Supplier Quality Manual
Proform Group Inc. Introduction Proform Group Inc. has developed this manual to ensure that our requirements are clearly communicated to our Suppliers. This manual is sent to all Critical Suppliers. Any updates to this manual will be sent to all Critical Suppliers. It is the responsibility of the Supplier to ensure that all information supplied in this manual is communicated to all appropriate personnel within their organization. (This includes, but is not limited to, the Supplier s Quality Dept., Purchasing Dept. and the Sales Dept.) The information supplied in this manual is for the Supplier s use only and is considered confidential. Any questions or further information that is required should be directed to Proform s Operation Manager or Quality Manager. either
Supplier Responsibilities & Requirements Proform Group Inc. is dedicated to complete customer satisfaction by on-time delivery, competitive pricing and the highest quality. Proform requires all products received from the Supplier to meet the Quality requirements outlined in this manual along with 100% on-time delivery. All Critical Suppliers are required to: Have 100% on-time delivery Have lot traceability Comply with the use of FIFO (First in First Out) Ensure that all product used in the manufacturing of purchased product complies with environmental and regulatory requirements. Submit MSDS (Material Safety Data Sheets) for all coating materials, chemicals or substances shipped to Proform or used on product shipped to Proform. Permit Proform and/or Proform s customer access to the supplier facility at any time to verify manufacturing methods of purchased product. Submit Product Certification (Certificate of Analysis, etc.) Implement a documented disaster recovery plan in case of fire, tornado, etc. Submit all pricing (on new quotes) for at least one year firm with continuous improvement in place to insure future cost containment. Label, count and package all parts as required by Proform. Maintain a system that is compliant to or certified to ISO9000:2000. Work toward a Preferred Supplier status. Notify Proform of ANY process changes. Provide technical support for all products supplied to Proform. Provide an immediate response to all defect or quality issues. Respond to all CARs (Corrective Action Request) within 15 days. Be responsible for all charges (including expedited freight) incurred due to the Supplier being behind or due to defective product. Proform Operations Mgr. Proform Quality Manager Yohan Jativa Ramanan Moorthy
Table of Contents 1. Company Profile 2. Quality / Supplier Development 3. Inventory, Scheduling & Delivery 4. Quoting Information 5. Supplier Rating Process 6. Product Requirements
Proform Group Inc. Quality Policy Statement It is the policy of Proform Group Inc. to provide dependable, high quality products that will meet or exceed the expectations of our customers. Our goal of customer satisfaction shall be achieved through the application of our guiding principles and the continual improvement of our products and processes.
Company Description Proform Group Inc. is a privately held company and has 2 facilities in Ohio and Oklahoma. We are a Tier 1 supplier to Heavy Truck, Military, School Bus and Automotive Industries. We are a recipient of the 2006, 2007, 2008 & 2009 Diamond Supplier Award from Navistar. We are a leading manufacturer of Fuel Tanks, Battery Boxes and related assemblies and components including Air Tanks for commercial and military vehicles and school buses. Other products include mounting supports, fuel straps assemblies and crash cages. Our range of products include Steel, Military & Aluminum Round, D, Rectangular and Square fuel tanks ranging from 60 gallons to 120 gallons. Proform Group Inc. specializes in: MIG Weldment TIG Weldment Bolted on Assemblies Automated Robotics Lathe & Seam Welding Polishing / Etching In-house Powder Coat Line In-house Chemical Etch Line Line and Product Sequencing
Contacts President & CEO: Richard Cocq CFO: Blake Lyon Operations Manager: Yohan Jativa Quality Assurance Manager: Ramanan Moorthy Plant Profiles: Proform Ohio Assembles Class A aluminum panels, Battery Box assemblies, Fuel Tank Assemblies, Fuel Tank Straps, Step Assemblies Break & Clutch Pedals, Cross-Members, Painted and Chromated Bumper. 85,000 square feet of assembly and warehousing for 6 automated CNC drilling & riveting machine, MIG welded assemblies. This plant has been in operation since 2002. Proform Oklahoma Produces Fuel Tanks, Fuel Tank Straps, Battery Box components and Fuel Tank cages. This plant also assembles Battery Boxes, Fuel Tank Straps, School Bus Tank Modules. 125,000 square feet of manufacturing and assembly through robotic and CNC MIG welding, seam welding, resistance welding, powder coating, chemical etching, polishing and stamping and rolling processes.
