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Thread: An up-issue issue
02-08-2012, 04:02 PM #1
An up-issue issue
heres a question for the shop owners
How do you cope when a customer gives you a revised drawing when you are 1/2 way through completing his parts
Eg the PO says 52 locking arms to drawing BJ-5678-issue 3 and the customer sends an email with BJ-5678-issue 4... but the revised issue means you've got 52 scrap parts since he's just moved a hole 5mm closer to the left end f the part.
'guess what happened today where I work......'
02-08-2012, 04:08 PM #2
You are happy to requote this new part
With delivery available after the present PO is fulfilled. You have suitable raw stock on hand!
Simple as that. Done it!
02-08-2012, 04:09 PM #3
Was there a contract on the specific part no.? If so, thats there screw up. If not, bite the bullet! Its unfortunate, even more unfortunate that a honest hand shake doesn't mean anything anymore.
02-08-2012, 04:19 PM #4
You need to ask about compatibility and whether the revision obsoletes what is currently being made for them.
02-08-2012, 04:21 PM #5
If they ordered issue three... Then you get to deliver issue three.
And now, a second order for issue four.
Call them and tell you have already started issue three, JUST LIKE THEY ORDERED.
I don't see a problem here at all. As long as you still have a copy of the original order.
02-08-2012, 04:22 PM #6
Prompt two-way communication is essential.
You do a 'stop work' on the WIP, calculate an invoice for the degree of completion, optionally price modification IF possible, contact the customer and ask if he wants the original design completed at the agreed price, modifications made at 'X' extra, or to just pay for the partial and take the items in their current state for scrap OR potential completion or modification at some later date.
Absent possibility of modification, you'll have to price (and reschedule) a new run of what are de-facto DIFFERENT parts.
Negotiation, and a good faith effort to minimize the fallout on both sides presumed, of course. It may or may not be possible to repair/modify, though it adds to the cost, and you should be willing to be as helpful as appropriate to the relationship, but not bear the full cost of HIS changes.
Any way you cut it, the new drawing is a new PART, and wants a new quote for the modification cost ELSE all-new.
Usual disclaimer - 'I am not a [lawyer | solicitor | barrister]', but from experience, that position SHOULD fly under either US OR UK law of contracts, even though the 'old' parts had not yet been delivered.
Playing 'dumb' and finishing them to 100% OTOH, is NOT recommended.
02-08-2012, 05:06 PM #7
Of course a cancellation payment can be negotiated on the percentage of the work completed - with the agreement of both parties
A lot will depend on the type of working relationship that exists between the parties involved - FWIW price pimps will usually fight tooth and claw to shift blame / reduce their liability.
Above all I'd advise great care is taken in collating and checking, punctuation mark by punctuation mark of the entire paper trail before embarking on any reccompence, if only that you know if a mistake has been made on your side.
digger doug liked this post
02-09-2012, 08:22 AM #8
1st item of biz is to call, right away!
"We have received your change order to the new rev level, unfortunately, the current rev level has already reached a point in the production process, that, the new revision will esssentially scrap the parts in process, we are happy to accomodate the changes, and begin new parts immediately, providing the material and our costs up to the point we are at will be covered, or, if possible, rework the current parts to the new rev level."
"Please advise as to the direction you would prefer to proceed on this order."
The ball is in their court, and, all you will be doing is asking them to take ownership of the changes, along with the resulting effect of that change, providing, of course, that you were running the parts on schedule.
As was stated already, finishing them without communication would be a big time no-no!
Last edited by JAJS; 02-09-2012 at 11:39 AM. Reason: a big was big a, see revision B :)
TDegenhart liked this post
02-09-2012, 08:55 AM #9
Ship the parts along with a bigger hammer.
02-09-2012, 11:40 AM #10
Come on Boris, don't leave us hanging.
Or have you changed your name to Wrustle
wrustle liked this post
02-09-2012, 11:41 AM #11
The parts are scrap and had about 45 mins machining done to each one.
Boss said they tried calling the customer about sending them anyway with the iss 3 drawing, but the customer has changed where the parts fit into too.
So....... customer is going to pay us material price plus 1 hr machining for the scrap ones.
'bet he calls tommorrow wanting all 52 new ones by monday
"Jeez dude I posted as soon as I got in....."
Last edited by Boris; 02-09-2012 at 11:42 AM. Reason: Limi hassling me now....
02-09-2012, 01:18 PM #12
Moi ? .... how could ya
Thanks Boris, I wasn't hassling, glad it's worked out allright.
''So....... customer is going to pay us material price plus 1 hr machining for the scrap ones.''
FWIW;-Be careful how you arrive at that figure - go too low and your clients will think you're charging too much for their parts!!
02-09-2012, 01:35 PM #13
Due to current world events part price has doubled.
But really changing their mind after a PO is issued and job started means they bought it to the point it is done. So that's material + tooling + cost for the number of hours into it. + surcharge if they still expect the new bath to show up on the previous PO's delivery date...
Less of an issue if the job wasn't yet started of course, but since it is. Here's a box of unfinished and no deburred pieces of metal and a bill to go with it. They'd have to be a pretty big and important customer that pays in shiny gold to just want to eat that loss as a shop.