Here's a typical new project example. A potential client we've been talking to for a while provides us drawings, specifications, samples, and target pricing on a custom component for their product. We review the project to determine if it is a good fit for us.
If it is we generate an RFQ and the OPS Hong Kong office appoints an engineer as project manager. Typically over 3-5 weeks we get quotes from 2-4 factories in China. Often we have other projects at these factories from other clients. Sometimes we have to find new factories and qualify them. We select the best quote based on factory capability, price and other factors depending on the project.
We then add our fee to the quote and submit it to the client. Usually there is a period of questions and answers going back-and-forth over the Pacific. Sometimes there is negotiation and changes to the RFQ. If the quotes is a good one, but we haven't audited the factory before, we take care of that at this point.
After all questions are answered, if the quote is attractive, the client issues a PO for tooling and/or units. Payment terms when starting a new project at a Chinese factory are very often 50% deposit and balance before shipment. After receiving the deposit, if there is tooling involved, we begin to manage all aspects of tooling approval. At this point we also develop an inspection criteria document to guide inspection of criteria not included or clear in the specification.
After tooling samples are approved we manage the production process, including performing quality inspections against the specification before shipment. We schedule shipment and handle the logistics of getting the shipment to the freight forwarder.
Typically after working on a few different components with a client they ask us to help with sub-assemblies and then finished goods. We really begin to add value when we need to manage multiple processes at different factories in Asia to produce a finished item.
This is a very general overview example. I've skipped several details that I will come back to in future posts.
If it is we generate an RFQ and the OPS Hong Kong office appoints an engineer as project manager. Typically over 3-5 weeks we get quotes from 2-4 factories in China. Often we have other projects at these factories from other clients. Sometimes we have to find new factories and qualify them. We select the best quote based on factory capability, price and other factors depending on the project.
We then add our fee to the quote and submit it to the client. Usually there is a period of questions and answers going back-and-forth over the Pacific. Sometimes there is negotiation and changes to the RFQ. If the quotes is a good one, but we haven't audited the factory before, we take care of that at this point.
After all questions are answered, if the quote is attractive, the client issues a PO for tooling and/or units. Payment terms when starting a new project at a Chinese factory are very often 50% deposit and balance before shipment. After receiving the deposit, if there is tooling involved, we begin to manage all aspects of tooling approval. At this point we also develop an inspection criteria document to guide inspection of criteria not included or clear in the specification.
After tooling samples are approved we manage the production process, including performing quality inspections against the specification before shipment. We schedule shipment and handle the logistics of getting the shipment to the freight forwarder.
Typically after working on a few different components with a client they ask us to help with sub-assemblies and then finished goods. We really begin to add value when we need to manage multiple processes at different factories in Asia to produce a finished item.
This is a very general overview example. I've skipped several details that I will come back to in future posts.
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