KONE Communication and Service Procedures

KONE Communication Procedure for Expedite/Pull-in’s and Past Due Open Orders

Summary:

  • For Requests for Expedites, Harrington Response Back to KONE timeframe is 2 hours or less (must be Same Day if more than 2 hours)
  • For Past Due Orders or soon-to-be Past Due Orders, Daily Status on all Past Due Orders shall be provided to KONE without fail

Expedites/Pull-in Request Procedure: Response back to KONE immediately that their request is being worked on and respond back with our answer within 2 hours is the procedural expectation

  1. Inside Sales/Kevin G receives request from KONE
    1. If anyone else receives the request, it is to be forwarded to Inside Sales/Kevin G
  2. An immediate response back to KONE should be made that their request has been received and it is being worked on, before any work is done
  3. Kevin G looks at system to see if item is On Hand and looks at Due Date of request
  4. If no stock on hand, Kevin sends an email to Rick Hardeman, and then calls Rick or sees Rick live to review
    1. Call Rick on Landline first, and if no response, call Ricks mobile phone (he will carry his cell phone at all times)
  5. If a message has to be left for Rick H, Rick will get back to Kevin as soon as he is able
  6. If after 30-40 minutes Kevin and Rick have not connected to review the KONE request, Kevin G will repeat step 4
  7. Rick H and Kevin review the data and make a determination about mfg capacity to build and parts availability
  8. If there is a part availability issue, Kevin calls or sees Brandon or Penny to make a call to suppliers to see what the best possible date is or options to improve delivery
    1. If Brandon or Penny are not available, Kevin G will call the suppliers himself to inquire about improving the ship dates based on the data he can see in the system
  9. Based on all the information, Kevin G will get back to KONE within 2 hours with what we can do, preferably with a phone call in addition to email
    1. Copy Tom Delleman and Jeff Winders on the email to KONE
  10. If KONE needs something better than we have confirmed or offered, then Kevin G will contact Jeff Winders to review situation for potential options

KONE Field Repair Returns Procedure

KONE, per our Supply Agreement, can send in to Harrington broken, damaged, or non-functioning units for repair and return to the field.  The requirement is for Harrington to test/repair the unit as new for return to KONE field.

The Supply Agreement commitment language is:
The supplier will make available resources to evaluate and/or repair products under current production.  A $22.50 go/no-go “bench” fee will be assessed, with repairability/final cost determined by best judgement, and likewise passed onto Purchaser.  Repair charges in excess of 50% the assembly’s initial cost are to be avoided, the assembly scrapped.  Scrapping will require the go/no-go fee to be assessed.

Procedure:   [ Response and Disposition shall be completed in 3 weeks or less from receipt of repair items from KONE]

  1. Andy/Purchasing from KONE sends advance notification with Qty, Description, Problem return for repair to Kevin Garrand/Inside Sales.  If this notification goes to anyone other than Kevin G, it is to be forwarded to Kevin G/Inside sales
  2. Kevin G/Inside sales initiates and enters a CAR/RMA, filling out as much info as possible, and including the advance notification information that KONE sent.  Kevin G/Inside sales notifies Julie Olson/Quality Coord to review CAR/RMA and approve an RMA auth and # to be provided to KONE
  3. Julie O/Quality Coord reviews and approves RMA back to Kevin G, and Kevin G provides RMA # to KONE
  4. Kevin G/Inside Sales enters a Sales Order into the system, referencing the RMA/CAR, and also updates the CAR/RMA to reference the Sales Order #
  5. The Sales Order shall be entered in the following manner:Upon notification by KONE of the Return and upon creation of the CAR/RMA above, a Sales Order for KONE shall be entered with 3 line items. Line item 1 will be the negative Qty for the return part and using the inventory part number of the assembly, entered at full price and cost. Line 2 shall be a positive qty for the return qty of the part with full price and cost (these are inventory part numbers, and the Qtys should cancel each other out having a negative and a positive qty). Line 3 shall be the order line for the FEE that will be charged to Kone. This shall be entered with no part number, but simply filling in the MFG Name as “Repair Fee” and a Qty of 1. The price can be filled in or left at 0 until it is determined what the Fee charge will be. Once the fee is determined, $22.50 or the full $ fee of a complete repair, that price will be filled in.
  6. The Repair units arrive at Harrington, presumably with the RMA reference #
  7. Parts shall be Red-Tagged, noting the CAR/RMA number and marked as “Repair”
  8. Parts are routed to Kevin Carr and staged in Repair required area
  9. Kevin C will perform initial evaluation to determine what is required for repair
    1. The CAR/RMA shall be updated with any/all Kevin C notes as to what is needed for the repair
  10. Kevin C and Rick H will determine what the total cost/price is for the Repair
    1. Cost shall include labor time at $40/hour + Material costs, and Repair price shall be the Cost *1.5
  11. There are 3 possible outcomes from the Repair process, and all 3 need to be updated in the CAR/RMA form as well as the KONE Repair Template Spreadsheet:
    1. No Trouble Found – this will result in a $22.50 invoice to KONE
    2. $xxxxxx Price for the Repair (based on 10.1 above), and this is less than 50% of the total original price of the unit
    3. $yyyyyy Price for the Repair (based on 10.1 above), and this is greater than 50% of the price of the unit
  12. If 11.1 or 11.2 are the case, then the price of the Repair is provided to Julie Olson to update the order, and the Order is invoiced, pack slip generated, and Parts are shipped out
  13. If 11.3 is the case, then Harrington sends Template and price to KONE for approval to either Scrap or to be invoiced the price and send parts back out
    1. If approval to invoice/ship, then Price is provided to Julie O to update the order, and the Order is invoiced, pack slip generated, and Parts are shipped out