance
and monitoring

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Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
4. Trends in Vehicle Diagnostics

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Trends in Diagnostics and Implications for the Warranty Business
F-22 Raptor jet fighter
1.7 million lines of SW code
Boeing 787 Dreamliner
6.5 million lines of SW code
Mercedes-Benz S-Class W221
approx. 100 million
lines of SW code
Source: http://spectrum.ieee.org/green-tech/advanced-cars/this-car-runs-on-code/0
Roughly 33% is
devoted to
diagnostics!
Trends in Vehicle Diagnostics
Complexity in Comparison

18. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Vehicle Diagnostics
The Importance of Standards
Development
Creation of
Diagnostics
Specification
Application
Development
HW App
D P A
DData-
base
Runtime
System
Modules
+
 Risk reduction:
 by frontloading the validation of diagnostic components
 by using off-the-shelf components and products
 Long-term availability and support of diagnostic content as data and systems are separated.
 Business aspects:
 no customer lock-in effect
 reduced investment costs by economies of scale
 commodity: no customer visibility of low-level components
Production
Application
Development
HW App
After Sales
Application
Development
HW App
P
A

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Trends in Diagnostics and Implications for the Warranty Business
The Importance of Standards
The Next Big Thing … Diagnostics over IP (DoIP)
Source: C. Saalfeld, Daimler AG, Fachkongress CTI Forum Automotive Diagnostic Systems 2009)

20. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Vehicle Diagnostics
Connected Vehicles – Connected Diagnostics
Vehicle Communication Infrastructure
Dealership Customer
Relationship Manager
(Remote) Workshop
Technician
Helpdesk
Staff
(Remote)
Cloud
OEM Backoffice
Expert
Customer
Apps
Server-based
Content Analytics
eMobility
Service
Platform
(e.g. Hubject)

21. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
4. Empowering Warranty Management
through Diagnostics

22. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Empowering Warranty Management through Diagnostics
Warranty Cost Drivers Risk Assessment
Warranty
Costs
Driving FactorsImpeding Factors
Development speed
New technologies
Increased complexity
Application of standards
Managing diagnostics value streams
Big data analytics

23. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Empowering Warranty Management through Diagnostics
Application of Standards
OTX Runtime Kernel
MCD Kernel
MCD-1D PDU-API, ISO 22900 Part 2
Vehicle Communication Interface
OTX
ODX
OTX
ISO13209
MCD-2D
(ODX)
ISO22901
Part1
MCD-3D API, ISO 22900 Part 3
MCD-1D PDU-API, ISO 22900 Part 2
ISO 14229 (UDS)
MCD-3D API, ISO 22900 Part 3
Service
Application
Development
Application
Production
Application

24. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Managing Diagnostics Value Streams
Empowering Warranty Management through Diagnostics
Diagnostics Value Stream Forward
Development and Production Value Stream
OEM
Supplier Development Production After Sales
Dealership
Network
Customer
Product
Quality
Service
Process
Quality
Diagnostics Value Stream Reversed
Using big data analytics
brings faster results, once
data is instantly available
Analysis
Improvements in the diagnostic process
reduce NTF and improve FTF rates
Improvements in product quality reduce system failures

25. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Empowering Warranty Management through Diagnostics
Big Data Analytics
 Big data analytics is the process to examine
large amounts of data of different types in
order to uncover hidden patterns, unknown
correlations and other useful information.
 Relevant data for vehicle diagnostics can
mainly be grouped in two clusters:
 Unstructured content: mainly phrases and
sentences generated by people, e.g. service
employees’ transcripts of customer
complaints, hotline employees’ notes on
probable root-causes …
 Structured content: data generated by the
vehicle, e.g. DTCs, sensor data,
configuration data, timestamps and logs …
 Dependent on the data characteristics,
different analytic methods have to be applied
to support the respective use case.
I have a
problem with …
Hotline
Vehicle
Analyzing
Systems
Unstructured
Content
So maybe it
could be …
Structured
Content
ECU DTC Mileage …
Engine 28891 27136km …
…
Customer
I tested and
found out that …
Workshop
Technician

26. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Empowering Warranty Management through Diagnostics
Big Data Analytics Process
Data
Data
Data
Data
Data
Storage
Data
Acquisition
Visuali-
zation
Real-time
Analytics
Batch
Analytics
.
..
.
Many different data
sources need to be
integrated
Data based analysis is
not enough - the goal is
data automation

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Trends in Diagnostics and Implications for the Warranty Business
Empowering Warranty Management through Diagnostics
Big Data Analytics Example
Powered by:
One entry in a dataset of 1.3 million diagnostic
datasets: an interesting pattern is found in a
few seconds with in-memory analytics:
The DTC’s value is below 1000, …. … while Customer Impact is “9.0”Batch
Analytics
Data
Inconsistency
Pattern Test
Statistics show that a DTC below
1000 and Customer Impact in the
range 0-5 is much more likely …
… maybe we have found
a needle in the haystack

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Trends in Diagnostics and Implications for the Warranty Business
PREDIC-
TION
MODULES
DATA
MINING
MODULES
HYPO-
THESIS
TESTS
MULTI-
VARIANT
ANALYSIS
CORRE-
LATION,
OUT-
LINERS
AD-HOC
ANALYSIS,
PATTERN
KeyUsers
BeginnerAnalysts
Maturity of Big Data Analytics Methods
Prediction
Detect
+
Understand
Experts
DataMiners
Empowering Warranty Management through Diagnostics
Big Data Analytics Maturity Model
Powered by:

29. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Empowering Warranty Management through Diagnostics
Opportunities for Warranty Processes
 More analyses per time unit
 Enables early warnings
 More precise root causes
 Machine pattern learning
 Identify “no errors found”
 Identify root causes
 Projection based on big data
 Yield rate projection
 Spare part dispatching
 Shorter latency/elapsed time of above
processes, leads to
 Cost reduction
 Higher customer satisfaction

30. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
5. Conclusion and Outlook

31. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Trends in Diagnostics and Implications for the Warranty Business
Conclusion and Outlook
 Increasing complexity will be a permanent phenomenon.
 One major approach is the application of standards for
data and system components.
 Future vehicles will be “connected”. Diagnostic systems
will have to manage this complexity.
 Vehicles will increasingly become “networked devices”.
The instant access to vehicle data is a major opportunity
for remote services and just-in-time data analytics, which
can be applied to multiple use.
 One use case is reducing warranty costs for the OEMs by
improving the quality of the service processes with the
help of big data analytics.
 … There are a lot of things to do. Let’s get started!

32. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Come and join the Vehicle Diagnostics
Professionals Community on XING!
www.xing.com/net/fahrzeugdiagnose
Trends in Diagnostics and Implications for the Warranty Business
XING Group Vehicle Diagnostics (German)

33. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Thank You For Your Attention.

34. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Christian Seiler
Manager Business Development Diagnostic Consulting
GIGATRONIK Stuttgart GmbH
A company within the GIGATRONIK Group
Hortensienweg 21
D-70374 Stuttgart
Germany
Phone: +49 711 84 96 09-431
Fax: +49 711 84 96 09-99
Mobile: +49 162 26 548 09
E-Mail: christian.seiler@gigatronik.com
Homepage: www.gigatronik.com
Customer
Portal: www.gigatronik.com/gruppe/kundenportal
Login: diagnose_consulting
Password: gigatronik_584
Discussion welcome!

