Res Manufacturing Supplier Quality Manual

Transcription

1 Res Manufacturing Supplier Quality Manual Revision: 5 05/23/2014 Approved By: Mike Grimm, Materials Manager 1

2 Table of Contents 1.0 Overview 1. Introduction 2. Mission Statement 3. Quality Policy 4. Purpose 5. Scope 6. Confidentiality Agreement 7. Maintenance of document 2.0 General 1. Receiving Hours 2. Shipments and Deliveries 3. Receipt Inspection 4. Packaging Requirements and Product Identification 5. Transportation Guidelines 3.0 Purchase Order Terms and Conditions 1. Purchase Order Number 2. Packing Slips 3. Quantities 4. Price 5. Payment 6. Inspection 7. Warranty 8. Acceptance 9. Purchase Order Changes 10. Cancellation 4.0 Supply Base Management 1. Supplier Evaluation 2. Supplier Certification Requirements 3. Supplier Performance Reporting System 4. Rejected Materials 5. Late Shipment Policy 6. New Part Approval/PPAP requirements 5.0 Logistics Requirements 6.0 Non-disclosure Agreement 7.0 Approvals 2

3 1.0 Overview 1.1 Introduction Res Manufacturing Company was founded in 1907 as an innovative producer of stamped metal components and subassemblies. Locally and nationally recognized for excellence, Res focuses on providing engineered solutions for its customers' metal stamping, welding, and assembly challenges. 1.2 Mission Statement "Our mission is to be the best-in-class provider of precision metal stampings, assemblies and value-added services. Res will operate safely, ethically and profitably for the benefit of its associates, shareholders, suppliers, and customers." 1.3 Quality Policy Res embraces the requirements documented in the ISO/TS Technical Specification as activities that add value for our customers. Res is dedicated to continually improving customer satisfaction through enhanced product quality and the reduction of waste created by non-value added activities. 1.4 Purpose Res Manufacturing Company s relationship with its suppliers is one of the most important aspects of its operations. This relationship must be mutually beneficial for the continued success and profitability of each party. Understanding both parties responsibility to quality conformance is necessary. This manual describes the quality involvement that Res Manufacturing Company expects of its suppliers and also describes the general procedures used in assuring quality of purchased materials and components. Res Manufacturing Company will continue to seek better methods to assure quality. This manual is provided to aid suppliers in meeting the various terms and conditions of our purchasing documents, engineering specifications, engineering drawings and related requirements; not alter or replace them. This Supplier Manual is part of the purchase order contract issued by Res Manufacturing Company. The supplier s obligations may only be modified or waived by Res in writing. 1.5 Scope Our supplier quality manual applies to all current and future suppliers who provide Metals, Purchased Components, Purchased Parts, or Outside Services used by Res Manufacturing. The manual outlines minimum requirements, and defines the quality performance required of each supplier s quality management system in providing products or services. 1.6 Confidentiality Agreement The Supplier and Res Manufacturing must have signed non-disclosure agreement on file. This document is located at 7.0 of this manual, and can be printed separately. 1.7 Maintenance of Document This document and attachments will be available on Res Manufacturing website, Any revisions made to this document will generate a change in revision date. 3

4 2.0 General 2.1 Receiving Hours Res Manufacturing Company s receiving operations are Monday through Thursday 7am 4pm. Any shipments that arrive outside of these timeframes without special approval from Res Manufacturing s Purchasing Department will be turned away at the supplier s expense. 2.2 Shipments and Deliveries Shipments and deliveries shall be in accordance with Buyer s instructions and must be made to the specified ship-to location. Deliveries should not be made to individuals or departments. Seller s responsibility for all risks for loss or damage to the items or material to be delivered under the purchase order will be governed by standard UCC terms indicated on the PO form. 2.3 Receipt Inspection All metal, purchased components, purchased parts, or outside services received at Res Manufacturing shall be subject to certification review or physical checking. Failure to meet any criteria, specifications, or dimensional tolerances may result in return of that material at supplier s expense, rework at the supplier s expense, or scrap. Reference section 4.4 of this document. 2.4 Packaging Requirements and Product Identification Each individual package received at Res will be clearly marked with: 1. Res part number 2. Res Purchase Order number 3. Manufacturing lot number or heat number 4. Date of manufacture 5. Quantity 6. Barcode 2.5 Transportation Guidelines A Selected Carriers letter will be maintained by Res Manufacturing Purchasing (Attachment B). This document will specify inbound carriers to be used for each shipment type (small package, LTL, truckload, airfreight). Unauthorized deviation from this list of selected carriers may result in excess freight charge that will be charged back to the supplier. 3.0 Purchase Order Terms and Conditions 3.1 Purchase Order Number The purchase order number must be shown on each package, packing slip, and invoice of Seller. Res Manufacturing reserves the right to return to Seller any invoice that does not conform. Payment shall not be rendered unless Res Manufacturing receives an invoice showing the purchase order number. 3.2 Packing Slips Packing Slips must be included in all shipments and must state the Res purchase order along with the Res part number. 4

