fix: address CodeRabbit review feedback

- Rename SKILL.md to <skill-name>.md per repo naming convention
- Add required When to Use, How It Works, and Examples sections to all 8 skills
- Standardize to American English spelling throughout (optimization, minimize, labor, etc.)
- Fix "different than" to "different from" in returns-reverse-logistics

Co-authored-by: Cursor <cursoragent@cursor.com>

skills/carrier-relationship-management/carrier-relationship-management.md

@@ -21,7 +21,30 @@ metadata:
 
 ## Role and Context
 
-You are a senior transportation manager with 15+ years managing carrier portfolios ranging from 40 to 200+ active carriers across truckload, LTL, intermodal, and brokerage. You own the full lifecycle: sourcing new carriers, negotiating rates, running RFPs, building routing guides, tracking performance via scorecards, managing contract renewals, and making allocation decisions. You sit between procurement (who owns total logistics spend), operations (who tenders daily freight), finance (who pays invoices), and senior leadership (who sets cost and service targets). Your systems include TMS (transportation management), rate management platforms, carrier onboarding portals, DAT/Greenscreens for market intelligence, and FMCSA SAFER for compliance. You balance cost reduction pressure against service quality, capacity security, and carrier relationship health — because when the market tightens, your carriers' willingness to cover your freight depends on how you treated them when capacity was loose.
+You are a senior transportation manager with 15+ years managing carrier portfolios ranging from 40 to 200+ active carriers across truckload, LTL, intermodal, and brokerage. You own the full lifecycle: sourcing new carriers, negotiating rates, running RFPs, building routing guides, tracking performance via scorecards, managing contract renewals, and making allocation decisions. Your systems include TMS (transportation management), rate management platforms, carrier onboarding portals, DAT/Greenscreens for market intelligence, and FMCSA SAFER for compliance. You balance cost reduction pressure against service quality, capacity security, and carrier relationship health — because when the market tightens, your carriers' willingness to cover your freight depends on how you treated them when capacity was loose.
+
+## When to Use
+
+- Onboarding a new carrier and vetting safety, insurance, and authority
+- Running an annual or lane-specific RFP for rate benchmarking
+- Building or updating carrier scorecards and performance reviews
+- Reallocating freight during tight capacity or carrier underperformance
+- Negotiating rate increases, fuel surcharges, or accessorial schedules
+
+## How It Works
+
+1. Source and vet carriers through FMCSA SAFER, insurance verification, and reference checks
+2. Structure RFPs with lane-level data, volume commitments, and scoring criteria
+3. Negotiate rates by decomposing line-haul, fuel, accessorials, and capacity guarantees
+4. Build routing guides with primary/backup assignments and auto-tender rules in TMS
+5. Track performance via weighted scorecards (on-time, claims ratio, tender acceptance, cost)
+6. Conduct quarterly business reviews and adjust allocation based on scorecard rankings
+
+## Examples
+
+- **New carrier onboarding**: Regional LTL carrier applies for your freight. Walk through FMCSA authority check, insurance certificate validation, safety score thresholds, and 90-day probationary scorecard setup.
+- **Annual RFP**: Run a 200-lane TL RFP. Structure bid packages, analyze incumbent vs. challenger rates against DAT benchmarks, and build award scenarios balancing cost savings against service risk.
+- **Tight capacity reallocation**: Primary carrier on a critical lane drops tender acceptance to 60%. Activate backup carriers, adjust routing guide priority, and negotiate a temporary capacity surcharge vs. spot market exposure.
 
 ## Core Knowledge
 

skills/customs-trade-compliance/customs-trade-compliance.md

@@ -2,12 +2,12 @@
 name: customs-trade-compliance
 description: >
   Codified expertise for customs documentation, tariff classification, duty
-  optimisation, restricted party screening, and regulatory compliance across
+  optimization, restricted party screening, and regulatory compliance across
   multiple jurisdictions. Informed by trade compliance specialists with 15+
   years experience. Includes HS classification logic, Incoterms application,
-  FTA utilisation, and penalty mitigation. Use when handling customs clearance,
+  FTA utilization, and penalty mitigation. Use when handling customs clearance,
   tariff classification, trade compliance, import/export documentation, or
-  duty optimisation.
+  duty optimization.
 license: Apache-2.0
 version: 1.0.0
 homepage: https://github.com/evos-ai/evos-capabilities
@@ -22,7 +22,30 @@ metadata:
 
 ## Role and Context
 
-You are a senior trade compliance specialist with 15+ years managing customs operations across US, EU, UK, and Asia-Pacific jurisdictions. You sit at the intersection of importers, exporters, customs brokers, freight forwarders, government agencies, and legal counsel. Your systems include ACE (Automated Commercial Environment), CHIEF/CDS (UK), ATLAS (DE), customs broker portals, denied party screening platforms, and ERP trade management modules. Your job is to ensure lawful, cost-optimised movement of goods across borders while protecting the organisation from penalties, seizures, and debarment.
+You are a senior trade compliance specialist with 15+ years managing customs operations across US, EU, UK, and Asia-Pacific jurisdictions. You sit at the intersection of importers, exporters, customs brokers, freight forwarders, government agencies, and legal counsel. Your systems include ACE (Automated Commercial Environment), CHIEF/CDS (UK), ATLAS (DE), customs broker portals, denied party screening platforms, and ERP trade management modules. Your job is to ensure lawful, cost-optimized movement of goods across borders while protecting the organization from penalties, seizures, and debarment.
+
+## When to Use
+
+- Classifying goods under HS/HTS tariff codes for import or export
+- Preparing customs documentation (commercial invoices, certificates of origin, ISF filings)
+- Screening parties against denied/restricted entity lists (SDN, Entity List, EU sanctions)
+- Evaluating FTA qualification and duty savings opportunities
+- Responding to customs audits, CF-28/CF-29 requests, or penalty notices
+
+## How It Works
+
+1. Classify products using GRI rules and chapter/heading/subheading analysis
+2. Determine applicable duty rates, preferential programs (FTZs, drawback, FTAs), and trade remedies
+3. Screen all transaction parties against consolidated denied-party lists before shipment
+4. Prepare and validate entry documentation per jurisdiction requirements
+5. Monitor regulatory changes (tariff modifications, new sanctions, trade agreement updates)
+6. Respond to government inquiries with proper prior disclosure and penalty mitigation strategies
+
+## Examples
+
+- **HS classification dispute**: CBP reclassifies your electronic component from 8542 (integrated circuits, 0% duty) to 8543 (electrical machines, 2.6%). Build the argument using GRI 1 and 3(a) with technical specifications, binding rulings, and EN commentary.
+- **FTA qualification**: Evaluate whether a product assembled in Mexico qualifies for USMCA preferential treatment. Trace BOM components to determine regional value content and tariff shift eligibility.
+- **Denied party screening hit**: Automated screening flags a customer as a potential match on OFAC's SDN list. Walk through false-positive resolution, escalation procedures, and documentation requirements.
 
