aleksandra said:
Thank You all for replies. Of course there are a lot of unclears: the customer is important to us but the parts he claimed I think he stopped the production at that time that he stop the order ( 2 years ago) - he may have big stock...?. The problem is not in costs so much but in ppm level. We are going to improvement our process and system and in case of audits I don't know exactly how can I deal with that. I will try to do all analysis (cause and risk) and will send to him - I'm curious about his opinion.

Thanks
I'm not completely clear what your customer expects you to do.
- If he expects you to repair or replace the defective pieces - that's not possible.
- If you can't repair or replace, he expects you to reimburse him for defective pieces - that's possible, but you have to agree the pieces are defective. Have you seen and inspected sample defective parts?
If you agree they are defective, you have three options:
(1) accept the customer's tally without confirmation and pay up;
(2) send an employee to the customer to confirm the count of defective parts and oversee their destruction and pay up;
(3) pay to have defective parts shipped back to you for scrapping and pay the customer for the confirmed count.
- If the customer is continuing to use parts from inventory, it might be reasonable for him to expect you to reimburse for sorting good from bad and scrapping the bad parts in addition to reimbursing for defective parts he paid for.
I'm definitely not sure what he expects in the way of "ppm." I understand ppm to mean "parts per million" which is usually applied to an entire lot or production run based on an inspection or sampling plan performed when the entire lot is available to draw samples from.
Almost any sampling plan you perform this late in the game is fatally flawed because you may never know how many parts were scrapped because workers thought THEY were responsible for damage.
Do you have an idea of how many parts are still in inventory? Does the customer intend to continue using the part or is he discontinuing use? If he is discontinuing for other reasons, it is not quite fair for him to expect you to defray part of his cost of discontinuing by asking you to do anything other than pay for defective parts on a piece by piece basis, especially after a two year delay.
Something just occurred to me: You haven't manufactured the parts for two years. We've assumed the customer had them for two years. Did you sell him old inventory just recently? or has the customer, in fact, had the parts for two years?
Give us the answer to these last two questions - they are important factors here.