A failure rate this high in any other industry would not only be unacceptable but probably terminal. I hope the scope is limited and GHL can move forward with much higher reliability. They will have to if they wish to survive.
I agree, 20% failure can easily kill an otherwise healthy company......and has lots of times. Which is why traditionally you do Beta testing where the numbers are small (controlled) and the exposure is small (in Beta testing the company owns the gear, they have no responsibility to 'make it right').
If a batch of parts has a defect in it that makes the final product inoperable does the company of the final product eat the cost of that defective batch or does the manufacturer send out a new batch of non-defective parts?
I know ghl will be sol about the body and the rest of the gh but I'm just wondering about the sensors and other defective parts being covered by the manufacturer of the individual parts.
The cost of making the run of products would be on GH almost certainly.
As happens so often the answer to what the responsibility of the seller is 'it depends'. It depends on the terms of the purchase (contract). Many times there are industry standards to fall back on, more risky are 'I want XXX of your YYY sensor' type buys since the maker determines what specs his sensor must meet. In any case 'suitability for use' is on the buyer. If he misses the problem at incoming inspection/test and uses the parts he owns the problems. The most the seller is liable for is replacing the component typically. In this case, as I understand it, the seller is in no way responsible for what the buyer did. All he's probably responsible for is replacing the defective parts when they are returned. Fraud might change that, but that's a tall hill to climb.
I know from first hand experience that such 'venfor parts issues' get very much more expensive if you miss the problem and solder them into boards (you eat the rework), and should they slip out the door you can be in deep trouble real fast. One sad adventure called for us sending techs to chase merchant ships literally around the world to replace 'just as good' fans that weren't. Those fans probably cost us well over $1000 each, and there were 4 to a unit. Meeting a ship in say Hong Kong is not cheap or fun. Although when it came time to meet one in Fiji the head of Engineering took the call......and his wife. They accidentally left early.......
Lucky for GH, the pens mail easier than a 30,000 ton ship.
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@lwien[/USER] you mentioned that they cannot resell a warrantied gh as new but could they recoup cost by selling them as refurbished down the line? I'm just wondering overall how much money can ghl recoup from the 20% that are defective(rhetorical).
Actually that was me......
PIU's 'open box' sales are an example. I'd say 'half price' is easy to get. Given the short supply you might easily get over list? Perhaps an EBay offering?
There is an argument that some 'factory referbs' are more reliable if not as pretty. They are often more carefully gone through before being inspected before shipment. Many times, of course it's 'if the light comes on and the fan starts, ship it'.
So here, too, I think it's an 'it depends' answer? If you have a lot of 'em like PIU they might go cheap and fast. If the parts cost is low compared to labor (as might be the case here?), scrapping them might make the most sense. If guys are paying a premium due to late deliveries and built up demand they might even go for 'over MSRP' with a weaker guarantee. In any case they can't be sold as new with any used parts (that means shipped to a customer, basically, if you catch it 'in house' it's still new).
Best plan is probably to not have any?
OF