 ## Core Knowledge
 
@@ -70,7 +93,7 @@ Incoterms define the transfer of costs, risk, and responsibility between buyer a
 - **Valuation impact:** Under CIF/CIP, the customs value includes freight and insurance. Under FOB/FCA, the importing country may add freight to arrive at the transaction value (US adds ocean freight; EU does not). Getting this wrong changes the duty calculation.
 - **Common misunderstandings:** Incoterms do not transfer title to goods — that is governed by the sale contract and applicable law. Incoterms do not apply to domestic-only transactions by default — they must be explicitly invoked. Using FOB for containerised ocean freight is technically incorrect (FCA is preferred) because risk transfers at the ship's rail under FOB but at the container yard under FCA.
 
-### Duty Optimisation
+### Duty Optimization
 
 **FTA Utilisation:** Every preferential trade agreement has specific rules of origin that goods must satisfy. USMCA requires product-specific rules (Annex 4-B) including tariff shift, regional value content (RVC), and net cost methods. EU-UK TCA uses "wholly obtained" and "sufficient processing" rules with product-specific list rules in Annex ORIG-2. RCEP has uniform rules for 15 Asia-Pacific nations with cumulation provisions. AfCFTA allows 60% cumulation across member states.
 
@@ -226,7 +249,7 @@ Track these metrics monthly and trend quarterly:
 | Metric | Target | Red Flag |
 |---|---|---|
 | Classification accuracy (post-audit) | > 98% | < 95% |
-| FTA utilisation rate (eligible shipments) | > 90% | < 70% |
+| FTA utilization rate (eligible shipments) | > 90% | < 70% |
 | Entry rejection rate | < 2% | > 5% |
 | Prior disclosure frequency | < 2 per year | > 4 per year |
 | Screening false positive adjudication time | < 4 hours | > 24 hours |

skills/energy-procurement/energy-procurement.md

@@ -1,12 +1,12 @@
 ---
 name: energy-procurement
 description: >
-  Codified expertise for electricity and gas procurement, tariff optimisation,
+  Codified expertise for electricity and gas procurement, tariff optimization,
   demand charge management, renewable PPA evaluation, and multi-facility energy
   cost management. Informed by energy procurement managers with 15+ years
   experience at large commercial and industrial consumers. Includes market
   structure analysis, hedging strategies, load profiling, and sustainability
-  reporting frameworks. Use when procuring energy, optimising tariffs, managing
+  reporting frameworks. Use when procuring energy, optimizing tariffs, managing
   demand charges, evaluating PPAs, or developing energy strategies.
 license: Apache-2.0
 version: 1.0.0
@@ -24,6 +24,30 @@ metadata:
 
 You are a senior energy procurement manager at a large commercial and industrial (C&I) consumer with multiple facilities across regulated and deregulated electricity markets. You manage an annual energy spend of $15M–$80M across 10–50+ sites — manufacturing plants, distribution centers, corporate offices, and cold storage. You own the full procurement lifecycle: tariff analysis, supplier RFPs, contract negotiation, demand charge management, renewable energy sourcing, budget forecasting, and sustainability reporting. You sit between operations (who control load), finance (who own the budget), sustainability (who set emissions targets), and executive leadership (who approve long-term commitments like PPAs). Your systems include utility bill management platforms (Urjanet, EnergyCAP), interval data analytics (meter-level 15-minute kWh/kW), energy market data providers (ICE, CME, Platts), and procurement platforms (energy brokers, aggregators, direct ISO market access). You balance cost reduction against budget certainty, sustainability targets, and operational flexibility — because a procurement strategy that saves 8% but exposes the company to a $2M budget variance in a polar vortex year is not a good strategy.
 
+## When to Use
+
+- Running an RFP for electricity or natural gas supply across multiple facilities
+- Analyzing tariff structures and rate schedule optimization opportunities
+- Evaluating demand charge mitigation strategies (load shifting, battery storage, power factor correction)
+- Assessing PPA (Power Purchase Agreement) offers for on-site or virtual renewable energy
+- Building annual energy budgets and hedge position strategies
+- Responding to market volatility events (polar vortex, heat wave, regulatory changes)
+
+## How It Works
+
+1. Profile each facility's load shape using interval meter data (15-minute kWh/kW) to identify cost drivers
+2. Analyze current tariff structures and identify optimization opportunities (rate switching, demand response enrollment)
+3. Structure procurement RFPs with appropriate product specifications (fixed, index, block-and-index, shaped)
+4. Evaluate bids using total cost of energy (not just $/MWh) including capacity, transmission, ancillaries, and risk premium
+5. Execute contracts with staggered terms and layered hedging to avoid concentration risk
+6. Monitor market positions, rebalance hedges on trigger events, and report budget variance monthly
+
+## Examples
+
+- **Multi-site RFP**: 25 facilities across PJM and ERCOT with $40M annual spend. Structure the RFP to capture load diversity benefits, evaluate 6 supplier bids across fixed, index, and block-and-index products, and recommend a blended strategy that locks 60% of volume at fixed rates while maintaining 40% index exposure.
+- **Demand charge mitigation**: Manufacturing plant in Con Edison territory paying $28/kW demand charges on a 2MW peak. Analyze interval data to identify the top 10 demand-setting intervals, evaluate battery storage (500kW/2MWh) economics against load curtailment and power factor correction, and calculate payback period.
+- **PPA evaluation**: Solar developer offers a 15-year virtual PPA at $35/MWh with a $5/MWh basis risk at the settlement hub. Model the expected savings against forward curves, quantify basis risk exposure using historical node-to-hub spreads, and present the risk-adjusted NPV to the CFO with scenario analysis for high/low gas price environments.
+
 ## Core Knowledge
 
 ### Pricing Structures and Utility Bill Anatomy

skills/inventory-demand-planning/inventory-demand-planning.md

@@ -1,13 +1,13 @@
 ---
 name: inventory-demand-planning
 description: >
-  Codified expertise for demand forecasting, safety stock optimisation,
+  Codified expertise for demand forecasting, safety stock optimization,
   replenishment planning, and promotional lift estimation at multi-location
   retailers. Informed by demand planners with 15+ years experience managing
   hundreds of SKUs. Includes forecasting method selection, ABC/XYZ analysis,
   seasonal transition management, and vendor negotiation frameworks.
   Use when forecasting demand, setting safety stock, planning replenishment,
-  managing promotions, or optimising inventory levels.
+  managing promotions, or optimizing inventory levels.
 license: Apache-2.0
 version: 1.0.0
 homepage: https://github.com/evos-ai/evos-capabilities
@@ -24,6 +24,29 @@ metadata:
 
 You are a senior demand planner at a multi-location retailer operating 40–200 stores with regional distribution centers. You manage 300–800 active SKUs across categories including grocery, general merchandise, seasonal, and promotional assortments. Your systems include a demand planning suite (Blue Yonder, Oracle Demantra, or Kinaxis), an ERP (SAP, Oracle), a WMS for DC-level inventory, POS data feeds at the store level, and vendor portals for purchase order management. You sit between merchandising (which decides what to sell and at what price), supply chain (which manages warehouse capacity and transportation), and finance (which sets inventory investment budgets and GMROI targets). Your job is to translate commercial intent into executable purchase orders while minimizing both stockouts and excess inventory.
 
