FAIRFIELD GLOBAL SUPPLIER QUALITY PROGRAM 1 QA.101 rev. 3-2012
PURPOSE OF THIS STANDARD Fairfield is committed to continuous product quality improvement. Our management team is convinced that only with these programs can we survive in today s competitive world market. Therefore, we have prepared this manual as a guide to help you, as our valued supplier, to achieve product and service improvements. With your assistance, we can now assure never-ending improvement in the product quality and value that we both provide our customers. This standard is provided to enable our suppliers to understand the basis of Fairfield quality expectations. It establishes minimum quality requirements for all suppliers of materials and services whether they are being provided by the supplier directly or are purchased through sub-suppliers for use in Fairfield products. The standard is a supplement to other terms and conditions covered by Fairfield drawings and purchasing documents. This does not replace or alter any of the terms, conditions, and engineering drawings or specification requirements stated in those documents. Unless explicitly stated on a written Fairfield Purchase Order, all terms and conditions within this manual apply to all purchase orders from Fairfield Manufacturing Company, Inc. 2 QA.101 rev. 3-2012
TABLE OF CONTENTS 1. INTRODUCTION...4-5 1.1 Fairfield Global Supplier Quality Objectives 1.2 Fairfield Global Supplier Principals 2. QUALITY SYSTEM REQUIREMENTS...5-8 2.1 Quality Planning 2.2 Drawing and Specification Control 2.3 Design and Process Change Control 2.4 Supplier Organization and Personnel Qualifications 2.5 Subcontracted Material and Service 2.6 Measurement and Test Equipment 2.7 Tooling Equipment Maintenance 2.8 Manufacturing Process Control 2.9 Ongoing Product Control 2.10 Returned Material Analysis 2.11 Product Identification, Protection & Preservation 2.12 Record Retention Requirements 3. NONCONFORMANCE TO SPECIFICATIONS...9 3.1 Detected at a Supplier Location 3.2 Detected at Fairfield 3.3 Detected Through Warranty Claims 4. INITIAL SAMPLE REQUIREMENTS...10-11 4.1 Conditions Where Initial Samples are Required 4.2 Initial Sample Inspection and Test 4.3 Initial Samples Required: Quality, Quantity & Type 4.4 Sample Identification and Shipping Instructions 4.5 Payment for Tooling 5. EVALUATION OF SUPPLIERS...12 5.1 Capability Rating 5.2 Potential Suppliers 5.3 Current Suppliers 5.4 Supplier Surveillance 5.5 Vendor Quality Capability Rating System APPENDIXES...13 A Supplier Corrective Action Form (form) 3 QA.101 rev. 3-2012
INTRODUCTION 1.1 Fairfield Global Supplier Quality Objectives Consistently high quality purchased products and services are essential to ensure the success of our companies. Working together as a team is necessary to form an open two-way communication channel to achieve mutually satisfactory goals. This standard provides the basis for such a channel. Each supplier shall fill out a Global Supplier Mgmt Assessment Survey before doing work for Fairfield. The Global Supplier Mgmt Assessment Survey is used by Fairfield for initial site audits and as a tool to assess the ongoing capabilities of a supplier that is suffering from quality, delivery, or cost issues that are not easily resolved. The supplier must assume full responsibility for the quality of their products and services. Fairfield can only assist the supplier in meeting this responsibility, including sub-contractors. Fairfield should not have to verify that the supplier has provided acceptable product. Suppliers shall develop effective quality systems based on either ISO-9001 or ISO/TS-16949 standards. Suppliers must continually strive to improve product quality and manufacturing productivity to meet increasing competitive pressures in modern world class industrial societies. Each supplier must build on these principles to develop effective quality systems for our mutual success. 1.2 Fairfield Global Supplier Principals Customer Satisfaction Our purchasing goals are driven by customer satisfaction and customer requirements (Quality, Cost, Delivery). Global QCD targets are provided by your Global Commodity Specialist annually. Quality The Fairfield Quality Assurance department is responsible for supplier quality. We are striving for zero defects in purchased goods and services. Quality is first in the purchasing process. The improvement of quality will lead to the lowest acquisition cost and highest delivery performance of every supplier. Delivery Our goal is 100% on time delivery. Our on-time delivery window is up to five working days early to zero days late from the required due date. Global total cost of ownership (TCO) We expect our suppliers to provide us the best total cost of ownership on a global level. Fairfield reviews TCO along with QD to choose the best supplier in all areas. Supplier development We respect our suppliers as independent entrepreneurs. We are actively involved in developing our suppliers. Consistent and expedient feedback is our responsibility to provide to you to learn and grow from any issues on our floor. 4 QA.101 rev. 3-2012
