Xi’an Huan-tai Technology & Development Corp., LTD.

Metal Casting and Export Division

Q:Your system looks great. Can we place the order with the factory and we pay you for conducting the process control?

A: The answer is negative. Without a purchasing contract from our company with the factory, we lose the legal handle to apply our process control mechanism with the factory. We buy and own the products from factories before we sell them to the customers, so that we have the right to monitor and control the quality in the various steps of manufacturing, a process that we believe practically ensures the products are made to the prints and agree specifications. This process control mechanism and capability make us substantially different from the majority of trading companies.

Q:We have our purchasing office in China. Can we still work together?

A: If your purchasing team in China is only to conduct spot check to see if our system is working, then yes, we can still work together. If your purchasing team in China has its own quality controllers with tools to conduct the entire process control at the workshops like we do, then you do not need us.

Q:We have bad experience with suppliers that the samples are good but quality deteriorates in production deliveries. Does the same happen for products from your company?

A: The situation seldom happens with products from our company unless we missed points in our inspection. To begin with, we mandatory requires the tooling and process for making samples be the same for manufacturing parts in production runs. On top of that, our company’s mechanism is to own the products first before we sell them. Naturally, we have no interest to take bad products. The effective way to get good products is to have our own professional staff stay on the factory floor, monitor the process and check the quality before taking them.

Q:In comparison with other suppliers from China, your tooling/pattern cost is more expensive and the lead-time for sample is longer. Can you explain?

A: When we quote a project, we quote it with an intention to stay with the customer for a long time so the tooling/pattern are designed and made for high quality and durability. We also make the sample in the same way as we would do for the production runs. Such practice makes us less attractive to customers in the quote. However, in reality, our customers benefit from our practice because we have very high successful rate in samples and consistency in quality of production deliveries. We are a mature company. We do not trick customers for quoting artificially low tooling/pattern prices just to get in the door or making a sample just for the sake of a sample and worry about the quality in production runs later.

Q:How do you know whether the chemical composition and mechanical properties reported are reliable?

A: As part of our process control, we run frequent verification tests in our own facility on chemical composition and mechanical properties from test materials randomly selected by our quality controller. If deviations exist, we will run investigation to make sure that we know exactly what it is. Additionally, where practical, we also conduct sample dimensional inspections in our own facility.

Q:Do you have traceability on the products that you supply?

A: Yes, we have traceability on the products unless the parts are too small to place such traceability identifiers. Subject to the nature of the products, they may be traced back in heat number, lot number and etc.

Q:Can you provide a list of the factories that you work with so that we can visit them?

A: We do not provide the list of the factories where we have the products made unless a prior agreement is made and a sample order is placed with us with the condition that factory approval is required to proceed with the sample production. There is no point to visit a factory if we cannot make the parts or our quote is not appealing to the customer.

Q:We see products you supply to other companies. Can we buy the same products from you? Can you show the drawings or your quality control manual to us?

A: No, we cannot sell them to you and we cannot show you the drawings or quality control manual. We do business on high ethical standard and we respect intellectual property.

Q:We have ideas of cost reduction on our products. But we do not have mechanical engineers to re-design for improvement. Can you help?

A: Yes, our engineers can communicate with you to provide help to optimize design of components. Our experience and knowledge are mostly in castings, forgings, general machining, gears, gearboxes and non-destructive examinations.

Q:Can you provide price breakdown in terms of your direct cost, indirect cost, overhead and profit?

A: Such information is confidential. We do not provide such information to customers.

Q:Can you tell us your purchasing price of parts from your source factory?

A: Such information is confidential. We do not provide such information to customers.

Q:Can we ask your source factory for price and cost information?

A: Before we bring you to visit our source factory, we need you to sign an agreement on some basic business ethics. In the agreement, there is a stipulation that you cannot ask our source factory for price and cost information.

Q:Can we visit your source factory on our own? Can we send RFQ’s directly to your source factory? Can we directly communicate with your source factory on technical matters?

A: The answer is negative for all these 3 questions.