In OEM manufacturing, precision is the goal, but real-world production often involves variances. Our policy on overproduction or underproduction for an OEM order is designed to balance flexibility with accountability, ensuring a transparent and collaborative partnership.

For most projects, we target delivering within a mutually agreed tolerance, typically +/- 5-10% of the ordered quantity, as stipulated in our initial contract. This range accounts for standard material yield and process efficiency. In cases of minor overproduction, we usually absorb the cost of the excess units unless the client chooses to accept them, often at a reduced rate. For minor underproduction, we proactively communicate the shortfall and work on a solution, which may involve a partial shipment with a follow-up run or a proportional price adjustment.

Significant deviations are treated differently. Major overproduction without prior written approval is considered our responsibility. We will not invoice for unauthorized excess inventory. Conversely, substantial underproduction due to our error triggers our commitment to expedite a compensation production run or provide significant financial remedies as per our agreement.

Our core principle is communication. We maintain open channels throughout production, providing regular updates on yield forecasts. This allows for collaborative decision-making if variances arise. We recommend clients discuss and clearly define tolerance levels, liability, and solutions for variances during the order negotiation phase. A well-defined policy protects both parties and ensures the focus remains on delivering quality and value, even when production doesn't go exactly as planned.