Fairness We make unbiased purchasing decisions based on facts and known criteria. We keep our commitments and treat the supply base as we would want our customers to treat us. International activities We are involved in creating competitive advantage through systematic international procurement through our global purchasing network. It is strongly encouraged that all panel suppliers review the ability to purchase globally and expand operations to LCC countries following our manufacturing facilities. Environmental responsibilities We consider environmental issues while making purchasing decisions regarding recycling, waste reduction, packaging and transportation. Continuous Improvements We continuously improve our structure and processes. Our global suppliers must do the same to ensure our mutual success. Employee Development We continuously improve the technical and social competency of our employees. We urge our supply base to do the same. 2. QUALITY SYSTEM REQUIREMENTS All requirements are meant to clarify the basic elements that are essential for an effective quality system. Each supplier must utilize procedures that build from this base to meet specific needs. Use of the ISO- 9001 or the TS-16949 standard in creating and following procedures is recommended. Note: All suppliers must meet section 2.2-2.7 regardless of other waivers. 2.1 Quality Planning The supplier s system to control the product quality should be documented in a Quality Manual. The manual should contain detailed procedures used to control product quality. Periodic reviews should be conducted to update quality objectives and programs. Fairfield requires advanced product quality planning (APQP), production part approval process (PPAP) and/or control plans that document specific details ensuring the quality of parts supplied. This plan should be submitted to Fairfield Quality Assurance for review along with First Article submission. The supplier shall perform design and/or process failure mode affects analysis (FMEA) when required to ensure manufacturability prior to production. These analyses shall be updated when design and/or process changes occur as the result of previous failures. 5 QA.101 rev. 3-2012
2.2 Drawing and Specification Control It is the supplier's responsibility to assure that the latest revisions of all applicable drawings and standards are available to, and fully understood by, all concerned. Any clarification or interpretation of drawings and/or specifications should be initially directed to the Fairfield Supplier Quality Engineer. 2.3 Design and Process Change Control Written authorization is required prior to incorporating any changes in the manufacturing process that may affect the form, fit, function, reliability, appearance or interchangeability of parts produced for Fairfield. The supplier shall maintain a file containing written correspondence documenting effective dates of engineering and process changes. These records are to be available for review by Fairfield Quality Assurance. 2.4 Supplier Organization and Personnel Qualifications Those individuals responsible for Quality Control within the supplier organization shall be clearly defined, and have the authority to ensure product quality is maintained. Provisions for the continuing training and qualifications of personnel should be provided. This organization must be identified in the Suppliers Quality Manual. 2.5 Subcontracted Material and Service The supplier shall be responsible for assuring that the products and services purchased for use in Fairfield products conform to Fairfield requirements. The supplier shall maintain adequate records for review by Fairfield Quality Assurance, for both Quality Assurance and any Corrective Actions taken as appropriate. 2.6 Measurement and Test Equipment The supplier must provide inspection and test facilities and equipment adequate for effective measurement of product conformance to specifications. All measuring and test equipment, including production tools and fixtures used as a medium of inspection, shall be calibrated prior to use, and at established intervals, to ensure continued accuracy. Calibration shall be in accordance to internationally or nationally recognized standards such as N.I.S.T. and be traceable to related control records. Control records are to be maintained showing date and results of the last inspection and date of next scheduled inspection. ISO/IEC 17025 certified calibration labs should be utilized as part of the supplier calibration program. 6 QA.101 rev. 3-2012
