QP1090 Product Quote Process

Policy: Harrington shall follow proper guidelines to ensure that the required documents and paperwork flow are correctly processed for all incoming quotes.
Purpose: This procedure outlines the Harrington Signal guidelines for the Quote Management Team to process a product quotation.
Scope: All initial quotes and quote reviews received by Harrington
Responsibilities: The President and Sr. VP Sales have the authority and responsibility for the implementation and maintenance of this procedure.
Expected Turnaround of EMS Quotations to Clients is 3 days from Receipt for Re-Quotes, and 1 Week from Receipt for New RFQ’s.

The applicable Sales Representative and Sales Manager are responsible for all communication with the customer. They are also responsible for obtaining all information, materials, and tooling required from the customer for the quotation.

Manufacturing Manager, Operations Manager, and Sales is responsible for maintaining the documents needed for quoting. Sales is responsible for assigning a quote number and for facilitating a quote meeting when needed.

Manufacturing Manager is responsible for reviewing the documentation and determining the processes, tooling, and labor times required to manufacture the product. Document Control will also compile the quotation for review. Upon acceptance of the quote, they will also be responsible for creating/updating the Build Instructions and any viual aids.

Purchasing is responsible for obtaining supplier, material cost, and material lead time information for the quote.

The Manufacturing and Quality Managers are responsible for determing quality standards required.

The Test Lead is responsible for determining test requirements, fixtures and tooling.

 
Definitions: Quote Management Team (QMT) is a group of people from various departments responsible for collecting data and determing the costs, tooling, and processes required to manufacture a product.
  Non-Recurring Tooling and Engineering (NRTE) are one time expenses required in order to produce a product.

Build Instructions and Bill of Material (BOM) are terms used interchangeably to describe the listing of materials and sometimes instructions required to produce a product.

Request For Quotation (RFQ) are the requirements of products or services specified by a customer (either written or verbal), which are released for quotation.

Process and Procedure for Client EMS Quotations

Procedural Expectation: EMS Re-quote Turnaround to Client is 3 Days from receipt, New RFQ Turnaround to Client is 1 week from receipt

  1. Sales will receive request for new Client Request for EMS Quote OR will determine EMS Requote of existing business is necessary
    1. Sr. VP Sales will filter and monitor Client Quotes that are coming in and being processed for prioritization
    2. Sales will develop a Quotation ID # for internal reference
  2. Sales will send RFQ data to Rick Hardeman (for Labor/Tooling quote) and to Brandon Foley (for Material cost quote); expectation is that the RFQ will be started by Rick H and Brandon F the same day received, to get their process moving
  3. If the RFQ is a Requote of existing business, turnaround for Quotation back to client is 3 days.  If RFQ is new business, turnaround for Quotation back to client is 1 Week
  4. Rick H will develop labor and tooling quote using his labor/tooling calculation template
  5. Brandon will develop material quote using his supplier RFQ process template
  6. Rick H and Brandon will complete their respective sections and send their completed costs, and details, in Excel spreadsheet format to Sales at least 1/2 day before the 3 day or 1 week turnaround deadline to provide Sales Management the time to put the quotation together for the client
  7. Rick H and Brandon will save each respective quote file document to the I:\ drive in the “PE QMT Department” folder, using the Quotation ID # as the first part of the file name and the client name as the second part of the file name, and then filing in the Labor or Material subfolders

 

Detailed Procedure:

1.0     QUOTATION

    1. The Sales Representative shall determine that a quotation is required per procedure QP 1080 CUSTOMER REQUIREMENTS AND COMMUNICATIONS.
    2. Sales Representative shall request the documentation from the customer as follows:
  • Complete Bill of Materials (in Excel format if possible), including but not limited to: Manufacturer Names, and Manufacturer’s Part Numbers, and         Reference Designators
  •   Quantities
  •    Part Descriptions
  •    Assembly and Sub-Assembly part numbers
  • Schematics
  • Assembly Drawings
  • Drill Print
  • Component Drawings
  • Test and Quality Specifications
  • Programming File
  • Gerber Data:                     Solder Mask Layers                     Stencil/Paste Layers (for boards with SMT parts)
  •                      Drill Layer
  •                      Silk Screen Layers
  •                      Copper Layers
  • Placement Data for SMT Parts
  • Packaging and Shipping Requirements
  • Annual Quantities / Lot Sizes
  • Panelization Drawing
  • Sample Assembly / Picture of Assembly and/or picture of PCB
  • Customer Supplied Parts (CSP), Reference Designators, etc.
    1. As documents are received, they are to be sent to Document Control. Document Control shall create a controlled Quote Review folder on the network and store the documents in that folder.
    2. Document Control will assign a quote number to the quote.
    3. Document Control sends out the information via email or hard copy to applicable representatives.
    4. Sales shall setup a Quote Meeting within three (3) working days from receiving the RFQ. A representative from Sales, Process and Test engineering, Quality, Purchasing, Document Control, President/CEO, and the QMT Manager shall be invited.
    5. Each area shall quickly review the documentation provided prior to the Quote Meeting and note any potential issues.