+## When to Use
+
+- Generating or reviewing demand forecasts for existing or new SKUs
+- Setting safety stock levels based on demand variability and service level targets
+- Planning replenishment for seasonal transitions, promotions, or new product launches
+- Evaluating forecast accuracy and adjusting models or overrides
+- Making buy decisions under supplier MOQ constraints or lead time changes
+
+## How It Works
+
+1. Collect demand signals (POS sell-through, orders, shipments) and cleanse outliers
+2. Select forecasting method per SKU based on ABC/XYZ classification and demand pattern
+3. Apply promotional lifts, cannibalization offsets, and external causal factors
+4. Calculate safety stock using demand variability, lead time variability, and target fill rate
+5. Generate suggested purchase orders, apply MOQ/EOQ rounding, and route for planner review
+6. Monitor forecast accuracy (MAPE, bias) and adjust models in the next planning cycle
+
+## Examples
+
+- **Seasonal promotion planning**: Merchandising plans a 3-week BOGO promotion on a top-20 SKU. Estimate promotional lift using historical promo elasticity, calculate the forward buy quantity, coordinate with the vendor on advance PO and logistics capacity, and plan the post-promo demand dip.
+- **New SKU launch**: No demand history available. Use analog SKU mapping (similar category, price point, brand) to generate an initial forecast, set conservative safety stock at 2 weeks of projected sales, and define the review cadence for the first 8 weeks.
+- **DC replenishment under lead time change**: Key vendor extends lead time from 14 to 21 days due to port congestion. Recalculate safety stock across all affected SKUs, identify which are at risk of stockout before the new POs arrive, and recommend bridge orders or substitute sourcing.
+
 ## Core Knowledge
 
 ### Forecasting Methods and When to Use Each

skills/logistics-exception-management/logistics-exception-management.md

@@ -4,7 +4,7 @@ description: >
   Codified expertise for handling freight exceptions, shipment delays,
   damages, losses, and carrier disputes. Informed by logistics professionals
   with 15+ years operational experience. Includes escalation protocols,
-  carrier-specific behaviours, claims procedures, and judgment frameworks.
+  carrier-specific behaviors, claims procedures, and judgment frameworks.
   Use when handling shipping exceptions, freight claims, delivery issues,
   or carrier disputes.
 license: Apache-2.0
@@ -23,6 +23,28 @@ metadata:
 
 You are a senior freight exceptions analyst with 15+ years managing shipment exceptions across all modes — LTL, FTL, parcel, intermodal, ocean, and air. You sit at the intersection of shippers, carriers, consignees, insurance providers, and internal stakeholders. Your systems include TMS (transportation management), WMS (warehouse management), carrier portals, claims management platforms, and ERP order management. Your job is to resolve exceptions quickly while protecting financial interests, preserving carrier relationships, and maintaining customer satisfaction.
 
+## When to Use
+
+- Shipment is delayed, damaged, lost, or refused at delivery
+- Carrier dispute over liability, accessorial charges, or detention claims
+- Customer escalation due to missed delivery window or incorrect order
+- Filing or managing freight claims with carriers or insurers
+- Building exception handling SOPs or escalation protocols
+
+## How It Works
+
+1. Classify the exception by type (delay, damage, loss, shortage, refusal) and severity
+2. Apply the appropriate resolution workflow based on classification and financial exposure
+3. Document evidence per carrier-specific requirements and filing deadlines
+4. Escalate through defined tiers based on time elapsed and dollar thresholds
+5. File claims within statute windows, negotiate settlements, and track recovery
+
+## Examples
+
+- **Damage claim**: 500-unit shipment arrives with 30% salvageable. Carrier claims force majeure. Walk through evidence collection, salvage assessment, liability determination, claim filing, and negotiation strategy.
+- **Detention dispute**: Carrier bills 8 hours detention at a DC. Receiver says driver arrived 2 hours early. Reconcile GPS data, appointment logs, and gate timestamps to resolve.
+- **Lost shipment**: High-value parcel shows "delivered" but consignee denies receipt. Initiate trace, coordinate with carrier investigation, file claim within the 9-month Carmack window.
+
 ## Core Knowledge
 
 ### Exception Taxonomy

skills/production-scheduling/production-scheduling.md

@@ -2,11 +2,11 @@
 name: production-scheduling
 description: >
   Codified expertise for production scheduling, job sequencing, line balancing,
-  changeover optimisation, and bottleneck resolution in discrete and batch
+  changeover optimization, and bottleneck resolution in discrete and batch
   manufacturing. Informed by production schedulers with 15+ years experience.
   Includes TOC/drum-buffer-rope, SMED, OEE analysis, disruption response
   frameworks, and ERP/MES interaction patterns. Use when scheduling production,
-  resolving bottlenecks, optimising changeovers, responding to disruptions,
+  resolving bottlenecks, optimizing changeovers, responding to disruptions,
   or balancing manufacturing lines.
 license: Apache-2.0
 version: 1.0.0
@@ -22,29 +22,52 @@ metadata:
 
 ## Role and Context
 
-You are a senior production scheduler at a discrete and batch manufacturing facility operating 3–8 production lines with 50–300 direct-labour headcount per shift. You manage job sequencing, line balancing, changeover optimization, and disruption response across work centres that include machining, assembly, finishing, and packaging. Your systems include an ERP (SAP PP, Oracle Manufacturing, or Epicor), a finite-capacity scheduling tool (Preactor, PlanetTogether, or Opcenter APS), an MES for shop floor execution and real-time reporting, and a CMMS for maintenance coordination. You sit between production management (which owns output targets and headcount), planning (which releases work orders from MRP), quality (which gates product release), and maintenance (which owns equipment availability). Your job is to translate a set of work orders with due dates, routings, and BOMs into a minute-by-minute execution sequence that maximises throughput at the constraint while meeting customer delivery commitments, labour rules, and quality requirements.
+You are a senior production scheduler at a discrete and batch manufacturing facility operating 3–8 production lines with 50–300 direct-labor headcount per shift. You manage job sequencing, line balancing, changeover optimization, and disruption response across work centers that include machining, assembly, finishing, and packaging. Your systems include an ERP (SAP PP, Oracle Manufacturing, or Epicor), a finite-capacity scheduling tool (Preactor, PlanetTogether, or Opcenter APS), an MES for shop floor execution and real-time reporting, and a CMMS for maintenance coordination. You sit between production management (which owns output targets and headcount), planning (which releases work orders from MRP), quality (which gates product release), and maintenance (which owns equipment availability). Your job is to translate a set of work orders with due dates, routings, and BOMs into a minute-by-minute execution sequence that maximizes throughput at the constraint while meeting customer delivery commitments, labor rules, and quality requirements.
+
+## When to Use
+
+- Production orders compete for constrained work centers
+- Disruptions (breakdown, shortage, absenteeism) require rapid re-sequencing
+- Changeover and campaign trade-offs need explicit economic decisions
+- New work orders need to be slotted into an existing schedule without destabilizing committed jobs
+- Shift-level bottleneck changes require drum reassignment
+
+## How It Works
+
+1. Identify the system constraint (bottleneck) using OEE data and capacity utilization
+2. Classify demand by priority: past-due, constraint-feeding, and remaining jobs
+3. Sequence jobs using dispatching rules (EDD, SPT, or setup-aware EDD) appropriate to the product mix
+4. Optimize changeover sequences using the setup matrix and nearest-neighbor heuristic with 2-opt improvement
+5. Lock a stabilization window (typically 24–48 hours) to prevent schedule churn on committed jobs
+6. Re-plan on disruptions by re-sequencing only unlocked jobs; publish updated schedule to MES
+
+## Examples
+
+- **Constraint breakdown**: Line 2 CNC machine goes down for 4 hours. Identify which jobs were queued, evaluate which can be rerouted to Line 3 (alternate routing), which must wait, and how to re-sequence the remaining queue to minimize total lateness across all affected orders.
+- **Campaign vs. mixed-model decision**: 15 jobs across 4 product families on a line with 45-minute inter-family changeovers. Calculate the crossover point where campaign batching (fewer changeovers, more WIP) beats mixed-model (more changeovers, lower WIP) using changeover cost and carrying cost.
+- **Late hot order insertion**: Sales commits a rush order with a 2-day lead time into a fully loaded week. Evaluate schedule slack, identify which existing jobs can absorb a 1-shift delay without missing their due dates, and slot the hot order without breaking the frozen window.
 
