Dead stock: admitting what is never going to sell
Dead stock ties up cash and space while appearing as an asset. How to identify it, the options in order of value recovered, and why holding on is the expensive choice.
A PPAP is eighteen elements that must agree with each other. Rejections are rarely about the parts — they are about a dimension on the report that does not match the drawing revision.
PPAP — the production part approval process — is how a supplier demonstrates to a customer that it has understood the requirements for a part and that its production process can make that part consistently. It originated in the automotive industry and is now used well beyond it, and it produces a package of documents submitted for approval before production shipments begin.
The package is the visible part; the discipline behind it is the point. A PPAP asserts that the parts submitted were made on production tooling, at production rate, by the production process — not carefully by hand in a laboratory. A submission that quietly breaks that assumption is the one that produces a capacity failure three months later.
There are five submission levels, and they differ in how much of the package goes to the customer rather than in how much you have to have. Level three is the common default; level one sends only the warrant and appearance approval; level five is a review at your site. The mistake worth avoiding is assuming the level determines the work: at every level the full evidence must exist and be retrievable, and a customer can ask for any of it. Confirm the level and the customer-specific requirements in writing before assembling anything — they sit outside your own quality management system and are the commonest source of surprises.
Consistency across documents is what reviewers actually check. The drawing revision on the warrant, on the dimensional results and on the control plan must match; the characteristics on the control plan must match the process FMEA; the gauge in the measurement study must be the one used for the dimensional results. Most rejections are internal contradictions, not bad parts.
A PPAP is not a one-off. Notification and often resubmission are required for changes to the design, the process, the tooling, the material, the supplier of a component, or the manufacturing location — and for a production restart after a long inactivity. Suppliers get into trouble by treating a change as minor and deciding for themselves; the customer defines what is minor, and the cost of asking is a fraction of the cost of an unapproved change discovered at a warranty investigation.
The suffering in a PPAP is assembly: eighteen elements produced by different people at different times, each of which must agree with the others. Ettex Records holds the package per part number and revision with every element attached and its date, Ettex Sheets carries the dimensional results and the capability studies, and the analysis behind it is the fmea that the control plan is built from — the two documents reviewers compare first.
Plainly: this is a record file, not PPAP software. There is no warrant template, no customer portal submission and no automatic consistency check between elements. Where your customer specifies a system, use theirs.
The production part approval process — a package of evidence a supplier submits to show it understands the part requirements and that its production process can make the part consistently.
Five levels defining how much of the package is sent to the customer. Level three is the common default; level one sends only the warrant and appearance approval; level five is reviewed at the supplier’s site.
The signed cover sheet of the package, asserting that the requirements are met and the parts were made on production tooling at production rate.
On changes to design, process, tooling, material, sub-supplier or manufacturing location, and after long production inactivity. The customer decides what counts as a change.
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