1 of 7 Subject: PREFERRED PERFORMER PROGRAM - SUPPLIER INSTRUCTIONS AND PROGRAM CONTROL REQUIREMENTS Supersedes ; dated 02/19/14 Process Owner Supply Chain Governance Applies To Triumph Aerostructures - Vought Aircraft Division (TA-VAD or Company) Purpose Business Scenario Scope The Preferred Performer Program is intended to recognize superior supplier performance. This award may afford suppliers preferential consideration for TA-VAD purchases and allows them to perform inspection functions and acceptance of product authorized by Order on behalf of TA-VAD. This document supports Procure To Pay (PTP) Pertains to government and nongovernment programs. AS 9100 Linkage AS 9015 Linkage directly supports Clause(s): directly supports Clause(s): 7.4.3 4 General Information General The Preferred Performer Program is extended based on their individual performance and is not transferable. Suppliers may not delegate or flow down their delegated authority to their sub-tier suppliers. TA-VAD Supply Chain Governance Quality administers the program and is the final authority regarding supplier participation Procedure Responsible Party Step Action Supply Chain Governance Quality 1 Implement and execute the Delegated Source Inspection Program per VWI 7.4.030 and this procedure. 2 Ensure the instructions outlined in Attachment A are available to suppliers online, or as hard copy if requested. References Company VWI 7.4.030 Program Control Requirements Program CHANGES: Maintenance change to update information in Attachment A
2 of 7 Attachment A PROGRAM CONTROL REQUIREMENTS PROGRAM SUPPLIER INSTRUCTIONS AND PROGRAM CONTROL REQUIREMENTS 1
3 of 7 TABLE OF CONTENTS Section Page I. Introduction 3 II. Preferred Performer Program Requirements 3 III. Supplier Executive Management Responsibilities 3 IV. Supplier s Quality Delegate s Responsibilities 4 V. Inspection and Acceptance Responsibilities 4 VI. Program Exclusions 5 VII. First Article Requirements 5 VIII. Non-Conforming Material Control 5 IX. Performance Rating 5 X. Quality System Assessments 6 XI. Periodic Inspection/Hardware Conformity Assessment of 6 Delivered Product XII. Change in Location, Name, Ownership, or Quality Management 6 2
4 of 7 I. Introduction Welcome to the new Preferred Performer Program! By consistently delivering conforming product on schedule, your company has demonstrated distinction in meeting the requirements to enter our Preferred Performer Program. As a member of this elite group, you will enjoy a special relationship with TA-VAD and a level of trust not afforded to other suppliers. The basis for this trust is the Preferred Performer supplier s complete commitment to produce 100% conforming parts delivered on schedule, with acceptable supporting documentation. After notification that your company qualifies for the Preferred Performer Program, TA-VAD requires submittal of the Delegated Inspection Program Compliance Statement (refer to P0-F158) prior to the official Preferred Performer Program award. Specific program exclusions, e.g. where the Preferred Performer Program supplier may not use their delegated inspection authority, are identified in TA-VAD s Supplier Quality Assurance Requirements (SQAR) document, which is included by reference in the terms and conditions of all Orders and in these instructions. Supplier performance is subject to continuous evaluation. This is accomplished by 1) an ongoing review of the Preferred Performer Program supplier s product quality rating; and, 2) random hardware conformity assessments of supplier parts and deliverable documentation. Any adverse trends in product quality, evidence of degradation in the supplier s quality system or any other noncompliance will prompt coordination with the supplier s Quality Manager and TA-VAD Site Quality management to affect timely resolution of problem areas. II. Preferred Performer Program Requirements All suppliers eligible for participation will have achieved: A minimum of 12 months of receipt activity A Product Conformity Audit score of 85% or above Acceptable Overall Quality Score III. Supplier Executive Management Responsibility Execution and control of the Preferred Performer Program delegation authority and compliance to requirements is the responsibility of the Supplier s Quality Manager or TA-VAD authorized quality official at the supplier s facility. 3
