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Overview -Quote Process

OVERVIEW - Quotation Process

At PEI, we view the Quotation Phase of a project as a joint engineering and sales activity whereby the basic design of the enclosure is conceived so that pricing and leadtimes can be presented. During the quotation process we are concerned with both the technical and administrative side of our business such that we strive to understand what the customer wants and needs while at the same time providing a basic understanding of who we are, what we do, and how their particular project will be designed and manufactured.

Quotation Timing
When a company submits a Request for Quotation (RFQ) to PEI, we acknowledge via fax or e-mail receipt of the request and a projected date that the quotation will be submitted. Unfortunately, due to possible transmission errors or associated technical problems, either the RFQ or our quotation submission may not have been received. Therefore, if an Acknowledgment has not arrived within 24 hours, our customers are urged to contact us to verify that we received the initial RFQ.

Quotation Content
Once the quotation has been developed, we will submit a written quotation via fax or e-mail for the project covering the two primary issues of pricing and leadtimes Among the specific information that will be included on the quotation will be:

• Design and Engineering costs (NRE)
• Leadtime for presenting assembly drawings
• Prototype price
• Leadtime for delivering prototype part(s)
• Production quantity prices at various purchase quantities
• Leadtime for initial production run quantity
• Plastic material identification
• Shielding requirements
• Decorating (silk screening) requirements

Disclaimer
Finally, it should be noted that estimating is not an exact science and all data presented are subject to change, as needed. As a project evolves, there may be additions, deletions, or modifications to the design or function of the product that would impact the initial quotation and/or delivery schedule. At PEI, we will do everything possible to keep a project on target and, when changes are needed, communicate deviations, accordingly. However, under no circumstances do we guarantee delivery schedules or prices and we reserve the right to modify any such data as the situation requires.

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Preliminary Design pdf

PRELIMINARY DESIGN - Quotation Process

No quotation could be developed without consideration of the products design. Furthermore, in order to provide an accurate quotation, we strive to understand those issues that will impact product cost, design time, and manufacturing time. As such, we use the quotation phase to develop the conceptual design of the enclosure with the expectation that that model will carry through to the project's completion.

Among the many design topics and features that are addressed during the quotation phase are:

• Enclosure basic style (i.e.: u-channel, removable base)
• Physical size of the unit (L x W x H)
• Plastic material designation (type, thickness, color, texture)
• Component selection (i.e.: standoffs, inserts, foot pads, etc.)
• Cutout requirements (i.e.: displays, connectors)
• Shielding requirements
• Decorating requirements (i.e.; silk screening, engraving)
• Painting requirements
• Windows, doors, and other access requirements
• Special features or functionality

Once the above type of information is understood, a formal quotation is submitted to the customer. If during design development or any other project phase, the basic design data changes, then the product may need to be re-quoted. At that time, the changes along with the effect on cost and delivery will be discussed with the customer prior to implementation.

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Lead- time & Scheduling pdf

LEADTIME & SCHEDULING - Quotation Process

Our standard lead-times are 2 weeks prototype delivery, 2 weeks production parts delivery. Based on the project and our then current workload, the prototype delivery may be sooner or later, without affecting the production parts leadtime. If the prototype delivery is the primary concern, then we will focus on that leadtime, accordingly.

These lead-times are based on a standard style enclosure made with in-stock or readily available materials and components. While it is difficult to clearly define what a standard style enclosure includes, we can provide some basic guidelines that paint a generic picture of what we view as 'standard.'

To PEI, a standard enclosure will include the following attributes:

• The enclosure will consist of six or seven sides, with no more than one sloped surface.
• The access will be through the removal of a single straight or bent panel that does not include additionally attached surfaces.
• All materials including plastic sheets, components, hardware, etc., will be either in-stock at PEI or readily available from vendors.
• The enclosure will be used in a normal office setting and/or will not require special consideration for environmental issues (i.e.: abnormal amounts of dust, moisture, impact, shock, temperatures, etc.)
• Curved, rounded, arced, or compound angled surfaces are minimal and will not require developmental activities beyond what has been previously produced by PEI.
• Painting, silk screening, or special shielding will not be included for the prototype part.
  

Again, it should be noted that the above list is only a guideline and not an absolute guarantee of delivery. Many projects that we undertake do not fit this guideline, yet we are still able to deliver within the '2 plus 2' week time frame. On the other hand, based on our backlog in engineering or manufacturing, as well as other circumstances beyond our control, even projects that fit the above guidelines are extended beyond the '2 plus 2' week projection. When such situations occur, we will communicate to the customer any changes, accordingly.

