IMMI PROCEDURE: PUR-03 REVISION G MANUFACTURING DEPARTMENT

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1 IMMI PROCEDURE PUR-03 REVISION G MANUFACTURING DEPARTMENT PROCEDURE: Supplier Packaging Guidelines DISTRIBUTION: DATE WRITTEN: July 26, 1994 REV. EFFECTIVE: June 21, 2004 This is a CONTROLLED procedure. PREPARED BY: APPROVED BY: Purchasing/ Manufacturing Jerry McBeath, Jeremy Bougher and Steve Ahler The electronic file is the authorized master. Hard copies of this procedure are uncontrolled and for information only. PURPOSE: RESPONSIBILITY: SCOPE: BACKGROUND: IMPORTANT: To improve productivity and control by standardizing containers. IMMI Manufacturing Department IMMI Purchasing Department IMMI Suppliers Containers used for selected incoming materials. These guidelines provide our suppliers with IMMI s packaging Requirements for inbound goods. Guidelines considerations: Supplier handling & packaging Freight IMMI handling & storage Point-of-use cost Safety Ergonomics Adherence to this procedure does not transfer the responsibility for providing adequate packaging from the supplier to IMMI.

2 Page 2 of 5 SUPPLIER RESPONSIBILITLY: Suppliers are responsible for a package design per part number which protects the part during freight and storage until point-of-use. If experience indicates a previously agreed-upon package is inadequate, the supplier will be responsible to develop a package which is both adequate and meets IMMI approval. Products and packages must arrive damage free. Suppliers should design packaging for maximum density and quality. The material shall be labeled and shipped under requirements of common carriers and all governmental laws and regulations. All expendable packaging materials must be legally and economically disposable. Containers are to be free of contaminants and foreign material, except for the parts they are designed to hold. Containers are to be labeled to comply with IMMI Procedure PUR-02, Specifications for Labeling Parts. Where possible, goods shall be packed in corrugated containers which shall be adequately secured to pallets. Standard packs and standard pack quantities should be established and adhered to, (Form PUR-007, IMMI Packing Data may be used to document this information). Containers should not exceed a gross weight of 40 pounds when possible. No more htan one part number shall be packaged in a container. Multiple part numbers and / or multiple lot numbers for a part

3 Page 3 of 5 number may be placed on single pallet, provided that each part number/ lot number is grouped & separated vertically for receiving inspection sampling. If possible, each group would be shirinkwrapped. Parts are to be labeled to comply with IMM Procedure PUR-02, Specifications for Labeling Parts. Suppliers are not to consolidate part numbers on pallets that area being shipped to different divisions within IMMI (i.e., Child, Commercial, Outdoor, etc.). Corrugated or fiberboard containers shall have the box-maker s certificate with bursting or puncture test rating visible on the assembled container. All shipments must have an accurate packing slip that is: visible on the ouside of a pallet located on one of the four sides and not the top IMMI BUYER RESPONSIBILITIES: AND STANDARD PACK QUANTITY DEFINITIONS: Notify supplier of special container design requirements for specific part numbers, if applicable. Standard Pack: container size and type for each part number. Standard Pack Quantity: the established quantity to be packed in the container for each part number. RETURNABLE CONTAINERS: IMMI will consider proposals for returnable containers which are more cost-effective than expendable containers. IMMI encourages suppliers to continuously improve the product packaging by improving quality and reducing cost. Any improvement ideas or packing questions should be directed to the buyer.

4 Page 4 of 5 PALLET REQUIREMENTS: IMMI s preferred pallet foot print dimensions: Material Length Width Tolerance All except Metal Sheet Stock ,-1 Metal Sheet Stock ,-1 Recommended maximum weight of loaded pallet: 2,500 lbs for all material except metal sheet stock lbs. for metal sheet stock. Maximum pallet weight of loaded pallet shall not exceed 2,000 lbs. for shipments to Brownsville, TX facility. Recommended maximum height of loaded pallet (including pallet height): 36 inches. Four-way entry is strongly recommended. Pallets must be strong enough to last until empty at our plant. Nailed construction is required. Pallet deck board spacing must support containers without deformity. Containers shall not overhang the pallet. A palletized layer of containers should fully use the pallet footprint. Containers must be adequately secured to pallets where possible. Containers should be arranged on the pallet to prevent the compromising of stacking strength. Grain direction is to be identified on all shipments of metal sheet stock. A pallet standard pack is the agreed-upon maximum number of container standard packs which will be shipped on a pallet. The pallet standard quantity is the maximum number of containers on the pallet times the container standard pack quantity. Shipment arriving from Overseas: Shall utilize corner post, one in each corner of pallet that span the

5 Page 5 of 5 entire height of the stacked cartons or height of bulk container. Top sheets made of corrugated cardboard or similar material shall be placed on top layer of load with edges folded down. Entire pallet load shall be shrink wrapped to include cornner posts and top sheet. Shrink wrap shall be stretched to minimum of 135% to apply pressure to load to prevent load shift during transport. Pallets stacked two high or more shall not be stretch wrapped together to make a single unit load. INNER PACKAGING REQUIREMNTS: Inner packages shall contain the same part number and same quantity. Inner packages shall identify content part number and quantity. A bar-coded label is not required on the inner package. CORRUGATED CONTAINER REQUIRMENTS: Containers are to be modular to the 48 x 40 footprint of the shipping pallet. Recommended minimum container footprint dimensions are 8 x 8. Recommended maximum container footprint dimensions are 24 x 20. The pack shall be designed so parts of not become lodged in the bottom of the carton under the carton flaps. A chipboard pad placed in the bottom of the carton is an effective way to prevent such occurrences.