AUNA Supplier Quality Manual

Transcription

1 1 AUNA Supplier Quality Manual Page 1 of 9

2 2 1. Section I - Supplier Expectations 1.0 Introduction: This Supplier Quality Manual (SQM) has been created to assist our suppliers in understanding the purchasing expectations and quality requirements for products and/or services supplied to Aurora North America, LLC (AUNA). This Supplier Quality Manual will communicate the operating principles, general expectations, and procedures of AUNA. Adherence to the guidelines described in this manual is required by all AUNA suppliers. Acceptance of any and/or all purchase orders constitutes acceptance and commitment on behalf of the recipient to comply with this manual s content. These guidelines are provided as supplement to, and do not replace or alter, any purchase agreement terms and conditions which are included as requirements of applicable drawings, specifications and other contractual documents. This manual describes the minimum requirements for which the supplier has responsibility. However, system improvements that exceed the requirements specified within this manual are always encouraged. Terms and Conditions for purchasing can be found on our website ( The Indus Code of Conduct for suppliers can be found on our website x_eng_170322_s.pdf. 1.1 On-Time Delivery: AUNA requires all suppliers to meet their on-time delivery requirements to confirmed dates agreed to by both parties. To further clarify this, we consider unauthorized early (more than 5 business days) and unauthorized late and partial deliveries (more than 2 business days) or over shipments to be unacceptable. The quantity shipped per order or release cannot vary from specified quantity without prior written (or ) consent. Every packing list will be confirmed to correct quantities received. If the shipment is not complete, the supplier must expedite the remaining order at their cost. If the supplier has already expedited the remaining order as collect, we will invoice them back for the costs incurred to expedite it to AUNA. If delivery is late and we are forced to shut down production, your company may be billed for lost man hours and overtime labor burden costs to meet customer demands. 1.2 Transportation Costs: Unless otherwise instructed, a supplier will ship, as directed by AUNA. Any excess transportation costs, due to the supplier not meeting the shipping instruction requirements, will be deducted from the purchase price or invoiced back in full to the supplier. 1.3 Annual Revalidation: All external suppliers to AUNA (those that are not part of the Aurora Group) may be subjected to an annual dimensional revalidation for all products purchased. This will entail a complete dimensional verification that the product meets the design intent per specified engineering documents (i.e. drawings, performance testing, etc.). All Page 2 of 9

3 3 submissions will be required to be with a PSW and ISIR report with three piece layout showing compliance or accompanied with a corrective action plan to achieve it. 2. Section II - Supplier Selection and Performance 2.0 Supplier Evaluation and Selection: AUNA s supply base will consist of organizations supportive of our business needs. Criteria for evaluation and selection of suppliers for placement on AUNA s Approved Supplier List is based on the suppliers abilities to consistently deliver defect free products and/or services, meet our delivery requirements, be cost competitive and be responsive to AUNA s needs. 2.1 Supplier Monitoring: Select suppliers will be evaluated and scored quarterly or when warranted per the criteria in section 2.2. Suppliers with suspect performance (three Supplier Reject Notifications within three months) a notice will be sent to inform them of the decision to increase their performance monitoring and they are being placed on probation. Suppliers must score at least a minimum of 80 in their SUPPLIER RATING SYSTEM SCORECARD in the monthly Supplier Rating system. Failure to do so for three consecutive months will require the supplier to submit a SUPPLIER IMPROVEMENT PLAN per section 2.2. The supplier will be contacted to discuss development goals to assist in the improvement of their performance. Supplier performance will be measured on their ability to meet AUNA s quality and delivery expectations and requirements. To remain on the Approved Supplier List, suppliers must meet minimum requirements defined for product quality and delivery. Failure to comply will result in being eliminated as an AUNA supplier Aurora North America (AUNA) Supplier Scoring System: The supplier scoring system consists of the five elements shown in Table 2 along with the weighting of each element. Table 2 Supplier Rating Elements Page 3 of 9

