🇮🇳India

FAI अनुपालन विफलता जुर्माना (FAI Compliance Failure Penalties)

3 verified sources

Definition

Aerospace suppliers failing to conduct proper FAI documentation face significant financial and contractual penalties. A documented case shows a supplier fined $150,000 USD (approximately ₹12.5 lakhs) by the FAA for failure to conduct FAI on a jet engine component, followed by contract termination with a major airline.

Key Findings

  • Financial Impact: ₹12-15 lakhs per compliance failure; contract loss (recurring revenue); production delays = ₹50-100+ lakhs depending on contract value
  • Frequency: Per new product introduction, significant design change, or supplier/process change; typically 2-8 times annually per supplier
  • Root Cause: Manual inspection planning, incomplete AS9102 Form 1/2/3 documentation, lack of traceability between balloon numbers and measurement results, delayed customer approval cycles

Why This Matters

The Pitch: Aerospace component manufacturers in India waste time and face penalties due to manual FAI documentation, incomplete balloon numbering on forms, and approval delays. Automation of AS9102 form generation, inspection record management, and customer approval workflows eliminates compliance risk.

Affected Stakeholders

Quality Managers, Supply Chain, Manufacturing Engineers, Compliance Officers

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

FAI दस्तावेज़ की मैनुअल तैयारी से क्षमता हानि (FAI Manual Documentation Capacity Loss)

20-40 hours per FAI × ₹500-1000/hour labor cost = ₹10,000-40,000 per inspection; 10-20 inspections/quarter = ₹1-3 lakhs quarterly; Plus production delay cost: 5-10 days delay × daily production capacity loss

FAI प्रक्रिया में त्रुटि से रीवर्क और ग्राहक मुआवज़ा (FAI Documentation Errors Causing Rework & Compensation)

Rework cost per rejected FAI: ₹20,000-50,000 (inspection re-run + documentation correction); 10-15% rejection rate on 10-20 FAIs annually = ₹2-5 lakhs annually; Warranty claims (if production errors): ₹1-10 lakhs+ depending on contract value

GST ITC Mismatch और आयातित एयरोस्पेस घटकों पर रिवर्स चार्ज का खतरा

₹40-80 lakhs/annum (ITC denial interest + compliance labor); ₹5,000-15,000 per flagged invoice instance

उत्पादन योजना में मैनुअल देरी (Manual Production Planning Delays)

₹2-5 crores/annum (lost sales from capacity underutilization); 15-20% capacity loss = ₹50-100 lakhs/facility

दीर्घ प्रोक्योरमेंट साइकल में रिवर्स लॉजिस्टिक्स और अतिरिक्त इन्वेंटरी होल्डिंग खर्च

₹50-150 lakhs/annum (inventory carrying cost = 15-20% of stock value held excess)

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