The defect notification will be provided to suppliers via email or fax. In addition to communicating issues to suppliers, the report provides data in the calculation of the supplier's performance metrics. Corrective Action Expectation The supplier is required to provide a corrective action resolution within the MTU AMERICA required timeframe. If material cannot be used as is, the supplier must at a minimum provide the following information: Return Material Authorization (RMA) or Disposition Interim Corrective Action: How the supplier to contain defect while attempting to identify or correct root cause of defect Replacement/Certified Stock, if requested If it is deemed that the supplier has not adequately responded to MTU AMERICA's requests, MTU AMERICA may take the following actions without supplier consent: Return goods at supplier's expense Scrap material at MTU AMERICA at supplier's expense Inspect material internally or externally or rework material at the supplier's expense If MTU AMERICA requests that all supplied material must be inspected prior to shipment as a result of an issue, it must be marked with the Certified Stock Tag as seen in the attachment section of this document. Notification Chargeback Process MTU AMERICA reserves the to recover the following costs relating to a defect notification including, but not limited to: Labor charges for hourly and/or salaried personnel's time spent correcting the non-conformance (inspection, rework, etc) Other costs relating to or resulting from the defective product Debits posted to a supplier's account resulting from a defect notification will reference the defect notification number.
The defect notification will be provided to suppliers via email or fax. In addition to communicating issues to suppliers, the report provides data in the calculation of the supplier's performance metrics. Corrective Action Expectation The supplier is required to provide a corrective action resolution within the MTU AMERICA required timeframe. If material cannot be used as is, the supplier must at a minimum provide the following information: Return Material Authorization (RMA) or Disposition Interim Corrective Action: How the supplier to contain defect while attempting to identify or correct root cause of defect Replacement/Certified Stock, if requested If it is deemed that the supplier has not adequately responded to MTU AMERICA's requests, MTU AMERICA may take the following actions without supplier consent: Return goods at supplier's expense Scrap material at MTU AMERICA at supplier's expense Inspect material internally or externally or rework material at the supplier's expense If MTU AMERICA requests that all supplied material must be inspected prior to shipment as a result of an issue, it must be marked with the Certified Stock Tag as seen in the attachment section of this document. Notification Chargeback Process MTU AMERICA reserves the to recover the following costs relating to a defect notification including, but not limited to: Labor charges for hourly and/or salaried personnel's time spent correcting the non-conformance (inspection, rework, etc) Other costs relating to or resulting from the defective product Debits posted to a supplier's account resulting from a defect notification will reference the defect notification number.