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80 SMT Magazine • February 2017 by Chintan Sutaria CALCUQUOTE The ISO 9001:2015 standard can be applied to any organization, any management system and any process. While it is generic in its appli- cation, the specific implementation can be the difference between lagging (inefficient, inconsis- tent) and leading (efficient, consistent) results. The purpose of this article is to review how the process approach applies specifically to the request for quote (RFQ) process in the electron- ics manufacturing services (EMS) industry. For this, we will use the process approach frame- work of PDCA: plan, do, check and act. Plan In order to effectively improve any process, the first step needs to involve proper planning. This means setting objectives to meet business needs and defining the scope of the process it addresses. For the purpose of RFQs in EMS, common objectives are: 1. RFQ turn time: Measure how efficient the process is and how effectively the organization is able to handle fluctuations in demand 2. Win ratio: Measure whether the output of the process is meeting customer or market needs 3. Estimated cost variance: Measure whether the output of the RFQ process is accurate 4. Margin: Measure whether the quoted price reflects a sustainable margin for the business to continue operating competitively The process scope for RFQs begins when a customer submits an RFQ to their contact at the EMS company (perhaps a salesperson, program manager or other contact). It includes calculat- ing the price to submit to the customer includ- ing materials, labor, overhead, risk and margin. And finally, it includes the conversion of the fi- nal quote into a purchase order and/or collec- tion of feedback from customer regarding the quote. Taking the "Process Approach" to RFQs in Electronics Contract Manufacturing ARTICLE

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