Common use of Work in Process Clause in Contracts

Work in Process. 4.1 Seller shall observe and comply with Buyer’s existing floor layouts and bin configurations and labeling. Seller shall recommend optimizations to floor layouts and bin container sizes and labeling systems for the components in order to maximize the efficiency of the Services. All such recommendations shall be in accordance with Buyer’s plant engineering requirements and are subject to Buyer approval. Upon request by Buyer, Seller shall be responsible for developing processes and procedures to add, remove, identify, control, maintain, and replace (as needed) containers according to Buyer’s various production requirements. 4.2 This Article 4.2 applies to Seller-Scanned Locations only. Seller’s bin replenishment processes shall support the various Buyer requirements as set forth in the Contract. Seller’s employees will visually inspect and scan all bins routinely and at least once a day. Seller shall provide visual scan signals to indicate when scan for replenishment has occurred. Seller will take full responsibility for monitoring the Products in the bins, ordering replenishment Products and restocking the Floor Bins with Products as required. Routine replenishment of Products will be accomplished by Seller within an average of five (5) business days and stockouts will be replenished within twenty-four (24) hours. Seller will keep the bins and the immediate area surrounding the bins neat and free from debris. Products placed in the bins will be kept in Seller’s packaging until Buyer purchases or uses the Products so that lot traceability can be maintained. Seller, with Buyer support, must be able to assess the minimum and maximum stock level of each bin container. 4.3 Seller replenishment processes must ensure component availability and shall at a minimum comply with Appendix B hereto. In the event of a shortage, Seller information systems must provide capability for stock transfers from station to station/bin to bin/Buyer Location to Buyer Location. Seller shall support bin replenishment lead times as provided in the Contract. Oversize requirements, spares, repairs and components associated with engineering changes shall be addressed with a 24 hour time frame. Seller shall determine inventory availability, obtain Buyer approval, place purchase orders and expedite Product delivery to Buyer. 4.4 Seller shall recommend process improvements regarding min/max calculations and stocking levels to maximize efficiency. Seller recommendations shall be subject to Buyer approval and will be in accordance with the parties’ intent of maintaining supplies as set forth in the Contract.