5 of 7 IV. Supplier s Quality Delegate s Responsibilities A. For Preferred Performer Program purposes, TA-VAD Authorized Supplier Delegate(s) is the focal point between the Supplier and TA-VAD. B. Should a conflict arise concerning the supplier s quality system requirements, the Order, Outline Agreement contract or this document, the Supplier s Quality Manager or Authorized Delegate should contact the applicable organization(s) noted for assistance. C. The Supplier s Quality Manager or Authorized Delegate is responsible for: 1. Complying with the Preferred Performer Program requirements. 2. Adhering to Engineering Drawings, Specifications, Order requirements and requirements of the TA-VAD Supplier Quality Assurance Requirements (SQAR) document. 3. Ensuring use of TA-VAD or Customer approved special process suppliers, as required. 5. Keeping Supplier upper management informed of quality performance and Preferred Performer Program status. 6. Ensuring all Supplier personnel are thoroughly familiar with the requirements and responsibilities of the Preferred Performer Program as applicable. 7. Adhering to the contents of this document V. V. Inspection and Acceptance Responsibilities A. Supplier will comply with the Inspection and Test requirements of their approved quality system and record/retain objective evidence of acceptance and conformance to contractual requirements. B. Refer to your Order for any other part acceptance requirements. C. Should further clarification be required, contact your TA-VAD Procurement representative (Buyer). 4
6 of 7 VI. VII. Preferred Performer Program Exclusions Suppliers are not authorized to use their delegated inspection authority on certain TA-VAD procured items. The items listed below are Preferred Performer Program exclusions and will require source inspection. 1. Fracture Critical/Fracture Critical Traceable/Fatigue Critical/Maintenance Critical 2. Items that have not yet completed formal qualification testing 3. Boeing Designated Parts 4. Items requiring Government Source Inspection (Must be Source Inspected) 5. Drop shipments to TA-VAD Customers First Article Requirements The supplier is responsible for performing First Article Inspection per the TA-VAD Supplier Quality Assurance Requirements (SQAR), and Supplier Quality Requirements for First Article Inspection (SQR-011) documents. VIII. Non-Conforming Material Control IX. Non-conforming material is to be dispositioned per the guidelines noted in the Nonconforming Material Control section of the Supplier Quality Assurance Requirements (SQAR) document and the Nonconformance Reference Handbook for Suppliers (SQR-003) Performance Rating The Supplier Scorecard provides a comprehensive evaluation of the supplier s Overall Quality Score to TA-VAD associated with supplier performance. A. A review of the Delegated supplier s overall performance to the Preferred Performer Program requirements is conducted annually. B. A supplier will be removed from the Preferred Performer Program and/or the TA-VAD approved Vendor Directory at any time as directed by Supply Chain Governance Quality due to poor quality performance based on Scorecard status, Product Conformity Audit (PCA) results, and non-conformance activity. 5
7 of 7 X. Quality System Assessments The Delegated supplier is subject to normal, scheduled, recurring quality system audits by TA-VAD Quality. Preferred Performer Program suppliers are required to conduct their own internal quality assessments on a regular basis and evidence of these assessments shall be made available to TA-VAD upon request. XI. XII. Periodic Inspection/Hardware Conformity Assessments of Delivered Product A. TA-VAD reserves the right to perform any and all subsequent inspections necessary to validate supplier s conformance to contractual requirements. B. Discovery of any dimensional, fit or functional deficiencies revealed through random inspection shall be used as justification to reject any/all of the supplier s delivered products whether installed, in stores or in-process. C. In the event of a discovery of any such deficiencies, corrective action statements and positive root cause corrections shall be taken and documented by the supplier. NOTE: Discovery of such deficiencies results in withdrawal of the Preferred Performer Program approval and/or change in the supplier's quality system approval status. Change in Location, Name, Ownership, or Quality Management A. Preferred Performer Program delegated inspection status and all TA-VAD quality system/process approvals are applicable to the exact company name, address, ownership, and quality management to which they were initially granted. Any changes which affect these elements shall be communicated to the TA-VAD Procurement representative and Preferred Performer Program Administrator stating the change to be made and the effective date. B. Preferred Performer Program privileges will not be transferred to any other manufacturing location or sub-tier suppliers. 6