supplier manualgo.key.net/rs/key/images/supplier%20manual%201%202.pdf · 2012. 6. 1. · 150 avery...

Key Technology Supplier Manual 1.2 Revised: June 1, 2012

SUPPLIER MANUAL

Key Technology, Inc. 150 Avery Street Walla Walla, WA 99362 +1 (509) 529-2161

Key Technology Supplier Manual 1.2 1 Revised: June 1, 2012

Key Technology Supplier Manual

1. Introduction 1.1 Scope 1.2 Exceptions 1.3 Required References

2. Key Technology Guiding Principles 3. Supplier/Customer Partnership

3.1 Preferred Suppliers 3.2 Supplier Code of Conduct 3.3 Supplier Selection 3.4 Product Design 3.5 Key Technology Assets/Property 3.6 End Of Life Issues 3.7 Supplier Chargeback Guidelines 3.8 Nonconformance Found at Key Technology and Corrective Action 3.9 Returned Nonconforming Product

4. Quality and Delivery Requirements 4.1 Quality Requirements 4.2 Delivery Requirements 4.3 Sub-Supplier Management 4.4 Workmanship

5. Supplier Performance Rating 5.1 Supplier Report Card 5.2 Unacceptable Status 5.3 Unplanned Supplier Business Review Meetings 5.4 Supplier Development

6. Identification, Packaging, and Traceability 6.1 Identification 6.2 Packaging 6.3 Traceability 6.4 Country of Origin 6.5 United States Free Trade Agreements 6.6 International Suppliers 6.7 Safety, Environment, and Hazardous Materials

7. Nonconformance and Deviation 8. Continuous Improvement/Cost Reduction 9. First Article Requirements and Notification

9.1 First Article Sample Submission 9.2 First Article Documentation Requirements 9.3 Notification Requirements 9.4 Submission Requirements 9.5 Advanced Quality Planning

10. Confidentiality 11. Revision History


Appendix A: Supplier Request for Approval (SRA) – Revised December 30, 2011 Appendix B: Part Submission Approval (PSA) – Released May 23, 2011 Appendix C: Corrective Action Report (CAR) - Released May 23, 2011 Appendix D: Workmanship Requirements - Released May 23, 2011 Appendix E: Traceability Requirements - Released May 23, 2011 Appendix F: Supplier Code of Conduct - Released December 30, 2011 Appendix G: Supplier Quality Management System Audit - Released June 1, 2012


1. Introduction This manual outlines Key Technology’s expectations for products and services purchased from suppliers. Additional requirements outside of this standard would include Engineering drawings, Key Technology procedures, and Purchase Order Terms and Conditions. By conducting business with Key Technology, you are acknowledging that you have reviewed and accepted the conditions stated in this manual. All commitments for products and services are communicated to suppliers through Purchase Orders, which include by reference Key Technology Purchase Order Terms and Conditions. 1.1 Scope This Supplier Manual applies to suppliers to Key Technology supplying materials, components, or services that become a part of the finished product, and are manufactured to Key Technology prints or specifications. The manual excludes MRO suppliers and suppliers of off-the-shelf components, unless specifically indicated on the PO that compliance is required. 1.2 Exceptions Conformance with these requirements may only be waived in writing through Key Technology Purchasing and Quality Assurance Management using the Supplier Request for Approval (SRA) form (Appendix A). 1.3 Required References At times Key Technology may reference industrial or International references that are required. These could be specifications, procedures, etc. that may have to be purchased by the supplier from third party document sources.


2. Key Technology Guiding Principles Vision To be the ULTIMATE partner of choice. Mission We are one team committed to adding value to our customers’ business by delivering the most innovative and trusted process improvement solutions in the world. WE ARE COMMITTED TO:

• conducting business with integrity and respect • focusing on food and other select markets • continuously improving the yield, quality, safety, and affordability of our customers’ products • collaborating with our customers to solve their complex challenges • providing and environment for our employees to grow, develop and win • achieving sustained profitability and shareholder value

Core Values Integrity Trust Speed and Agility · Transparency · Empowerment · Decisiveness/Execution · Courage to express · Respect/Courtesy · Effective decision-making convictions · Honesty/Loyalty · Sense of urgency · Accountability · Confront reality/Talk straight · Discipline/Focus · Consistency · Authenticity · Risking to win Collaboration Innovation Fulfillment · Teamwork · Creativity · Recognition · Listening/understanding · Value-add/Differentiation · Employee growth/ facts/purpose · Embrace change Development · Winning spirit/Resilience · Market needs to customer · Winning (Employees/ · Needs to goals to solutions Customers/Shareholders) commitments to results · Disruptive/Industry changing · Key Pride · Voice of the Customer · Fun Quality Policy Commitment to Quality Improvement is Our Promise to Key’s Customers. Key Technology Purchasing Philosophy Quality, Delivery, Service, Value, and Responsiveness are the criteria by which we measure our suppliers as we strive to fulfill our customers’ expectations.


