Drive Services Policy and Warranty Information

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1 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 1 / 10 This document is a supplement to the ABB Inc. General Terms and Conditions of Sale (publication number ABBGTC073101). This document provides additional information on the service policies and warranty for Drive Services products available for ABB Inc. Low Voltage Drives and the Medium Voltage Drives groups in New Berlin, WI. Related Documents Doc ID File Name Rev Description ABBGTC ABBGTC pdf ALL ABB General Terms and Conditions LVD PNGP01U EN LVD PNGP01U EN_REVF.pdf F Supplemental ABB Low Voltage Drives Warranty Documents Superseded Doc ID File Name Rev Description DVRSRV PNST01U EN P Drive Services ALL ABB Inc. Drives Services Warranty Policy Warranty Policy.doc DVRSRV PNST02U EN ALL Drives Repair Service DVRSRV PNST03U EN ALL ABB low Voltage Refurbished Drive Service Revision History Rev Date Editor Description A Dec 07, 2012 Michael Vallier Release DRVSRV PNST04U EN B Dec 04, 2013 Michael Vallier Updated section 7 (Lost or Damaged Freight), Added Section 8, plus other text corrections C Dec 12, 2013 Michael Vallier Corrected section reference in 7.4 and 7.6

2 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 2 / 10 Table of Contents... 1 Related Documents... 1 Documents Superseded... 1 Revision History Drive Services products and definitions Spare parts and replacement parts Test and Evaluation Drive Repair Drive Exchange Field Service Life Cycle Management Drive Services Product Restocking/Return Return for credit Return Material Authorization (RMA) Instructions for Returning Materials Expiration of the Return Authorization Shipping address Drive Services shipments Drive Services Product Warranty Warranty Period Warranty Claim Products installed in other countries Cancellation and Change Order Complete Order Requirements Lost or Damaged Freight Inspect for damaged at time of receipt Time Critical five business days from receipt ABB will process freight claims in the following instances: Freight claim processing ABB will not process freight claims in the following instances: Place a New Purchase Order Special Shipping Requests... 10

3 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 3 / Drive Services products and definitions ABB Drive Services provides products and services in support of ABB low voltage drives and medium voltage drives. These products and services are intended for the support and service of ABB drive product customers Spare parts and replacement parts Spare parts are defined as wear and consumable components that have a limited life expectancy; keypads, circuit boards, fans, fuses, and power semiconductors are examples. Replacement parts are defined as non wear components that have an un limited life expectancy; fasteners, electrical wire & cable, busbar, product covers, and enclosure panels are examples. Spare part packages are a collection of spare parts that are bundled for specific drive products. These packages are intended for advanced purchase for customer on site spare part stocking. Spare part packages are sold at a discount vs individual spare part purchase and have an extended lead time Test and Evaluation This is a service offering for load testing, light exterior cleaning and updating of control software for an ABB drive product. The service work is performed at our Drive Service Workshop. Required repair or part replacement is an additional service beyond test and evaluation Drive Repair Drive repair is a service offering for the repair of a failed ABB drive product. The repair includes cleaning, failed component replacement, load testing and control software update if specifically requested by the customer. The service work is performed at our Drive Service Workshop. Repair reports list the parts replaced only and are not intended to be a failure analysis report Drive Exchange A drive exchange is an available option for existing ABB drive customers to purchase a reconditioned ABB drive of the same product type and rating at a discount compared to new drive product. Return of the complete failed drive of same product type and rating is required for the exchange discount Field Service Field service is a service offering for ABB drive products, both low voltage and medium voltage drive products are supported. This service is provided by direct employees of ABB with field service expertise and continuous product training. ABB field service technicians are typically dispatched for large drive servicing and systems support. ABB will commonly dispatch local service partners for drives rated at 600Hp or below Drive Service Partners For localized on site service of low voltage low power drives (below 600Hp), ABB typically unitizes drive service partners. The authorized drive service partners have met the training and service experience requirements to support customers with ABB drive products.

