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1.1 Commercial Qualification: ICP, fit/risk screen, “no-quote” rules

Defines

Manufacturing capacity is a finite asset; engineering time is non-renewable. Every hour spent quoting a mismatched project is an hour stolen from a viable one. The Commercial Qualification process is not a sales hurdle; it is a firewall designed to protect the qualificationfactory gate:from high-liability, low-probability, or technologically incompatible business. Do not quote simply because an RFQ exists. Quote because the engineering reality aligns with the factory's capability and the financial risk profile is bounded.

Ideal Customer Profile (ICP) Logic

Define the target geometry before analyzing the fit. If the prospect falls outside these boundaries, the default action is Decline unless a Strategic Override is authorized by the VP of Sales.

  • Volume: 500 – 500k units/year.
    • Reasoning: Below 500, setup costs amortize poorly (~$ high unit cost). Above 500k, dedicated line capacity constraints trigger CapEx risk.
  • Technology: SMT, THT, Box Build, moderate complexity (4 – 12 layer PCB).
    • Reasoning: High-mix/Low-volume or ultra-complex rigid-flex requires different distinct line configurations.
  • Lifecycle Stage: PVT (Production Validation) or MP (Mass Production).
    • Reasoning: "Napkin sketches" or EVT (Engineering Validation) prototypes burn excessive engineering NRE without guaranteed production volume.

The "No-Quote" Screen (Red Flags)

Execute this logic immediately upon RFQ receipt. If any condition is TRUE -> Stop Process -> Issue Decline Notice.

Commercial & Compliance Logic

  • IF Entity is on OFAC/BIS Sanction Lists -> THEN Immediate Hard Stop. Legal jeopardy is absolute.
  • IF Payment Terms requested > Net 60 (without credit insurance) -> THEN Decline. Financing customer profile,inventory redcreates flagscash flow drag.
  • IF Annual Revenue Potential < $50k USD -> THEN Decline. (tech,Overhead compliance,to payment,manage volume)account > Margin generated).

Technical Viability Logic

  • IF PCB Layers > 18 OR Blind/Buried Vias (HDI) < 3 mil -> THEN Verify machine capability. If outside equipment spec limits, Decline. Do not "try" to manufacture what the machine cannot hold to ± 3σ.
  • IF BOM contains > 30% Obsolete/EOL components -> THEN Decline or mandate full redesign. Sourcing EOL parts guarantees production line stoppages.
  • IF Documentation is incomplete (e.g., PDF only, no Gerbers) -> THEN Suspend Quote. Do not guess dimensions from a drawing; requires native CAD/Gerber/ODB++.

Pro-Tip: Never accept a "Target Price" that is lower than the raw BOM cost. If the customer's target is $10 and explicitthe “declinecost RFQ”of conditions.parts Outputs:is Go/$12, no amount of "efficiency" will close the gap. Decline immediately to save engineering estimation cycles.

Risk Assessment: The "Gray Zone"

If the RFQ passes the "No-GoQuote" screen but contains borderline risks, apply a Risk Premium or Conditional Acceptance.

Scenario A: High Credit Risk

  • Condition: Customer is a startup (< 2 years operating history).
  • Action: Mandate 100% Component Pre-payment or Escrow.
  • Why: Secures liability for custom material (inventory that cannot be returned).

Scenario B: Aggressive Ramp-Up

  • Condition: Forecast jumps from 0 to 50k units in Quarter 1.
  • Action: Cap commitment to verified material lead times (e.g., 20 weeks).
  • Why: Prevents "line down" situations caused by global component shortages. Physics dictates lead time, not the sales forecast.

Output: The Decision Matrix

Formalize the decision +to ensure auditability.

  1. Green (Go): Fits ICP, standard terms, technical match. -> Action: Assign Application Engineer.
  2. Yellow (Conditional Go): Technical fit, but commercial risk notes.(credit/volume). -> Action: Quote with strict Terms & Conditions (T&Cs) attached (e.g., "Valid only with 50% deposit").
  3. Red (No-Go): Fails "No-Quote" logic. -> Action: Send Standard Decline Letter. Do not ghost; close the loop professionally to preserve brand reputation.

Final Checklist

Parameter

Threshold / Rule

Action

Sanctions Check

0 hits on Denied Party Lists

Mandatory Pass/Fail

Min. Annual Revenue

≥ $50,000 USD

If < $50k -> Decline

PCB Technology

Layers ≤ 18, Min Trace/Space ≥ 3 mil

If complex -> Engineering Review

Input Data

Gerbers (274x) + BOM (Excel)

If missing -> Stop Quote

Credit Terms

Standard: Net 30 / Max: Net 60

If > Net 60 -> Finance Approval

E&O Liability

Customer pays for excess material

Non-negotiable Clause


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