Key Technology actively seeks out competitive suppliers to enhance our ability to manufacture, have a global footprint, and help us to provide timely solutions to our customers. The Key Technology Purchasing department manages all aspects of the supply chain. The choice of suppliers may be the result of investigation and deliberation amongst various departments within Key Technology.


3. Supplier/Customer Partnership 3.1 Preferred Suppliers In an effort to establish a basis for these relationships, Key Technology will seek suppliers that strive to achieve the following:

• Continual improvement and zero nonconformances in all aspects of the business. • Take full responsibility for problems if they occur as a result of defective product being shipped

to Key Technology. • Ship product 100% on time and defect free. • Work with and fully support Key Technology in our customer relationships. • Comply with the requirements set forth herein and other appropriate specifications. • React with a sense of urgency when these expectations are not met. Take immediate steps to

resolve deficiencies to prevent their recurrence within the time allocated by Key Technology. • Proactively communicate with Key Technology, especially regarding all changes including but

not limited to schedules and services. • Request approval in writing from Key Technology prior to any material substitutions, process,

and/or product changes. • Act in an open and ethical manner, and treat Key Technology with trust through all

communications. • Maintain confidentiality of all communication and information exchanges, including but not

limited to prints, specifications, samples, applications, and software. • Apply world-class manufacturing processes like Lean Manufacturing or TPS. • Support cost reduction requests from Key Technology. Provide cost effective solutions. • Provide expert knowledge of product and manufacturing processes.

3.2 Supplier Code of Conduct At Key Technology, we have always set high standards for the way we conduct business - in areas from corporate and social responsibility to sound business ethics, including compliance with all applicable laws and regulations. In turn, we expect the same commitment from our suppliers. All Suppliers are required to comply with the Key Technology Supplier Code of Conduct (Appendix F). 3.3 Supplier Selection Key Technology determines the methods for assessment and how additions are made to the supplier base. An assessment can be performed by one or more of the following:

• Submission of an ISO 9001 or similar Quality Management System certification. • Completion of a Key Technology quality survey – Appendix G. • An onsite audit of a supplier’s QMS by a Key Technology representative. • Grandfathered based on past history (prior to 5/23/11).

To become an approved supplier, the supplier must first exhibit evidence of a functioning Quality Management System (QMS) that gives the assurance of a commitment to quality and to continuing improvement. The supplier’s current policies and procedures shall be available for Key Technology to review upon request.


3.4 Product Design When suppliers are designated as design responsible, initial designs and design changes shall have Key Technology’s written approval prior to introduction into the manufacturing process. Supplier shall request approval using the Supplier Request for Approval (SRA). 3.5 Key Technology Assets/Property When Key Technology assets/property are furnished to the supplier, supplier shall establish and maintain controls to ensure that the assets/property are inspected, properly maintained, uniquely identified, safeguarded, and that damage and/or discrepancies are reported to Key Technology immediately upon finding.

Note: Key Technology assets/property can include intellectual property and personal data. 3.6 End Of Life Issues The supplier is expected to notify Key Technology promptly when they become aware of products that may be reaching the end of their availability and that could affect ongoing supply to Key Technology. 3.7 Supplier Chargeback Guidelines Receipt of nonconforming material/product at Key Technology may result in a chargeback to the supplier on a fair and equitable basis.

• The supplier will be notified in advance of any potential charges and will be provided the opportunity to replace, sort, or rework their material/product to address the nonconformance. If time is a factor, Key Technology may need to sort or rework to avoid missing a customer shipment. In either case, any charges will be negotiated and agreed to by the supplier prior to costs being incurred.

Note: Examples of what may constitute a chargeback typically include, but are not limited to, reworking product at the customer’s location, rework/sorting at Key Technology, rework/sorting via a third party, scrap, and shipping/handling fees (including premium shipment).

