Supplier Handbook. Partnering for tomorrow. This supplier handbook is a guide for conducting business with Chemring Ordnance

Transcription

1 Supplier Handbook Partnering for tomorrow This supplier handbook is a guide for conducting business with Chemring Ordnance 15 January 2016 Revision: A

2 Supplier Handbook Table of Contents A. Purpose B. Scope C. Mission Statement and Quality Policy D. Code of Ethics or Conduct E. Acronyms F. Terms and Conditions G. Quality Management System Requirements Approved Supplier List (ASL) H. Purchase order information I. Quality Requirements J. Process Planning K. Configuration Management L. Part Approval M. Source Inspection N. Lot Traceability O. Shelf Life P. Non-conforming Material Q. Records Retention R. Corrective Action S. Product Availability T. Shipping Documentation U. Supplier Measurements Report Card V. Supplier Recognition W. Continuous Improvement and Cost Improvement Expectations Reference Documents: Appendix C, Sample Quality Documents COR-007 Procedure - Supplier Quality Requirements Page 1

3 A. Purpose The purpose of the handbook is to provide a guide to suppliers for performing business with Chemring Ordnance. Chemring Ordnance, as a contractor to the United States Government and other countries, manufactures products with increasing purchased material cost content. Therefore, it is critical to have a supply base that can deliver materials on time that meet all requirements. In order to accomplish this, it will take good communications between Chemring Ordnance and the supplier. For this reason, we have developed this handbook to communicate Chemring Ordnance s expectations for quality requirements, documentation requirements, and other required expectations to our suppliers. B. Scope The Supplier Handbook applies to all Chemring Ordnance direct material suppliers. C. Mission Statement and Quality Policy CHEMRING ORDNANCE, INC. Quality Policy Exceed customer expectations through continuous improvement Mission Statement Safely deliver quality products Vision Statement Preferred employer and supplier focused on continuous improvement Page 2

4 Chemring Ordnance Inc. views each supplier as a partner in meeting the above Quality Policy, Mission Statement, and Vision statement while delivering quality products at a competitive price. D. Code of Ethics and Conduct Chemring Ordnance Inc. is committed to the highest standards of ethical conduct when performing business with the supply base. Chemring trusts that all approved suppliers and sub-suppliers will follow these same philosophies in both their written policies and in practice. Chemring recognizes that each supplier is an independent business but as a supplier to Chemring your actions reflect directly on Chemring. Therefore, Chemring expects all suppliers to employ the same level of business values, ethics, and practices as Chemring. Compliance to the policy is required by the suppliers and their sub-tier suppliers. Failure to comply with the policy may result in removal from Chemring s approved supplier list. Chemring Ordnance Inc. employees are prohibited from accepting or giving gifts or gratuities to or from suppliers. The rules may allow for limited exceptions for items of nominal value (i.e., calendar, coffee mug, etc.). The offer or acceptance of gifts is inappropriate and discouraged. Under no circumstances shall Chemring employees solicit any gifts or gratuities. If at any time, any person believes there has been a violation of this policy or any conduct that maybe considered unethical by a supplier or Chemring employee, the individual witnessing the act is expected to report it to the Chemring Ordnance Ethics Officer immediately. Chemring values its employees and believes that each employee deserves to be treated with dignity and respect. Chemring s policy is for the fair treatment of all employees, and that no employee is discriminated against based on race, color, religion, sex, age, physical ability, national origin, or any other protected class. Chemring s policy is to comply with all local and national laws whenever conducting business and to uphold a high standard of ethics. Page 3

5 Chemring Ordnance Inc. employees shall treat the supplier s employees with the highest form of professionalism and it is expected that the supplier s employees shall do the same. Suppliers must conform to all pertinent local and national legal requirements, applicable federal regulations, and published industry standards pertaining to employment and manufacturing. If there is a conflict between legal requirements and published industry standards, at minimum, suppliers must comply with the law that takes precedence. E. Acronyms a. AAIE Automated Acceptance Inspection Equipment b. AIE Acceptance Inspection Equipment c. APQP Advanced Product Quality Planning d. CCC Plan Critical Characteristic Control Plan e. C of C Certificate of Conformance f. C of A Certificate of Analysis g. CPOA Critical Plan of Action h. DFARS Defense Federal Acquisition Regulation Supplement i. FAI or FAT First Article Inspection or First Article Test j. FMEA Failure Mode and Effects Analysis k. FMECA Failure Mode, Effects, and Criticality Analysis l. IDIQ Indefinite Delivery Indefinite Quantity m. MRB Material Review Board n. PPM Nonconforming Parts Per Million Nonconforming o. QMS Quality Management System p. RMA Return Material Authorization q. SCAR Supplier Corrective Action Request r. SPC Statistical Process Control s. 6σ Six-Sigma Page 4

