SUPPLIER QUALITY REQUIREMENTS SQR -100

Transcription

1 Orenda Aerospace Corporation 3160 Derry Road East Mississauga, Ontario, Canada L4T 1A9 Phone: (905) Supplier Quality Fax: (905) Procurement Fax: (905) SQR -100 This document and the information contained herein is the property of Orenda Aerospace Corporation and may not be copied or reproduced for use other than that for which it is supplied without the written authority of Orenda Aerospace Corporation. ISSUE E DATE 31JAN03 REVIEWED BY: DEPT. Manager, Supplier Quality & Calibration Services F 04APR08 G 20JUL09 Material Manager H 24DEC09 I 15AUG11 J 30SEP11 APPROVED BY: DIRECTOR, QUALITY & MANUFACTURING INITIATIVES

2 Revision: Date: 30-SEP-11 SQR-100 Page: 2 of 27 TABLE OF CONTENTS PAGE 1.0 Purpose Quality Notification of Changes Document Control Procurement Control Operation and Manufacturing Control First Article Inspection Report Purchaser Supplied Material Product Identification and Traceability Inspection and Testing Control of Internal Measuring Equipment and Tooling Inspect and Test Status Nonconforming Material Control and Reporting Quality/Inspection Records Handling, Storage, Packaging, Preservation and Delivery Release Documents (Certificate of Conformance) Training Purchaser/Customer/Regulatory Inspection Supplier Approval Drop Shipments Environmental, Health & Safety Requirements 14 Appendix A Technical Plan Approvals 16 Appendix B Shipping Order (example of) 19 Appendix C Supplier Deviation/Corrective Action Request 20 Appendix C1 Instructions for completion of SD/CAR 21 Appendix D Certificate of Conformance (example of) 22 Appendix E Record Retention Requirements 23 Appendix F FAI checklist 26 Appendix G CFSI Guidance 27 Note: For the purposes of this document; Purchaser = Orenda Aerospace Corporation, Customer = Customer to Orenda Aerospace Corporation, Supplier = company engaged in fulfilling the purchase order, Sub - Tier Supplier = any subcontractor performing work on behalf of the supplier NOTE: Changes from previous revision are highlighted in bold J

3 Date: 30-SEP-11 SQR-100 Page: 3 of PURPOSE To specify the elements a supplier must maintain to assure that quality is maintained in the process of procurement, planning, manufacture, inspection and test, design and development, storage, packaging, release and shipment of products as defined by the contractual requirements of the Purchase Order including specified clauses. When specified on the Purchase Order or other purchasing document, the elements outlined in SQR 100 shall apply to all delivered products and/or services. 2.0 QUALITY The supplier shall have on staff a senior person, technically qualified and administratively capable of controlling the quality of work undertaken. He/She shall have approved signatory power and be totally responsible for the standard of workmanship and the release of all material to the Purchaser under documentation authorized and duly signed by himself/herself or their delegated representative. 2.1 QUALITY SYSTEM The supplier must maintain a quality system certified by a third party registrar to SAE AS9100 to the latest revision in effect at time of order placement. Refer paragraph 5.3 and 6.5 for suppliers of Special Processes. Exceptions to this requirement must be obtained in writing from Purchaser Supplier Quality. In addition suppliers must comply with the applicable end use customer quality system requirements as follows: End Use Customer Honeywell GE Aviation Pratt & Whitney America Pratt & Whitney Canada Requirement SPOC 002 S-1000 ASQR-01 ASQR-01 SQOP Volvo Aero SQAR 210 Rolls Royce RR 9000 (SABRe) MTU MTN Vericor QA-0001 Surplus suppliers, or suppliers of New or Un-Used product that was produced in excess for prior contracts for OEM or government agencies, shall maintain a quality system in accordance with ISO 9002 or higher level. Certification to SAE-AS9120 or SAE-AS9100 would be an acceptable alternate to the ISO standards. Refer paragraph 16 regarding certification requirements. 3.0 NOTIFICATION OF CHANGES The supplier shall immediately notify Purchaser Supplier Quality, in writing, of any change to: * Supplier s Quality Management Change in location Change in ownership Change in certification/registration to any Quality System or process by any approved source Non-Administrative Changes in product and/or process definition and, obtain organization approval Changes to sub-tier supplier per above or transfer to another sub-tier supplier

