PPAP Cost - Cost of PPAP should be included in the quote?

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Kamranabbasian

We are a manufacturer and supply parts to Telecommunication, Energy, Aerospace and defense company. Recently the number of company asking for PPAP documents is getting more. I am wondering if the cost of PPAP should be include in the quoting or this is a normal practice in these industries and we should add these cost to our total overhead cost? Since we want to start to estimate the cost of PPAP, what are the hints to consider when estimating a PPAP cost?
 
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jasonb067

I think that it depends on your business arena. It autmotive it is understood that we shall supply PPAP. The planning and development documents (PFMEA, PCP etc.) are part of our normal process. Also, the capability and gage studies are also part of our normal process so those are consider in our standard overhead costs.

The specific requirements for testing (PV) may or may not be quoted to the customer for a specific program. This all depends on if the testing they require are greater than our normal testing and if we are design responsible or not.

Hope that this helps.
 
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michaelrm

I do most of my work in the steel fabrication and construction industries, they all require a certain level of these functions some more than others we calculate it as a overhead as it is a part of doing business and is built into our overall estimating for projects. Most jobs we do the client holds back 10%-20% of the the total project value until full sign off occurs with the hand over documentation.
 

max8086

Registered
I'm glad to hear other industries have been requesting PPAP.
In addition to what has been said regarding PV (testing), it is important to consider the language of Special Characteristics, and what is required from your organization across your planning and development documents (PFMEA, Control Plan, etc). If your organization is not familiar with IATF 16949, I recommend you to review if Marketing or Purchasing promises are aligned with Quality, otherwise, you may face a situation where your customer is following up with you to get process capability results from suppliers, and your Purchasing has no idea what does it means, or your supplier saying that nothing "special" was included in the quote.
 
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