5 3.3 Quantities The specific quantity ordered must be delivered in full quantity and may not be changed without Res Manufacturing Company s written consent. Any unauthorized quantity is subject to rejection and will be returned at the supplier s expense. Res assumes normal industry standards. 3.4 Price If the price is not stated in the purchase order it is agreed upon that the items or material covered by this purchase order will be billed at the price last quoted or the supplier s current list price whichever is lower. The purchase order may not be filled at a higher price than last quoted or previously invoiced without specific buyer s written consent. The price stated in the purchase order includes all applicable Federal, State, and Local taxes and will not be changed as a result of failure of the supplier to include applicable tax or as a result of any increase in supplier s tax liabilities. Price change requests need 60-day advanced written notice. It is the intention of Res to not grant price increase; but instead to work together to drive out waste which lowers cost and provides more value to our customers. No additional charges of any kind, including but not limited to surcharges, charges for boxing, packing, cartage or other extras will be allowed unless specifically agreed to in writing by Res Manufacturing Company. 3.5 Payment Payment terms are Net 45 unless stated on individual PO. 3.6 Inspection Res expects that all purchased material will be received defect-free. Reference section Warranty Res Manufacturing Company expects suppliers to warranty product up to 24 months from date of receipt. Nonconforming or defective items may be returned, require corrective action, and replacement of the item all at the Supplier s expense. Any down time will be subject to appropriate charges at Supplier s expense. Reference section 4.4 of this document. 3.8 Acceptance Supplier will acknowledge receipt and acceptance of all Res Manufacturing Purchase Orders. Acknowledgement will be in writing and will be within 48 hours of receipt of the PO; if acknowledgement is not received after 72 hours it will be assumed the order is agreed to. 3.9 Purchase Order Changes No changes can be made to Purchase Order including but not limited price, quantity, and date needed without the consent of Res Manufacturing Cancellation Res reserves the right to cancel a PO up to 30 days from date issued without incurring any expense. 5

6 4.0 Supply Base Management 4.1 Supplier Evaluation Suppliers of items or services are evaluated and selected based on the quality, availability, and price of their product. New suppliers may be asked to provide any or all of the following: Copy of quality assurance manual Current certificate of quality system registration from an accredited registrar. Description of relevant processes, process equipment, and machines. Professional resumes (if engineering or consulting is involved). Samples of similar products and/or workmanship (if applicable). References. Purchasing and Quality will evaluate the submitted information and may request a visit to audit the supplier s quality system and/or production processes. Suppliers are placed into one of the following categories in the Supplier Code Log based on evaluations and assessments. Supplier status may be changed after review by Purchasing and Quality with corrective actions completed as necessary (per QOP 06-02). APPROVED (A) Products or services may be ordered from this supplier. PROVISIONAL (P) New suppliers or suppliers with poor quality history as determined by the Supplier Evaluation Process may be considered PROVISIONAL. New suppliers can be moved to APPROVED after an evaluation period established by Quality and Purchasing. Res can still order from suppliers in this status due to poor quality; however the supplier has been presented with corrective action that must be implemented within 60 days. Res may impose special receiving inspection requirements for provisional suppliers. NOT APPROVED (N) The supplier is not qualified due to poor audit results or performance history. Products or services may not be purchased from this supplier. 4.2 Supplier Certification Requirements Res embraces the requirements documented in the ISO/TS Technical Specifications as value added for our customers. In order for us to meet these requirements our suppliers of automotive metals, components, parts, or services are required to be certified to the current TS or ISO 9001 standard. If a supplier has already achieved the appropriate certification a current copy the certificate from an accredited registrar must be provided to Res Manufacturing. If a supplier is not certified to the appropriate standard they may only be used with a waiver from Res s customer. 4.3 Supplier Performance Reporting System 100% on-time delivery performance and 0% nonconformance rates are required and periodically monitored by the Purchasing and Quality based on their impact on our ability to meet customer requirements. The Supplier Performance Report is used to communicate these supplier s performance ratings and if poor delivery or quality is noted corrective action is requested. 6