4 Revision: Date: 30-SEP-11 SQR-100 Page: 4 of 27 Administrative changes are limited to 1) changes for clarification only such as addition of sketch or note, 2) changes to process requirement or parameter that are within the currently approved process limits, 3) changes to a process that has been previously identified as not significant, 4) correction of typographical errors J 4.0 DOCUMENT CONTROL 4.1 TITLE TO DRAWINGS AND SPECIFICATIONS Purchaser shall at all times retain title to all drawings and specifications furnished by Purchaser to Supplier and intended for use in connection with this Purchase Order. Supplier shall use such drawings and specifications only in connection with this Purchase Order, and shall not disclose such drawings and specifications to any person, firm or corporation other than Purchaser s or Supplier s employees, subcontractors, or governmental inspectors and then only to the extent needed in connection with this Purchase Order. Suppliers shall be fully responsible for the safe custody of all drawings, instructions and specifications supplied by the Purchaser. The supplier shall ensure that only the relevant Purchase Order specified issue levels of documents are readily available for personnel at required work areas. Any discrepancies shall be resolved with the Purchaser Purchasing Department prior to commencing work. The supplier shall, upon Purchaser s request, promptly return all drawings and specifications to Purchaser. 4.2 When specified on purchase order, technical documentation, including, but not limited to, OEM drawings, specifications & parts lists, supplied by Orenda, shall be controlled in accordance with International Traffic in Arms Regulations (ITAR) and/or Export Administration Regulations (EAR). 5.0 PROCUREMENT CONTROL 5.1 Flow down of requirements The supplier is responsible for flow down of all applicable purchase order requirements to their sub-tier sources. Purchaser reserves the right to assure customer contractual requirements are adhered to and are adequately flowed down to approved sub-tier sources. 5.2 Right to access The supplier shall ensure their sub tier suppliers grant the right to access by the purchaser; it's customers and applicable regulatory agencies. Suppliers maintain the right to protect proprietary elements of their processes and/or operations 5.3 Special Processes performed by sub-tier suppliers All special processes performed by sub-tier suppliers must be performed by Purchaser (Orenda) or end use customer approved facilities. Refer paragraph 6.5 for detailed requirements. 5.4 Control of Counterfeit, Fraudulent or Substandard Items (CFSI) Supplier shall have a system that ensures that items procured in support of Orenda purchase orders shall have all necessary end user approvals and prevents the shipment of counterfeit/fraudulent or substandard items. Refer Appendix G for guidance.

5 Date: 30-SEP-11 SQR-100 Page: 5 of OPERATIONS AND MANUFACTURING CONTROL 6.1 Control of manufacturing processes The supplier should plan all manufacturing processes. The plan shall address the manufacturing sequence and identify the inspection verification points, including key characteristics and/or critical to quality characteristics and process controls selected by suppliers or identified by the Purchaser. The plan shall also include, as applicable, all characteristics, which are not verifiable upon receipt, have been adequately controlled and verified. Subsequent to the acceptance of technical plans, prototypes or samples by Purchaser, the supplier shall not make any change to plans used to produce acceptable product without first obtaining the consent of Purchaser. The supplier shall quote the technical plan number and revision on their certificate of conformance. 6.2 Software Control Software Quality control shall be established for software (i.e. CNC programs) related to the design, fabrication, inspection and/or test of deliverable articles to Purchaser. 6.3 Radiographic & Ultrasonic Inspection The supplier shall submit radiographic and ultrasonic test plans to Purchaser Supplier Quality for approval prior to commencement of work. Orenda approval may be waived provided objective evidence of end use customer approval for the technique/test plan is provided. Once approval is obtained all radiographic films and ultrasonic data is to be held at supplier facility in accordance with record retention requirements stated below. The supplier shall quote the test plan number and revision on their certificate of conformance. 6.4 Casting requirements: Supplier is required to submit sample castings, radiographic techniques and standard of acceptance used, to the Purchaser for prototype approval. Notify the Purchasers Supplier Quality Assurance when dimensional prototype is ready for inspection at supplier plant. Note: GE Aviation specifications S-301, S-333, S-399, S-501 are applicable for cast products procured for GE Aviation or Volvo Aero designed products. 6.5 Control of Special Processes All special processes including but not limited to: non-destructive testing, welding, heat treat, chemical processing, thermal spray, non-conventional machining methods such as Electrodischarge Machining (EDM), chemical milling and Laser, coatings/plating, materials testing, etc. must be performed by Purchaser (Orenda) or end use customer approved facilities. In addition the following processes require use of Nadcap approved sources: Heat Treat and Brazing Chemical Processing Non-Conventional Machining Material Testing Coatings Non-Destructive Testing (NDT) Welding Conventional Machining as a Special Process Exceptions to this requirement must be obtained in writing from Purchaser Supplier Quality.

6 Revision: Date: 30-SEP-11 SQR-100 Page: 6 of 27 Special process suppliers for repair and overhaul components do not require Nadcap approval Note: Special Processes for Non-VSE GE Aviation designed product do not require use of GE Aviation approved sources. It is recommended that laboratories approved to GE Aviation specification S-400, perform testing, in support of special processes. All special processes require submission of a technical plan for Purchaser approval. The plan shall, where the manufacturing process requires the use of consumable items, i.e.: weld wire, braze alloy etc., assure that traceability of the consumable has been recorded and maintained. Note: Refer to Appendix A for technical plan guidelines. 6.6 Wrought product/forging requirements: GE Aviation Specification S-528 is applicable for wrought products/forgings (closed die, seamless rings, welded rings, open die, etc.) procured for GE Aviation designed products. * 6.7 Test Specimen/Coupon requirements: Test Specimens/Coupons shall be prepared and tested in accordance with purchase order, drawing or specification requirements. Results shall be reported to the purchaser via certification and/or first article inspection reports. Test specimens/coupons shall be maintained on file at the supplier IAW the applicable specification requirements. J 7.0 FIRST ARTICLE INSPECTION REPORT 7.1 The following requirements shall be met for the first article produced in support of Orenda purchase orders unless otherwise specified on the purchase order: A Purchaser Supplier Quality approved First Article Inspection Report for the revision level stated on the purchase order must be on file at your location. First article reports shall be generated in accordance with SAE standard AS9102 to the revision specified at time of order placement or format specified on the purchase order. (Copies of standard AS9102 may be obtained at Note: Existing FAI are exempt from AS9102 requirements. New and update FAI must conform to AS9102 requirements. Note: A copy of an end user customer approved FAIR or related documentation showing approval is an acceptable alternative Supplier is responsible to include the inspection method used for the FAI piece and the production pieces in column 14 of sheet 3 of AS9102. Supplier shall also identify the product acceptance level, i.e. 100% inspection or an approved sampling plan for each characteristic It is recommended that the supplier utilize the checklist (or similar document) contained in appendix F to ensure all FAI requirements have been fulfilled prior to submission.