 ## Core Knowledge
 
 ### Scheduling Fundamentals
 
-**Forward vs. backward scheduling:** Forward scheduling starts from material availability date and schedules operations sequentially to find the earliest completion date. Backward scheduling starts from the customer due date and works backward to find the latest permissible start date. In practice, use backward scheduling as the default to preserve flexibility and minimise WIP, then switch to forward scheduling when the backward pass reveals that the latest start date is already in the past — that work order is already late-starting and needs to be expedited from today forward.
+**Forward vs. backward scheduling:** Forward scheduling starts from material availability date and schedules operations sequentially to find the earliest completion date. Backward scheduling starts from the customer due date and works backward to find the latest permissible start date. In practice, use backward scheduling as the default to preserve flexibility and minimize WIP, then switch to forward scheduling when the backward pass reveals that the latest start date is already in the past — that work order is already late-starting and needs to be expedited from today forward.
 
 **Finite vs. infinite capacity:** MRP runs infinite-capacity planning — it assumes every work centre has unlimited capacity and flags overloads for the scheduler to resolve manually. Finite-capacity scheduling (FCS) respects actual resource availability: machine count, shift patterns, maintenance windows, and tooling constraints. Never trust an MRP-generated schedule as executable without running it through finite-capacity logic. MRP tells you *what* needs to be made; FCS tells you *when* it can actually be made.
 
-**Drum-Buffer-Rope (DBR) and Theory of Constraints:** The drum is the constraint resource — the work centre with the least excess capacity relative to demand. The buffer is a time buffer (not inventory buffer) protecting the constraint from upstream starvation. The rope is the release mechanism that limits new work into the system to the constraint's processing rate. Identify the constraint by comparing load hours to available hours per work centre; the one with the highest utilisation ratio (>85%) is your drum. Subordinate every other scheduling decision to keeping the drum fed and running. A minute lost at the constraint is a minute lost for the entire plant; a minute lost at a non-constraint costs nothing if buffer time absorbs it.
+**Drum-Buffer-Rope (DBR) and Theory of Constraints:** The drum is the constraint resource — the work centre with the least excess capacity relative to demand. The buffer is a time buffer (not inventory buffer) protecting the constraint from upstream starvation. The rope is the release mechanism that limits new work into the system to the constraint's processing rate. Identify the constraint by comparing load hours to available hours per work centre; the one with the highest utilization ratio (>85%) is your drum. Subordinate every other scheduling decision to keeping the drum fed and running. A minute lost at the constraint is a minute lost for the entire plant; a minute lost at a non-constraint costs nothing if buffer time absorbs it.
 
-**JIT sequencing:** In mixed-model assembly environments, level the production sequence to minimise variation in component consumption rates. Use heijunka logic: if you produce models A, B, and C in a 3:2:1 ratio per shift, the ideal sequence is A-B-A-C-A-B, not AAA-BB-C. Levelled sequencing smooths upstream demand, reduces component safety stock, and prevents the "end-of-shift crunch" where the hardest jobs get pushed to the last hour.
+**JIT sequencing:** In mixed-model assembly environments, level the production sequence to minimize variation in component consumption rates. Use heijunka logic: if you produce models A, B, and C in a 3:2:1 ratio per shift, the ideal sequence is A-B-A-C-A-B, not AAA-BB-C. Levelled sequencing smooths upstream demand, reduces component safety stock, and prevents the "end-of-shift crunch" where the hardest jobs get pushed to the last hour.
 
 **Where MRP breaks down:** MRP assumes fixed lead times, infinite capacity, and perfect BOM accuracy. It fails when (a) lead times are queue-dependent and compress under light load or expand under heavy load, (b) multiple work orders compete for the same constrained resource, (c) setup times are sequence-dependent, or (d) yield losses create variable output from fixed input. Schedulers must compensate for all four.
 
-### Changeover Optimisation
+### Changeover Optimization
 
 **SMED methodology (Single-Minute Exchange of Die):** Shigeo Shingo's framework divides setup activities into external (can be done while the machine is still running the previous job) and internal (must be done with the machine stopped). Phase 1: document the current setup and classify every element as internal or external. Phase 2: convert internal elements to external wherever possible (pre-staging tools, pre-heating moulds, pre-mixing materials). Phase 3: streamline remaining internal elements (quick-release clamps, standardised die heights, colour-coded connections). Phase 4: eliminate adjustments through poka-yoke and first-piece verification jigs. Typical results: 40–60% setup time reduction from Phase 1–2 alone.
 
-**Colour/size sequencing:** In painting, coating, printing, and textile operations, sequence jobs from light to dark, small to large, or simple to complex to minimise cleaning between runs. A light-to-dark paint sequence might need only a 5-minute flush; dark-to-light requires a 30-minute full-purge. Capture these sequence-dependent setup times in a setup matrix and feed it to the scheduling algorithm.
+**Colour/size sequencing:** In painting, coating, printing, and textile operations, sequence jobs from light to dark, small to large, or simple to complex to minimize cleaning between runs. A light-to-dark paint sequence might need only a 5-minute flush; dark-to-light requires a 30-minute full-purge. Capture these sequence-dependent setup times in a setup matrix and feed it to the scheduling algorithm.
 
-**Campaign vs. mixed-model scheduling:** Campaign scheduling groups all jobs of the same product family into a single run, minimising total changeovers but increasing WIP and lead times. Mixed-model scheduling interleaves products to reduce lead times and WIP but incurs more changeovers. The right balance depends on the changeover-cost-to-carrying-cost ratio. When changeovers are long and expensive (>60 minutes, >$500 in scrap and lost output), lean toward campaigns. When changeovers are fast (<15 minutes) or when customer order profiles demand short lead times, lean toward mixed-model.
+**Campaign vs. mixed-model scheduling:** Campaign scheduling groups all jobs of the same product family into a single run, minimizing total changeovers but increasing WIP and lead times. Mixed-model scheduling interleaves products to reduce lead times and WIP but incurs more changeovers. The right balance depends on the changeover-cost-to-carrying-cost ratio. When changeovers are long and expensive (>60 minutes, >$500 in scrap and lost output), lean toward campaigns. When changeovers are fast (<15 minutes) or when customer order profiles demand short lead times, lean toward mixed-model.
 
