Customer’s Requirements Review – Part 2

Customer’s requirements review – the ISO 9001 Standard requirements – Part 2

PRICE QUOTES  – REVIEW IF REQUIREMENT

We had already accepted a request for a quote, but before delivering it, the organization must confirm that he is capable of performing the job. Therefore the organization must ask himself the following questions:

• Can the organization make schedules?
• Can the organization provide with the technical requirements?
• Does the organization have the right technological abilities to perform?
• What about packaging and transporting requirements?
• Are the products are within the inventory or must the organization order them?
• Does the organization have enough human resources to provide with the customers’ requirements?

All of the above must be documented. At this stage the ISO 9001 Standard requires documentation. The purpose of the documentation is to proof activities. You must document the records but not the method. We suggest you would document the method. You may document the method as a diagram, a written procedure or a form that defines the review. If you maintain CRM software of some kind – It is considered as method documented. Following the software process is following a method. It is important to specify who participates in the process and which parameters must be taken on account. The process must refer to the next line of issues:

• Customer’s requirements are defined and cleared. The price quote would be composed upon these requirements. In order to achieve that I recommend defining a method. The method shall consider all aspect of the product (manufacturing, packaging, supply, warranty and service).
• A description of the product that the customer requires and in which quantity. The description must be clear. Some organization would propose different products every time. Therefore, the price quote must describe specifically what you are offering.
• When providing the product, if a delivery process or service process (for the product) are involved, you must describe what, how, how much, until when, and where. Do not save in details. It will cost you latter…
• What are the warranty terms for the product or service. You must define period of time and what the warranty is valid. Don’t save with the details. If there is a fixed warranty form – hand it over to the customer. Don’t hide it.
• In cases where the organization is aware of requirements that the customer is not aware of, the organization must inform the customer. Don’t leave any surprises open.
• In cases where the customer delivered requirements verbally, the organization must document it.
• If there are any legal requirements (local or international) you must refer to it in the price quote. That is a requirement of the ISO 9001 Standard. Not a recommendation.
• If the organization uses some kind of a tool to document permanently the price quote (a form or software), the organization must document it within a method. It would help you trace the price quote later on.
• If there is a requirement for information while composing the price quote, you must define which information you need and where you can reach it.
• If the customer requires an unusual requirement, you must define within a method how one can handle that and if this requirement must be approved.
• If a sub contractor is involved with the product or service provision, you must refer to it within a method: who is the sub contractor, what is he required of him and how much it would cost you.
• If a resource planning is required while composing the price quote (technicians, programmers, delivery services etc.) – you must refer to it within a method. This is for confirming that you would be able to provide the product according to the price quote.
• Changes. If changes were required by the customer, what is to do? Who receives the request, and where it must be reported or documented. Who approves the request for a change? All these must be defined. It is also highly important to define how you notify the customers about any changes on your behalf. For this you must maintain your customer’s details: names, phone numbers, contact persons etc. – all what is relevant to the product provision.

PRICE QUOTES – AGREEMENT

Next requirement by the ISO 9001 standard is to ensure that you and your customer have reached an agreement and all gaps are settled. The customer requested one thing; you proposed it with small changes so you can make some money out of it. The customer agreed because he wants you to perform the work. But there will always be a gap between what he asked at the beginning and what you are willing to provide. Therefore you must document the fact that the customer had agreed. Save yourselves unnecessary troubles ladies and gentlemen. Agreement can appear these days in various forms: E-mails, Faxes, etc. The classic and much safer way is his signature. Nothing is like the signature. This is a proof that the customer sat down, reviewed the price quote, read, thought, read again, came to a conclusion with himself and signed it.

SUMMARY

All of the above are the ISO 9001 Standard requirements. They provide you with control over the process of contacting your customers. There are plenty of parameters that must be taken on account. Of course, you must adopt only what is relevant to your organization. It could be that when you perform some of the above, you may find out that you are not capable of delivering the product like you thought or that the revenues for some transactions are less then what you expected or that the customer is just one hell of a son of a b@#$%&! That may happen as well.

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