7 Revision: Date: 30-SEP-11 SQR-100 Page: 7 of Parts that have been out of production for more than 2 years require a new first article be performed The first article part shall be identified, tagged or packaged separately, and forwarded with the data package to the attention of the Purchaser Supplier Quality Department. Material supplied by Purchaser shall only be used for the order concerned. 8.0 PURCHASER SUPPLIED MATERIAL The supplier shall not substitute other material without written and specific authorization from Purchaser. Full traceability to purchaser supplied material documentation must be maintained. The buyer shipping document number must be identified on the supplier certificate of conformance. Where a supplier is instructed to drop ship material to a subsequent Purchaser supply source, the shipping supplier must enclose a packing slip with the shipment and forward all documentation for the material to Purchaser Supplier Quality. For products manufactured from Purchaser supplied materials, the suppliers Release note or Certificates of Conformance shall be annotated with the Purchaser shipping order number on which the material was supplied (Appendix B ). The supplier must maintain identity of all surplus material and tooling for return to Purchaser at the completion of the contract unless otherwise directed by Purchaser Purchasing Department. Material lost, damaged or found unsuitable for intended use shall be reported to the Purchaser purchasing department immediately on a SD/CAR Appendix C (refer to non-conforming material Section 13 of SQR-100). Scrap Purchaser supplied material is the property of the Purchaser and must be identified and returned to Purchaser for disposal. 8.1 CONTROL OF US GOVERNMENT PROPERTY US Government Property supplied in support of Orenda purchase orders or contracts must be identified and controlled in accordance with FAR Suppliers must investigate and report any Lost, Theft, Damaged or Destroyed (LTDD) items to Orenda procurement within two (2) business days of occurrence Reports of LTDD shall contain the item name, description, National Stock Number (NSN) (as applicable), quantity affected, unit of measure, Orenda purchase order number for which it was supplied, receiving document (44D), description of loss, theft, damage or destruction, cause and corrective action or action to be taken to prevent recurrence, (as applicable), company and official name, signature and date. J

8 Date: 30-SEP-11 SQR-100 Page: 8 of PRODUCT IDENTIFICATION AND TRACEABILITY The supplier shall identify the product in accordance with the drawing or specification requirements and shall maintain product traceability to materials and processes INSPECTION AND TESTING Supplier shall work within and inspect to tolerances and limitations specified on the drawings and test specifications covering the Work and shall make such tests as are specified in such drawings and test specifications. Only qualified personnel shall perform inspection and testing. Annual vision testing (no later than the anniversary date of the previous test) is required for welders and inspection personnel in accordance with the following standards: Visual Inspectors a) Distant Vision: Snellen E.F. 20/30 or equivalent, in at least one eye, corrected or uncorrected. b) Near Vision: Snellen E.F. 20/20, in at least one eye, corrected or uncorrected. c) Colour Vision: Ability to distinguish and differentiate between colours on the standard Ishihara Colour charts or equivalent. Non-Destructive Testing (NDT) Inspectors a) Must meet the requirements of NAS 410 Welders, Torch Brazers, Flame and Plasma Spray Operators a) Distant Vision: Snellen E.F. 20/30 or equivalent, in at least one eye, corrected or uncorrected. b) Near Vision: Snellen E.F. 20/25, in at least one eye, corrected or uncorrected. c) Colour Vision: Ability to distinguish and differentiate between colours on the standard Ishihara Colour charts or equivalent. Personnel that fail to meet requirements shall have their work assignment reviewed to ensure compliance. Impact to product shall be reviewed upon notification of failed testing. Corrective lenses utilized during testing must be worn during job performance. Approvals by Purchaser of any drawings, designs, specifications or other work by Supplier, whether or not such approvals are allowed or required under this Agreement, shall not relieve Supplier of any of its obligations under this Agreement. Supplier shall be responsible for performing the work in accordance with the specific revision (or sub) of drawings and/or specifications referenced in the agreement and for notifying Purchaser in writing if it requires copies of such drawings and/or specifications. All work in progress (including, but not limited to, work performed by Supplier s sub-tier suppliers) shall be subject to such inspection and tests as Purchaser may direct. Purchaser, Purchasers customer or Purchasers customers' representative, may perform such inspections and tests. If inspections and tests are made on Supplier s (or Supplier s sub-tier suppliers) premises, Supplier shall furnish, at no additional charge, facilities and assistance for safe and convenient inspections and tests as required by the inspectors. All inspections and tests shall be performed in such manner as not to unduly delay the work. Purchaser may charge Supplier for additional costs to Purchaser when work is not ready for inspection at the time designated.

