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Run & rate for bulk materials

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batch production, bulk materials, run at rate
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  Post Number #1  
Old 11th July 2018, 07:08 AM

Total Posts: 4
Question Run & rate for bulk materials

We are a medium sized company and produce bulk materials via batch production on demand of the customer. It's always the same workflow: production -preparation, -mixing, -nuancing , quality control ( 100% inspection), filling and dispatch. At the moment we are discussing a quality assurance agreement, in which the customers wants to make run & rate obligatory for us. We understand run & rate as a tool for proving, that a production line can produce the quantity of the parts, requested by the customer. We perform feasibility studies when the volume of the orders exceed normal batch sizes, but this seems not enough for the customer. Your comments would be highly appreciated. Thank you

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  Post Number #2  
Old 11th July 2018, 08:29 AM
ScottK's Avatar

Total Posts: 2,768
Re: Run & rate for bulk materials

Hi Ursula.
I would push back against that, hard, if I found such language in a quality agreement.
That should be part of a commercial contract, not a quality agreement. And would be part of the PPAP, I believe.
Thanks to ScottK for your informative Post and/or Attachment!
  Post Number #3  
Old 11th July 2018, 08:32 AM
Ninja's Avatar

Total Posts: 1,091
Re: Run & rate for bulk materials

It seems reasonable that if the customer wants a true volume production run to prove volume capability, that the customer would pay for the product produced at a mutually agreed price (assuming that the product meets mutually agreed specs).
Thanks to Ninja for your informative Post and/or Attachment!

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