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If you buy a subassembly complete, when is it an "outsourced process" and when is it a "purchased item"? I read the ISO document GUIDANCE ON 'OUTSOURCED PROCESSES" and it was not very helpful in answering my question.
Our company is in the electronics assembly business. If we buy a sheet metal component made to our specifications, it is considered a purchased item. If we buy a standard off-the shelf power supply to incorporate in an assembly we manufacture, it is considered a purchased item.
Now, if we have an assembly that we sell to a customer made completely outside, is it a "purchased item" or an "outsouced process"? In the old standard, this would have been considered a "factored item"?
If you outsouce a product in total that you have the capability to do in house and is your core business, is that an "outsourced process" or is that "purchasing" a product?
Where do factored items fit in the ISO 9001:2000 standard?