QP8550 Client Returns for Repair

If a client is going to return an assembly for repair, the following procedure is how to handle this systematically:

Returns for Repair Procedure:

  1. Client notifies inside sales of desire to return units for repair
  2. Inside sales initiates and enters a CAR/RMA, filling out as much info as possible, including the advance notification information that Client sent. Inside sales notifies the Quality Coordinator.
  3. The Quality Coordinator reviews and approves RMA back to Inside Sales, and Inside Sales provides RMA # to Client
  4. Inside Sales enters a Sales Order into the system, referencing the RMA/CAR, and updates the CAR/RMA to reference the Sales Order #
  5. The Sales Order shall be entered in the following manner: Upon notification by Client of the Return and upon creation of the CAR/RMA above, a Sales Order for Client 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 Qty 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 field as “Repair Fee” (or whatever you desire to describe the charge/fee as) 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 to 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 Testing and staged in Repair required area
  9. Testing will perform initial evaluation to determine what is required for repair.  The CAR/RMA shall be updated with any/all Testing notes as to what is needed for the repair
  10. The GM 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 minimum but can be greater than this [If there is a special agreement in place with client that drives a different Repair fee lower than what is stated here, that needs to be signed off by Sr. VP of Sales or Todd Gifford]
  11. The price of the Repair is provided to the Quality Coordinator to update the order, and the Order is invoiced, pack slip generated, and parts are shipped out

Returns for Restock Procedure:

  1. Client notifies inside sales of desire to return units for restock
  2. Inside sales initiates and enters a CAR/RMA, filling out as much info as possible, and including the advance notification information that Client sent. Inside sales notifies the Quality Coordinator.
  3. The Quality Coord reviews and approves RMA back to Inside Sales, and Inside Sales provides RMA # to Client
  4. When an RMA  is physically returned, receiving will process the return and place the parts on the non-conforming rack.
  5. Receiving will email quality that the RMA has been returned
  6. Quality will inspect the return  for any damages
  7. Quality will issue credit to the client
  8. After credit is complete quality will ask receiving to do a put away and scan the part(s) into location.

For KONE Field Return for Repair Program Procedure, click here