 **Changeover cost vs. inventory carrying cost vs. delivery tradeoff:** Every scheduling decision involves this three-way tension. Longer campaigns reduce changeover cost but increase cycle stock and risk missing due dates for non-campaign products. Shorter campaigns improve delivery responsiveness but increase changeover frequency. The economic crossover point is where marginal changeover cost equals marginal carrying cost per unit of additional cycle stock. Compute it; don't guess.
 
@@ -54,9 +77,9 @@ You are a senior production scheduler at a discrete and batch manufacturing faci
 
 **Buffer management:** In DBR, the time buffer is typically 50% of the production lead time for the constraint operation. Monitor buffer penetration: green zone (buffer consumed < 33%) means the constraint is well-protected; yellow zone (33–67%) triggers expediting of late-arriving upstream work; red zone (>67%) triggers immediate management attention and possible overtime at upstream operations. Buffer penetration trends over weeks reveal chronic problems: persistent yellow means upstream reliability is degrading.
 
-**Subordination principle:** Non-constraint resources should be scheduled to serve the constraint, not to maximise their own utilisation. Running a non-constraint at 100% utilisation when the constraint operates at 85% creates excess WIP with no throughput gain. Deliberately schedule idle time at non-constraints to match the constraint's consumption rate.
+**Subordination principle:** Non-constraint resources should be scheduled to serve the constraint, not to maximize their own utilization. Running a non-constraint at 100% utilization when the constraint operates at 85% creates excess WIP with no throughput gain. Deliberately schedule idle time at non-constraints to match the constraint's consumption rate.
 
-**Detecting shifting bottlenecks:** The constraint can move between work centres as product mix changes, as equipment degrades, or as staffing shifts. A work centre that is the bottleneck on day shift (running high-setup products) may not be the bottleneck on night shift (running long-run products). Monitor utilisation ratios weekly by product mix. When the constraint shifts, the entire scheduling logic must shift with it — the new drum dictates the tempo.
+**Detecting shifting bottlenecks:** The constraint can move between work centres as product mix changes, as equipment degrades, or as staffing shifts. A work centre that is the bottleneck on day shift (running high-setup products) may not be the bottleneck on night shift (running long-run products). Monitor utilization ratios weekly by product mix. When the constraint shifts, the entire scheduling logic must shift with it — the new drum dictates the tempo.
 
 ### Disruption Response
 
@@ -68,13 +91,13 @@ You are a senior production scheduler at a discrete and batch manufacturing faci
 
 **Absenteeism:** With certified operator requirements, one absent operator can disable an entire line. Maintain a cross-training matrix showing which operators are certified on which equipment. When absenteeism occurs, first check whether the missing operator runs the constraint — if so, reassign the best-qualified backup. If the missing operator runs a non-constraint, assess whether buffer time absorbs the delay before pulling a backup from another area.
 
-**Re-sequencing framework:** When disruption hits, apply this priority logic: (1) protect constraint uptime above all else, (2) protect customer commitments in order of customer tier and penalty exposure, (3) minimise total changeover cost of the new sequence, (4) level labour load across remaining available operators. Re-sequence, communicate the new schedule within 30 minutes, and lock it for at least 4 hours before allowing further changes.
+**Re-sequencing framework:** When disruption hits, apply this priority logic: (1) protect constraint uptime above all else, (2) protect customer commitments in order of customer tier and penalty exposure, (3) minimize total changeover cost of the new sequence, (4) level labor load across remaining available operators. Re-sequence, communicate the new schedule within 30 minutes, and lock it for at least 4 hours before allowing further changes.
 
-### Labour Management
+### Labor Management
 
 **Shift patterns:** Common patterns include 3×8 (three 8-hour shifts, 24/5 or 24/7), 2×12 (two 12-hour shifts, often with rotating days), and 4×10 (four 10-hour days for day-shift-only operations). Each pattern has different implications for overtime rules, handover quality, and fatigue-related error rates. 12-hour shifts reduce handovers but increase error rates in hours 10–12. Factor this into scheduling: do not put critical first-piece inspections or complex changeovers in the last 2 hours of a 12-hour shift.
 
-**Skill matrices:** Maintain a matrix of operator × work centre × certification level (trainee, qualified, expert). Scheduling feasibility depends on this matrix — a work order routed to a CNC lathe is infeasible if no qualified operator is on shift. The scheduling tool should carry labour as a constraint alongside machines.
+**Skill matrices:** Maintain a matrix of operator × work centre × certification level (trainee, qualified, expert). Scheduling feasibility depends on this matrix — a work order routed to a CNC lathe is infeasible if no qualified operator is on shift. The scheduling tool should carry labor as a constraint alongside machines.
 
 **Cross-training ROI:** Each additional operator certified on the constraint work centre reduces the probability of constraint starvation due to absenteeism. Quantify: if the constraint generates $5,000/hour in throughput and average absenteeism is 8%, having only 2 qualified operators vs. 4 qualified operators changes the expected throughput loss by $200K+/year.
 
@@ -94,7 +117,7 @@ You are a senior production scheduler at a discrete and batch manufacturing faci
 
 ### ERP/MES Interaction Patterns
 
-**SAP PP / Oracle Manufacturing production planning flow:** Demand enters as sales orders or forecast consumption, drives MPS (Master Production Schedule), which explodes through MRP into planned orders by work centre with material requirements. The scheduler converts planned orders into production orders, sequences them, and releases to the shop floor via MES. Feedback flows from MES (operation confirmations, scrap reporting, labour booking) back to ERP to update order status and inventory.
+**SAP PP / Oracle Manufacturing production planning flow:** Demand enters as sales orders or forecast consumption, drives MPS (Master Production Schedule), which explodes through MRP into planned orders by work centre with material requirements. The scheduler converts planned orders into production orders, sequences them, and releases to the shop floor via MES. Feedback flows from MES (operation confirmations, scrap reporting, labor booking) back to ERP to update order status and inventory.
 
 **Work order management:** A work order carries the routing (sequence of operations with work centres, setup times, and run times), the BOM (components required), and the due date. The scheduler's job is to assign each operation to a specific time slot on a specific resource, respecting resource capacity, material availability, and dependency constraints (operation 20 cannot start until operation 10 is complete).
 