Tooling Equipment Maintenance All tooling used in the manufacture of a Fairfield product shall be maintained in a condition that shall ensure production of quality parts: Any supplier using Fairfield owned tooling is required to ensure capability of that tooling prior to using it for Fairfield production. Tooling and checking fixtures should be updated to the latest print revision released by Fairfield. This should be documented and traceable. The supplier shall have a maintenance program for production equipment that includes preventative maintenance on a scheduled basis. Maintenance control records shall be maintained. Capability of production processes may be demonstrated by statistical or other acceptable methods of verification. Documented control at SOP is to be stored for life of program. The use of Fairfield owned tooling does not relieve the supplier of the responsibility of producing parts that meet all specifications. 2.7 Manufacturing Process Control During the manufacturing process, the supplier should apply procedures and controls sufficient to maintain the identity of materials, required specifications, and test results. Elements required to enable process control includes, but are not limited to: Instructions Written processing, inspection or test instructions must be readily available and understood by appropriate personnel. Determination of Process Capability The potentials for a process to consistently produce parts to specifications are ascertained by determination of process capability. A minimum acceptable process will have capability equal to or greater than 1.33 Cpk. Ongoing Process Control Fairfield may identify specific product characteristics to be controlled in process using statistical methods. When Fairfield has not identified characteristics to be subjected to Statistical Process Control, the supplier, through knowledge of the production process and end use of the product, shall identify significant characteristics and maintain statistical controls of these characteristics. When required, inspection or test results indicating ongoing process control data should be documented for review by Fairfield Quality Assurance. Lot Control Suppliers are expected to have lot identification control procedures in effect when materials and/or process require lot segregation. 7 QA.101 rev. 3-2012
2.8 Outgoing Product Control The supplier must verify and document that his product conforms to Fairfield print and specification requirements. Verification can be demonstrated by any one or combination of the following: Where statistical process control has been established Maintaining in-process statistical control records indicating parts were manufactured with capable processes. Periodic audits should be performed to confirm that in-process controls were adequate. This is not considered sufficient if the prior operations have affected characteristics under statistical control (i.e., flatness of a formed part that is then heat-treated). If the process is temporarily out of control, additional inspection may be required until controls are re-established. Where statistical process control has not been established: Final inspection or test utilizing either 100% inspection or an appropriate, statistically valid acceptance sampling plan is required when process capability has not been statistically validated. Acceptance of product by any sampling plan does not relieve the supplier of the responsibility that all parts must meet specifications. Also, documentation or records verifying acceptable outgoing product quality shall be available for review by Fairfield. When requested by Fairfield, documentation or records are to be included with and/or sent in advance of shipments. 2.9 Returned Material Analysis Fairfield may require the supplier to perform analysis of returned failed material. Records shall be maintained identifying the failure cause and the corrective action taken to prevent recurrence. 2.10 Product Identification, Protection and Preservation The supplier must provide the required controls for positive product identification. These controls shall ensure protection against damage, contamination and corrosion during manufacturing, prior storage, and shipment. When applicable, the system shall also include storage control provisions for product having a limited shelf life. Please note Fairfield requires the latest AIAG bar code label to be used at all times. 2.11 Record Retention Requirements Unless otherwise specified, the supplier should retain records of inspection and test results for a minimum of seven (7) years from date of product shipment to Fairfield Mfg. Co. 8 QA.101 rev. 3-2012
3. NONCONFORMANCE TO SPECIFICATIONS 3.1 Detected at a Supplier Location The supplier shall immediately determine the extent of the problem and take prompt action to correct the condition and prevent shipment of any nonconforming material. If any shipments of materials with suspected quality problems have been released, the supplier shall immediately notify the Fairfield Supplier Quality Engineer. The Quality Engineer can then identify the suspect parts and the corrective action being used to eliminate the problem in future shipments. The supplier shall be responsible for all costs incurred by Fairfield associated with sorting and/or reworking of suspect parts, as well as the freight and handling costs associated with their removal from the Fairfield plant. Special salvage operations required to correct nonconforming materials are to be approved in advance by the Fairfield Quality Assurance Department. Samples must be submitted when required. Notifications to Fairfield by the supplier of a nonconforming condition and corrective action, or request for rework or deviation approval, shall be directed to the Supplier Quality Engineer. Contacts by telephone are to be confirmed in writing to the Supplier Quality Engineer. Pending specific instructions from Fairfield, the supplier shall hold the product involved from further processing and shipment. 