4 4 The scoring of each element is described below. Delivery Score - Maximum Score = 20 As noted above, an On-Time Delivery is defined as a delivery that is received anywhere from two days prior to the requested date listed on the Purchase Order to the actual date the delivery was due as per the Purchase Order (Two days early, Zero days late). The On-Time delivery percentage is calculated as described above, and the actual delivery percentage is used to find the score as shown in Table 3. PPM Score Maximum Score = 20 PPM is calculated as explained above. Table 4 shows the scoring for various ranges of PPM values. Page 4 of 9

5 5 Number of SCARs Issued Maximum Score = 20 SCAR Score = 20 5 x (# of SCARs issued). Minimum score = 0. SCAR Response Time Maximum Score = 20 SCAR Response Time Score = 20 5 x (# of SCARs not responded to within 15 business days). Minimum score = 0. Quality Systems Score Maximum Score = 20 The Quality Systems element of the supplier rating is based on the effectiveness of the supplier s quality system. This effectiveness will be measured by the following criteria: If Aurora North America (AUNA) chooses to do an audit, scoring will be calculated by the following formula: Quality System Score = 20 x (Supplier Audit Score/100) If a Aurora North America (AUNA) audit has not been performed or has been waived, the maximum score of 20 may be given if the supplier has an ISO (or equivalent) registration. If Aurora North America (AUNA) chooses not to perform an audit and the supplier does not have an ISO (or equivalent) registration, Aurora North America (AUNA) has the option to review information on the supplier s quality management system and determine a score based on a judgement of the effectiveness of the supplier s quality system. Overall Rating Based on the five elements and weightings described above, an overall score is computed. Table 5 shows the score ranges corresponding to four grades. In addition, the table provides a description of each grade and information on how suppliers with each grade are handled and any actions required by the supplier. Page 5 of 9

6 6 Unacceptable Action Plans will be critiqued and reviewed with the Supplier until a satisfactory Action Plan can be developed or the supplier is removed from the Approved Supplier List. If any supplier is determined to be unacceptable through lack of improvement, the Purchasing Manager will initiate the appropriate actions to find other qualified resources prior to the removal of the supplier from the Approved Supplier List. Once approved, all efforts will be made to eliminate the supplier from supplying to AUNA, and no further releases will be issued. In the event a supplier is a mandated source by an AUNA customer, then the customer s approval will be obtained and their acceptance of a new supplier will be via PPAP approvals at AUNA before termination. 3. Section III - Supplier Quality Requirements 3.0 AUNA must approve the product, any procedures and processes associated and the equipment used via PPAP. If any changes occur after the initial approval the supplier will notify AUNA of such changes and a new PPAP will be required. 3.1 Suppliers are expected to have the resources necessary (personnel, property, facilities, equipment and materials) to supply the products and/or services required to accommodate AUNA s production schedule and/or purchasing requirements. The supplier should provide for fluctuations (or spikes) in requirements due to scheduling changes. Page 6 of 9

7 7 3.2 Suppliers to AUNA are requested to be compliant to the ISO 9001:2015 international quality standard. In addition, we encourage our suppliers to seek a third-party accreditation. Supplier quality systems will be formally documented, implemented and maintained to ensure suppliers products and/or services conform to the identified purchase specifications, engineering or material specifications and/or contract requirements. The suppliers quality documentation will be made available to AUNA upon request. 3.3 Each article delivered under a purchase order must be identified with a part number or other identification. All purchased materials and services are subject to inspection for compliance to the purchase order and all applicable quality requirements. No material or process substitutions, quantity variations or splits from the purchase order may be made without prior written authorization from AUNA. Information concerning the identification and revision status of specifications, drawings, process requirements, inspection/verification instructions and other relevant technical data will be communicated to the supplier when they quote the job, on the purchase order and/or on the supplementary documents from AUNA. 3.4 All suppliers to AUNA must have a lot identification system that distinguishes one lot from another when shipping finished product. Each lot of material should be clearly identified on the product (where applicable) and/or on the product packaging. All material lots should be traceable to raw or component material lots as identified by the supplier s supplier. One lot is; a continuous batch of processed goods (such as plating, painting or other surface treatment, or resin compounding/molding), or a specific manufacturing date, traceable of components therein should the product be an assembly. 3.5 If any prior-to-ship tests are required, the purchase order and/or supplementary documents would state that information to the supplier. 3.6 Products and/or services provided by suppliers must be at the highest level of quality. When drawing, specification, and/or Purchase Order includes key characteristic requirements, the Supplier will utilize appropriate methodology to ensure key characteristic integrity. The Supplier will develop control plans for applicable product and process key characteristics. 3.7 The supplier will ensure that nonconforming product is identified and controlled to prevent unintended use or delivery. The supplier will not ship nonconforming materials without prior authorization by AUNA. 3.8 The supplier is required to notify AUNA of any changes in product and/or process, any changes of manufacturing facility location and receive approval of such change. Page 7 of 9