7 4.4 Rejected Materials Rejected material will be communicated to supplier within a reasonable amount of time. A corrective action report in 8D format will be expected from the supplier. Due date of steps are indicated below. The supplier is expected to quarantine and disposition rejected material within 2 days after notification. Root cause analysis and final corrective action should occur within 2 weeks after initial notification. Res intends to recover costs resulting from a supplier non-conformance. These costs will include, but are not limited to reasonable sorting costs, premium shipment costs to receive new material or in expedited shipping to our customer in order to maintain delivery schedule, and any charges related to rework or scrap activities. Res will attempt to notify the supplier of options to disposition the rejected material we have in-house but the timeframe may not allow for this. 4.5 Late Shipment Policy The supplier will be responsible for all premium freight charges to our customer if any shipment arrives later than the agreed upon due date and causes interruption to Res Manufacturing Company s 100% delivery performance requirement to our customer. 4.6 New Part Approval/PPAP requirements Suppliers are expected to adhere to AIAG APQP/PPAP guidelines & methods. Deviation from these methods must be pre-approved by Res Manufacturing Quality Department. 5.0 Logistics Guide All suppliers are required to route inbound collect shipments to our facility per the following matrix. Failure to follow this routing can result in excess freight charges that will be billed-back against your company. Following carriers offer benefits that assure Res Manufacturing s shipping needs will be handled professionally and at the best total cost. Small Packages (Under 60 lb per package and under 150 lb total weight of shipment) UPS Package Delivery Service Less-than-truckload (LTL) (Greater than 150 lb and less than10,000 lb of shipment) CH Robinson Worldwide (ph ext walkpeg@chrobinson.com) Truckload (TL) Advise Res Mfg Materials of best carrier, or CH Robinson Worldwide Expedite Shipments Taylor Made Express, or advise Res Mfg Materials of best carrier Milwaukee-Area Local Pick-ups Goede Trucking (ph ) If you should have any questions concerning this routing request, call Res Manufacturing Materials at

8 6.0 Non-Disclosure Agreement NONDISCLOSURE AGREEMENT RES MANUFACTURING COMPANY., with its principal place of business at 7801 North 73rd Street, Milwaukee, WI ("RES"), and, with an address at ("RECEIVING PARTY"), agree that the following terms and conditions shall govern communications from RES to the RECEIVING PARTY regarding RES' products, technology, inventions, formulas, know-how, services, forecasts, sales methods, customer lists, customer usages and requirements, financial information, business plans, strategies, and future business relationships (collectively referred to herein as "Confidential Information"). 1. All Confidential Information disclosed by RES to the RECEIVING PARTY was developed by RES at great expense, is confidential and proprietary, and shall remain the property of RES. 2. The RECEIVING PARTY shall use the disclosed Confidential Information solely to determine the feasibility of entering into a contract or other business arrangement with RES; to formulate price quotations or to make necessary preparations, in anticipation of entering into a contract with RES; to complete performance of an existing or future contract with RES; and/or for other purposes only as allowed by RES. The RECEIVING PARTY shall not disclose any Confidential Information to any person, firm, or corporation outside of its own organization, except as, and to the extent, as necessary to third parties under an obligation of confidentiality, and shall only disclose such Confidential Information within its own organization to the extent necessary to fulfill the applicable purpose stated above. The RECEIVING PARTY shall not use the Confidential Information in any manner whatsoever to provide to any third party any device, product, or service or variations thereof derived from such Confidential Information provided by RES. The RECEIVING PARTY shall be released from the obligations of this Section 2 to the extent that any of the Confidential Information disclosed: (a) was already part of the public domain at the time of the disclosure by RES; (b) becomes part of the public domain through no fault of the RECEIVING PARTY (but only after and only to the extent that it is published or otherwise becomes part of the public domain); (c) was in the RECEIVING PARTY's possession prior to the disclosure by RES and was not acquired, directly or indirectly, from RES or from a third party who was under a continuing obligation of confidence to RES; (d) is received (after the disclosure by RES) by the RECEIVING PARTY from a third party who did not require the RECEIVING PARTY to hold it in confidence and did not acquire it directly or indirectly, from RES under a continuing obligation of confidence; or (e) is disclosed by the RECEIVING PARTY pursuant to judicial compulsion, provided that RES is notified at the time such judicial action is initiated. Disclosures relating to Confidential Information shall not be deemed to be in the public domain or in the possession of the RECEIVING PARTY merely because they are embraced (but not disclosed) by general disclosures in the public domain or in the possession of the RECEIVING PARTY. 3. The obligation of the RECEIVING PARTY to receive and hold information disclosed by RES in confidence, as required by Section 2 above, shall terminate four (4) years from the date of disclosure of the information hereunder, and shall survive any earlier termination of this Agreement. 4. All documents, drawings, specifications, sketches, and designs, pictures, films, tapes, and tangible objects furnished by RES to the RECEIVING PARTY shall remain the property of RES and shall be returned to RES promptly at its request, together with all copies made of such material. The RECEIVING PARTY shall be permitted to destroy rather than return all analyses, extracts and summaries 8