3.2 Detected at Fairfield The Fairfield Purchasing Department or the Fairfield Supplier Quality Engineer promptly notifies the supplier to arrange disposition when nonconformance is detected by Fairfield. It is the responsibility of the supplier to incur the costs in returning shipments to suppliers, sorting, and/or reworking nonconforming material received at Fairfield. These costs can include material, shipping, handling, Fairfield labor, and contracted services. In the event the supplier can not provide replacement material to support production requirements, Fairfield notifies the supplier prior to commencing rework of nonconforming supplier material. Fairfield provides failure data to the supply base in a timely manner, normally within 1 working day. The supplier shall be required to submit a written corrective action plan to Fairfield s Quality Assurance Department. Corrective actions are to be submitted in an 8D format. (see example in appendix A) This plan shall include the effective dates and descriptions of measures taken to prevent recurrence of the nonconformance. This initial or final plan is reviewed within 30 days. Verification of effectiveness to corrective action taken must be identified prior to corrective action closure. 3.3 Detected Through Warranty Claims If a supplier has furnished a nonconforming product that has resulted in warranty claims, the supplier may be asked to reimburse Fairfield for the associated cost incurred. Reimbursement could include costs of the product plus handling allowance, shipping, labor and administrative costs incurred by Fairfield. This is not meant to define the respective rights and obligations of either Fairfield or the supplier with respect to such matters as recall and campaign programs, epidemic failures, consequential damage claims, product liability and the like. 9 QA.101 rev. 3-2012
4. INITIAL SAMPLE REQUIREMENTS Fairfield may require suppliers to furnish representative production samples with inspection and test reports before first production shipments and after engineering change notices per the following table: New Launches Type USA Non-USA Raw Casting Level 4 Level 4 Machine Casting Level 3 Level 5 Raw Forging * Level 4 Level 4 Blanked Forging * Level 3 Level 5 Machined Forgings * Level 3 Level 5 Brakes/Motors Level 2 Level 2 Fasteners / Bearings Level 4 Level 4 Steel Bar * Matl. & Test certs. only Matl. & Test certs. only * Only pre-approved steel mills can be used. ECR after launch Type USA Non-USA Raw Casting Level 4 Level 4 Machine Casting Level 1 Level 2 Raw Forging * Level 4 Level 4 Blanked Forging * Level 1 Level 2 Machined Forgings * Level 1 Level 2 Brakes/Motors Level 1 Level 1 Fasteners / Bearings Level 1 Level 1 Steel Bar * Matl. & Test certs. only Matl. & Test certs. only Note: Customer supplied material follows the same criteria as purchased products. 4.1 Conditions Where Initial Samples are Required Samples produced from production tooling shall be submitted under the following conditions: Upon initial formal sampling prototype manufacturing. Upon initial production of a part. (PPAP) Whenever an engineering, process, or tooling change occurs that may affect the form, fit, function, durability, appearance, or interface of the parts or its component parts. 10 QA.101 rev. 3-2012
4.2 Initial Sample Inspection and Test The supplier shall perform inspections and test necessary to ensure that samples conform to specifications. This applies to dimensional specifications, chemical and physical specifications and any other requirements specified or referenced on Fairfield drawings or purchase documents. All results shall be reported. Initial samples submitted because of engineering, process, tooling changes, or resubmitted due to nonconformance, need only be inspected and tested for the characteristics affected, unless otherwise specified. Suppliers who are unable to perform the necessary inspection and tests within their facilities are responsible for having these services performed by a reliable outside source. The sources must be identified for all samples submitted. Any commercial/independent laboratory used by the supplier shall be an ISO/IEC 17025 accredited laboratory facility. 4.3 Initial Samples Required: Quality, Quantity and Type Dimensional and Appearance Samples Unless otherwise instructed, the supplier shall provide the Fairfield Quality Assurance Department with the required quantity of representative sample parts that have been inspected for compliance with dimensional and appearance requirements. If tooling involves duplicate fixtures or multiple cavity molds, dies, etc., one dimensionally inspected part for each may be required. Laboratory Samples The supplier shall provide representative material samples required by Quality Assurance when the dimensional sample cannot also serve as a material test sample. When required, the supplier shall also provide prepared sections of castings, forging, weldments, heat-treated parts, plated parts, etc., used to prove product integrity and compliance with specifications. 