Run & rate for bulk materials

Ursula_D

Starting to get Involved
#1
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
 

ScottK

Not out of the crisis
Staff member
Super Moderator
#2
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.
 

Ninja

Looking for Reality
Trusted
#3
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).
 
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