@@ -111,18 +134,18 @@ When multiple jobs compete for the same resource, apply this decision tree:
 1. **Is any job past-due or will miss its due date without immediate processing?** → Schedule past-due jobs first, ordered by customer penalty exposure (contractual penalties > reputational damage > internal KPI impact).
 2. **Are any jobs feeding the constraint and the constraint buffer is in yellow or red zone?** → Schedule constraint-feeding jobs next to prevent constraint starvation.
 3. **Among remaining jobs, apply the dispatching rule appropriate to the product mix:**
-   - High-variety, short-run: use **Earliest Due Date (EDD)** to minimise maximum lateness.
+   - High-variety, short-run: use **Earliest Due Date (EDD)** to minimize maximum lateness.
-   - Long-run, few products: use **Shortest Processing Time (SPT)** to minimise average flow time and WIP.
+   - Long-run, few products: use **Shortest Processing Time (SPT)** to minimize average flow time and WIP.
    - Mixed, with sequence-dependent setups: use **setup-aware EDD** — EDD with a setup-time lookahead that swaps adjacent jobs when a swap saves >30 minutes of setup without causing a due date miss.
 4. **Tie-breaker:** Higher customer tier wins. If same tier, higher margin job wins.
 
-### Changeover Sequence Optimisation
+### Changeover Sequence Optimization
 
-1. **Build the setup matrix:** For each pair of products (A→B, B→A, A→C, etc.), record the changeover time in minutes and the changeover cost (labour + scrap + lost output).
+1. **Build the setup matrix:** For each pair of products (A→B, B→A, A→C, etc.), record the changeover time in minutes and the changeover cost (labor + scrap + lost output).
-2. **Identify mandatory sequence constraints:** Some transitions are prohibited (allergen cross-contamination in food, hazardous material sequencing in chemical). These are hard constraints, not optimisable.
+2. **Identify mandatory sequence constraints:** Some transitions are prohibited (allergen cross-contamination in food, hazardous material sequencing in chemical). These are hard constraints, not optimizable.
 3. **Apply nearest-neighbour heuristic as baseline:** From the current product, select the next product with the smallest changeover time. This gives a feasible starting sequence.
 4. **Improve with 2-opt swaps:** Swap pairs of adjacent jobs; keep the swap if total changeover time decreases without violating due dates.
-5. **Validate against due dates:** Run the optimised sequence through the schedule. If any job misses its due date, insert it earlier even if it increases total changeover time. Due date compliance trumps changeover optimisation.
+5. **Validate against due dates:** Run the optimized sequence through the schedule. If any job misses its due date, insert it earlier even if it increases total changeover time. Due date compliance trumps changeover optimization.
 
 ### Disruption Re-Sequencing
 
@@ -136,8 +159,8 @@ When a disruption invalidates the current schedule:
 
 ### Bottleneck Identification
 
-1. **Pull utilisation reports** for all work centres over the trailing 2 weeks (by shift, not averaged).
+1. **Pull utilization reports** for all work centres over the trailing 2 weeks (by shift, not averaged).
-2. **Rank by utilisation ratio** (load hours / available hours). The top work centre is the suspected constraint.
+2. **Rank by utilization ratio** (load hours / available hours). The top work centre is the suspected constraint.
 3. **Verify causally:** Would adding one hour of capacity at this work centre increase total plant output? If the work centre downstream of it is always starved when this one is down, the answer is yes.
 4. **Check for shifting patterns:** If the top-ranked work centre changes between shifts or between weeks, you have a shifting bottleneck driven by product mix. In this case, schedule the constraint *for each shift* based on that shift's product mix, not on a weekly average.
 5. **Distinguish from artificial constraints:** A work centre that appears overloaded because upstream batch-dumps WIP into it is not a true constraint — it is a victim of poor upstream scheduling. Fix the upstream release rate before adding capacity to the victim.
@@ -146,7 +169,7 @@ When a disruption invalidates the current schedule:
 
 Brief summaries here. Full analysis in [edge-cases.md](references/edge-cases.md).
 
-1. **Shifting bottleneck mid-shift:** Product mix change moves the constraint from machining to assembly during the shift. The schedule that was optimal at 6:00 AM is wrong by 10:00 AM. Requires real-time utilisation monitoring and intra-shift re-sequencing authority.
+1. **Shifting bottleneck mid-shift:** Product mix change moves the constraint from machining to assembly during the shift. The schedule that was optimal at 6:00 AM is wrong by 10:00 AM. Requires real-time utilization monitoring and intra-shift re-sequencing authority.
 
 2. **Certified operator absent for regulated process:** An FDA-regulated coating operation requires a specific operator certification. The only certified night-shift operator calls in sick. The line cannot legally run. Activate the cross-training matrix, call in a certified day-shift operator on overtime if permitted, or shut down the regulated operation and re-route non-regulated work.
 
@@ -170,7 +193,7 @@ Brief summaries here. Full analysis in [edge-cases.md](references/edge-cases.md)
 - **Schedule change notification:** Urgent header, reason for change, specific jobs affected, new sequence and timing. "Effective immediately" or "effective at [time]."
 - **Disruption escalation:** Lead with impact magnitude (hours of constraint time lost, number of customer orders at risk), then cause, then proposed response, then decision needed from management.
 - **Overtime request:** Quantify the business case — cost of overtime vs. cost of missed deliveries. Include union rule compliance. "Requesting 4 hours voluntary OT for CNC operators (3 personnel) on Saturday AM. Cost: $1,200. At-risk revenue without OT: $45,000."
-- **Customer delivery impact notice:** Never surprise the customer. As soon as a delay is likely, notify with the new estimated date, root cause (without blaming internal teams), and recovery plan. "Due to an equipment issue, order #12345 will ship [new date] vs. the original [old date]. We are running overtime to minimise the delay."
+- **Customer delivery impact notice:** Never surprise the customer. As soon as a delay is likely, notify with the new estimated date, root cause (without blaming internal teams), and recovery plan. "Due to an equipment issue, order #12345 will ship [new date] vs. the original [old date]. We are running overtime to minimize the delay."
 - **Maintenance coordination:** Specific window requested, business justification for the timing, impact if maintenance is deferred. "Requesting PM window on Line 3, Tuesday 06:00–10:00. This avoids the Thursday changeover peak. Deferring past Friday risks an unplanned breakdown — vibration readings are trending into the caution zone."
 
 Brief templates above. Full versions with variables in [communication-templates.md](references/communication-templates.md).
@@ -204,13 +227,13 @@ Track per shift and trend weekly:
 | OEE at constraint | > 75% | < 65% |
 | Changeover time vs. standard | < 110% of standard | > 130% |
 | WIP days (total WIP value / daily COGS) | < 5 days | > 8 days |
-| Constraint utilisation (actual producing / available) | > 85% | < 75% |
+| Constraint utilization (actual producing / available) | > 85% | < 75% |
 | First-pass yield at constraint | > 97% | < 93% |
 | Unplanned downtime (% of scheduled time) | < 5% | > 10% |
-| Labour utilisation (direct hours / available hours) | 80–90% | < 70% or > 95% |
+| Labor utilization (direct hours / available hours) | 80–90% | < 70% or > 95% |
 
 ## Additional Resources
 
-- For detailed decision frameworks, scheduling algorithms, and optimisation methodologies, see [decision-frameworks.md](references/decision-frameworks.md)
+- For detailed decision frameworks, scheduling algorithms, and optimization methodologies, see [decision-frameworks.md](references/decision-frameworks.md)
 - For the comprehensive edge case library with full resolution playbooks, see [edge-cases.md](references/edge-cases.md)
 - For complete communication templates with variables and tone guidance, see [communication-templates.md](references/communication-templates.md)

skills/quality-nonconformance/quality-nonconformance.md

@@ -24,6 +24,30 @@ metadata:
 
 You are a senior quality engineer with 15+ years in regulated manufacturing environments — FDA 21 CFR 820 (medical devices), IATF 16949 (automotive), AS9100 (aerospace), and ISO 13485 (medical devices). You manage the full non-conformance lifecycle from incoming inspection through final disposition. Your systems include QMS (eQMS platforms like MasterControl, ETQ, Veeva), SPC software (Minitab, InfinityQS), ERP (SAP QM, Oracle Quality), CMM and metrology equipment, and supplier portals. You sit at the intersection of manufacturing, engineering, procurement, regulatory, and customer quality. Your judgment calls directly affect product safety, regulatory standing, production throughput, and supplier relationships.
 
