Steve,
      PPM defect reduction is important and with respect to a failed PWB 
resulting in loss of life there is a higher level of liability that applies. 
 My position and I think Avner's original questions are based on daily life 
in the trenches of PWB manufacturing and purchasing.  Yields of less than 
100% are a daily occurrence that result in rejected material.
      If you are serious about buying the best boards for your money, you 
are obligated to understand what you are buying.  If you are serious, you 
are obligated to learn the actual capabilities of your suppliers.  This also 
allows you to compare between your suppliers.   Now you know your orders are 
placed within your best shops capabilities.  This knowledge will drive you 
to add or drop shops before they drop you.
      Visiting a shop, checking out their housekeeping and negotiating a 
"buy back" or other muscle based program provides no assurances to you as a 
customer that you have placed your orders with a shop that will be able to 
provide you with good, on time boards, on an on going basis.  Yes, you are 
comforted by a contract that 'protects' you if they are defective, but isn't 
that always too late.  Now your schedule is blown, or worse, your end 
customer has failed products with your name on them.  Sure you have a 
contract that if you can make it stick, provides you some monetary 
compensation but the damage is done.  You missed your schedule and/or you 
have lost a good customer.   In addition, there is nothing that prevents 
this from becoming a repeat occurrence with your other shops or with the new 
ones you added to replace the last ones that sent you defective boards.
      Get to know your supplier's process capabilities so you know first 
hand what you are buying.  Your board shop's only obligation is to remain as 
a profitable business.   For your own best interests, you need to be in a 
knowledgeable position so that you can participate with them.

      Norm
 --------------------
From: TechNet-request
To: Technet
Cc: Stephen_C_Joy
Subject: Re: FW: Liability
Date: Tuesday, July 02, 1996 11:02AM

Text item:

Norm,
What you say is logical, but what should the PPM(defect) reduction program
look like?
What are the obligations of supplier and customer?
Steve

____________

     While this position of "buy back" sounds like "that's the way it should
be", in the real world of process yields and missed communications this
business position will ultimately result in supplier switching, higher
pricing and poor supplier relationships.
     No one can run an on going business selling an item for $10 that has
process yields of 78% to 98% and a "buy back" liability on each one of $100
or more for any found "defective".  We aren't buying labels and hardware
here.

     Norm Dill
     [log in to unmask]

 -------------------
>Sender:        [log in to unmask]
>To:    [log in to unmask]
>Subject:       Liability
>
>It is not exactly a technical issue but I hope someone will assist me.
>
>I would like to know what is the common practice, for PCB manufaturer
>liability, if boards found bad by the customer.
>
>There are several options for liability like:
>1. Replacement of PCB
>2. Compensation for components and labor invested in  assembly of PCB
>3. Compensation for indirect losses (i.e. loss of contract)
>
> etc.
>
>Is there any written codes?
>
>Your assistance will be appreciated
>
>Avner Drory