6 t. T&C s Terms and Conditions u. TDP Technical Data Package F. Terms and Conditions Chemring Ordnance s standard Terms and Conditions are issued by the Purchasing Department with each Purchase Order. Chemring's Terms and Conditions will take precedence over any supplier's terms and conditions unless terms are negotiated during the quoting phase of the buying process. G. Quality Management System Requirements Approved Supplier List (ASL) Chemring Ordnance s policy is that its suppliers must have a Quality Management System in place that complies with the ISO 9000 standards or an equivalent standard. Suppliers that are third party registered to one of the standards are preferred, however if a supplier is not ISO registered or registered to an equivalent standard, the supplier shall complete a Supplier Quality Self-survey. The supplier shall also complete and provide documentation as described in Appendix A, Doing Business with Chemring Ordnance. A supplier may be added to the Chemring Ordnance s approved supplier list by one or more of the following methods: a. QMS third party registration current certificate of registration to a recognized QMS standard: a. ISO 9001:2008 b. AS 9100:2009 c. TS 16949:2009 b. Complete a Chemring Supplier Quality Self-survey this will require review and approval by Chemring c. Chemring performs a QMS audit d. Source control dictated by the customer Page 5

7 Poor quality and/or delivery performance may lead to the supplier being placed on probation or removed from Chemring s Approved Supplier List. Chemring Supply Chain Management will work closely with the supplier to give them every opportunity to remain on the approved supplier list. H. Purchase Orders Chemring Ordnance Purchase Orders are only issued by the Purchasing Department Buyers. The supplier shall not accept work without proper direction from one of Chemring Ordnance s Buyers. The direction provided by the Buyer shall commonly come in the form of a purchase order however there are times when a letter of intent may be used by the Buyer. Chemring Ordnance uses the Purchase Order as the vehicle for flowing down Quality Requirements, Delivery Schedules, Documentation Requirements, and Terms, and Conditions. The Purchase Order will contain the following: a. Purchase order number b. Part number/drawing number c. Revision level d. Quantity e. Delivery schedule f. Quality Codes g. Any special instructions or additional requirements I. Quality Requirements The quality requirements are flowed down to the supplier via the Purchase Order in the form of the drawing with additional requirements identified using the supplier quality codes from Chemring s Supplier Quality Requirements document. A copy of the supplier quality codes can be found at the Chemring Ordnance website The drawing and specification may have requirements that are not covered by the supplier quality codes. These will be made available upon request by the supplier. Page 6

8 Chemring Ordnance s Purchase Order will reference the drawing and/or specification as required. The drawing may reference specification, therefore the drawing and referenced specifications must be complied with. Chemring Ordnance s contracts with the customers are build to print contracts. The product must meet all requirements defined within the TDP. These requirements may include special testing as well as processing requirements. The supplier is responsible for delivering parts or material that meet the purchase order defined requirement as well as supplying documentation certifying the compliance. This documentation is extremely important to Chemring Ordnance, without proper documentation the product cannot be incorporated into the finished product. The documentation is considered part of the deliverable from the suppliers. Without required documentation the product will not be received into the Chemring Ordnance system and therefore not eligible for payment. J. Process Planning The key to a repeatable process begins with Process Planning. Chemring Ordnance expects that the Supplier plans each process using engineering/quality tools of their choosing. At a minimum Chemring Ordnance recommends using the following planning tools: 1. Process Flow Maps 2. Process Control Plans 3. Approved Inspection and Test Methods 4. Documented Work Instructions 5. Process Capability The Purchase Order issued to the supplier may have specific process planning requirements flowed down due to the contract Chemring Ordnance has with its customer. K. Configuration Management Chemring Ordnance requires that the supplier maintain a strong working Configuration Management System (CMS). The CMS provides controls while maintaining a history of changes to the product or process. As a supplier to Chemring Ordnance, no changes can be made to the process without communicating the change and approval from Chemring Page 7

