-> feasability review should be performed at some stage
-> before the contract review and approval of the order.
Or as a part of the contract review its self.
Typically there will be another feasibility review every time there is an engineering or process change. Of course, the the review may be limited with respect to the 'significance' of the change.
In addition, a design system should contain several points of feasibility review - particularly with complex and/or expensive products.
As to the main question, I agree with Howard:
-> IMHO a contract is a purchase order that is approved by
-> the supplier
as well as with Laura's comments.
The origin of this requirement, as I understand it, is from years ago (well, not really so terribly long ago) when a supplier would accept an order (contract) and too late in what is now known as
APQP it turned out the supplier was 'hoping' to be able to pull everything together but, alas, couldn't. So - GM (or whichever) is 3 months from model launch and they find the supplier can not provide in spec parts or parts in quantities. Thus - the initial feasibility review is: Do we have the appropriate equipment / machinery? Do we have the capacity? Etc. etc. They want this all determined before a contract is signed.
In the QS implimentations I have done, feasibility was always a part of the contract review process for all intents and purposes.
Receive RFQ --> Feasibility Review -->
Respond to RFQ (ROM, Fixed-Price or whatever) --> Customer signs and returns copy as evidence of acceptance.
The quote (bid) is a 'contract' as soon as it is signed by the customer as Howard pointed out. As Laura pointed out herein, some aspects of the contract may be left 'open' for negotiation later. That is not unusual at all.
[This message has been edited by Marc Smith (edited 06 June 2001).]
