Tooling cost is the amount charged for molds, dies, jigs, fixtures, test equipment or other production aids created for a product. The charge does not by itself determine ownership.
The operating decision
Separate design, fabrication, validation, maintenance, storage, modification and replacement. Link payment milestones to evidence that the tooling meets the agreed requirement.
Evidence to retain
Record description, asset identifier, location, ownership, permitted use, maintenance responsibility, condition and return or transfer rights.
| Area | What to record |
|---|---|
| Decision | Separate design, fabrication, validation, maintenance, storage, modification and replacement. Link payment milestones to evidence that the tooling meets the agreed requirement. |
| Evidence | Record description, asset identifier, location, ownership, permitted use, maintenance responsibility, condition and return or transfer rights. |
| Watch point | Buyer-paid tooling can still become stranded at a supplier if access, export, insurance and transfer terms are missing. |
A common sourcing mistake
Buyer-paid tooling can still become stranded at a supplier if access, export, insurance and transfer terms are missing.
Related definitions: strategic sourcing, supplier prequalification, landed cost.