3.8 Nonconformance Found at Key Technology and Corrective Action If a nonconformance is detected at Key Technology, product will be quarantined and dispositioned. If the product is determined by Key Technology to not be usable, it may be dispositioned to return to the supplier. Key Technology will notify the supplier of the nonconformance and request return material authorization (RMA). The supplier is responsible for responding to the RMA request within 5 working days. Appropriate responses include issuing an RMA, disputing the nonconformance, or making other arrangements for disposition. After disposition of the product, a formal Corrective Action Request (CAR – Appendix C) may be issued through the Key Technology Quality Assurance department.


• Upon receipt of the CAR the supplier is responsible for formally responding to Key Technology. o A response through D3 – Implement and Verify Interim (Containment) Actions is

required within 3 days, and o A completed CAR is required within a 14 day period unless otherwise agreed by the Key

Technology issuing Quality Assurance department. • In all situations where there are deficiencies and/or defects the supplier is to implement

immediate corrective action to contain and permanently correct the problem. Suppliers to Key Technology are expected to implement and support a system of structured problem solving. Suppliers are welcome to use their systems or the Key Technology system as long as a cross-functional team is able to identify the root cause of a problem and implement permanent corrective actions. Root cause analysis and corrective actions shall address both the process failure (why made) and the detection failure (why shipped). Suppliers should evaluate the effectiveness of the corrective actions for long-term system support within their company. 3.9 Returned Nonconforming Product The supplier shall have a system for review and analysis of returned nonconforming product. The system shall allow for documentation of the findings including root cause, corrective action, and verification, and shall be made available to Key Technology when requested. Nonconforming material includes all products that fail to meet all agreed requirements, whether found at incoming inspection, during production at Key Technology, or at Key Technology’s customer, and includes those items that fail prematurely in use.


4. Quality and Delivery Requirements 4.1 Quality Requirements Suppliers are expected to provide products, processes, and services that meet Key Technology’s requirements and are defect free. Key Technology’s requirements are specified in Purchase Orders, product specifications, engineering drawings, referenced documents, etc. It is expected that all requirements (e.g., dimensions on prints, material properties, functional properties, performance) will be in conformance on every item. In addition:

• A quality representative shall be assigned by the supplier to interface with Key Technology to resolve quality-related issues.

• Supplier shall review item requirements prior to production and submit a Supplier Request for Approval (SRA) to the Key Technology Buyer if any specifications cannot be met.

• Have a documentation control process that ensures items are built to the revision specified on the Key Technology Purchase Order.

Suppliers who manufacture material for Key Technology to our drawings and/or purchase specification for sale to our customers must comply with additional requirements:

• In all cases, the supplier will complete inspection using an agreed final quality checksheet. • In some cases, Key Technology Quality Assurance will travel to the supplier site to verify the

supplier inspection. • If Key Technology inspects the product at its facility, the supplier will include the original final

quality checksheet with the shipment of the product. • If the supplier is authorized to ship direct to Key Technology’s customers, the supplier will

provide an electronic copy of the completed final quality checksheet to Key Technology Quality Assurance prior to shipment.

Note: Authorization to ship direct to Key Technology’s customers must be in writing from Key Technology.

4.2 Delivery Requirements It is extremely important that the supplier adhere to the required delivery schedule to allow Key Technology to provide finished product to our customers by the scheduled due date.

• 100% on time delivery is defined as 0 days late and up to 2 weeks early. • For shipments received too early without prior approval the shipment may be received but

payment to the supplier may be delayed. • The Key Technology Purchasing department is to be notified as far in advance as possible if

there is the potential of a late delivery.


4.3 Sub-Supplier Management Each Key Technology supplier is also responsible for the control and continuous improvement efforts of its suppliers. Sub-suppliers that furnish production goods and services are expected to implement and document appropriate controls. On a periodic basis, the supplier should review sub-supplier controls, quality management systems, and improvement plans. Key Technology reserves the right to visit sub-suppliers in conjunction and agreement with the supplier. 4.4 Workmanship All finished surfaces shall be protected against foreign material and damage during manufacture and storage prior to delivery. Material shall not be treated or touched up in any manner to conceal defects and shall be free from defects which adversely affect the safety, function, performance, serviceability, interchangeability, appearance or longevity of the item. Unless otherwise allowed per the drawing, finished items shall not have the following conditions: delaminations, cracks, voids, extraneous material, visible irregularities, sharp edges and corners. Evidence of poor workmanship include the following: scratches in excess of drawing and specification requirements, burrs, nicks, corrosion and non-specified oxidation (rust), tool scores, gouges, deformations, missing operations, improper assembly, missing units, stains, knife edges, extraneous material, and missing or damaged protective finish. Protective finish and/or coating shall be visually examined for completeness, uniformity in appearance and color, and for freedom from pits, corrosion, scratches, and worn or bare spots. Touch up may be used with the approval of Key Technology, in lieu of refinishing with the original finish, for restoration of small areas of finish as long as form, fit, and function are not affected. Workmanship requirements for specific items are contained in Appendix D.


