The Production SLA is essential for businesses operating manufacturing or production facilities in Indonesia where production services are outsourced or managed by a third-party provider. This document type is particularly relevant in the context of Indonesia's growing industrial sector and the increasing trend toward specialized production service providers. The SLA Production agreement establishes clear performance metrics, quality standards, and operational requirements while ensuring compliance with Indonesian regulations, including the Civil Code (KUHPerdata), Law No. 3 of 2014 on Industry, and relevant industrial regulations. It is commonly used when companies need to formalize production arrangements, establish clear service levels, and maintain quality standards while protecting both parties' interests under Indonesian law.
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1. Parties: Identification of the service provider and client, including their legal status and registration details as per Indonesian law
2. Background: Context of the agreement, including the client's production needs and the service provider's capabilities
3. Definitions: Detailed definitions of technical terms, KPIs, and other important concepts used throughout the agreement
4. Scope of Services: Detailed description of production services to be provided, including specific deliverables and outputs
5. Service Levels: Specific, measurable performance standards and KPIs for the production services
6. Production Requirements: Technical specifications, quality standards, and production processes to be followed
7. Performance Monitoring: Methods and frequency of monitoring service levels and production performance
8. Reporting Requirements: Required reports, their frequency, and content requirements
9. Personnel Requirements: Staffing levels, qualifications, and key personnel requirements
10. Quality Control: Quality assurance processes, inspections, and acceptance criteria
11. Fees and Payment: Pricing structure, payment terms, and any performance-linked payment provisions
12. Term and Termination: Duration of the agreement and circumstances for termination
13. Governance: Management structure, escalation procedures, and communication protocols
14. General Provisions: Standard legal clauses including confidentiality, force majeure, and dispute resolution
1. Equipment and Facilities: Include when the service provider needs to use specific equipment or facilities, detailing responsibilities for maintenance and operation
2. Raw Materials Management: Include when raw materials are provided by either party, specifying handling and inventory management requirements
3. Environmental Compliance: Include when production activities have significant environmental impact or require specific environmental permits
4. Business Continuity: Include when continuous production is critical, detailing backup arrangements and disaster recovery procedures
5. Technology Requirements: Include when specific technology or software systems are crucial to the production process
6. Supply Chain Integration: Include when the production services need to integrate with broader supply chain operations
7. Research and Development: Include when ongoing product or process improvement is part of the scope
8. Training Requirements: Include when specific training programs need to be provided or maintained
1. Schedule 1 - Service Level Specifications: Detailed technical specifications of all service levels and KPIs
2. Schedule 2 - Pricing and Payment Terms: Detailed breakdown of fees, costs, and payment calculations
3. Schedule 3 - Production Specifications: Technical requirements, standards, and specifications for production
4. Schedule 4 - Quality Standards: Detailed quality requirements, testing procedures, and acceptance criteria
5. Schedule 5 - Reporting Templates: Standard formats for required reports and performance monitoring
6. Schedule 6 - Key Personnel: Details of key personnel, their roles, and qualifications
7. Schedule 7 - Operational Procedures: Detailed procedures for day-to-day operations and exceptional circumstances
8. Appendix A - Performance Calculation Methodology: Detailed methods for calculating performance metrics and KPIs
9. Appendix B - Compliance Requirements: List of applicable regulations and compliance requirements
10. Appendix C - Equipment Specifications: Technical specifications for any equipment used in production
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