Magnetic Component Engineering

SAE AS9100C AND ISO 9001:2008 CERTIFIED

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Pricing of Special Quality Requirements


As we are all aware, quality has a cost associated with it.  In a competitive environment, it is very important for all of us to ensure that we are achieving a level of quality that provides us with a reasonable cost and risk structure.

Terminology

ANSI/ASQC (American National Standards Institute/American Society of Quality Control) uses the following terminology related to quality:

  • Quality: The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs.
  • Quality System: The collective plans, activities and events that are provided to ensure that a product, process, or service will satisfy given needs.
  • Inspection: The process of measuring, examining, testing, gaging, or otherwise comparing the unit with the applicable requirements.

From the above we can all agree that there is a substantial cost associated with implementing and maintaining a quality system and the resources (from equipment to personnel) necessary to ensure that adequate controls are in place. Training and auditing personnel and systems must be well-maintained to ensure that we have the ability to meet requirements imposed by customers. In addition, it is important to realize that different programs need different levels of quality to ensure compliance, and this variability is determined by the customers when they assess the risk of potential non-compliance.

MCE maintains and offers a quality system that provides structures and personnel that  most customers consider acceptable for their programs. However, in certain cases the typical controls may not be adequate. A customer may need a higher level of quality than what is provided by MCE’s generally acceptable quality system. Our Quality System is third party audited, click on this link to see our certification.

In such cases of a higher level of quality scrutiny, the customer may provide MCE with additional requirements when requesting a quotation or when placing an order. The list below provides some guidance on how MCE bases its pricing for these special provisions and ensures that the cost of additional requirements is associated with the correct program. 

Costs of Invoking Special Requirement(s)

Special Requirement Cost of Invoking Requirement
Customer wishes MCE to use a first article inspection report (FAIR) form that is different than that which is the standard format that MCE uses and complies with AS9102 $500.00 per FAIR.
Customer wishes us to invoke quality assurance provisions that are different from those that MCE currently uses. $500.00 per purchase order.
Inspection Records held in excess of 7 years (MCE provides for 7 years as standard practice) $100.00 per additional year required per line item.
A “process freeze” imposed on MCE for a specific part. $2500.00 per part per purchase order.
100% inspection of a feature or a set of features that may not be readily identified at the time of quotation. $150.00 per inspector hour or a fixed cost after MCE has quoted for the service.

Please feel free to discuss specific requirements with your salesperson when requesting a quote or placing an order.