5. Supplier Performance Rating Based on the level of business with Key Technology suppliers may be selected for evaluation. The evaluation will address quality, delivery performance, and service. The Supplier Performance evaluation will be scheduled in advance. 5.1 Supplier Report Card Suppliers are evaluated in multiple categories, including on-time delivery, order accuracy, service and support, product quality, and price, and the individual category scores are weighted and summed to calculate the supplier’s score. The overall supplier rating is based on the final score, with suppliers rated as Good Standing, Issues to Resolve, or Unacceptable. 5.2 Unacceptable Status Suppliers with an unacceptable status will need to show quarter over quarter improvement and provide a formal agreed upon improvement plan. If by the next scheduled performance evaluation sufficient improvements have not been made, Key Technology may stop placing new orders, place existing orders on hold, or both. 5.3 Unplanned Supplier Business Review Meetings Suppliers not given routine evaluations may still be asked to meet with individuals from Key Technology if there are continual issues that are impeding shipments to our customers. The goal will be to address the issue to provide effective closure. The unsatisfactory performance may involve:

• Overall Quality Performance • Delivery Performance • Poor Responsiveness • Corrective Action analysis/response • Recurring Issues • Rejected/Late First Article Submissions

5.4 Supplier Development Key Technology will be afforded the right to assist the supplier in development of their systems and/or processes when:

• The performance level of the supplier falls below an expected level • The supplier requests assistance in the development of systems • Key Technology requirements are not being met

Whenever Key Technology deems it necessary to develop a supplier, an action plan is initiated by Key Technology and is communicated to the supplier. The supplier is responsible for providing the necessary resources for successful completion of the action plan.


6. Identification, Packaging, and Traceability 6.1 Identification Each individual skid (or package on a mixed pallet) is to be clearly identified. Labels should be used that clearly identify the product and include at a minimum the following information in a legible condition:

• Supplier Name • Part Number • Purchase Order Number • Part Name or Description • Manufacturing location (if multiple

locations exist) • Manufacturing Date or Lot Number • Quantity

6.2 Packaging The packaging must be of adequate strength for the weight of the product and protect it from damage during transit and storage while maintaining the integrity of the product. Packaging shall protect from:

• Moisture • Contamination • Warp • Crushing • Scratching, marring, or other visual defects • ESD Protection (where applicable)

6.3 Traceability Where required, suppliers shall establish and maintain a system to provide traceability and identification for their final product, as well as through all stages of their production and delivery. Where required by Key Technology engineering specifications or purchase orders, individual units must be serialized and traceable per Appendix E. 6.4 Country of Origin Every article of foreign origin entering the United States must be legibly marked with the English name of the country of origin unless an exception from marking is provided for by law. 6.5 United States Free Trade Agreements Trade agreements are a tool for promoting fair competition and encouraging foreign governments to adopt open and transparent rulemaking procedures as well as non-discriminatory laws and regulations. The United States is party to many bi-lateral and multi-lateral trade agreements. Countries with which the U.S. has active bi-lateral trade agreements include: Australia, Bahrain, Chile, Israel, Jordan, Morocco, Peru, Oman, and Singapore. The active multi-lateral trade agreements that the U.S. has signed include the North American Free-Trade Agreement and the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). The U.S. is also party to the General Agreement on Tariffs and Trade (GATT, overseen by the WTO) along with 152 other countries. U.S. trade agreements with Panama, Korea, and Colombia are pending congressional approval.


6.6 International Suppliers The following are the minimum requirements for international shipments:

1. The Packing Slip shall contain, at a minimum, the following: • Key Technology purchase order number • Part number • Description • Quantity per line item • What box number each line item is in • Total number of boxes in shipment • Dimensions of shipment • Final delivery address The packing slip shall be put inside the crate and the crate marked on the outside saying packing slip enclosed.