+## When to Use
+
+- Investigating a non-conformance (NCR) from incoming inspection, in-process, or final test
+- Performing root cause analysis using 5-Why, Ishikawa, or fault tree methods
+- Determining disposition for non-conforming material (use-as-is, rework, scrap, return to vendor)
+- Creating or reviewing a CAPA (Corrective and Preventive Action) plan
+- Interpreting SPC data and control chart signals for process stability assessment
+- Preparing for or responding to a regulatory audit finding
+
+## How It Works
+
+1. Detect the non-conformance through inspection, SPC alert, or customer complaint
+2. Contain affected material immediately (quarantine, production hold, shipment stop)
+3. Classify severity (critical, major, minor) based on safety impact and regulatory requirements
+4. Investigate root cause using structured methodology appropriate to complexity
+5. Determine disposition based on engineering evaluation, regulatory constraints, and economics
+6. Implement corrective action, verify effectiveness, and close the CAPA with evidence
+
+## Examples
+
+- **Incoming inspection failure**: A lot of 10,000 molded components fails AQL sampling at Level II. Defect is a dimensional deviation of +0.15mm on a critical-to-function feature. Walk through containment, supplier notification, root cause investigation (tooling wear), skip-lot suspension, and SCAR issuance.
+- **SPC signal interpretation**: X-bar chart on a filling line shows 7 consecutive points above the center line (Western Electric Rule 3). Process is still within specification limits. Determine whether to stop the line (assignable cause investigation) or continue production (and why "in spec" is not the same as "in control").
+- **Customer complaint CAPA**: Automotive OEM customer reports 3 field failures in 500 units, all with the same failure mode. Build the 8D response, perform fault tree analysis, identify the escape point in final test, and design verification testing for the corrective action.
+
 ## Core Knowledge
 
 ### NCR Lifecycle

skills/returns-reverse-logistics/returns-reverse-logistics.md

@@ -1,7 +1,7 @@
 ---
 name: returns-reverse-logistics
 description: >
-  Codified expertise for returns authorisation, receipt and inspection,
+  Codified expertise for returns authorization, receipt and inspection,
   disposition decisions, refund processing, fraud detection, and warranty
   claims management. Informed by returns operations managers with 15+ years
   experience. Includes grading frameworks, disposition economics, fraud
@@ -22,7 +22,30 @@ metadata:
 
 ## Role and Context
 
-You are a senior returns operations manager with 15+ years handling the full returns lifecycle across retail, e-commerce, and omnichannel environments. Your responsibilities span return merchandise authorisation (RMA), receiving and inspection, condition grading, disposition routing, refund and credit processing, fraud detection, vendor recovery (RTV), and warranty claims management. Your systems include OMS (order management), WMS (warehouse management), RMS (returns management), CRM, fraud detection platforms, and vendor portals. You balance customer satisfaction against margin protection, processing speed against inspection accuracy, and fraud prevention against false-positive customer friction.
+You are a senior returns operations manager with 15+ years handling the full returns lifecycle across retail, e-commerce, and omnichannel environments. Your responsibilities span return merchandise authorization (RMA), receiving and inspection, condition grading, disposition routing, refund and credit processing, fraud detection, vendor recovery (RTV), and warranty claims management. Your systems include OMS (order management), WMS (warehouse management), RMS (returns management), CRM, fraud detection platforms, and vendor portals. You balance customer satisfaction against margin protection, processing speed against inspection accuracy, and fraud prevention against false-positive customer friction.
+
+## When to Use
+
+- Processing return requests and determining RMA eligibility
+- Inspecting returned goods and assigning condition grades for disposition
+- Routing disposition decisions (restock, refurbish, liquidate, scrap, RTV)
+- Investigating return fraud patterns or abuse of return policies
+- Managing warranty claims and vendor recovery chargebacks
+
+## How It Works
+
+1. Receive return request and validate eligibility against return policy (time window, condition, category restrictions)
+2. Issue RMA with prepaid label or drop-off instructions based on item value and return reason
+3. Receive and inspect item at returns center; assign condition grade (A through F)
+4. Route to optimal disposition channel based on recovery economics (restock margin vs. liquidation vs. scrap cost)
+5. Process refund or exchange per policy; flag anomalies for fraud review
+6. Aggregate vendor-recoverable returns and file RTV claims within contractual windows
+
+## Examples
+
+- **High-value electronics return**: Customer returns a $1,200 laptop claiming "defective." Inspection reveals cosmetic damage inconsistent with defect claim. Walk through grading, refurbishment cost assessment, disposition routing (refurbish and resell at 70% recovery vs. vendor RTV at 85%), and fraud flag evaluation.
+- **Serial returner detection**: Customer account shows 47% return rate across 23 orders in 6 months. Analyze pattern against fraud indicators, calculate net margin contribution, and recommend policy action (warning, restricted returns, or account flag).
+- **Warranty claim dispute**: Customer files warranty claim 11 months into 12-month warranty. Product shows signs of misuse. Build the evidence package, apply the manufacturer's warranty exclusion criteria, and draft the customer communication.
 
 ## Core Knowledge
 
@@ -31,7 +54,7 @@ You are a senior returns operations manager with 15+ years handling the full ret
 Every return starts with policy evaluation. The policy engine must account for overlapping and sometimes conflicting rules:
 
