Jayco says it's winning the warranty game

Jayco is claiming a significant reduction in build quality issues and related warranty claims, following the implementation of three key developments in recent years at the Aussie RV giant's Dandenong, Victoria mega-factory.

On a media tour last week of the Melbourne production facility where around 9000 RVs are built annually (or 35 a day), Jayco's Manufacturing Manager, Chris Ryan said moving to a one-piece caravan roof and front section, adopting an aluminium-framed pop-top roof, and implementing multi-stage, water leak testing of finished 'vans, had been "game changers" when it comes to reducing common industry-wide problems and keeping a lid on warranty claims.

"I can give you the most recent years... we've gone from 24 repair items per (production) line down to 12 repair items per line... I won't talk exact dollars but there's been a significant reduction in warranty costs as well," Ryan said.

After going to a one-piece roof section for its caravans about four years ago, which also includes the entry level Starcraft, he said there had been "significant improvements" in warranty claims related to roof-related issues including water leaks.

"One of our biggest issues was caravan roof replacements, and we basically knocked that on the head," Ryan said.

Following an industry trend, Jayco introduced in-house air-pressure testing (using a portable HVAC system) as part of its water leak detection and quality control processes, about a year ago. In conjunction with its in-house water spray booths, the 30-year Jayco veteran describes it as "the biggest game changer from a warranty perspective".

"Since we've introduced (air pressure testing), we used to get on average 18 water leaks in water testing per day, that's across all our products. We're now getting sub-one water leaks (per day)," he said.

"It's had a massive impact on our quality and what we're sending out to the dealers, and it will have a massive impact on our warranty (claims)."

"It's not just the cost of warranty from a dollar perspective; it's the impact on the customer. And for me there are three things as a caravanner you don't want... You don't want a water leak, you don't want a power failure, you don't want a plumbing failure. They're the three things that can ruin holidays," he said.

"Water tests will pick up stuff the pressure test won't pick up (and vice versa)," Ryan continued.

"If it has a significant leak it will go back to the assembly line. If it's just a small leak they'll actually seal it here."

Jayco recently converted its two waterleak testing spray booths from dispensing fine to large water droplets, after testing found that the larger droplets were better at discovering any gaps.

Another major issue - sagging roofs - is almost a thing of the past, after Jayco went from timber to aluminium-framing for its pop-tops and campers.

"One of our biggest warranty issues on pop-tops is a sagging roof. Since the transition from timber to aluminium frame we've only had one warranty claim on a pop top roof with an aluminium frame," Ryan said.

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Ryan admits that the occasional delaminated panel and roof or join leak are universal problems across the global RV industry.

He said one of the "biggest challenges" of any Australian RV manufacturer including Jayco, is all the different models and layouts being rolled out on the same production line; not to mention the added complexity of 48V systems being installed on many modern 'vans including Jayco's new Adventurer.

Producing most major components from chassis and body panels to cabinetry and flooring in-house, Jayco relies on a mix of both external and internal suppliers. These include sister companies like Metaltex Australia for its latest toolboxes and rear platform bars, while its electrical wiring looms are sourced both locally and from China.

"We're a very vertically integrated business... most things we can do in-house we do in-house," Ryan said.

The 51-year-old manufacturer has spent up big on automation and CNC machinery in recent years; the most recent purchase a $750K router for its busy cabinetry workshop.

"It's an investment not a cost," he said.

With a mantra of "safety, quality and cost", Jayco also recently ordered a couple of cobots (collaborative robots) for its caravan and motorhome sections, which allow hands-free application of silicone to windows and front locker doors. Among the advantages are a reduction in workplace injuries including knife cuts and RSI, and less waste.

"From a quality perspective you also get a nice even bead," Ryan said.

With upwards of 6000 caravans and pop-tops built every year, Jayco is big enough to install complex automated machinery like the one it uses to produce its latest PET (Polyethylene Terephthalate) flooring. Not yet running at maximum capacity, Jayco is looking at producing PET wall frames and cabinetry using the same in-house process.

Ryan said the theme of continuous improvement extends to other areas of worker welfare, like the recent installment of digital noticeboards around the factory for communicating with Jayco's 800-odd staff, "so we can rotate the information and also make sure it's up to date".

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