2. The Commercial Invoice shall contain, at a minimum, the following:

• Key Technology purchase order number • Part number • Description • Quantity per line item • Unit price and extended price on each line • Total value of shipment • Country of origin • HTSUS to the 8th or 10th digit1 • Terms of Sale

3. Is shipment from a GSP eligible country?

• Yes • No

4. Is shipment GSP Eligible?

• Will merchandise be shipped directly from the supplier in the GSP eligible country to the

United States? • Is merchandise manufactured completely of materials from such GSP eligible country? • If third country components are used, is at least 35% value added in the GSP eligible

country?

1 HTSUS = Harmonized Tariff System United States. See US trade commission web-site for assistance in obtaining or verifying any tariff code for any commodity to be imported to US customs territory. The items listed in 1 and 2 above must be obtained or release of shipments could be delayed by Customs and possibly rejected. Reference http://hts.usitc.gov/

http://hts.usitc.gov/

http://hts.usitc.gov/


6.7 Safety, Environment, and Hazardous Materials Key Technology suppliers should ensure that all production and manufacturing processes are carried out in conditions that have proper and adequate considerations for the health and safety of those involved. Key Technology will not do business with any supplier that provides an unhealthy or hazardous environment, or which utilizes mental or physical disciplinary practices. Suppliers are to ensure that all materials and products being supplied to Key Technology satisfy current government and safety constraints on restricted, toxic, environmental, and hazardous materials. Any special requirements will be defined in the Key Technology purchase order or contract documentation. Material Safety Data Sheets (MSDS) must accompany all initial shipments of any materials which contain toxic and/or hazardous materials and are to be routinely updated. All containers of hazardous products must be clearly labeled. Hazardous chemicals are defined as any element, chemical compound, or mixture of elements and/or compounds that may pose a health or physical hazard.


7. Nonconformance and Deviation When a nonconformance is detected at the supplier’s location, the supplier must determine the extent of the problem and take prompt action to correct the condition while preventing shipment of any nonconforming product to Key Technology. The supplier must immediately notify Key Technology of any suspected quality problems in transit or already received at a Key Technology facility. In the event that the supplier believes that the deviation from stated requirements will not affect form, fit, or function at Key Technology or Key Technology’s customer, the supplier may submit a written request for temporary deviation before the product is shipped. The Supplier Request for Approval (SRA) is to be submitted to the Key Technology Buyer issuing the purchase order for approval.

Note: The supplier should include a copy of their internal nonconformance documentation when submitting the SRA.

If Key Technology Engineering and Quality Assurance determine the product is usable and required for immediate delivery, Key Technology will provide written approval of the temporary deviation. If approval is not granted, the supplier must initiate their internal nonconformance procedures to ensure that the product is not released.

Note: The supplier may be required to provide formal corrective action outlining the steps that have been taken to prevent a reoccurrence of the problem.

Upon receipt of an approved deviation, all containers of deviated product must be clearly labeled with the deviation number, stated on the approved SRA form.


8. Continuous Improvement/Cost Reduction Key Technology will work proactively with its supply base to support cost reduction implementation, but expects its suppliers to take the initiative in establishing projects that will generate cost savings. Suppliers will be expected to participate in formal cost reduction reviews as required by Key Technology. Areas for cost reduction may include, but are not limited to:

• Manufacturing costs • Quality costs • Delivery costs • Purchasing costs • Overhead costs

Note: Supplier cost reduction goals may be established through the Key Technology Purchasing department on an annual basis.


9. First Article Requirements and Notification 9.1 First Article Sample Submission Sample submissions, if required, will be requested through a purchase order. The purpose of first article samples is to confirm that all drawing and specification requirements are met, and that the processes are capable of producing the product to specification. The first article samples must be approved in writing prior to volume shipments of production products. When sample submission is required, the supplier will be required to submit representative samples from production with a first article documentation package. Any samples being submitted are to be packaged in the production packaging unless written authorization is received from the Key Technology Purchasing department, and are to be clearly identified with the following information, in addition to that information required of all product by section 7.1:

• “FIRST ARTICLE PRODUCT” • Name of sample recipient

9.2 First Article Documentation Requirements When required to submit for first article approval, the supplier shall provide, as appropriate and agreed upon:

• Design record. Where the design record is in electronic format, the supplier shall produce a hard copy to identify measurements taken.

• Authorized Engineering Change documents. When applicable, changes that have been incorporated into the product but not yet recorded in the design record (e.g., red-lined prints).

• Process Flow Diagram(s). The supplier shall provide a process flow diagram, or diagrams, that clearly describes the production process steps and sequence, as appropriate.

• Process Failure Mode and Effects Analysis (PFMEA). A PFMEA is not required unless specified on the purchase order, but its use is encouraged to help prevent problems and to document the collective knowledge of cross-functional teams.