4 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 4 / Life Cycle Management ABB follows a four phase model for managing the life cycles of its drives. The life cycle phases are Active, Classic, Limited and Obsolete. Services available and delivery of these services is dependent on the life cycle phase of the ABB drive product serviced. Active Product is currently manufactured and actively sold as new with complete life cycle services. Classic Product is no longer manufactured, but is available for sale as new (for line extension), reconditioned, or remanufactured with complete life cycle services. Limited Spare parts, maintenance and repair services are available as long as materials can be obtained. Obsolete ABB cannot guarantee availability of life cycle services or parts. 3. Drive Services Product Restocking/Return This policy defines requirements and guidelines for returning product to ABB Drive Services for service or credit. Any and all shipments of product to ABB for service or credit must have a RMA number. RMA numbers are required for the following; Purchased product return for credit Drive test and evaluation services Drive repair services Component exchange for service Circuit board repair services (classic, limited, and obsolete phase products) Reconditioned drive core return Circuit boards replaced via Preventative Maintenance service 3.1. Return for credit The following table shows the products and conditions that will qualify for credit return and the associated restocking fee. The restocking fee is a percentage of the original purchase price. All products must be returned in the original unopened packaging. Any part or component packaging that has been opened is not eligible for credit return. <45 days from shipment >45 days from shipment Spare Parts 25% fee 100% fee Spare Part Packages 25% fee 100% fee Replacement Parts 100% fee 100% fee Test and Evaluation No credit return No credit return Drive Repair No credit return No credit return Drive Replacement 25% fee 100% fee Field Service NA NA Products or services not included in the above list are not returnable for credit. Unopened product is defined as product still in its original cardboard/wood packaging with its original seals, internal packing, strapping, staples and/or nails intact.

5 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 5 / Return Material Authorization (RMA) A Return Material Authorization must be obtained before sending materials back to the ABB workshop. Contact the ABB Drive Services, Customer Service department via Phone: option 1, option 2 abb.mail@us.abb.com, subject line Drive Services RMA or Fax: , subject line Drive Services RMA Include the following information when submitting your request to ABB Drive Services: 1. Company Name (ABB sold to customer) 2. Customer purchase order number, ABB sales order number, or ABB invoice number 3. Catalog number or ABB part number and quantity of parts per each 4. Quantity to be returned of same part number 5. Serial number if applicable 6. Condition of the part or unit. (New/used, opened/unopened) 7. Reason for return 8. Contact name and phone number 3.3. Instructions for Returning Materials Upon the receipt of the necessary information in conformance with this policy, the Customer Service Department will issue a Return Material Authorization (RMA) for the item(s) being returned for credit. NOTE: The RMA number must be included on the packing slip and shipping box of the item(s) being returned. Failure to do so will result in rejection of the credit. The shipping address to return the goods will be included in the RMA document. Products for credit return must be returned in their original factory packaging. If other packaging is used, a credit will not be issued and/or restocking fees will be 100% of original sale price. All items shall be returned freight prepaid. Collect shipments will be refused. Return freight damage is at customer risk. If items returned to ABB do not match the information provided in the initial request, additional restocking fees may be assessed. The customer will be notified of these additional charges. If the customer does not agree to accept the applicable restocking fee(s), the customer has the option to have the unit returned to them freight collect. Credit will be issued upon receipt and inspection of returned goods to ABB Expiration of the Return Authorization Any item(s) authorized by ABB for credit return must be received freight pre paid within 30 days of the issuance of the RMA number. Items returned after 30 days of RMA issuance are subject to an additional 25% restocking fee.

