QP-740 Supplier Management Handbook Revision J Revision Date Reason Signature - 2/02/08 Initial Release Avis Rosenfield A 12/10/10 Complete update Ritchie Lacson B 4/14/11 Add sections: 6.4, 6.5, 9.9, 9.10 & 9.11. Amend sections 6.2, 8.1.2 & 9.8 Brett Amico C 4/27/11 Amend section 1.1 and add section 5.3 Brett Amico D 9/17/13 Added sections 7.5 & 7.6 Brett Amico E 11/3/14 Added sections 10.1-10.9 Brian Sultzbach F 9/25/2015 Added new documents, clarify sections 1.0-13.0 David Greelish G 12/1/2015 Change Acceptance criteria for ASL approval (section 6 & 7) David Greelish H 12/2/2015 Added Note 1.2 for supplier access David Greelish I 3/30/2016 7.3.2 now any ISO Cert DCN 260 David Greelish J 5/2/16 7.3.2 any ISO Cert now QMS certification DCN 274 R White 1 P a g e
1.0 Policy 1.1 Suppliers, and when applicable, their sub-tier suppliers are responsible for maintaining a Quality System with controls that ensure products, services and materials are delivered meeting all drawing, specification, quality, and purchase order requirements, and when applicable, Amphenol PCD s flow down of their customer s requirements. Amphenol shall have the Right of Access by the organization, their customer, and authorities to all facilities involved in the order and to all applicable records, to verify continued compliance. 1.2 Suppliers are responsible for ensuring that they have the most recent APCD Supplier Management Handbook. The handbook can be downloaded from the Amphenol PCD website (http://www.amphenolpcd.com/about-us/services). 1.3 2.0 Scope 2.1 Scope Statement This handbook specifies the requirements for: 2.1.1 Identification and qualification of new suppliers. 2.1.2 Measuring and monitoring performance of existing suppliers. 2.2 Scope Description The purpose of this handbook is to provide detailed instructions for completing the activities listed in section 1.1. 2.3 Scope Limitations Suppliers that are part of the Customer Approved Vendor List will not, in most cases, undergo APCD supplier qualification if it has already been completed by the customer. 3.0 Reference Documents 3.1 F-743 SQE Supplier/Subcontractor Quality Evaluation Report 3.2 F-743 SQC Supplier Quality and Capability Inquiry 3.3 F-743 SQR Supplier Quality Rating Survey 3.4 F-730-007 First Article Inspection Report 4.0 Definitions 4.1 FAI First Article Inspection 4.2 NDA Non-Disclosure Agreement 4.3 ITAR International Traffic in Arms Regulation 4.4 COC Certificate of Compliance 2 P a g e
4.5 MRB Material Review Board 4.6 QE Quality Engineer 4.7 PPM Parts per Million 4.8 SCAR Supplier Corrective Action Request 5.0 Confidentiality and Compliance Agreements 5.1 Suppliers may be required to sign an NDA prior to release of customer sensitive information. 5.2 Suppliers may be required to sign QP-721-G Supplier Certification and Compliance Agreement prior to release of ITAR sensitive information. 5.3 In addition to the supplier handbook a specific P.O. may include additional customer requirements that are not included in the handbook but still need to be followed and flowed down to sub-tier suppliers if applicable. 6.0 Quality Systems Specifications 6.1 It is recommended, but not required, that suppliers be ISO or AS Certified. 6.2 All suppliers may be required to provide FAI data and may be required to complete a capability study to validate new processes not known to APCD. In all cases, APCD F-730-007 FAI form shall be used when performing First Article Inspections. 6.3 Suppliers capable of meeting ISO or AS compliance but are not certified will be considered provided they successfully pass the supplier approval process. 6.4 Suppliers shall promptly notify Amphenol PCD of any changes in the Quality Management Representative with assigned responsibility and authority for the quality system. 6.5 When specifically requested by Amphenol PCD or its customer, the supplier shall make specified quality data and/or approved design data available in the English language. 7.0 New Supplier Approval Process 7.1 APCD Buyer will submit a request for quotation including lead time and minimum order quantity to new suppliers based on APCD drawings and specifications. 7.2 If the new supplier is shortlisted as a potential supplier, it is recommended, but not required, for APCD to visit the supplier to perform a Supplier Quality and Capability Inquiry. 7.2.1 Supplier Quality and Capability Inquiry will be carried out by APCD Sourcing, Quality or engineering and will be performed using F-743 SQC Inquiry form. 3 P a g e