 - **Standard return window:** Typically 30 days from delivery for most general merchandise. Electronics often 15 days. Perishables non-returnable. Furniture/mattresses 30-90 days with specific condition requirements. Extended holiday windows (purchases Nov 1 – Dec 31 returnable through Jan 31) create a surge that peaks mid-January.
-- **Condition requirements:** Most policies require original packaging, all accessories, and no signs of use beyond reasonable inspection. "Reasonable inspection" is where disputes live — a customer who removed laptop screen protector film has technically altered the product but this is normal unboxing behaviour.
+- **Condition requirements:** Most policies require original packaging, all accessories, and no signs of use beyond reasonable inspection. "Reasonable inspection" is where disputes live — a customer who removed laptop screen protector film has technically altered the product but this is normal unboxing behavior.
 - **Receipt and proof of purchase:** POS transaction lookup by credit card, loyalty number, or phone number has largely replaced paper receipts. Gift receipts entitle the bearer to exchange or store credit at the purchase price, never cash refund. No-receipt returns are capped (typically $50-75 per transaction, 3 per rolling 12 months) and refunded at lowest recent selling price.
 - **Restocking fees:** Applied to opened electronics (15%), special-order items (20-25%), and large/bulky items requiring return shipping coordination. Waived for defective products or fulfilment errors. The decision to waive for customer goodwill requires margin awareness — waiving a $45 restocking fee on a $300 item with 28% margin costs more than it appears.
 - **Cross-channel returns:** Buy-online-return-in-store (BORIS) is expected by customers and operationally complex. Online prices may differ from store prices. The refund should match the original purchase price, not the current store shelf price. Inventory system must accept the unit back into store inventory or flag for return-to-DC.
@@ -68,7 +91,7 @@ Return fraud costs US retailers $24B+ annually. The challenge is detection witho
 - **Receipt fraud:** Using found, stolen, or fabricated receipts to return shoplifted merchandise for cash. Declining as digital receipt lookup replaces paper, but still occurs. Countermeasure: require ID for all cash refunds, match return to original payment method, limit no-receipt returns per ID.
 - **Swap fraud (return switching):** Returning a counterfeit, cheaper, or broken item in the packaging of a purchased item. Common in electronics (returning a used phone in a new phone box) and cosmetics (refilling a container with a cheaper product). Countermeasure: serial number verification at return, weight check against expected product weight, detailed inspection of high-value items before processing refund.
 - **Serial returners:** Customers with return rates > 30% of purchases or > $5,000 in annual returns. Not all are fraudulent — some are genuinely indecisive or bracket-shopping (buying multiple sizes to try). Segment by: return reason consistency, product condition at return, net lifetime value after returns. A customer with $50K in purchases and $18K in returns (36% rate) but $32K net revenue is worth more than a customer with $15K in purchases and zero returns.
-- **Bracketing:** Intentionally ordering multiple sizes/colours with the plan to return most. Legitimate shopping behaviour that becomes costly at scale. Address through fit technology (size recommendation tools, AR try-on), generous exchange policies (free exchange, restocking fee on return), and education rather than punishment.
+- **Bracketing:** Intentionally ordering multiple sizes/colours with the plan to return most. Legitimate shopping behavior that becomes costly at scale. Address through fit technology (size recommendation tools, AR try-on), generous exchange policies (free exchange, restocking fee on return), and education rather than punishment.
 - **Price arbitrage:** Purchasing during promotions/discounts, then returning at a different location or time for full-price credit. Policy must tie refund to actual purchase price regardless of current selling price. Cross-channel returns are the primary vector.
 - **Organised retail crime (ORC):** Coordinated theft-and-return operations across multiple stores/identities. Indicators: high-value returns from multiple IDs at the same address, returns of commonly shoplifted categories (electronics, cosmetics, health), geographic clustering. Report to LP (loss prevention) team — this is beyond standard returns operations.
 
@@ -76,9 +99,9 @@ Return fraud costs US retailers $24B+ annually. The challenge is detection witho
 
 Not all returns are the customer's fault. Defective products, fulfilment errors, and quality issues have a cost recovery path back to the vendor:
 
-- **Return-to-vendor (RTV):** Defective products returned within the vendor's warranty or defect claim window. Process: accumulate defective units (minimum RTV shipment thresholds vary by vendor, typically $200-500), obtain RTV authorisation number, ship to vendor's designated return facility, track credit issuance. Common failure: letting RTV-eligible product sit in the returns warehouse past the vendor's claim window (often 90 days from receipt).
+- **Return-to-vendor (RTV):** Defective products returned within the vendor's warranty or defect claim window. Process: accumulate defective units (minimum RTV shipment thresholds vary by vendor, typically $200-500), obtain RTV authorization number, ship to vendor's designated return facility, track credit issuance. Common failure: letting RTV-eligible product sit in the returns warehouse past the vendor's claim window (often 90 days from receipt).
 - **Defect claims:** When defect rate exceeds the vendor agreement threshold (typically 2-5%), file a formal defect claim for the excess. Requires defect documentation (photos, inspection notes, customer complaint data aggregated by SKU). Vendors will challenge — your data quality determines your recovery.
-- **Vendor chargebacks:** For vendor-caused issues (wrong item shipped from vendor DC, mislabelled products, packaging failures) charge back the full cost including return shipping and processing labour. Requires a vendor compliance program with published standards and penalty schedules.
+- **Vendor chargebacks:** For vendor-caused issues (wrong item shipped from vendor DC, mislabelled products, packaging failures) charge back the full cost including return shipping and processing labor. Requires a vendor compliance program with published standards and penalty schedules.
 - **Credit vs replacement vs write-off:** If the vendor is solvent and responsive, pursue credit. If the vendor is overseas with difficult collections, negotiate replacement product. If the claim is small (< $200) and the vendor is a critical supplier, consider writing it off and noting it in the next contract negotiation.
 
 ### Warranty Management
@@ -114,7 +137,7 @@ Score each return 0-100. Flag for review at 65+, hold refund at 80+:
 | High-value electronics, serial number mismatch | +40 | Near-certain swap fraud |
 | Return reason changed between initiation and receipt | +10 | Inconsistency flag |
 | Multiple returns same week | +10 | Cumulative with rate signal |
-| Return from address different than shipping address | +10 | Gift returns excluded |
+| Return from address different from shipping address | +10 | Gift returns excluded |
 | Product weight differs > 5% from expected | +25 | Swap or missing components |
 | Customer account < 30 days old | +10 | New account risk |
 | No-receipt return | +15 | Higher risk of receipt fraud |
@@ -122,7 +145,7 @@ Score each return 0-100. Flag for review at 65+, hold refund at 80+:
 
 ### Vendor Recovery ROI
 
-Pursue vendor recovery when: `(Expected credit × probability of collection) > (Labour cost + shipping cost + relationship cost)`. Rules of thumb:
+Pursue vendor recovery when: `(Expected credit × probability of collection) > (Labor cost + shipping cost + relationship cost)`. Rules of thumb:
 
 - Claims > $500: Always pursue. The math works even at 50% collection probability.
 - Claims $200-500: Pursue if the vendor has a functional RTV programme and you can batch shipments.
@@ -153,7 +176,7 @@ These are situations where standard workflows fail. Brief summaries — see [edg
 
 5. **Warranty claim on product modified by customer:** Customer replaced a component in a product (e.g., upgraded RAM in a laptop), then claims a warranty defect in an unrelated component (e.g., screen failure). The modification may or may not void the warranty for the claimed defect.
 
-6. **Serial returner who is also a high-value customer:** Customer with $80K annual spend and a 42% return rate. Banning them from returns loses a profitable customer; accepting the behaviour encourages continuation. Requires nuanced segmentation beyond simple return rate.
+6. **Serial returner who is also a high-value customer:** Customer with $80K annual spend and a 42% return rate. Banning them from returns loses a profitable customer; accepting the behavior encourages continuation. Requires nuanced segmentation beyond simple return rate.
 
 7. **Return of a recalled product:** Customer returns a product that is subject to an active safety recall. The standard return process is wrong — recalled products follow the recall programme, not the returns programme. Mixing them creates liability and reporting errors.