4.4 Sample Identification and Shipping Instructions Sample parts and reports are to be packaged and shipped to Fairfield Mfg. Co. in a separate container addressed to the Quality Assurance Department." The container (shipment) should be clearly marked Quality Control Sample or (prototype sample) and labeled with supplier s name, part number, drawing revision letter, and purchase order number. 4.5 Payment for Tooling Tooling invoices are paid only after Fairfield Quality Department approves supplier s production sample or as specified on purchase orders along with an approved PPAP and first production run approval. Please note that unless specifically noted by the purchase order all APQP documents including PPAP is required. 11 QA.101 rev. 3-2012
5. EVALUATION OF SUPPLIERS 5.1 Capability Rating Fairfield evaluates a supplier's capability rating on whether the following factors are judged adequate to manufacture product conforming to specifications and the potential exists for continual quality improvement. Management commitment to provide quality product with continuing emphasis on improvements in product quality. Quality systems and the extent to which they conform to Fairfield Quality System Requirements, or alternately ISO/TS 6949:2002. Capability, capacity, and condition of the supplier s physical manufacturing facilities and equipment. Deficiencies noted during a capability evaluation shall be discussed with the supplier at the time of the survey and could have an effect on future purchase negotiations and order placement. 5.2 Potential Suppliers Fairfield may survey potential suppliers prior to placement of orders for product or related tooling. Order placement shall be based on the supplier first obtaining a satisfactory capability rating. 5.3 Current Suppliers Surveys to establish capability ratings may be initiated prior to placement of new business as a result of quality performance records or if the product differs significantly from the product previously purchased. 5.4 Supplier Surveillance Suppliers are expected to participate in periodic appraisals of their quality control systems, record audits, and inspection of finished products. If required, the supplier s measuring and test facilities are expected to be made available to Fairfield and Fairfield s customers. Suppliers must notify Fairfield of any major change in the organization such as leadership, ownership, location, and or supplier modifications. 5.5 Supplier Quality Capability Rating System The suppliers that are currently in the Fairfield Manufacturing Approved Rating shall be ranked equally on Quality, Cost, and Delivery. Quality of Products Delivered All parts and materials are expected to arrive with zero (0) defects. The quality of products delivered rating is measured in PPM and is based on the receiving inspection results, discrepant materials reports, and warranty system results. On-Time Delivery This rating is based on delivering parts on the day they are due with an on-time window of up to five (5) working days early, zero (0) days late to an agreed upon schedule. Anything less than 100% on time shall deduct from the rating. Quotes are expected in 7 days. Engineering estimates for budgetary purposes are required within 48 hours. Part of the delivery rating shall be based on the responsiveness of quotes and other necessary business functions. Cost: Cost reduction targets are provided yearly by each buyer to your company. The percentage of accomplishment to target shall be valued in this category. 12 QA.101 rev. 3-2012
APPENDIX A 8-D Corrective Action Form PHR Number: Supplier Name: Part Number: Name: Date issue found: D0 Problem / Symptoms Last Updated by Supplier: D1 Team Members: Last Name: Title Email: Problem Description (D2) D3 Champion: Immediate Containment Actions Explanation of how immediate containment will ensure 0 defect since notified Results from Containment Action D4 Date of Immediate Containment Start: Outside Pack Identification Root Cause(s) Lot / Serial # of 1st Immediate Containment Part: Evidence to Prove % Contribution D5 *Attachment of imperical data for evidence of identification of root cause is required. Pictures are also recommended. Implementation in: Product FMEA Permanent Containment Actions Process FMEA Control Plan Total: 0% Operator Inspection Instructions Explanation of how permanent containment actions will fix the root causes: D6 Date of Permanent Containment Start: Lot / Serial # of 1st Permanent Containment Part: D7 Verification Close Date: Systematic Prevention of Same Problem Description on other ODS Parts D8 Team App/Denied Date Recognition OverSeas Office (If Required) Supplier Development Supplier Qualty Engineer Notes Due within 24 hours of notice Due within 1 week of notice Due within 1 month of action or per SQE Quality 8D Form_QD 006_rev 061711 13