All lead-times are based from the time that PEI receives the appropriate document and/or approval from the customer. In particular: leadtimes are stated as follows:

Design and Engineering
From the date that a PO or payment (noncredit accounts) has been received at PEI. For new customers, credit approval or payment (check or credit card) must be received prior to us accepting the order.

Prototype Part
From the date that PEI receives the customer's written approval of the assembly drawings - WITHOUT CHANGES. All changes made to an assembly drawing by the customer will be incorporated into our design model and then resubmitted to the customer for final approval.

Production Parts
From the date that PEI receives the customer approval of the prototype part. If changes to the prototype are required, we will evaluate the significance to determine if a subsequent prototype part is required. If so, then production part lead-time will be measured from the date that the final prototype part is approved.

Custom Lead-times
About 20 percent of the projects we undertake involve products that incorporate unique designs that do not fall within our guidelines for a standard enclosure. For those products, it is very difficult to define a timetable at the onset of the project with a firm sense of certainty. As such, our first criterion is to determine the overall scope of work involved versus the schedule that the customer requires. If in our estimation we are not able to meet the customer's delivery plan, we will submit an alternative plan that we believe is achievable and will be acceptable based on the information we have.

Typically, such a plan does not state specific dates, rather, it would state a timeframe within which all the activities required to deliver a prototype or production parts would be shipped. As an example, such a plan would simply state that we will deliver 25 production pieces by the beginning, middle, or end of a particular month, as opposed to specific dates for the assembly drawings, prototype part, and production parts.

If we do not believe we can meet the delivery requirements of the customer, we will excuse ourselves from the quotation project, all together. It is our corporate philosophy not to take on a project and make a promise of delivery that we know up front is not achievable.

Expediting Program
While our standard lead-times are quite short, we are sometimes asked to produce a prototype part or a small production quantity in such a short amount of time that our schedule has to be modified and higher costs are incurred. To accommodate such requests, we have developed an expediting program that we are willing to use when feasible.

Please note that while our Expediting Program states a scale of added fees based on various lead-time reductions, we are not always able to offer the program at the time of the request. There are countless variables involved with any production operation with many of them outside a company's control. Therefore, before an expediting order is accepted, each request is evaluated to determine if the schedule is achievable based on our then current engineering and production workload.

Once we determine that we can accommodate an expediting request, we will present a brief outline of activities and milestone dates that must be met by both PEI and the customer in order to meet the accelerated schedule.

For more information on this subject, please visit our Documents web page to view the PEI Leadtime and Expediting program.

Disclaimer
Finally, it should be noted that estimating is not an exact science and all data presented are subject to change. As the project evolves, there may be additions, deletions, or modifications to the design or function of the product that would impact the initial quotation and/or delivery schedule. We will do everything possible to keep a project on target and, when changes are needed, communicate deviations, accordingly. However, under no circumstances do we guarantee delivery schedules or prices and we reserve the right to modify any such data as the situation requires.

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Pricing & Quantities pdf

PRICING & QUANTITIES - Quotation Process

At PEI, we charge for three basic activities:

• Design and Engineering Services
• Prototype Build
• Production Parts

Each of these activities is priced separately on our formal Quotation form and will include lead-time. projections for each. Additionally, the quotation may include a summary listing of features and components, including such items as:

• Enclosure Style and Shape
• Overall Dimensions
• Plastic Materials and Specs
• Shielding Requirements
• Painting Requirements
• Decorating Requirements
• Components and Hardware
• Cutouts
• Recess Pockets
• Standoffs
• Footpads
• Packaging Requirements

Design and Engineering Pricing
The cost for the Design and Engineering activity is based on the estimated time that it will take to supply our manufacturing department with the drawings, CAM files, and assembly plans to build the enclosure. We call this 'releasing the job' for production and is required for every job that we produce. As a starting point for a basic project, we assume the customer will supply a set of mechanical drawings or CAD files of the enclosure with all features and components fully dimensioned. Under this condition, the PEI engineer will focus on converting the customer's design to accommodate the construction of the enclosure using our manufacturing process.

When such basic information (drawings/files) are not available from the customer, our engineers can and will be more involved with creating the enclosure's design which may include developing the shape, size, style, dimensional layout, component placement, hardware selection, etc. required to house the electronic device, itself. Under this scenario, the project will take longer to get through the Design and Engineering phase and the cost associated with that phase will be higher.

Prototype Build Pricing
Producing a prototype part is a necessary step for either the development of a new product or when an existing product is significantly modified. Under such conditions, we require that a prototype part be produced before committing to a production quantity that may have some unforeseen issue that affects the form, fit, or function of the enclosure.

The typical prototype build consists of PEI producing two parts: one for the customer and one for us. In this way, both the customer and PEI are able to evaluate the part and discuss the details based on a physical unit that we both can see and touch.