• Control Plan. The supplier shall provide a Control Plan that defines all methods used for process control. Control Plan approval may be required for certain products. The Control Plan is a written description of the systems used for controlling production parts and processes. The Control Plan is a living document and should be updated to reflect the addition or deletion of controls based on experience gained with production parts.

• Dimensional Results. The supplier shall provide evidence that dimensional verifications required by the design record and the Control Plan have been completed and results indicate compliance with specified requirements.

• Records of Material /Performance Tests Results. Where material or performance tests are required by the Design Record or Control Plan, the supplier shall perform tests and have evidence of compliance for all parts and product materials.

• Part Submission Approval (PSA). Upon completion of all First Article requirements, the supplier shall complete the Part Submission Approval (PSA – Appendix B).


9.3 Notification Requirements The supplier shall notify the Key Technology Buyer of any planned changes to the design, process, or manufacturing site using the Supplier Request for Approval (SRA). Upon notification and approval of the change by Key Technology, and after change implementation but in advance of first production shipments, the supplier shall resubmit for first article approval as indicated on the SRA. Examples of changes requiring notification:

• Item form, fit, or function • Engineering changes • Change in critical sub-supplier or material source • Site of Manufacturer • Manufacturing processes • Change in material or components

9.4 Submission Requirements The submission level will be included on the purchase order or on the Supplier Request for Approval (SRA). The supplier shall submit the items and/or records as specified below:

• Level 1: PSA only, or PSA and supporting data deemed necessary by Key Technology. • Level 3: PSA with product samples and complete supporting data submitted to Key Technology. • Level 5: PSA with product samples and complete supporting data reviewed at the supplier’s

manufacturing location.

Note: First article records, regardless of submission level, shall be maintained by the supplier for a minimum of three (3) years.

9.5 Advanced Quality Planning Suppliers are encouraged to use a cross-functional team approach when preparing for production of a new product for Key Technology. This team approach should include:

• Development of Process Flow Diagrams • Development of Process FMEA’s • Development of Control Plans • Monitoring of Special Characteristics • Mistake Proofing • Actions to reduce the risk associated with potential failure modes


10. Confidentiality Suppliers shall not disclose to others or use for its own purposes any trade secrets, confidential information, designs, data, skills, or any other information derived by doing business with Key Technology. All communications, documents, and specifications from Key Technology are considered confidential. The supplier shall be further bound by its non-disclosure agreement with Key Technology.


11. Change History Version Release Date Changes 1.0 05/23/11 Original Release 1.1 12/30/11 1. Added Supplier Code of Conduct. Created new section 3.2 and Appendix

F. Incorporated some of section 3.1 into Supplier Code of Conduct. 2. Revised section 2 with updated company Vision 3. Revised Appendix A instructions to clarify bullets 11 and 19. 4. Updated section 4.1 for suppliers producing finished items that could be

directly shipped to Key Technology customers. 1.2 06/01/12 1. Revised dating of Appendices to reflect release and revision dates

independent of Manual 2. Revised section 3.3 to allow for submission of an ISO 9001 certification

or similar certification 3. Revised section 2 to reflect updated Vision & Mission. Re-ordered Vision

before Mission. Added Core Values 4. Renamed section 3.8 and revised to specify supplier responses for

nonconformances found at Key Technology. 5. Added Appendix G: Supplier Quality Management System Audit

Revised: December 30, 2011

Appendix A – Completion of the Supplier Request for Approval (SRA) Part Information

1. Key Part Name. Part name on engineering drawing or specification. 2. Part Number. Part number on engineering drawing or specification. 3. Revision Level. Revision level on engineering drawing or specification. 4. Shown on Drawing No. The design record that specifies the customer part number being

submitted. 5. Date of Request. Enter the current date. 6. Buyer. Enter the buyer’s name. 7. Requested by (Print). Printed name of the responsible supplier official 8. Requested by (Sign). Signature of the responsible supplier official.

Supplier Information

9. Supplier Name. Show the name assigned to the manufacturing site on the purchase order. 10. Street Address, City, Region, Postal Code, Country. Show the complete address of the location

where the product was manufactured. For “Region” enter state, county, province, etc. Request Identification

11. Type of Request. Check the appropriate box. If “Notice of Pending Change” is checked, also complete “Pending Change Type”. Note that “Deviation Request” must be checked if the supplier desires a one-time deviation to ship product that does not meet engineering specifications. If the supplier desires a permanent change to those specifications (whether requesting deviation or not), the “Engineering Change Request” box should be checked.