9 Date: 30-SEP-11 SQR-100 Page: 9 of 27 Except as otherwise stated in this Agreement, all shipments shall be subject to final inspection and acceptance or rejection by Purchaser after receipt and performance testing at site. Purchaser shall have the right to require the prompt correction of defective work by Supplier, at Supplier s risk and expense, or may elect to correct the defective work itself and back charge Supplier for the cost of the correction. If correction is impracticable, Supplier shall bear all risk after notice of rejection and shall at Purchasers request, promptly make all necessary replacements at Supplier s expense. If Supplier fails to make prompt replacements, Purchaser may make such replacements and back charge Supplier for excess costs incurred by Purchaser. This order may be subject to source inspection at Supplier (or supplier s sub tier) plant by the Purchaser s Quality Control Representative. Please contact the purchaser Supplier Quality Supervisor seventy-two hours in advance of order being ready for Source Inspection. (Fax ). Government Quality Assurance may be a requirement of this order. Arrangements must be made promptly with the Quality Assurance Representative (QAR) for Supplier area or facility so that appropriate Government Quality Assurance can be accomplished prior to release authorization. The use of Statistical Process Control is recommended and if mandatory, the requirement shall be documented on the Purchaser Purchase Order. Sampling inspection shall not be used as a means of product acceptance unless approved in advance by Purchaser Supplier Quality. The plan shall preclude the acceptance of known defectives in the lot. No sampling inspection is permitted on Orenda Repair, Overhaul and Industrial components CONTROL OF INSPECTION, MEASURING AND TEST EQUIPMENT AND TOOLING The supplier shall calibrate or have calibration performed by a certified agency on all measuring and test equipment used in the manufacture and acceptance of Purchaser product. This equipment shall be calibrated against primary or secondary standards having traceability to national or international standards (NRC, NIST, etc.). Records shall be maintained showing the calibration frequency and stability of the specific instrument. Production fixtures used as media of inspection, i.e.: drill jigs, shall be controlled through the calibration system on a scheduled frequency in line with the tool usage. Measuring or test equipment on loan to a supplier from Purchaser shall be calibrated prior to dispatch and shall be returned to Purchaser by the established calibration due date. The supplier shall notify Purchasing prior to return to coordinate Purchaser calibration activity. Contract tooling shall not be altered, re-worked or modified in any manner without authorization from Purchaser. Tooling shall be returned at the end of the contract in good working condition.

10 Revision: Date: 30-SEP-11 SQR-100 Page: 10 of 27 Tooling required by the supplier must be supported by a supplier quote and shall require a Purchaser tool/gauge number as flowed down on a Purchase Order. The approved supplier shall provide Purchaser with a respective tool/gauge drawing NOTIFICATION TO PURCHASER OF OUT OF TOLERANCE CONDITIONS FOUND DURING MEASURING EQUIPMENT CALIBRATION Guideline: An out of tolerance condition may include not meeting any specified conditionwhen measuring and test equipment exceeds 25% of the product tolerance or a condition exceeding two times the amount equal to the manufactures equipment tolerance exists. The supplier shall investigate all suspected measuring equipment, instrument failures and determine if the failure has affected previously accepted product. If previously accepted product has been affected, the part shall be re-inspected or tested to verify conformance. If affected product has been released to Purchaser, or no previously accepted product is available, Purchaser Supplier Quality shall be informed for necessary action. Note: This also applies to tooling used as a media of inspection placed on a fixed inspection frequency check and used for variable measurement validation, particularly for key characteristics. J 12.0 INSPECTION AND TEST STATUS Process documents shall identify the inspection status of the part(s) being produced for conformance or non-conformance with regards to inspection and tests performed. Inspection status of parts shall be easily detectable during all stages of manufacture or production using router cards, tags, inspections stamps etc. The system shall assure that only product that has passed the required inspections and tests are dispatched, used or installed. The suppliers system shall establish and document controls for acceptance authority media NON CONFORMING MATERIAL CONTROL AND REPORTING The supplier shall have in place a documented system that addresses the control of nonconforming material and a preliminary review disposition function. The system shall include provisions for the notification to functions concerned, identification, documentation, evaluation, segregation and disposition of nonconforming material to preclude unauthorized use, installation or release. The system shall provide for notification within 24 hours of non-conformances that may affect product already delivered or within 48 hours of the occurrence of a non conformance on Orenda supplied material that has not yet been shipped. Note: Suppliers of Tooling/Gauging to Purchaser are required to submit all deviations on a Supplier Deviation/Corrective Action Request (Appendix C) per this procedure for review and disposition prior to delivery. Failure to comply shall result in the Supplier absorbing additional costs incurred by Purchaser. Note: Proprietary (OEM) manufacturers may use their own internal MRB function providing it does not violate the purchasers drawing requirements and referenced specifications.