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Trends in Diagnostics and Implications for the Warranty Business
Backup
Background Information on Vehicle Diagnostics

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Trends in Diagnostics and Implications for the Warranty Business
1985 1990 1995 2000 2005 2010
1985 944
3
6
11
22
27
58
54
1989 928
1989 Boxster (986)
2002 Cayenne (E1)
2005 911 (997)
2009 Panamera
2010 Cayenne (E2)
Number of ECUs with
diagnostic capabilities
in recent Porsche
vehicles
based on: Falschebner et. al. Diagnostics in mechatronical vehicle systems, Dresden 2011
Background Information
Increasing Complexity of Vehicle Functions

37. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
1967 VW introduces
first on-board computer
(electronic fuel injection)
1980 GM introduces proprietary
assembly line diagnostic link including
blinky codes in the instrument cluster
1991 OBD-I in California, US
1996 OBD-II in the US
2003 EOBD diesel in Europe
2001 EOBD gasoline in Europe
2015 WWH-OBD
1986 Daimler introduces first digital
diagnostic system with blinky codes
1990 Daimler introduces first
diagnostic system for CAN network
Background Information
The Evolution of Vehicle Diagnostics

38. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
The Vehicle as Distributed System
Background Information
f1
f2
f4
f3
Fault
Fault
Condition
Failure
Root Cause Effect Consequence
• Accepted or expected root cause for a fault condition
• Incident which should be avoided or tolerated
• A fault condition often has more than one
root cause
• Fault conditions occur, when a system
changes to a state which is not intented
by specification
• Fault condition = part of a system state
which is responsible for a failure
• A failure can be the root cause for more faults
• If a fault occurs in a system it can lead to a partial or total
break down - e.g. a broken gear can lead to a transmission
failure
• Failure = deviation of the actual performance from the
required performance in the specification.
X X
X
X

39. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Medical diagnosis refers both to the process of attempting to determine or
identify a possible disease or disorder (diagnosis can also be termed (medical)
diagnostic procedure) […] From the point of view of statistics the diagnostic
procedure involves classification tests. (Wikipedia)
Vehicle diagnostics means to identify unknown states by checking the system‘s
behaviour. Knowledge about causal links is required. Diagnostic systems support the
vehicle diagnosis by identifiying correlation between faults, symptoms and root
causes.
Identification
of Symptom(s)
The Diagnostic Process
Background Information
Consequence
Root
Cause
Effect
Classification
strategy
Inspection
Plan
Fault
Root
Cause
Repair

40. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Vehicle Diagnostics is More Than Just the Process
Background Information
Vehicle diagnostics include all functions which are used to activate, maintain,
monitor, find and repair faults of a vehicle.
Preconditions a vehicle has to fulfill:
• It consists of electronic components (ECUs with CPUs)
• There are interfaces to exchange data with these electronic components
Objectives for the development of vehicle diagnostic systems:
1. Fault localisation and identification of root causes (support of the diagnostic
process)
2. Data exchange of all relevant operating data between a vehicle and all adjacent
systems
3. Connect different knowledge and information sources to improve the operation
relevant processes with the help of information technology.

41. 01.03.2013 © GIGATRONIK, 2012
Trends in Diagnostics and Implications for the Warranty Business
Service
OEM Dealership
Network
Problem
Solution
Customer
Customer
Relationship
Manager
Technology
Authoring
Process
Backoffice Experts
System
Control
Backend
Knowledge
Base
Experimental
Knowledge
Diagnostic Systems &
Enbedded Knowledge
Rules
Structure
Background Information
Manage the Value Streams in After Sales Diagnostics
Technician
Structured Content
(Diagnostics Data,
Configuration, Logs etc.)

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Trends in Diagnostics and Implications for the Warranty Business
Backend
Knowledge
Base
Diagnostic
System
Tutoring Expert System
 Information Retrieval
 Supportive Guidance
Substancial
Feedback
Rules
Structure
Experimental
Knowledge
User learns
System „learns“
Technician
with special talent
Background Information
User-Centred Application Design Process

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Trends in Diagnostics and Implications for the Warranty Business
Different ways possible:
 Direct feedback e.g. via support hotlines
 Social media plattforms
 Content analytics on both on unstructured data
(e.g. IBM Watson) and structured data (e.g. Synop Analyser)
Diagnostic System
Authoring Process
OEM
Users and Expert
Communities
Background Information
Connected Knowledge: Use All Sources
Experimental
Knowledge
„Voice of the
Customer“
Vehicle
ECU DTC …
Engine 28891 …
…
Unstructured Content
Structured Content
Analyzing
Systems