For customers who require more than one prototype part, the first unit will be invoiced at the "Prototype" price and any additional units will be invoiced at the quantity "Piece Part Price" as listed on the quotation. As an example, if a customer wants 5 prototype parts, the first one will be at the prototype price and the remaining four units will be at the 5 piece part price. For 10 prototypes, the remaining 9 units would be at the 10 piece part price.

Please note that prototype parts do not come with the same form, fit, and function expectations that production parts will. The purpose of the prototype build is to verify such attributes and to determine if additional adjustments to the design or the manufacturing methods are needed. While we utilize the latest CAD/CAM technology and bring to the table our experience of designing and producing thousands of different styles of enclosures, each one has a uniqueness that may require some fine tuning once the product has been produced.

That is one of the key purposes of the prototype build and, as such, if the prototype part does not meet the customer's expectation as a result of an oversight or error by PEI, we will replace at our expense only one prototype part. All additional prototype quantities are at the customer's expense and will not be credited or replaced by PEI under any circumstances

Piece Part Pricing
The pricing of production parts is broken down into various piece part quantities. For quantities of up to 20,000 units, our pricing is set at our standard quantities of 25, 50, 100, 250, 500, 1000, 2000, 5000, 10000, and 20000. Above 20000 units, we will provide specific quantity price breaks in multiples of 1000 units.

The quantities used for calculating the piece part price will be the total P.O. amount adjusted for the requested release/shipment forecast. For purchase orders with multiple releases, a projected forecast must be submitted with anticipated ship dates and ship quantities.

For specific pricing information based on your projected shipping schedule, please contact our customer service department.

Blanket Purchase Order Program
For customers who provide annual blanket purchase orders with planned schedule release dates, special pricing considerations are available. Under such a plan, we offer premium pricing based on our ability to economically batch production runs such that we can be more flexible with our shop schedule, project larger material purchases, and produce parts in advance of when a heavy work schedule is projected, thereby avoiding the need for incurring added overtime expenses.

Please note that under no circumstances will PEI accept blank P.O.s for deliveries over a period greater than 12 months. Furthermore, all product listed on a blanket P.O. must be shipped from our facility within a 12 month period or retroactive pricing will be implemented based on the actual quantities shipped for that 12 month period.

For those customers whose production quantities are stable and predictable such that they would like to take advantage of our Blanket Purchase Order Program, you should contact our customer service department to discuss those special arrangements.

Expediting Program
While our standard lead-times are quite short, we are sometimes asked to produce a prototype part or a small production quantity in such a short amount of time that our schedule has to be modified and higher costs are incurred. To accommodate such requests, we have developed an expediting program that we are willing to use when feasible. Please note that while our expediting program states a scale of added fees based on various lead-time. reductions, we are not always able to offer the program at the time the request is made nor do we guarantee delivery. There are many variables involved with any production operation and many of them outside a company's control. Therefore, before an expediting order is accepted, each request is evaluated to determine if the schedule is achievable based on our then current engineering and production workload.

Once we determine that we can accommodate an expediting request, we will present a brief outline of activities and milestone dates that must be met by both PEI and the customer in order to meet the accelerated schedule. For more information on this subject, please visit our Documents web page to view the PEI Leadtime and Expediting Program.

Disclaimer
Finally, it should be noted that estimating is not an exact science and all data presented are subject to change, as needed. As the project evolves, there may be additions, deletions, or modifications to the design or function of the product that would impact the initial quotation and/or delivery schedule. We will do everything possible to keep a project on target and, when changes are needed, communicate deviations, accordingly. However, under no circumstances do we guarantee delivery schedules or prices and we reserve the right to modify any such data as the situation requires.

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Project Outline pdf

PROJECT OUTLINE - Quotation Process

At PEI, all new enclosure projects go through a series of steps in order to move from a conceptual design to the delivery of production parts. The first of those steps is the calculation of the quotation followed by activities that will ensure that what we produce is what the customer wanted. Below is a listing of those steps in the typical order they are performed:

• Conceptual design and quotation calculation by PEI
• Submission of quotation to customer
• Purchase Order transaction
• Engineering design development
• Submission of assembly drawings to customer for approval
• Customer approval of design
• Engineering development of manufacturing details
• Prototype build
• Submission of prototype to customer for approval
• Customer approval of prototype
• Manufacture of initial production quantity

As with all processes, some projects may require additional activities or the sequence may be different than what is presented above. However, it has been our experience that to ensure project success, each of the above listed steps should take place. For this reason, we are very persistent in covering each of these steps, regardless of time constraints. While we will do everything possible to expedite a project to meet a customer's deadline, we have found that skipping even one of these steps can have detrimental effects on the project's success and ultimately lead to higher costs and extended delivery dates.

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