11 Date: 30-SEP-11 SQR-100 Page: 11 of 27 Scrap material: Product dispositioned as scrap shall be conspicuously identified and segregated until dispositioned by Purchaser. Scrapped Purchaser consigned material shall be considered to be the property of Purchaser and must be returned to Purchaser. Purchaser procurement department must approve use of scrapped Purchaser consigned material for set-up or testing purposes. Non-conformances require approval by Purchaser Supplier Quality prior to shipment. Suppliers shall submit non-conformances to Purchaser Supplier Quality on a Supplier Deviation/Corrective Action Request (Appendix C). The extent of deviation shall be recorded and the cause and corrective action taken to prevent recurrence shall be adequately stated in the cause and corrective action blocks on the Supplier Deviation/Corrective Action Request (Appendix C). When shipped, nonconforming material must be properly identified (tagged) and packaged separately from conforming material. The supplier shall include the number of the buyer authorized deviation report on their certificate of conformance. Any suppliers repair procedures submitted to Purchaser shall include a detailed routing procedure including the sequence of operations, specifications, inspection acceptance criteria and a provision for the recording of traceability of consumables used. Purchaser approval is required prior to commencing a repair. Deviating Material Discovered at Purchaser The Purchaser may reject and hold at Supplier s risk and expense subject to Supplier s reasonable disposal instructions, goods which do not conform to applicable specifications, drawings, samples or descriptions or which are defective in material, workmanship or design. To the extent Purchaser rejects goods as non-conforming, the number of non-conforming items will automatically reduce the quantities of such goods under this Order unless Purchaser notifies Supplier in writing otherwise. Supplier shall not replace quantities so reduced without a new Order or schedule from Purchaser, and Purchaser is not responsible for payment to Supplier for rejected non-conforming goods. However, payment by Purchaser for non-conforming goods shall not constitute an acceptance thereof, limit or impair Purchaser s right to assert any legal or equitable remedy, or relieve Supplier s responsibility for latent defects. Without limiting any other rights Purchaser may have, Purchaser may, upon rejection and at its option, require Supplier (1) to repair or replace at Supplier s expense any goods or items which fail to meet the requirement of applicable specifications, designs, drawings, samples, descriptions or other requirements of this Order; or (2) to refund the price which may have been paid by Purchaser for any such goods. The Supplier must complete the Cause and Corrective Action portion of the Supplier Deviation/Corrective Action Request, (Appendix C), upon request of Purchaser Quality, on any Supplier generated deviating goods discovered at Purchaser within a ten working day time frame from receipt.

12 Date: 30-SEP-11 SQR-100 Page: 12 of QUALITY/INSPECTION RECORDS Unless otherwise specified by purchase order, Quality/Inspection Records, including sub-tier records, shall be maintained for a period of ten years from completion of a contract or as specified in the applicable end use customer specification (reference appendix E) whichever is longer. * Records for repair and overhaul of Orenda consigned items shall be maintained on file for an indefinite period unless otherwise specified in Appendix E. Retention period begins upon shipment of product to Orenda. Quality records shall be legible, identifiable to product involved and be stored in an area that meets all local Fire and Life Safety Codes that prevents loss, damage or deterioration. Use of electronic media for record storage shall require prior approval by Orenda. All data stored by electronic means shall be secure with back- up procedures, and audited to verify the integrity of the data. Changes or corrections to records, regardless of the media, shall be made as follows: draw a single line through the old data, enter the correct data, date, and apply stamp or initials or signature of individual making the correction. No erasures, covering, or "white-out" allowed. Quality records shall be available for viewing by Purchaser QAR and regulatory authorities within one business day of request. Proprietary (OEM) information may be exempted. Purchaser shall be notified prior to disposal of any quality records related to Purchaser contracts. All quality/inspection records shall be returned to Orenda should supplier business operations terminate HANDLING, STORAGE, PACKAGING, PRESERVATION AND DELIVERY Packaging and preservation shall be in accordance with Purchaser specification QAP S The Quality Plan shall provide the necessary instructions for the handling and protection of specialized material (i.e. Titanium, Magnesium, etc.), preservation methods and secured storage to prevent damage or deterioration of product. The supplier shall identify any shelf life limitations on their certificate of conformance.

13 Date: 30-SEP-11 SQR-100 Page: 13 of RELEASE DOCUMENTS (CERTIFICATE OF CONFORMANCE) A certification of Conformance with all requirements of this order, signed by an authorized member of your firm must be shipped with the product. The Certificate of Conformance shall be placed in the carton or package with the material (not to be attached to the outside of same with Custom documents or other shipping papers). The certificate shall contain as a minimum the following information: a) Supplier name and address b) Purchaser order number, line item number and MPA number if applicable (e.g. MPA_SC1234_14-MAR-2007) c) Unique identification number for certificate d) Authorized signature e) Material specification and revision (as applicable) f) Part number and revision g) Serial number and/or lot number (as applicable) h) Quantity i) List of special processes performed by specification number, source name and the applicable end user supplier code, i.e., HT5088, ABC Heat Treat Company, Honeywell supplier code (As applicable) j) A statement indicating the material/part/process has been completed, inspected and tested and is in conformance to the applicable specification and or drawing and purchase order k) For Surplus Material the following statement is required: "Product/part(s) are/is in "New" or "Un-Used" condition". l) For Surplus Material that is in used or as-removed condition the supplier must obtain prior approval from Orenda in advance of shipment. The certification shall state Product/part(s) are/is in Used or As-removed condition, and must be tagged accordingly. Reference appendix D for example 17.0 TRAINING The supplier shall have objective evidence that personnel performing process operations and quality inspection or test functions have been trained and properly qualified to perform their tasks. * The supplier shall ensure that personnel performing maintenance repair and overhaul services and release of such articles are qualified and certified in accordance with Regulatory Authorities or OEM Customer requirements. Evidence of qualification requirements, training program including upgrade training due to changes in requirements, human factors, procedures, technical knowledge and applicable Authority/OEM requirements must be maintained on file at the supplier.

