Across
- 3. _____ is an expedited shipping service used for urgent or time sensitive shipments. It is typically required when standard transportation methods cannot meet production schedules or customer delivery commitments. ___________ often results from supply interruptions, quality issues, or unexpected demand changes, and it usually comes at a significantly higher cost than standard freight.
- 5. ______ are costs incurred to repair, replace, or service products that fail due to manufacturing defects within the warranty period. These costs are covered by the manufacturer as part of the vehicle purchase and are not billed to the customer
- 6. _____ are costs that a customer deducts or bills back to a supplier when the supplier is deemed responsible for an issue such as quality defects, delivery problems, production disruptions, or additional work required by the customer. These charges can include sorting, rework, premium freight, line downtime, or other expenses the customer incurs as a result of the supplier’s performance.
- 7. ______ refers to a sorting activity performed by a third party company outside your facility, typically at a customer’s assembly plant or an external service provider’s location. ____________ is used when there is a potential or confirmed quality issue and the customer requires verification, inspection, or containment of parts before they enter their production process. These costs are usually billed back to the supplier and are considered customer related quality charges.
Down
- 1. _____ is the financial loss associated with parts that are defective, damaged, or fail to meet required quality standards and cannot be reworked or reused. Scrap costs typically include the material, labor, and overhead already invested in producing the part before it was identified as unusable.
- 2. _____ is the process of isolating, sorting, and managing non conforming parts within your own facility to prevent defects from reaching the customer. These costs arise from short term corrective action used to protect production while root cause analysis and permanent corrective actions are implemented.
- 4. _____ refers to the labor, time, and overhead expenses associated with reviewing, inspecting, and separating parts within your own facility when a potential or confirmed quality issue is identified. These costs arise from containment activities meant to prevent defective or suspect parts from moving further into production or reaching the customer.