6 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 6 / Shipping address Drive Services shipments All shipments with RMA for product servicing and Drive Services credit shall be shipped to: ABB Inc. Drives Service Workshop 5000 S Emmer Drive New Berlin, WI Attn: RMA xxxxxxxx In order to serve you better, we request you send an notification of shipment with shipper name, tracking number, and RMA number to abb.mail@us.abb.com with subject line RMA shipment notification ABB is not responsible for incorrectly addressed shipments. 4. Drive Services Product Warranty This policy defines the warranty for services and products provided by ABB Drive Services. ABB warrants its products and services against defects in materials and workmanship for the period as defined in the following table Warranty Period This warranty does not cover failures due to corrosive environment, unauthorized repairs, alterations, misuse, or neglect. The warranty period is defined from time of shipment from ABB or service delivery from ABB as in the case of Field Service. Warranty Period Warranty Type Spare Parts 12 Months Replace parts only Spare Part Packages 12 months Replace parts only Replacement Parts 90 days Replace parts only Test and Evaluation 30 days Repair or replace Drive Repair 12 months Repair or replace Auxiliary Component Repair* 90 days Repair or replace Drive Replacement 12 months Repair or replace Field Service 90 days Service rendered * examples of auxiliary components are circuit breakers, contactors, and power supplies 4.2. Warranty Claim Any unauthorized work or modification performed on any drive or spare part during the warranty period will automatically void the warranty. All units failing within the ABB Drive Services warranty period will be investigated no later than two weeks after receipt. During the investigation if it is discovered that the drive or spare part failure is caused by misuse, alterations, modification, neglect, or environmental factors, ABB will deny the warranty claim. In this case, the customer will be responsible for repair costs according to the current Repair Price List. All defective drives or spare parts are to be returned to ABB freight pre paid per the RMA policy. Drives or parts that are replaced under warranty and not returned to ABB per the RMA policy will be billed at the current standard price for the drive or part. Warranty claims are initiated by contacting ABB Technical Support ( option 1). Initiating a warranty claim requires that a Fault / No Fault purchase order be issued to ABB Drive Services. If the product associated with the warranty claim is not returned within 30 days from the date of shipment of the replacement unit from ABB, or if the

7 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 7 / 10 warranty claim is denied as outlined above, the issuer of the purchase order will be billed for the replacement drive or part at the current standard price. Any returns of product or parts to ABB are to be shipped freight prepaid. Shipments sent freight collect will not be accepted. ABB will ship replacement product and / or parts from its facilities freight prepaid and will determine the carrier and method of shipment. If during the original warranty period a product is replaced, the warranty period for the for the replacement product will be either the original warranty period of the replaced product or 90 days from date of shipment of the replacement product, whichever occurs last. On site drive warranty repairs must be performed by ABB Designated Service Stations or ABB Field Service personnel Products installed in other countries Products purchased from ABB Inc. in New Berlin, Wisconsin for export to countries other than the US and Canada, carry the same standard warranty period as drives purchased and installed in the US and Canada as set forth above with the following exception. Replacement product and/or repair parts will be delivered no charge to the original ABB customer (purchaser) in the US or Canada or the point of export. The purchaser is responsible for all freight, duties, taxes (etc.) and arrangements to other countries. In other countries, distance costs (travel time/travel costs) by service personnel, local shipping costs (in those countries related to the return of product to ABB facilities for repair), and import duties into those countries are not included in the warranty coverage and will not be paid by ABB. 5. Cancellation and Change Order Every purchase order submitted to ABB Drive Services requires a requested ship date. If no date is provided, then orders are confirmed at the next available date based on product availability and factory lead times. Orders with "will advise ship date" or "hold" are returned to the sender with a note requesting a definitive ship date. Requests for changes, cancellations, and ship date postponements must be submitted to ABB Drive Service Customer Service, in writing, by or fax, no later than three (3) business days prior to confirmed ship date to avoid cancellation charges or restocking fees. Requests to postpone ship dates are confirmed based upon current product availability and factory lead times. Changes, cancellations or postponements received after this three (3) day window are subject to review by ABB Drive Services Customer Service. Depending upon the progress of the order and the types of products involved, cancellation or restocking fees will be applied as applicable in accordance with the Drive Services Product Restocking/Return policy in this document.