14 Date: 30-SEP-11 SQR-100 Page: 14 of PURCHASER/CUSTOMER/REGULATORY INSPECTION Purchaser, Customer Quality Assurance Representatives or Regulatory Authorities shall have the right of access to any area of Purchaser or its suppliers to inspect material and services to determine contract compliance. The supplier shall provide the necessary personnel and equipment to perform the requested verification. Acceptance of product through this inspection does not relieve the supplier of his contractual quality assurance obligations and responsibilities SUPPLIER APPROVAL Purchaser shall grant approval to a supplier on the basis of the supplier having a Quality system in place to assure Purchaser s contractual requirements are maintained. Continuation of Supplier approval is subject to quality and delivery performance ratings maintained by Purchaser. Purchaser will contact suppliers for the scheduling of on site audits. Subject to the evaluation of on site audits suppliers may, at the discretion of Purchaser Supplier Quality, be required to complete the Supplier Deviation/Corrective Action Request Form (Appendix C ) DROP SHIPMENTS A drop shipment is defined as any material being shipped to a facility other than Purchaser, on Purchaser s behalf, for work or sale. The supplier shall forward Certificates of Conformance and other required paper work to the Purchaser Procurement Department for processing prior to shipment ENVIRONMENTAL, HEALTH AND SAFETY REQUIREMENTS The Purchaser's Environmental Management System meets the requirements of the ISO standard. The Purchaser is committed to the delivery of quality products and services in a profitable, competitive and environmentally responsible manner. The Purchaser will take measures to comply with all applicable legal and regulatory requirements, and applicable voluntary initiatives. The Purchaser will uphold environmental stewardship and the management of environmental impacts associated with all activities in its organization. The Purchaser encourages its business partners, including suppliers and their sub tier suppliers, to be environmentally responsible and to consider achieving ISO certification. No part of the Purchase Order will be performed, nor will any of the materials, supplies, articles, or equipment manufactured or furnished under said Purchase Order be manufactured or fabricated in any plants, factories, buildings, or surroundings, or under working conditions which are unsanitary or hazardous or dangerous to the health and safety of employees engaged in the performance of the Purchase Order. Supplier agrees to comply with all laws and regulations affecting this Purchase

15 Revision: Date: 30-SEP-11 SQR-100 Page: 15 of 27 Order in any manner and agrees to execute further stipulations that may be necessary to effect such compliance. All laws and regulations required to be incorporated in contracts of this character are hereby incorporated by reference. Supplier shall submit to Purchaser Material Safety Data Sheets (MSDS), as required and in accordance with Ontario Workplace Hazardous Materials Information System (WHMIS) regulation 860 as amended by Ontario regulation 36/93. All Material Safety Data Sheets must be current and certification must be less than three (3) years old. The supplier shall identify any potential environmental impacts by listing controlled substances on their certificate of conformance. J

16 Revision: Date: 30-SEP-11 SQR-100 Page: 16 of Scope: Appendix A TECHNICAL PLAN GUIDELINES Part number and description of the part and the type of work covered by the technical plan together with a short description explaining the process. 2. Applicable Documents: All drawings, specifications, purchase orders, and other documents, which define the engineering requirements of the part, shall be listed including revision or issue letter and/or number. 3. Materials: Direct Materials All materials that are used directly in the process shall be listed together with any specifications governing conformance of materials. Materials shall be listed separately by specification number and revision and source of supply. Support Materials Those materials, which are not a portion of the finished part but are used in processing the part, shall be listed separately by technical name, specification or trade name; approved source of supply shall be given. 4. Tooling: (Fixtures etc.) Tooling used for the specified part shall be listed by tool drawing title and number and shall be accompanied by a description, which is adequate to describe the intended use of the tool. Customer supplied tools. Company supplied tools. (refer to section 11.0 of SQR-100 for guidance) 5. Equipment: Equipment such as the process machine, instrumentation devices, degreasers, grit blasters, handling equipment and others required for processing the part shall be listed. The capabilities of such equipment shall be described to the extent necessary to allow an independent determination of the suitability of the equipment to meet processing requirements and control of the process. J

