Contract (Commitment) between Project Team and Production

[delorfra]

Hi,

I am looking for an example of a "contract" between the production department and the Project Team where the production department commits to making all the necessary ressources available for the project team to carry out properly the production trial runs and so on.

Has anyone got something like that ?

Thanks in advance

François

[Stijloor]

François,

Top Management is required to provide adequate resources. Why is there a need for a contract?

Stijloor.

[delorfra]

Hi Stilljoor,

I am not implying that it is required by the ISO/TS 16949.

I just know that in some companies they do so. And it would be very convenient for us to do the same, since we experience quite often problems with the production department not planning or willing to provide the necessary ressources : production line availability, staff for the necessary production trial runs, process validation ...

François

[Stijloor]

If folks in your company are not willing to provide support to others unless there is an internal contract, there is something seriously wrong with the organization and Top Management's commitment.

Stijloor.

[Jim Wynne]

In Reply to Parent Post by Stijloor

François,

Top Management is required to provide adequate resources. Why is there a need for a contract?

Stijloor.

How about the AIAG Team Feasibility Commitment form (in the APQP manual, I think)?

[ab001]

In Reply to Parent Post by delorfra

Hi Stilljoor,

I am not implying that it is required by the ISO/TS 16949.

I just know that in some companies they do so. And it would be very convenient for us to do the same, since we experience quite often problems with the production department not planning or willing to provide the necessary ressources : production line availability, staff for the necessary production trial runs, process validation ...

François

I happen to be reading an Australian Standard on Conditions of Contract (for Design and Construction) [i am an engineer who speaks a little legalese]
My take:
A contract is an agreement between two parties for their mutual benefit. (i'm assuming this applies everywhere - at least Common Law type juristictions)

Us - we want an asset (more capital)
Them - they want money for building an asset (more cash)

To start writing up a contract - you (us) would have to write down what you want (eg Them to provide competent resources to do stuff so we can sell new things) and then explain how you will reward them (???)

Just remember - the contract should benefit both parties.

[DrM2u]

In Reply to Parent Post by delorfra

Hi,

I am looking for an example of a "contract" between the production department and the Project Team where the production department commits to making all the necessary ressources available for the project team to carry out properly the production trial runs and so on.

Has anyone got something like that ?

Thanks in advance

François

From what I am reading, seems like we have two possible situations:

1. We are talking abot a smaller organization that has implemented the 'silo' or departmental structure. This means that each department sees itsels as a separate entity that tries to perform the best without understanding the overall impact on the whole organization. This is a result of poor management practices and total lack of focus on the 'organization' and 'team' concepts. In such instances the 'contract' has to be driven by the management team else there is no bindig contract.

2. We are talking about a large organization where certain activities are performed as 'business units'. In such cases there is a contractual 'transaction' between the departments in order to assign costs to activities, although it is nothing more than an operating cost in the large picture. This is the result of implementing the obsolete cost accounting practices that are still perpetuated through college courses in accounting and industrial engineering curriculums (read Deming and Goldratt for more on this topic). Eitherway, this is an instance where there is a formal contractual agreement between the two 'departmental' entities. Such contracts usually are the same or similar to the contracts between the organization and its suppliers.

Hope this helps a little...

[delorfra]

I shouldn't have written "Contract". By contract, I meant a commitment, f.ex. a cheklist filled up by both parties that makes sure that everything is planned ...

Thanks anyway for your advises

François