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Side note/story: A member of a flying club I was in--name of Tom, who happened
to be German--was a process/QA engineer (last I heard he was overseeing
production for Apple in China). He told a story:
Take, for instance, a glass container to a Japanese company. They will measure,
study and analyze the sample and return with a prototype that is superior in
every way to the sample, but likely exceeding your maximum unit price point.
Take the same sample to a Chinese company and they will produce a prototype
that is inferior in every way to the sample, with a hole in the bottom. Tom
said he would point out the hole in the container--whose purpose was to contain
fluids--and the Chinese would say "But it's only 3 cents per unit."
Tom: "IT HAS A HOLE IN THE BOTTOM!!!"
Chinese: "IT'S ONLY 3 CENTS!!!"
----- Original Message -----
From: josef-eckert@t-online.de
To: "John Davidson" <jdavidso@shaw.ca>, "Forum Healeys"
<Healeys@autox.team.net>
Sent: Sunday, March 1, 2015 7:11:30 AM
Subject: [Healeys] water pumps and other repro parts
Sorry, but this is very naive thinking. I am working part time for a big parts
supplier here in Europe.
Most parts are ordered from China. You get a sample, you order a batch of 100,
500 or 1000 pieces. Perhaps you get 5% customer complains, which is normal,
when the batch is slightly faulty you may get 10% customer complains. When its
more you will have to think about the issue. When there are no complains, parts
are not sent back, all is fine, even parts are faulty and customers fix on
their oown. Often thee are no complains, even the part is faulty, but its
cheaper than the similar part from the competitor.
To put in a quality control in the system would raise the net purchase price to
a double or tripple. Customers move to the competitor, as you can`t sell it to
the prize your competitor does. You may not believe the low purchase prize of
these parts from China, but you need to buy batches of at least 100 parts. So
when they are faulty you need to sell most of them before you look for a
different supplier. You can`t send these parts back, as delivery costs are
higher than the parts value and Chinese suppliers are not very customer
friendly.
Josef Eckert
Konigswinter/Germany
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<html><body><div style=3D"font-family: Arial; font-size: 12pt; color: #0000=
00"><div>Side note/story: A member of a flying club I was in--name of Tom, =
who happened to be German--was a process/QA engineer (last I heard he was o=
verseeing production for Apple in China). He told a story:<br></div><=
div><br></div><div>Take, for instance, a glass container to a Japanese comp=
any. They will measure, study and analyze the sample and return with =
a prototype that is superior in every way to the sample, but likely exceedi=
ng your maximum unit price point.<br></div><div><br></div><div>Take the sam=
e sample to a Chinese company and they will produce a prototype that is inf=
erior in every way to the sample, with a hole in the bottom. Tom said=
he would point out the hole in the container--whose purpose was to contain=
fluids--and the Chinese would say "But it's only 3 cents per unit."<br></d=
iv><div><br></div><div>Tom: "IT HAS A HOLE IN THE BOTTOM!!!"<br></div><div>=
<br></div><div>Chinese: "IT'S ONLY 3 CENTS!!!"<br></div><div><br></div><div=
><br></div><div><br></div><hr id=3D"zwchr"><div style=3D"color:#000;font-we=
ight:normal;font-style:normal;text-decoration:none;font-family:Helvetica,Ar=
ial,sans-serif;font-size:12pt;"><b>From: </b>josef-eckert@t-online.de<br><b=
>To: </b>"John Davidson" <jdavidso@shaw.ca>, "Forum Healeys" <Heal=
eys@autox.team.net><br><b>Sent: </b>Sunday, March 1, 2015 7:11:30 AM<br>=
<b>Subject: </b>[Healeys] water pumps and other repro parts<br><div><br></d=
iv>Sorry, but this is very naive thinking. I am working part time for a big=
parts supplier here in Europe.<br>Most parts are ordered from China. You g=
et a sample, you order a batch of 100, 500 or 1000 pieces. Perhaps you get =
5% customer complains, which is normal, when the batch is slightly faulty y=
ou may get 10% customer complains. When its more you will have to think abo=
ut the issue. When there are no complains, parts are not sent back, all is =
fine, even parts are faulty and customers fix on their oown. Often thee are=
no complains, even the part is faulty, but its cheaper than the similar pa=
rt from the competitor. <br>To put in a quality control in the system would=
raise the net purchase price to a double or tripple. Customers move to the=
competitor, as you can`t sell it to the prize your competitor does. You ma=
y not believe the low purchase prize of these parts from China, but you nee=
d to buy batches of at least 100 parts. So when they are faulty you need to=
sell most of them before you look for a different supplier. You can`t send=
these parts back, as delivery costs are higher than the parts value and Ch=
inese suppliers are not very customer friendly.<br><div><br></div>Josef Eck=
ert<br>Konigswinter/Germany<br><div><br></div><br style=3D"color:#000;font-=
weight:normal;font-style:normal;text-decoration:none;font-family:Helvetica,=
Arial,sans-serif;font-size:12pt;"></div></div></body></html>
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