17 Date: 30-SEP-11 SQR-100 Page: 17 of 27 Appendix A TECHNICAL PLAN GUIDELINES (continued) 6. Material Handling and Storage: Special requirements for the storage and handling of materials shall be described in detail. Shelf life of materials shall be described if applicable. 7. Manufacturing: (Processing) Each step of the process shall be described in detail in the technical plan. The technical plan shall include as applicable, but not restricted to, the following: Preparation of part prior to processing Method of cleaning or preparing parts Process procedure including all parameters and their limits. Post process cleaning etc. 8. Quality Assurance: A plan shall be established to ensure that parts conform to the requirements of the engineering drawing. This plan and the purchase order requirements shall be included in all technical plans. 9. Inspection: Inspection methods and the extent of inspection shall be described for in-process and final inspection of all parts. 10. Testing: * All testing of raw materials, parts or test specimens/coupons, which are to be performed either as a portion of acceptance tests or continued quality assurance shall be stated. All inprocess tests shall also be stated. The specification, ASTM or Federal Test Method Standard shall identify tests and test reports if applicable or by a description of each test not identified by a standard test method. * Note: Test specimens/coupons and frequency of testing must conform to Purchaser or applicable specifications as a minimum requirement

18 Date: 30-SEP-11 SQR-100 Page: 18 of 27 Appendix A TECHNICAL PLAN GUIDELINES (continued) 11. Materials and Equipment: Controls governing materials and equipment and the means for implementing these controls shall be explained to the extent necessary to provide material lot traceability to finished components, and give assurance that controls are adequate. Controls shall be initiated to assure that appropriate cleanliness and safety considerations have been covered. 12. Process trials: When required, a proposed statistically planned series of trials shall demonstrate process control and conformance to requirements for the part, and shall be included in the technical plan. 13. Technical Plan Approvals: Technical plan approvals shall be as follows: TECHNICAL PLAN APPROVALS SUBMITTED BY: (Company Name) SUPPLIER QA MANAGER SUPPLIER ENGINEERING AGENT DATE DATE CUSTOMER APPROVAL CERTIFYING AGENT DATE QUALITY ASSURANCE DATE

19 Date: 30-SEP-11 SQR-100 Page: 19 of 27 Appendix B PURCHASER SHIPPING ORDER

20 Date: 30-SEP-11 SQR-100 Page: 20 of 27 Appendix C SUPPLIER DEVIATION/CORRECTIVE ACTION REQUEST

21 Date: 30-SEP-11 SQR-100 Page: 21 of 27 Appendix C1 Instructions on completing a SD/CAR

22 Date: 30-SEP-11 SQR-100 Page: 22 of 27 Appendix D SAMPLE CERTIFICATE OF CONFORMANCE

23 Date: 30-SEP-11 SQR-100 Page: 23 of 27 Appendix E RECORD RETENTION REQUIREMENTS * * GE Aviation Product Acceptance Records and Serial/Lot Number Assignment Records, NDT Inspection plans, techniques, scans, reports and calibration records Non-serialised parts: Serialised parts: Serialised rotating parts: Including discs, spacers, spools, seals, torque rings, wheels, shafts etc. Serialised static parts: Including Frames, Castings, Pressure Vessels, Engine Mounts, Main Fuel Controls and Heat Exchangers Main Engine Bearings Fan, Compressor and Turbine Blades Pumps, gearboxes and valves Administrative Records. 5 years 25 years Permanently 25 years 25 years 10 years 10 years 5 years Radiographic Film. Engine Build, Configuration and Test Production Engine Build-Up, configuration and Test Acceptance Records 5 years 15 years Honeywell Engines, Systems & Services Radiographic Film Quality and Inspection Records: Non-Traceable/non- serialized parts Traceable parts Serialized parts Critical parts AS9120 Stockist Distributor 11 years 11 years Indefinitely Indefinitely Indefinitely 7 years Indefinitely: A lengthy period of time specified in the law that cannot be determined in advance. Indefinitely does not mean that the records must be retained permanently. Records having a retention period of indefinitely should be reviewed periodically to determine if they have surpassed their useful legal and business life. Honeywell, (via Orenda), must authorize destruction of records with Indefinite retention period. Rolls Royce Records shall be maintained in accordance with RR9000 records section and its applicable appendices: Type A Records Type B Records Type C Records Type D Records Permanently 30 years 10 years 6 years

24 Date: 30-SEP-11 SQR-100 Page: 24 of 27 Appendix E RECORD RETENTION REQUIREMENTS (continued) Canadian Department of National Defence (DND) Quality and inspection records - 3 years from date of completion of contract Siemens Westinghouse Records retention shall be in accordance with specification 84800KM. Radiographic film: 5 years United Technologies (Pratt & Whitney Canada and US) Retain quality records and make them available for the applicable retention period specified below. Quality records related to the following items: Flight safety, Space Shuttle fuel cells, critical/major rotor parts (i.e., turbine and compressor disks, hubs, shafts, free turbine couplings and turbine disk side plates), serialized major engine (cast/fabricated) cases (i.e., inlet, fan, compressor, intermediate, diffuser, combustion, turbine and exhaust cases) and main shaft bearing supports, which are not integral to a major case. All other parts except Aftermarket and off the shelf industry parts: Aftermarket parts: Off the shelf / industry standard parts (e.g., AN, AS, MS, JAN, etc.): Radiographic films related to the following items Flight safety, Critical/major rotor parts (i.e., turbine and compressor disks, hubs, shafts, free turbine couplings and turbine disk side plates), Space Shuttle fuel cells as well as serialized major engine (cast/fabricated) cases, (i.e., inlet fan, compressor, intermediate, diffuser, combustion, turbine and exhaust cases), and main shaft bearing supports which are not integral to a major case and engine components traceable by Engineering Drawing/Quality Assurance Data required serial numbers. Radiographic films related to the following items: Castings or parts where the purchase order, engineering drawing or specifications require serial number traceability Castings or parts where the purchase order, engineering drawing or specifications do not require serial number traceability, shall be retained only if no other inspection record is retained that documents completion and final acceptance of radiographic inspection. 40 years 10 years 8 years 4 years 40 years 10 years