12. Pending Change Type. Check the appropriate box(es). 13. Cost Reduction. Check this box if the request will reduce cost. Include specifics in Justification. 14. Request Details. Describe in detail what is being requested (e.g., for a change of sub-supplier,

specific details of the new supplier). Attach additional sheets if needed. Provide sufficient detail that a decision on the request can be taken without additional communications.

15. Justification. Provide detailed justification for the change (e.g., for a change of sub-supplier, specific justification for the change – improved quality, better delivery, improved service, lower cost, etc.) sufficient to convince Key Technology management to approve the request.

Key Technology Response

16. Disposition. Determination by Key Technology to approve or deny the request. 17. Tracking Number. Unique number applicable to the request. 18. Key Technology management signatures approving the request. Note that only Purchasing

signature is required if the requested is denied. 19. Comments/Conditions. Detailed direction related to the request, dependent on the nature of

the request. Examples include a requirement to submit a CAR to prevent recurrence, requirement to submit for First Article Approval including what level of submission is required, ECO Number if approving an Engineering Change Request, or the duration the deviation is approved for.

SRA - May 2011

Supplier Request for ApprovalKey Part Name Date of Request

Part Number Buyer

Revision Level Requested by (Print)

Shown on Drawing No. Requested by (Sign)

SUPPLIER MANUFACTURING INFORMATION TYPE OF REQUEST

Notice of Pending ChangeSupplier Name

Engineering Change RequestStreet Address

Deviation RequestCity Region Postal Code Country

PENDING CHANGE TYPE

Engineering Change(s) Sub-Supplier or Material Source ChangeTooling: Transfer, Replacement, Refurbishment, or additional Change in Part processingChange to Optional Construction or Material Parts Produced at Alternate Location

REQUEST DETAILS

JUSTIFICATION

DISPOSITION DENIED APPROVED Tracking Number:

Purchasing Quality Engineering

COMMENTS/ CONDITIONS

COST REDUCTION

FOR KEY TECHNOLOGY USE ONLY

1

2

11

3

4

9

10

5

6

7

8

14

12

16

15

17

18

19

13

SRA - May 2011

Supplier Request for ApprovalKey Part Name Date of Request

Part Number Buyer

Revision Level Requested by (Print)

Shown on Drawing No. Requested by (Sign)

SUPPLIER MANUFACTURING INFORMATION TYPE OF REQUEST

Notice of Pending ChangeSupplier Name

Engineering Change RequestStreet Address

Deviation RequestCity Region Postal Code Country

PENDING CHANGE TYPE

Engineering Change(s) Sub-Supplier or Material Source ChangeTooling: Transfer, Replacement, Refurbishment, or additional Change in Part processingChange to Optional Construction or Material Parts Produced at Alternate Location

REQUEST DETAILS

JUSTIFICATION

DISPOSITION DENIED APPROVED Tracking Number:

Purchasing Quality Engineering

COMMENTS/ CONDITIONS

COST REDUCTION


Released: May 23, 2011

Appendix B – Completion of the Part Submission Approval (PSA) Part Information

1. Key Part Name. Part name on engineering drawing or specification. 2. Part Number. Part number on engineering drawing or specification. 3. Revision Level. Revision level on engineering drawing or specification. 4. Shown on Drawing No. The design record that specifies the customer part number being

submitted. 5. Purchase Order No. Enter this number as found on the Key Technology purchase order. 6. Buyer. Enter the buyer’s name. 7. SRA Number. Enter all Supplier Request for Approval (SRA) numbers applicable.

Supplier Information

8. Supplier Name. Show the name assigned to the manufacturing site on the purchase order. 9. Street Address, City, Region, Postal Code, Country. Show the complete address of the location

where the product was manufactured. For “Region” enter state, county, province, etc. Reason for Submission

10. Check the appropriate box(es). For bulk materials, in addition to checking the appropriate box, check “Other” and write “Bulk Material” in the space provided.

Key Requested Submission Level

11. Identify the submission level requested by Key Technology. Supplier Submission Results

12. Check the appropriate boxes for dimensional or material and functional tests 13. Check the appropriate box. If “no”, enter the explanation in “comments” below 14. Mold/Cavity/Production Process. If production parts will be produced from more than one

production process (e.g., line, cell, mold, or cavity in a multi-cavity tool) the supplier shall complete a dimensional evaluation on one part from each.

