New products often have in-service reliability problem despite an intensive development program. Therefore reliability data must be collected and analyzed, and improvements designed and implemented. A type of reliability incentive contract which has recently attracted a lot of attention is reliability improvement warranty(RIW). It has been employed by military, airlines, telecommunication systems, and public utilities. An RIW contract requires that the supplies carries out all repairs, modify the equipment to improve its reliability, and provides all spates needed, for a fixed period, for once-off fee. This paper presents the reliability growth analysis and management methods for in-service MC68 microprocessor, which is the main component of the base station controller in PCS(Personal Communication Service) telecommunication system. The methods will provide guidelines to monitor reliability program in planning RIW contract.