8 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 8 / Complete Order Requirements The following is a checklist of items that must be included on any order not submitted via our online ordering system. Orders submitted via fax, , or paper mail must include all information listed here; Sold To and Bill To: Name Address Purchase Order: PO made out to ABB Drive Services PO number Delivery info: Delivery Terms: FOB Factory (within US only), or FCA Factory for product coming from ABB European factories Name of Ship To Party Street Address of Ship To Party Payment method for Freight 1. Prepaid and Add. (ABB selects the carrier, pays for the freight charges and adds the charges to the invoice) 2. Collect. (The Ship To Party is charged directly for the freight charges. If this is chosen then the carrier to be used and an account number is required for parcel delivery companies like UPS and Fed Ex.) 3. 3rd Party Billing. (A 3rd Party, other than the Ship To party, is charged directly by the carrier for the freight charges. If this is chosen then a carrier will need to be provided as well as a Billing Address and an account number for parcel delivery companies like UPS, DHL and Fed Ex.) Freight Service Level (Standard Ground, Next Day Air, 2 Day Air. Best Way etc) Freight Carrier Name (required if Collect or 3rd Party Billing was selected) Special requirements (union driver, truck with lift gate, restricted receiving hours, notification prior to delivery, etc) Requested Shipment Date Indicate Complete or Partial delivery Product Info: Complete part number with part description Quantities per line item Terms and Conditions: PO must refer to ABB Terms and Conditions For Export Orders: For Canadian Orders, Broker information and Proforma Invoice Values are required

9 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 9 / Lost or Damaged Freight Here we define how lost or damaged shipments from ABB Drives Services will be handled. ABB standard shipping terms are F.O.B. Point of Shipment (Free On Board Shipping Point). This means the buyer takes delivery of goods being shipped to it by ABB once the goods leave the ABB s shipping dock. However, for shipments leaving ABB Drive Services, or one of its suppliers, for which ABB has selected the freight provider, ABB will process any lost or damaged freight claims provided certain conditions are met Inspect for damaged at time of receipt The receiving company (recipient) must inspect orders at the time of delivery and determine if there is any damage prior to signing the carrier s delivery receipt Time Critical five business days from receipt The recipient must report any damage within five (5) business days from the date of receipt of goods. Report damage to ABB Customer Service: By phone: option 1 then option 2 By abb.mail@us.abb.com with subject line Freight Damage 7.3. ABB will process freight claims in the following instances: Shipment Refused For shipment s where the product (not just the packaging) is obviously damaged. ABB advises the recipient to refuse acceptance of the shipment. The receiver should take pictures of the damage whenever possible and submit to ABB with shipping damage notification. Shipment Accepted Notate Damage on freight bill If it appears only the packaging has been damaged or if the damage to the product is questionable, then ABB advises the recipient to accept the shipment. The recipient must notate the damage on the freight bill at the time of receipt. If upon opening the package, the recipient s inspection reveals damage to the product, the receiver should take pictures of the damage whenever possible and submit to ABB with shipping damage notification. Shipment Lost If the shipment is lost by the carrier and reported to ABB within 5 business days of scheduled delivery, ABB will process the freight claim with the shipper Freight claim processing If the above conditions are met (7.1, 7.2, & 7.3) ABB will process the freight claim with the prepaid carrier. ABB will ship a replacement unit(s) against the original purchase order. ABB customer service will issue a RMA for the damage materials to be returned. If the damaged materials are not returned within 10 business days, ABB will bill for the replacement shipment.

10 Project: ISO doc: P Michael Vallier Dan Reshel Dec 12, 2013 C 10 / ABB will not process freight claims in the following instances: Customer designates the carrier If the order is sent collect or contracted by the customer or other third party. ABB is not responsible and cannot process a claim and/or return for damage. Notification provided after five (5) business days If notification of shipping damage is not provided within the designated fine (5) business days, ABB will not consider claims of damage. The receiving company (recipient) must inspect orders at the time of delivery and determine if there is any damage prior to signing the carrier s delivery receipt. Shipment is accepted, and damage is not notated on the freight bill If the shipment is lost by the carrier and reported to ABB within 5 business days of scheduled delivery, ABB will process the freight claim with the shipper Place a New Purchase Order If conditions 7.1, 7.2, & 7.3 are not met or any of the conditions defined in 7.5 are met, ABB will not process the freight claim. A new purchase order must be placed for new product. The customer shall keep the damaged units and work directly with the carrier for any claims. 8. Special Shipping Requests Special shipping requirements or shipping delivery changes are fee based services. If any of these special shipping or delivery services are requested, there is a $150 processing fee. Examples of special shipping requests with $150 processing fee (ea): Redelivery to a new ship to address while order is in route Request for lift gate delivery vehicle Request for pallet jack on delivery truck All other non standard shipping request or requirements The fee for these special shipping services will be listed as a freight line item on the order. Each occurrence will result in an additional freight line item and additional service fee. End of document