7.2.2 A site audit when applicable will include local and overseas suppliers. 7.2.3 If the site audit is not possible for overseas supplier due to cost factor, specification F-743 SQC Inquiry will be e-mailed for them to do their own self-assessment. Supplier will return the completed selfassessment to APCD. If there is any question on any portion of the selfassessment, APCD will contact the supplier for clarification. 7.2.4 Preliminary report consisting of observation (both positive and negative) will be sent to the supplier through e-mail after the audit is complete. Supplier will respond to these observations and address area of concerns and also strive to improve their process and areas of weaknesses. 7.2.5 A final evaluation status report consisting of Overall Supplier Evaluation Worksheet of Supplier quality rating survey will be sent to supplier. 7.3 If a supplier meets the following sets of criteria, they may be added as an APCD Approved Supplier without going thru the approval process. 7.3.1 If the supplier is an Amphenol division. 7.3.2 If the supplier has AS9100 or QMS certification. 7.3.3 If the supplier is an approved supplier of another Amphenol division. 7.3.4 If the supplier is an APCD customer mandated supplier to be used solely on their product only. 7.3.5 If the supplier is a manufacturer or reseller of Industry standard components (e.g. Mil Spec) or customer specific component (e.g. BACC). 7.3.6 In addition, exception may be given to suppliers who will be used on a one-time basis or for emergency purposes. 7.4 If the supplier is a seller of consumer product goods, commodity items, MRO, or other nonproduct related item or service, they can be excluded from the APCD Approved Supplier list. 7.5 A final decision will be made by the Operations Manager and Quality Manager on whether the potential new supplier will be approved or not. All decisions will be documented under specification F-743 SQE. 7.6 Once approved, the supplier will be inputted into the APCD Approved Supplier List and in Macola ES as an APCD Approved Supplier. 8.0 New Product Approval 8.1 New product either from new or existing supplier will have to go thru an approval process before production parts can be started. 8.1.1 Supplier will start production of sample parts from Production Ready Equipment and submit them to APCD. 4 P a g e
8.1.2 Supplier shall submit an acceptable FAI of the sample parts with records of 100% inspection of all dimensions and other critical parameters. The APCD FAI form F-730-007 will be made available to the supplier. 8.1.3 APCD Quality Engineer will carry out the First Article Inspection in APCD to validate the suppliers FAI and decide whether the parts are fit and production ready. 8.1.4 If the samples fail the FAI, the supplier will have to re-submit new samples for FAI approval until they are qualified by the QE. 8.1.5 QE will maintain the FAI records as evidence of approval process and kept as quality records. 9.0 Quality System Controls 9.1 Any supplier deemed to have special processes such as plating, anodizing and heat treating will be required to present a current copy of their ISO and or NADCAP certifications as proof to show process capability control. 9.2 Supplier shall make no changes to Equipment, Material, Suppliers, Methods, Processes, or Location without prior written approval. 9.3 Lot to Lot controls and traceability of raw material shall be maintained. 9.4 Suspect components identified prior to shipment by the Supplier should not be shipped to APCD. Supplier will notify APCD and submit samples for Review/Disposition. 9.5 Suppliers found to have non-conforming material will be contacted by APCD and their shipment will be placed in the MRB location until QE releases it to be returned, reworked or used. 9.6 Supplier may be required to complete SCAR report should non-conforming material be identified by APCD or their Customer(s). 9.6.1 Initial SCAR response will be due within one working week and will identify Containment and Immediate Corrective actions taken to prevent recurring events or escapements. 9.6.2 Root Cause analysis must be performed and once root cause has been identified, a final response must be submitted within thirty (30) days that identifies Preventative Actions and Verification that the issue has been corrected. 9.7 Suppliers may be responsible for annual submittal of material test data completed by an Independent Lab to verify materials are compliant to the COC. 9.8 Quality Records shall be maintained for: a minimum of 10 years, or comply with specific/applicable end customer requirements that have been flowed-down in a Contract or PO. 9.9 Seller s inspection options (for Boeing orders only): Seller shall perform 100% inspection for in-process and final inspection or Seller shall conform to requirements of document D1-8007 Approval Guide for Supplier Statistical Plans. The Amphenol PCD inspection 5 P a g e