9 prepared by the RECEIVING PARTY which contain Confidential Information, and such destruction shall be certified in writing to RES by an authorized officer of the RECEIVING PARTY who has supervised such destruction. The RECEIVING PARTY shall not allow any RES property, as listed in this paragraph, to be copied without first obtaining express permission from RES. Any work product derived from information furnished by RES to the RECEIVING PARTY shall be provided only to RES. Any Confidential Information that is not so returned or destroyed, including without limitation any oral Confidential Information, shall remain subject to the confidentiality obligations set forth in this Agreement. 5. Neither the execution and delivery of this Agreement, nor the disclosure or furnishing of information by RES to the RECEIVING PARTY, shall be construed as a grant by RES to the RECEIVING PARTY whether expressly, by implication, estoppel, or otherwise, of any license under any invention, patent, trademark, copyright, mask work right, or other intellectual property right now or hereafter owned by RES. Nothing contained in this Agreement shall constitute a commitment on the part of RES to disclose future information or products, or to enter into a contract or other relationship with the RECEIVING PARTY in the future. 6. Neither party shall, without the prior written consent of the other party, disclose to any other person the fact that the disclosed information has been made available or that discussions or negotiations are taking place concerning a possible business relationship, including the status thereof, except as required by law or by the rules of any recognized stock exchange and then, only with prior written notice to the other party. Any disclosure made shall be no more extensive than is necessary to meet the minimum requirement imposed on the party making such disclosure. 7. This Agreement shall remain in effect for a period of one (1) year from the effective date below, and shall automatically be extended for additional one (1) year extension terms unless one of the parties notifies the other party of the notifying party's intention not to extend this Agreement within three (3) months prior to the termination of the initial term or any extension term hereunder, as applicable. Such expiration shall not affect the obligation in Section 3 above, which shall continue for the term stated therein. 8. This Agreement constitutes the entire understanding between the parties relating to the subject matter hereof, and supersedes and replaces all previous negotiations, representations, understandings, or agreements relating to that subject matter. This Agreement may not be modified in any respect except by a written instrument signed by the parties. No waiver of any term of this Agreement, whether by conduct or otherwise, in any single instance or in repeated instances, shall be deemed to be a further or continuing waiver of the same or any other term of this Agreement. This Agreement may be executed via facsimile and may be executed in separate counterparts, each of which shall be deemed to be an original and all of which together shall constitute a single instrument. 9. This Agreement is binding upon RES and the RECEIVING PARTY and their respective successors and assigns, if any. If any portion of this Agreement is found invalid or unenforceable for any reason, it is agreed that the invalidity or unenforceability shall not affect or validate any other portions of this Agreement. 10. The RECEIVING PARTY hereby acknowledges that unauthorized disclosure of any part of the disclosed Confidential Information may cause irreparable harm to RES, and that monetary damages would not be an adequate remedy. Accordingly, the RECEIVING PARTY hereby agrees not to oppose any request by RES for equitable relief such as a Temporary Restraining Order, or a Preliminary or Final Injunction, on the grounds that RES has an adequate remedy at law. These specific remedies are in 9

10 addition to any other remedies which RES may be entitled to at law or in equity. The RECEIVING PARTY further agrees to indemnify and hold RES harmless from and against any and all loss, damage, cost or expense (including reasonable attorneys' fees) resulting from or arising out of any breach of this Agreement. 11. This Agreement shall be construed and enforced in accordance with the substantive laws of the State of Wisconsin. The parties have caused this Agreement to be signed by their duly authorized officers or representatives, effective as of the later date below. RES MANUFACTURING COMPANY CONTRACTING PARTY BY: BY: TITLE: TITLE: 7.0 Approvals Most recent revision of this document is available on our website Suppliers are responsible for viewing and complying with this document. 10