QP1080 Customer Requirements and Communication

Policy: Harrington Signal Inc. shall review all commitments to accept customer requests for quotation and orders (sales orders) to ensure that customer expectations are met or exceeded.
Purpose: To define the methods and responsibilities for the preparation of documents, paperwork flow, by individuals and departments for processing incoming request for quotation, contracts and sales orders.
Scope: This procedure applies to all individuals/departments involved in the customer requirements and communication process.
Responsibilities: The Quotation Management Team is responsible for the evaluation of RFQs submitted to Harrington Signal Inc. and to review incoming contracts for acceptability.

The President or Sr. Vice President, Sales is responsible for approving the final pricing of all quotations submitted to clients.

The General/Manufacturing Manager and Purchasing Manager is responsible for assisting the Quotation Management Team in preparing cost, price and lead time estimates for quotations.

The Purchasing Manager is responsible for the procurement and control of all materials required to perform awarded contracts.

The Customer Service Representative shall enter the information provided on the customer order form in the order management system and ensure that all customer information in the order management system is accurate.

 
Definitions: Sales Representative – Person (irrespective of title) who communicates with the customer regarding the sale of Harrington Signal Inc.’s products or services.

 

 

Procedure:

1.0           Quotation and Order Processes

    1. Product Quotation (New Product)
    2. When a “RFQ” is received from a customer for a new product, the EMS Sales Representative shall review the “RFQ” and forward any standards or drawings to Document Control for distribution. New product quotations shall be processed in accordance with QP1090 PRODUCT QUOTE PROCESS.
    3. Product Review (Existing Product)
    4. All product that has not been manufactured for a period of six (6) months or quoted within the last twelve (12) months, unless covered by a specific contract, shall be reviewed to capture new material and labor costs. If a “RFQ” is received from a customer for a change to an existing product, the EMS Sales Representative shall review the “RFQ” and forward any standards or drawings to Document Control for distribution. The EMS Sales Representative shall initiate a product review in accordance with QP1090 PRODUCT QUOTE PROCESS.
    5. New Orders Existing Product
    6. When an order is received from a customer, the EMS Sales Representative shall review the order. The review shall determine if the customer requirements are adequately defined and documented.
    7. If the order is for an item in stock and not allocated, the order shall be placed into the computer system and the customer sent an acknowledgement. When materials are not in inventory, Purchasing shall be notified by the applicable Sales Representative in order to obtain component delivery dates. Purchasing shall notify Sales Representative of concurrence to or if changes are required regarding delivery dates.
    8. If it is determined that material price increases require a revised quotation, the Sales Representative shall be notified and initiate a Product Review in accordance with QP1090 PRODUCT QUOTE PROCESS.
    9. All customer special delivery requirements shall be flowed down to the Manufacturing Manager by email or memo by the Sales Representative. The Manufacturing Manager shall acknowledge to the Sales Representative their ability to meet those special requirements.
    10. If the requirements are not defined adequately and/or Harrington Signal Inc. is unable to satisfy the customer’s special and/or delivery requirements, the differences shall be resolved by the Sales Representative and the customer prior to the Customer Service Representative entering the order.
    11. After the order is entered into the computer, the Customer Service Representative confirming the order shall send the customer an order acknowledgement.
    12. Amendment of Contract or Order
    13. The applicable Sales Representative shall be responsible for, but not limited to, insuring that 1) the requirements are adequately defined and documented; 2) any differences between the contract or order and the tender are resolved; 3) HSI has the capability to meet the contract or order requirements; 4) documentation of any product review if applicable; and 5) changes are promptly distributed to applicable parties.1.15   If the order or change is accepted, the Customer Service Representative shall initial the order or change before it is entered into the computer system. The customer is then sent an acknowledgement confirming order or change.1.17   Customer Communication1.18     The AM has primary contact with the client for the following:
    14. The Sales Representative is the Account Manager (AM) and primary contact to the client, with the Customer Service Representative (CSR) being the second contact.
    15. 1.16   In the case of a verbal order or a verbal change to an existing order, all customer requirements and Harrington Signal Inc.’s ability to meet them shall be discussed with the customer and noted in writing. The noted requirements shall then be read back to the customer before acceptance of the order. After acceptance by the customer, the order shall be processed as above.
    16. 1.14   Accepting Orders and Order Changes
  • Quotations and pricing-includes questions concerning the client’s RFQs;
  • Harrington Signal’s responses to questions and concerns from the client;
  • All quality issues and responses to client should be given to AM, which includes all Corrective Action Reports;
  • Overdue invoice issues-Credit Department should coordinate client communications with AM;
  • All new customer purchase orders should be reviewed by AM before they are processed by the CSR. Repeat orders can go directly to CSR.
  • The Customer Service Representative (CSR) has primary contact with client for the following:
  • Routine order processing-confirmations, status, scheduling changes, etc.;
  • RMAs (AM needs to be informed when warranty claims are received);
  • First backup to AM for urgent issues when out of the office; and
  • All communications with client should be coordinated with AM and CSR.
  • All contract review records and initialed customer purchase orders shall be maintained per QP1000 DOCUMENTED INFORMATION CONTROL.

Effectiveness Criteria:

  • Sales orders for standard products – completed and shipped within time frame stated by Company (in marketing materials, etc.).
  • Sales orders for custom products – filled and shipped within time frame quoted to, and agreed to by, the customer.
  • Number of customer complaints due to order inaccuracies, order processing.

Related Procedures:

KONE Communication and Service Procedures

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