9 Ordnance. Chemring Ordnance will provide direction with regard to how minor changes or major changes may occur. All parts or processes require approval by a First Article Inspection or Test. Upon approval of the FAI, the process used to manufacture the part and the process controls are considered part of the configuration. This process plan must be controlled so that Chemring Ordnance knows what process revisions have taken place and be able to link the process to any specific lot number or shipment of parts. The supplier is required to maintain Chemring Drawings and/or specifications to ensure that they are controlled within the supplier s facility. Supplier Drawings and Process Plans generated to aid manufacturing shall be controlled by revision level. L. Part Approval Chemring Ordnance shall work with the supplier to obtain part and process approval through the First Article Inspection or Test Process. The requirement for First Article Inspection or Test will be coded on the purchase order. The purchase order line item identifying First Article Inspection or Test will identify quantity required. The First Article Inspection will require a 100% dimensional inspection of the drawing and specification documentation using pre-approved measurement equipment. The report shall include any documentation supporting notes and standards called out on the drawing or specification. Chemring Ordnance shall witness or review the completed First Article Inspection or Test. Chemring Ordnance will provide feedback to the supplier upon approval from their customer. An approved First Article Inspection and Test report is required before product shipments can be accepted by Chemring Ordnance. If the supplier elects to start production prior to final approval they will assume all associated risk. M. Source Inspection Chemring Ordnance reserves the right to perform source inspection at the supplier location and prior to shipment. The Chemring Ordnance Purchasing Buyer will notify the supplier whenever source inspection is going to be conducted. This also includes Government Source Inspection when directed by Chemring s DCMA QAR. The supplier will provide a location Page 8

10 and support to perform the source inspection as efficiently as possible with no detriment to the supplier. N. Lot Traceability The supplier is responsible for proper identification and lot traceability. Each lot must be identified with a unique lot number. When the purchase order has been coded with a MIL- STD-1168 compliant lot number, each lot shall be identified as follows: Example - ABC14A ABC Manufacturing Code (three letter designation for the suppliers company) Year (in this case 2014) 3. A Month A January B February C March D April E May F June G July H August J September K October L November M December (No letter I used in the monthly codes) Interfix This number describes the manufacturing process, once set the interfix remains the same until a process change is approved. Once a change is approved the interfix is increased by one (in this example the interfix would go to 124 for an approved changes Lot this is the sequential number used to identify the lot produced at that interfix. All documentation provided with the lot must include part number identification along with the applicable lot number. O. Shelf Life The supplier is responsible for identifying the shelf life of the product supplied to Chemring Ordnance. If the product has a shelf life, the supplier shall ensure that 75% or greater shelf life is available prior to shipping the product to Chemring. The supplier shall work with Page 9

11 Chemring to evaluate material if it has expired past the documented shelf life date. If the product evaluated can be extended past the documented shelf life date the supplier shall produce a document identifying that the product has been evaluated and provide an alternate shelf life date. If the product s shelf life cannot be extended, Chemring Ordnance shall process the product through the MRB (Material Review Board) process for proper disposition. P. Non-Conforming Material Non-conforming material found during the Receiving Inspection process at Chemring will be processed through the MRB process. The Chemring Supplier Quality Manager or Buyer shall notify the Supplier of the disposition. If the disposition is to return to the supplier, the Chemring Buyer shall request an RMA (Return Material Authorization). The RMA will be used to return the material for further disposition. Chemring Ordnance cannot make a use-as-is disposition because the contracts are a build to print and Chemring does not have MRB authority to accept or use non-conforming material. During the MRB process the Program Team will determine if a Supplier Corrective Action is required. Q. Corrective Action Chemring Ordnance shall issue a SCAR (Supplier Corrective Action Request) whenever they encounter a non-conformance that the MRB determines is necessary, i.e. when repeated documentation issues occur, or when service is below standards determined by the Chemring Ordnance Program Team. The Supplier Quality Manger will issue the SCAR and follow-up until complete. The supplier is responsible for completion of the SCAR Response by the date identified on the SCAR form. If the supplier cannot complete the response by the date assigned they may request an extension provided they show good cause for the extension. Upon completion and acceptance of the SCAR, Chemring will verify effectiveness based on new shipments and close as appropriate. The response and completion of Supplier Corrective Actions is one factor used to evaluate the Suppliers Customer Service on the Supplier Report Card. R. Shipping and Quality Documentation Chemring Ordnance by contract must verify that all parts, components, chemicals and assemblies meet the requirements of each program s TDP (Technical Data Package). The Page 10

