PPAP Charge Survey - What Price to Charge for 4 hour "Annual PPAP"

[Mark Paul]

I would like fellow covers' to weigh in.
we are teir 1 or 2 to automotive.
we make tiny parts for engines.
some are contracted for annuals; for those that are not, what is a 'round' figure for a 4-6 hour/measure all the dims./"level 3 requested" annual?

I'd like to propose $625.00, part of which is a nuisance fee.

 

[RG Ohidy]

Re: PPAP survey; what price to charge for 4 hour "annual PPAP"

We charge 300.00 per PPAP, mostly to cover the cost of independent testing.

 

[Coury Ferguson]

Re: PPAP survey; what price to charge for 4 hour "annual PPAP"

Maybe I am a little uneducated in this aspect, but wouldn't that have been negotiated at the time of the contract?

My feelings state that the PPAPis part of "doing business" with the Automotive Sectors.

 

[Mark Paul]

As I stated earlier, some are contracted, so nothing can be done until print change or something else comes along to open the contract up. Many however are not specific about annuals or don't have it yet in their contract.

Of the second group, what is being charged out there for pulling fresh data "just because the OEM wants it"?

 

[ralphsulser]

Re: PPAP survey; what price to charge for 4 hour "annual PPAP"

Maybe I am a little uneducated in this aspect, but wouldn't that have been negotiated at the time of the contract?

My feelings state that the PPAPis part of "doing business" with the Automotive Sectors.

Ditto here too... during Contract Review. I have never heard of a company being able to charge for doing a PPAP for a customer. It was always part of doing business, especially with the Detroit auto companies.
What type of customers are you able to charge a price for each PPAP?

 

[biomarine]

I agree with the others, that the PPAP is "part of doing business with automotive". If I mentioned a "charge" to one of our customers, they would probably refer to the fact that they do a "substantial amount of business with us", and that "other suppliers' don't charge them". Charging for a few hundred bucks worth of effort, isn't worth upsetting a customer who does several hundreds of thousands of dollars (or more) with me annually!
Rich

 

[Brizilla]

Reopening this subject.

We are a job shop-machine shop, we don't do automotive work, we turn it down when offered. We get level 2 and 3 PPAP requests about every month, most we turn down. We have customers who are in hydraulics, oil and heavy equipment. We don't do many annual contracts and those we do don't require PPAPs

What would we charge?

 

[Jim Wynne]

Reopening this subject.

We are a job shop-machine shop, we don't do automotive work, we turn it down when offered. We get level 2 and 3 PPAP requests about every month, most we turn down. We have customers who are in hydraulics, oil and heavy equipment. We don't do many annual contracts and those we do don't require PPAPs

What would we charge?

Welcome, Brizilla

I'm a bit bewildered by the question--you seem to be asking what you should charge for something you don't do. Seriously though, you should make an attempt to determine what it will cost you to provide the service, and pass it along as an integrated part of your piece-part price. Alternatively, you can provide a separate line-item for it in your quote, which sometimes has the effect of discouraging potential customers from asking for it. We aren't in much of a position here to have a good idea of what your costs might be, because they can vary widely with the commodity, the customer expectations, and your own company's costing structures.

 

[Jim Wynne]

I just noticed that the query is about a "4 hour" PPAP. Where did that figure come from? PPAP is a rather drawn-out process, and it's doubtful that 4 hours of billing would account for all of the time spent on it.

 

[Brizilla]

I'm looking into our doing it in the future. I have current customers requesting price costs for us to do PPAPs. One yesterday for a level 3. Requests generally come from customers who do some of their own machining but do a lot of work with us. Some come as out of the blue requests for quote.

I'm not even sure what is involved in a level 3 or 4 PPAP. Level 2 can pretty much be covered by our ISIR policies. We've done a short few of those in the past and merely require our customer to detail out exactly what they were requiring, including forms.

Another question is where can i get a complete detail out for the requirements of each level of PPAP? That would help me to figure out outside costs that might be involved.

Our business is metal machining. Bronze, SS, cast Iron & Aluminum.

Bear with me, I'm a relatively new QA Manager and a newbie on the forums. I'm going to have a lot of questions in the future and some of them may appear naive, inexperienced or out of the loop. (PC for dumb)