procedures, QP-721 Boeing Inspections, may be used by the Seller to meet these requirements. 9.10 Approved Process and Sources D1-4426 (for Boeing orders only): The Seller is required to maintain compliance with D1-4426. This document defines the approved sources for special processing, composite raw materials, composite products, designated fasteners and metallic raw materials. 9.11 The Seller shall control all inventory made for Amphenol PCD and/or its customer. Any material /product that is in excess of contract quantity shall be protected, treated as proprietary and kept from being sold or provided to any third party without prior written authorization from Amphenol PCD or its customer. 10.0 Supplier Performance Management 10.1 Key Supplier Performance Assessment (Report Cards) will be conducted by APCD monthly and distributed to suppliers quarterly as a minimum. The Operations Manager or its designate, is responsible for gathering, analyzing, and distributing the data for on time delivery and quality attributes. 10.2 APCD will develop, and maintain, a tiered supply based surveillance program based on risk that will take into account key high volume suppliers and key critical part suppliers. 10.3 Poor Key Supplier Performance for key suppliers that have a rolling year average performance rating under 80% will face the following actions: 10.4 The supplier will be issued a Supplier Corrective Action Request (SCAR) which will require the supplier to develop a recovery plan using Root Cause, Preventive Action and Verification Action. 10.5 The supplier may be placed on a probation list and its performance may be monitored jointly by APCD Purchasing and Quality departments. 10.6 Suppliers who remain on probation or are determined to be a Poor Key Supplier for a period of 4 months running may be considered for further action, i.e. remedial assistance or the formulation of an exit strategy. This excludes sister divisions in which APCD acts as a North American distributor. 11.0 Periodic Supplier Quality Audit 11.1 Amphenol may conduct on-site audits based on the number of SCAR findings or delivery rating performance calculated on an annual basis. 11.1.1 Zero findings or 90% OTD Audit may be required every three (3) years. 11.1.2 One finding or 80% OTD Audit may be required every two (2) years. 11.1.3 Two or more findings plus 70% OTD Audit may be required every year. 11.2 Supplier Quality Audit will be carried out by APCD Sourcing, Quality or Engineering. 11.3 The site audit will include local and overseas suppliers. 6 P a g e
11.4 If the site audit is not possible for overseas supplier due to cost factor, specification F-743 SQR will be e-mailed out for them to do their own selfassessment. Supplier will return the completed self-assessment to APCD. If there is any question on any portion of the self-assessment, APCD will contact the supplier for clarification. 11.5 Preliminary report consisting of observation (both positive and negative) will be sent to the supplier through e-mail after the audit is complete. Supplier will respond to these observations and address area of concerns and also strive to improve their process and areas of weaknesses. 11.6 A final evaluation status report consisting of Overall Supplier Evaluation Worksheet of Supplier quality rating survey will be sent to supplier. 12.0 APCD Owned Tooling /Fixtures 12.1 Tooling must be stored and protected from damage at all times. 12.2 Preventative maintenance should be performed regularly and records should be kept for two (2) years. 12.3 Each tooling or fixture should be marked APCD. 12.4 No changes shall be made to the tool or fixtures without prior written authorization. Authorization can come in the form of e-mail or Purchase Order. 13.0 Packaging and Labeling Requirements 13.1.1 Supplier shall ensure that the product is packaged sufficiently to avoid damage during transit and that it is received in good condition by APCD. 13.2 Bar coding requirements, if applicable, will be specified on the Purchase order. 13.3 The Amphenol part number, date/lot code and quantity should be labeled on the outside of the box or outside the plastic bag, whichever is used to store the product. 13.4 Here are the documents that should be included with any delivery: 13.4.1 COC should include name and signature of the supplier Quality representative. 13.4.2 Material Test Reports (if requested on PO) 13.4.3 Packing List should include APCD PO Number, APCD Part Number, Quantity Shipped, Quantity Remaining and Date/Lot Code. 13.4.4 Commercial Invoice (if applicable) 13.4.5 Inspection Records (if requested on PO) 7 P a g e