Proform Group Inc. Quality / Supplier Development Supplier Process Approval The Supplier is required to submit to Proform Group Inc. in writing a request for process change PRIOR to making any changes. Changes include, but are not limited to: Change in Manufacturing Location, Material / Design Change, Chemical Change and Packaging Changes. If it is unclear on whether a change is considered a process change, Proform should be notified. The supplier should allow 30 days for approval regarding the requested change and may not make the requested change until Proform has granted approval in writing. Any expenses occurred for making unapproved changes without approval from Proform, will be the responsibility of the supplier. P-Pap Approval The Supplier is required to provide a P-pap submission along with the estimated arrival date to the Proform Quality Department PRIOR to shipping any new product. This P-pap submission shall include the following unless otherwise requested: Part Submission Warrant, Material Certification, Dimensional Results, Blueprints, Process Flow Diagram, Control Plan and PFMEA. Nonconforming Product Proform Group Inc. believes that Proform is unable to continuously strive for zero defects without the support of our suppliers. Proform believes that in order to achieve this goal, defect free purchased product must be used. However, when it becomes necessary to sort defective product, it is expected that the Supplier either: A.) Send personnel to sort the defective product. (A temporary workforce may be used with the supervision of personnel from the supplier.) -OR- B.)Send certified product to replace the defective stock with the defective product being shipped back to the supplier. If time does not permit, Proform will sort the product. This will be charged to the supplier at a rate of $35.00 per hour / person. All costs associated with defective product are the responsibility of the supplier. (Freight costs, expedite charges, etc.) When it becomes necessary for a supplier to sort product at Proform s facility, the sort personnel must comply all safety and PPE (Personal Protective Equipment) requirements. Please ask for a list of the requirements prior to sending a representative to Proform. The following charge backs will be assessed for all returned material or defective product: $350.00 Quality Administration Fee $150.00 RMA Charge backs
Proform Group Inc. Scheduling and Delivery All purchased product is ordered by the Operations Manager or designee. The Operations Manager or designee will release a Purchase Order which will include the following information: - Product Needed - Quantity Needed - Date the Product is Needed - Any other relevant information This purchase can be forwarded to the supplier via fax, e-mail or mail. The Operations Manager or designee may call the supplier with a verbal approval to release product prior to completion of the Purchase Order. Product delivered to Proform Group Inc. is required to ship in a manner to ensure receipt of the product on the due date listed on the Purchase Order. Product may not be shipped any earlier than 1 day prior to the due date. It is expected that supplier immediately contact the Operations Manager or designee if the supplier cannot meet the date requested by Proform. The supplier must also communicate a recovery plan to the Operations Manager or designee to indicate how and when the product ordered may be received. Proform Group Inc. Quoting Information Suppliers to Proform Group Inc. will be asked to quote items for current or potential business. It is critical that the information received by Proform contains all of the information and that it is accurate. The following information should be contained with every quote: - Part Description and Proform Part #. - Estimated Annual Quantities Quoted. - Price of material, service or process. - Possibility of any other charges (surcharges, set-up charges, etc.) - Type of service quoted. - Packaging costs, if applicable. - Purchased Parts must have part weight on every quote. - Freight costs. - Price should be firm for one year or length of proposed contract
Proform Group Inc. Selection and Evaluation of Suppliers When a new product is needed, current suppliers are evaluated to determine which suppliers have the ability to supply the product. An RFQ (Request for Quote) will be requested from all relevant suppliers. Supplier Performance will be reviewed along with the RFQ when sourcing the product. Once a supplier has been selected, the supplier will be notified that an award of the product has been placed. Supplier Performance: All critical suppliers to Proform Group Inc. are evaluated quarterly. Quality, delivery and cost improvements are evaluated. Suppliers are scored on a scale from 0-100 with 100 being the best score. Rating Levels: Preferred Supplier Rating = 100-91 Approved Supplier Rating = 90 71 Needs Improvement Rating = 70-0 Delivery is evaluated by tracking on-time delivery of each shipment received by Proform Group Inc.. This is evaluated by tracking the number of days the shipment is late, early or on-time. (40 points) - 100 95% On-Time = 40-94 80% On-Time = 30-79 60% On-Time = 20-59 40% On-Time = 10-39% or less On-Time - 0 Quality is evaluated by defective parts shipped. (40 points) - 0 25 = 40-26 75 = 30-76-150 = 20-151-250 = 10 - >250 = 0 ISO 9000 / TS-16949 Each supplier that is either ISO 9000 or TS-16949 certified will receive 10 point. If the supplier is not yet certified, but submits an action plan and planned certification date the supplier will receive 5 points for this category. (10 points)
Cost Improvement Measured on % of Quarterly Sales. (10 points) - 5% and above = 10-4% and above = 8-3% and above = 6-2% and above = 4-1% and above = 2-0% = 0 Proform Group Inc. Product Requirements Incoming Paperwork A Packing Slip is required to ship with all product received by Proform Group Inc. The packing slip must include: - The product contained. - The quantity of product shipped. Incoming Bins & Containers All incoming bins and containers must contain the following information to ensure that product is properly received by the Receiving Department at Proform Group Inc.: - Proform s part number - Part Description - Quantity