8 8 3.9 Suppliers of AUNA are required to communicate all information related to the job to any supplier they use to produce AUNA s products Suppliers are fully responsible for the quality of their products/services including their sub-tier suppliers. Both are responsible that the quality of their products/services meet all of AUNA s requirements, specifications and drawings as identified on the purchase order Record Retention Suppliers and sub-tier suppliers will establish and maintain records to provide evidence of conformity to requirements. Records will remain legible, readily identifiable and retrievable. Product history records will be maintained for the life of the product +1 year, but will not supersede the suppliers own registered QMS documented record retention policy, or as required by the purchase order or local, state, or federal regulations Right of Entry AUNA or any applicable regulatory authority will have the right to enter the suppliers facility to perform inspections or surveillance audits to verify the quality of work, relative records, and to ensure compliance to the contract. When applicable, the access requirement will be flowed-down by the supplier to the suppliers sub-tier sources The supplier must preserve the product during internal processing and delivery to AUNA, maintaining conformity requirements. The supplier must provide packaging that protects the component from physical and environmental damage during transport and storage, including effects of temperature, humidity, vibration and shock. This also includes: cleaning, removal of foreign objects, special handling for sensitive products, appropriate labeling, shelf life control, stock rotation and other special handling required If the supplied products are life-limited, the supplier is required to furnish the expiration date Product subject to special processing must be accompanied by certification documents that specify that process and the supplier s conformance to the requirements of that process. Suppliers must maintain records at their facility for all material certifications and critical characteristics. 4. Section IV - Special Requirements 4.0 The supplier will complete a First Piece Inspection for items on the purchase order, utilizing AUNA s designated form or the supplier s form with AUNA approval. Page 8 of 9

9 9 The First Article Inspection report must show evidence of acceptance by the supplier s quality assurance representative. The first article(s) will be produced on production equipment and using processes which will be utilized on production runs. When requested, the first article(s) may be performed on prototype products to determine conformance status to available data. Records of all first article activity will be documented as required, treated as quality / acceptance records and made available to AUNA upon request. 4.1 The supplier is responsible for ensuring items provided under the purchase order are packaged in such a manner that the product integrity is preserved, contamination and corrosion are prevented, no physical damage occurs and it prevents damage, deterioration or product loss in transit. The supplier will label the exterior of the container to ensure adequate identification needed to ensure the identity of the product being shipped. The supplier must ensure the handling and shipping methods for a proper and on-time delivery without damage to the product. The supplier will ensure that any special labeling requirements will also be listed in the appropriate shipping documents and on each package. 5. Glossary Supplier Scoring System Supplier Rating Calculator Supplier Improvement Plan AUNA Aurora North America, LLC 6. Change Log Revision # Document Description of Change Approval(s) Revision Date Rev /26/2017 Initial Release JRVH Rev /17/2018 Changed format and Content JH Rev /26/2018 Added Quality Scoring JRVH Rev /12/2018 Added Link to Indus Code of Conduct JRVH Rev. 005 Rev. 006 Rev. 007 Rev. 008 Rev. 009 Rev. 010 Page 9 of 9