2.0     QUOTE Review

2.1       The purpose of the Quote Review is to determine whether or not Harrington Signal will quote the product and/or continue production of the product. It is also used to bring all concerns and problems to the attention of the QMT and to ensure that all documentation and information necessary to complete the quote has been provided. All concerns and issues are discussed at this time.  Sr VP Sales and Manufacturing Manager will determine if this step 2.0 is necessary for a given Quotation.

2.2       Action items, if necessary, shall be assigned thru email for any issues and the time frame for completions of said items will also be noted. The Sales Representative is responsible for contacting the customer to obtain information and/or resolve any concerns or issue and wait for feedback.

2.3       QMT has seven (7) working days to complete the quote and forward it to the Sales Representative unless the QMT and Top Management has determined that the quote requires additional time. Any additional time must be approved by the President/CEO and the customer. Time starts when all required information from the customer is received.

2.4       Purchasing

  • Purchasing determines material pricing.
  • Purchasing shall also work with the Manufacturing Manager to determine the proper packing required for the material (i.e. tube, tape & reel etc.).
  • Any obsolete components shall be addressed at the time of the quote.
  • Material substitutions must be approved by the customer. Terms such as “generic” or “or equivalent” on the BOM constitutes customer approval. However, it is recommended that all substitutions be submitted to the customer for approval.
  • Pricing shall be forwarded to the Manufacturing Manager for review.

2.5       The Test Lead, with the help of the Manufacturing Manager, shall determine test requirements, fixtures, tooling, and costs. Costs, tooling, and fixture requirements and lead times shall be collected by the Manufacturing Manager.

2.6       The Sales Representative, Manufacturing Manager, and the President/CEO or Sr. Vice President, Sales are responsible for determining the markups and sales commissions.

2.7       Manufacturing

2.8       The Manufacturing Manager shall determine the processes, machine programming, tooling, and labor times required for producing the product.

2.9       The Manufacturing Manager shall complete a Manufacturing Quotation Form. The form shall list, but not be limited to, the following:

  • Price per unit per annual quantities
  • List of NRTE charges
  • Material Lead Times
  • Tooling Lead Times
  • Manufacturing Lead Times
  • Any exceptions or customer requirements
  • Any obsolete parts

2.10     The Manufacturing Manager shall review the quote. If there are any issues, the Manufacturing Manager shall work with the responsible party to correct the problem. If there are no issues, the Manufacturing Manager may approve or deny the quote and forward it to the Sales Representative.

2.11     The Sales Representative shall meet with the Sr. Vice President, Sales or President. If there are any issues, they shall work with the responsible party to correct the problem. If there are no issues, they may approve or deny the quote.

2.13   The Sales Representative shall send the Quote to the customer and await for approval or denial. Further negotiations shall be handled by the Sales Representative, Sr. VP of Sales, and/or President.

2.14     Acceptance of Quote by Customer

2.15   Sale Representative shall be notify the QMT that the quote has been accepted or rejected by the customer.

2.16   If the customer has accepted the quote, the Sales Representative shall set up a Quote Acceptance Meeting/Call. A representative from Test, Quality, Purchasing, Document Control, President/CEO, and the Manufacturing Manager shall be included.

2.17   Quote Acceptance Meeting/Call

  • The purpose of the Quote Acceptance Meeting is to determine what actions need to be taken in order to produce the product and a time frame for completion. It is also used to bring all concerns and problems to the attention of the QMT Team.
  • Action items, if necessary, shall be assigned and the time frame for completion of said items will also be noted. The Sales Representative is responsible for contacting the customer to obtain information and/or resolve any concerns or issues and wait for feedback.
  • 2.18   Document Control shall create or update BOM/Work Instructions, part numbers, and visual aids. Document Control shall notify the QMT once the BOM has been entered or updated, Note that some visual aids will need to be developed during the initial production run.
  • 2.19     Manufacturing shall acquire tooling and program machines as necessary.
  • 2.20     Test Lead shall:
    • Create fixtures
    • Create Test procedures
    • Acquire any tooling as necessary
    • Acquire customer instructions for IC programming
  • 2.21     Purchasing shall enter the supplier information once the BOMS have been entered. Purchasing shall work with finance to enter standard costs
  • 2.22     Sales Customer Service shall continue with order entry per QP1080 Customer Requirements and Communications.
  • 2.23   Document Control shall move and link the documents
  • 2.24     Non-Acceptance of Quote By Customer
  • 2.25     Document Control shall maintain quote Documentation per Document Control Information for twelve (12) months or more. After this period, documents may be disposed of, but are generally saved.
  • 2.26     The Sales Representative shall notify the QMT of quotes not accepted by the customer. No communication or acceptance from the customer after thirty (30) days is assumed to be non-acceptance.

 

Effectiveness Criteria:

  • Clear, concise
  • Plan documentation accurately reflects all changes/updates
  • When used as a Statement of Work, the Plan is easily understood by the customer

 

Revision History:

Revision Date Description of Changes Approved By
0.0 07/03/17 Initial Release Jim Theesfeld
1.0 8/17/18 Digitized version Todd Gifford
2.0 11/16/18 Updated with Client Turnaround expectations and additional detail on communication and filing of quotation details Todd Gifford