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Material was promised but the supplier failed to supply and reported a manufacturing defect in the last stages of manufacture, during inspection for example.
First: The delay cannot be a surprise, so you have to have alternatives ready, preferably with the supplier who has the problem
That´s why you draw supply contracts with penalties if contract is broken.
The question is what kind of project manager are you? The kind that thinks that projects are wonderful and you won't need to pull the plug, the kind that thinks everything will be fine and contingencies won't happen? Or alternatively the kind that oversees breaking points in the future...
Now what? Recover plans? Reschedule? Replan? You had that responsability months ago.
It is always prudent to prevent such stock out situations for critical parts. For such parts, we practice two bin system, one lot being sent to us and a partial quantiy kept in Supplier's inventory. This gives us an opportunity to prevent stock out situation. We do this with the suppliers, where unexpected delays happened by experience.