12 TDP is made up of the drawings, specifications and other engineering documents that define each program s design and/or performance. Therefore, all purchased materials must include shipping documentation and quality documentation showing that the products delivered do indeed meet all requirements. The documentation is as important as the purchased product. The quality documentation required will be coded on the Purchase Order by the QA Codes. These codes may include the following: Certificate of Conformance Certificate of Analysis SPC Data/Report Inspection Report Shipper Bill of Lading The Supplier may use their own format for these Quality or Shipping documents listed above. However, Chemring has provided samples as guidelines in Appendix C of the Supplier Handbook. Each of these documents must include the part number, reference to any applicable standards or specifications, and the lot number. The Certificate of Conformance and/or the Certificate of Analysis must be signed by a person of authority within the company. Documentation is one area that is monitored for customer service and quality on the Supplier Report Card. S. Product availability Chemring Ordnance has the responsibility to track the movement of their products to ensure appropriate piece part and finished goods inventory that is adequate to meet Chemring s demands. The Supplier is expected to work with the Chemring Buyer to determine appropriate inventory levels and production runs to ensure meeting our contractual agreement for delivery. Suppliers shall produce products adhering to the schedule defined within the purchase order. Chemring Ordnance will monitor the delivery to ensure that product is not late or early ensuring that internal inventory levels are maintained at an effective level. Supplier shall ensure that product is shipped in a method to maintain the physical integrity and quality of the product, shipping packaging, and pallet configuration. Chemring Ordnance defines product availability as when the product has been shipped, received, accepted through Receiving Inspection, and available to be placed on the manufacturing floor of the program. Page 11

13 T. Records Retention Chemring Ordnance s Suppliers shall maintain a system for maintaining product records. The record controls shall include: 1. Identification 2. Storage 3. Protection 4. Retrieval 5. Retention Time 6. Disposition Chemring Ordnance requires that the supplier maintain inspection and test records, both completed by the supplier or a service from a sub-tier supplier, for a minimum seven year period. When requested by Chemring Ordnance, the supplier must be able to protect the material from loss or damage and produce upon demand. If the records are maintained electronically, the supplier will ensure that the records are backed up so that they can be retrieved upon an electronic mishap. U. Supplier Report Card Chemring has developed a supplier measurement system. The supplier measurements are compiled on a quarterly basis. This compiled data is used to generate the supplier report card: 1. Quality Quality is measured in PPM (parts per million) non-conforming parts. The report card will show the PPM level for each quarter and then on an annual basis. 2. Delivery Delivery will be calculated based on performance to the purchase order delivery schedule. Late delivery will be calculated based on seven days early and three days late. For example if a delivery is scheduled for January 15 th, it will be considered on time if the delivery is received between January 8 th and January 18 th. 3. Service Service will be measured by Chemring Ordnance employees that communicate with the supplier on a routine basis. The evaluation of service will be by the buyer and Page 12

14 supplier quality group. They will evaluate responses to requests such as RFQ, documentation requests, SCAR responses, delivery information, etc. 4. Supplier corrective action (SCAR) number of requests issued during the quarter. The supplier will also be measured on their timeliness for providing an effective response. It is Chemring s intention to recognize the top ten performing suppliers as well as the bottom ten suppliers. V. Supplier Recognition The Chemring Ordnance Team recognizes their Suppliers as some of the best. During the course of the year Chemring Ordnance shall conduct events to recognize Suppliers for their extraordinary efforts, improvements, measurement achievements, etc. The team will recognize the Suppliers by conducting Supplier Days where a group of suppliers for a specific program are brought into the Chemring Facility to have a lunch with the Program Team. This will allow interaction between the Chemring Team and the Suppliers. Chemring feels that first hand contact between all program personnel and their Suppliers is extremely beneficial to growing an excellent partnership. Other methods to recognize Supplier achievements shall be awards and/or outings, with some for specific suppliers and other groups of suppliers. Chemring s belief is that interaction between the supplier representatives and the program s employees is strategic to solidify a partnership. W. Continuous Improvement and Cost Improvement Expectations Chemring Ordnance has a Quality Policy and Mission Statement that is built around continuous improvement. This dedication to improvement is carried over to our suppliers. Chemring shall put resources in place when the supplier requests to achieve viable continuous improvement opportunities. These improvements may focus on throughput improvements, cost improvements, or any improvement that creates an improved manufacturing environment. Page 13

15 Chemring Ordnance has provided internal Continuous Improvement Training in both Lean and Six Sigma Training. Chemring resources shall be made available to assist in any viable improvement effort. Revision History Revision Level Date Approval Description Original 10/21/2014 Lowell Raby New Release Rev. A 01/15/2016 Update Section I and remove appendices Page 14