Qtip #1: Requirements not stated by the customer

We must work to eradicate the practice by some organizations in the supply chain of omitting necessary features of products or services with the objective of underbid the competitors.

I once oversaw sourcing of Wireline offshore control cabins and was working with a couple of proficient suppliers. The Operations group (user) brought a quote for an “equivalent” cabin from a competitor. The quote was more than 20% lower. When I examined the proposal, I quickly identified several critical features that were missing, including a system to monitor the cable spooling operation (e.g. window). Any good supplier of control cabins for Wireline operations should know that the product requires such a system, but some omit required features if they are not explicit on the request for bid to win the contract and then add the features/cost via subsequent order amendments. I understand this happens with many products and services, including drilling rigs. Such practice only increases inefficiency of the industry.

API Q2 addresses this matter in clause 5.1.2.c. The clause states that:

“The organization shall determine: c) requirements not stated by the customer but considered necessary by the organization for the execution of the service and provision of the service related product.”

Note that API Q1 and ISO 9001:2015 have similar requirements in clauses 5.1.2.c and 8.2.3.1.b respectively.

I suggest that next time an organization in your supplier base omits a feature from the bid that is known to be necessary for that product or service (and especially if the suppliers claims that the feature was missing from the stated requirements) you issue a non conformance against clause 5.1.2.c of API Q1 or Q2 as applicable.