25 Date: 30-SEP-11 SQR-100 Page: 25 of 27 Appendix E RECORD RETENTION REQUIREMENTS (continued) MTU Aero Engines Manufacturing and inspection documents, X-RAY film, records of nonconformances and change documents (or relevant data stored electronically) Serialized products (except blades and vanes): Blades and vanes and non-serialized parts: Maintenance records Permanently 10 years 10 years Volvo Aero Corporation All documents, reports and other data that is part of the design, qualification, manufacturing verification and final acceptance of the product shall be retained as follows: Serialized rotating parts Such as discs, spools, spacers, shafts, seals, torque rings, connecting shafts etc. Serialized static parts- Non-serialized articles- permanently 40 years 10 years Vericor Power Systems The following minimum retention periods shall apply with regard to all quality documents associated with the manufacture of a component including X RAY films: - Serialized or Critical parts permanently - Traceable parts 25 years - Non-traceable, Non-serialized parts 11 years - AS9120 Stockist Distributor, off the shelf items 7 years - Standard Hardware 5 years

26 Revision: Date: 30-SEP-11 SQR-100 Page: 26 of 27 Appendix F : FAI CHECKLIST First Article Inspection Report checklist: Part number: REV YES N/A Fixed process documentation attached (Reference Honeywell E.S. & S. SPOC 110, GE Aviation S1000 & P1TF17, Volvo Aero SQAR 310, MTU Aero Engines MTN 94111, Rolls Royce SABRe, RPS900, JES 125 & JES 207, Pratt & Whitney CPW135, Pratt & Whitney America PWA370) Documentation attached showing use of customer-approved sources. (Reference Honeywell E.S. & S. SPOC 165, Rolls Royce SABRe & RPS905, MTU Aero Engines MTN 94111, GE Aviation S1000, Volvo Aero SQAR 210, United Technologies ASQR-01) Process certification to correct specification and revision level Material, special process certification, test results, work instructions and procedures traceable to FAIR Non Conforming characteristics approved & noted in FAIR. Concession # (Reference Honeywell E.S. & S. SPOC 100, Rolls Royce SABRe, MTU Aero Engines MTN 94111, GE Aviation S1000, Volvo Aero SQAR 320, United Technologies ASQR-01) Gauging used to accept characteristics is in calibration Photograph included showing part marking in accordance with drawing requirements including acceptance stamps as applicable. Travel card/router verified complete, all operations properly claimed. Characteristic Accountability plan in conformance to requirements (Reference Honeywell E.S. & S. SPOC 128, Rolls Royce SABRe, GE Aviation S1002, SAE AS9102) Actual measurements for all drawing characteristics and B/P notes recorded in FAIR Control plan established for Key Characteristics. (Reference Honeywell E.S. & S. SPOC 154, Rolls Royce SABRe, GE Aviation S1002, SAE AS9103) Copy of purchase order, purchase order change and objective evidence of compliance to special purchase order conditions attached. Copy of engineering change document and/or production waiver attached as applicable (e.g. Minor deviation, CID, CR/DRN) Change document # Hardness testing completed on final product as applicable (Ref Honeywell E.S. & S. SPOC140) FAIR and sub tier FAIR in compliance with customer requirements (Reference Honeywell E.S. & S. SPOC 124, GE Aviation S1002, Volvo Aero SQAR 300, MTU Aero Engines MTN 94111, Rolls Royce SABRe, United Technologies ASQR-08.2) Correctly ballooned drawing included in FAIR Shipping documentation including release note, bar code labels as applicable Verified by: Signature: Date: J Appendix G : CFSI GUIDANCE

27 Date: 30-SEP-11 SQR-100 Page: 27 of 27 Supplier receiving process should include product and documentation review for indicators of Counterfeit/fraudulent/Substandard Items (CFSI) such as: Altered manufacturers name, logo, serial number, manufacturing date Items differing in configuration, dimensions, fit, finish, colour, or other attributes from that expected Markings on items or documentation are missing, unusual, altered, or inconsistent with that expected Markings or documentation from country other than that of the sub-tier supplier Items, sold as new, exhibit evidence of prior use Performance inconsistent with specifications or certification or test data furnished Documentation that appear altered, incomplete, or lack expected traceability, safety standard organization or manufacturers markings Poor workmanship