Synopsis on Quality Control Procedures
(by Troy Cosby, Sales Director of Romaine Corporation)
I decided to write this response to quality control questions
raised at the ERA 2005 show in Atlantic City. Every rebuilder has
heard from their supplier those words that make their skin crawl
and their blood boil. "You are the only one who has reported this
problem." I’d like to address this, and at the same time make a
point about each businesses responsibility to the market. We have
developed parts that are literally the only aftermarket part in
the industry that works and is dimensionally correct but customers
say "well I'm buying the other guys part, and I agree it's not quite
right and yours is better, but I'm not having any problems with
their part and most importantly it's cheaper". Case in point, we
supply many Rebuilders with armatures. One of our customers was sent
a 2003 armature that we had worked very hard to develop. We developed
this because the only armature in the market is made incorrectly and
takes very creative spacing to use it. This Rebuilder buys the
incorrectly designed armature and can get this armature cheaper than
what we can offer for the correctly made piece. This Rebuilder
acknowledges that ours is made correctly and even performs like OE,
but their customers aren’t screaming so they won’t pay a nickel more.
Therefore, it must be acknowledged that both Supplier and
Rebuilder have equal responsibility in rectifying this very serious
issue. QC personnel and departments are very expensive to administer.
This cost must be absorbed in selling price. There is no way to
circumvent this fact.
Quality of product is of paramount importance in our industry.
As a force in the marketplace we seek to compete based off supplying
a higher quality product, and better services than our competitors.
With this in mind, we have elected to maintain and operate three
production factories that manufacture, and remanufacture, armatures,
rotors, starters, alternators, generators, some stators, and some
drives. Using the mechanical expertise gained consistently over time,
we generate insight into why a product works well, or does not work
well.
As is the case with I believe all successful suppliers in our
industry, we import high volume merchandise from various countries,
to stay competitive in a country where it has become very difficult
to profitably conduct manufacturing. We do NOT import products, put
them on the shelf, and sell them. All incoming overseas purchases
are given to the QC department and each part number is randomly
subjected to a stringent incoming inspection, with various tests
performed. Previous to any large order of a product, we require
samples from the vendor, that our engineer analyzes. If there is
any question in his mind as to whether tolerance are to far out,
he takes the product to one of our many long term, highly skilled
production workers, where the product is put into it’s environment
and tested. In cases where he feels there are metallurgical problems
with components, he takes the product to a Boeing materials analysis
lab and has a full molecular scan report done. Over 90% of the
initial samples sent to us are rejected for various reasons. There
are times, where we work with a vendor up to two years, helping them
to manufacture a part correctly, before placing a stock order.
Some people may contest our practice of teaching overseas companies
how to make a high quality product, our view is that they are making
it, and selling it to companies here in the USA, and due to the
price people will buy it before buying a USA manufactured product,
so, our responsibility is to teach them.
For instance, we manufacture brand new armatures at our factory
in Florida; the armatures coming from Atlantic Generator are, bar
none, the highest quality product available in the country. In order
to make a profit we must get a price in the near $50.00 for a 40MT
armature. Very few rebuilders will spend that kind of money for a
USA manufactured product. Only the highest quality conscious people
- OEM’s, Aircraft, Military companies who sell to large national
fleets, etc.- will purchase this grade of product. Therefore we are
put in a position, that to a certain marketplace, we must sell
overseas purchased product, yet quality must be acceptable.
We have instigated a procedure in which all product quality
issues are reported and investigated. If there is a complaint about
one of our products, our counter people are trained to contact
the QC dept and report the problem. Our people then look at stock
and determine if there is a problem. If there is, we check as to
when the shipment containing that product came in, and check to
see if any other customers have purchased it, and if so, we call
them and ask them to return the product. And then we put out a
recall notice to our warehouses requiring a stock return.
I’d like to mention a point that I heard at the 2005 ERA
convention. People were asking that suppliers check their entire
incoming product. While we do check all imported product, we do not
check all domestically purchased product, and domestic companies
do import products that we do not have the time to address. In fact,
it would be unreasonable for us to QC our competitors products.
We are however a full line supplier, and must make use of every
resource we have available, (as all suppliers do) and purchase
from other domestic suppliers. All suppliers in the country have
similar conversations with our customer bases. Customers tell us
that someone else will sell a product a little cheaper, and ask
us to reduce our price. Engineers, Quality control people,
experienced technicians, these people are not cheap. They cost
a lot of money, so much in fact that some suppliers choose not to
employ them, simply because competition is driven by our customer
base to very low profits for us.
In this writing, I’ve given an overall review of Romaine’s
dedication to QC. Now I’d like to encourage you, that if you want
Romaine and other suppliers to be able to do more QC work than we
do, buy from your supplier with price being a secondary topic that
isn’t addressed if you can take their quality product to the market
and sell it priced as is. Allow your first priority considered, in
whom to buy from, to be the burning questions that make more
difference than price. Is this a high quality product, and do I
get top rate service from this supplier?
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