Declaration

15. Explanation/Comments. Provide any explanatory comments on the Submission Results or any deviations from the Declaration. Attach additional information as appropriate.

16. Supplier Authorized Signature. A responsible supplier official, after verifying that the results show conformance to all requirements and that all required documentation is available, shall sign and date the declaration and provide Title, Phone Number, Fax Number, and E-mail address.

PSW - May 2011

Part Submission ApprovalKey Part Name Purchase order No.

Part Number Buyer

Revision Level SRA Number

Shown on Drawing No.

SUPPLIER INFORMATION

Supplier Name

Street Address

City Region Postal Code Country

REASON FOR SUBMISSION (Check at least one)

Initial Submission Change to Optional Construction or MaterialEngineering Change(s) (ECO)#'s Sub-Supplier or Material Source ChangeTooling: Transfer, Replacement, Refurbishment, or additional Change in Part processingCorrection of Discrepancy Parts Produced at Alternate LocationOther - please specify

KEY REQUESTED SUBMISSION LEVEL (Check one)

Level 1 - PSA and supporting data (deemed necessary by Key Technology)

Level 3 - PSA with product samples and complete supporting data submitted to Key Technology

Level 5 - PSA with product samples and complete supporting data reviewed at the supplier's manufacturing location

SUPPLIER SUBMISSION RESULTS

The results for dimensional measurements material and functional testsThese results meet all drawing and specification requirements: Yes No (If "No" - Explanation Required)

Mold / Cavity / Production Process:

DECLARATION

I affirm that the samples represented by this PSA are representative of our parts and have been made to the applicable drawings and specifications.I also certify that documented evidence of such compliance is on file and available for review. I have noted any deviations from this declaration below.

EXPLANATION/COMMENTS:

Supplier Authorized Signature Date

Print Name Phone No. Fax No.

Title E-mail

Part Approval Disposition: Approved Rejected Other

Key Technology Name Key Technology Signature Date

Comments


1

11

2

3

4

10

9

8

6

5

12

13

14

15

16

7

PSW - May 2011

Part Submission ApprovalKey Part Name Purchase order No.

Part Number Buyer

Revision Level SRA Number

Shown on Drawing No.

SUPPLIER MANUFACTURING INFORMATION

Supplier Name

Street Address

City Region Postal Code Country

REASON FOR SUBMISSION (Check at least one)

Initial Submission Change to Optional Construction or MaterialEngineering Change(s) (ECO)#'s Sub-Supplier or Material Source ChangeTooling: Transfer, Replacement, Refurbishment, or additional Change in Part processingCorrection of Discrepancy Parts Produced at Alternate LocationOther - please specify

KEY REQUESTED SUBMISSION LEVEL (Check one)

Level 1 - PSA and supporting data (deemed necessary by Key Technology)

Level 3 - PSA with product samples and complete supporting data submitted to Key Technology

Level 5 - PSA with product samples and complete supporting data reviewed at the supplier's manufacturing location

SUPPLIER SUBMISSION RESULTS

The results for dimensional measurements material and functional testsThese results meet all drawing and specification requirements: Yes No (If "No" - Explanation Required)

Mold / Cavity / Production Process:

DECLARATION

I affirm that the samples represented by this PSA are representative of our parts and have been made to the applicable drawings and specifications.I also certify that documented evidence of such compliance is on file and available for review. I have noted any deviations from this declaration below.

EXPLANATION/COMMENTS:

Supplier Authorized Signature Date

Print Name Phone No. Fax No.

Title E-mail

Part Approval Disposition: Approved Rejected Other

Key Technology Name Key Technology Signature Date

Comments



Appendix C – Completion of the Corrective Action Report (CAR) CAR Identification (Completed by Key Technology)

1. Date Opened. From Key Technology generated CAR. 2. CAR Title. From Key Technology generated CAR and will be short summary describing the

issue. 3. Key CAR #. From Key Technology generated CAR #, ignoring the leading zeroes. 4. Part Number. The part number, from the Key Technology generated CAR. 5. Part Name. Description of the item associated with the Part Number. 6. Supplier Name. Supplier entity assigned responsibility for the CAR. 7. Buyer. Key Technology Buyer responsible for purchase orders on the part number 8. QE. Key Technology Quality Engineer responsible for working with the supplier on this CAR 9. Problem Description. Key Technology findings of nonconformity.

D1 – Use Team Approach (When Appropriate)

10. Team Leader. The leader ensures the group performs its duties and responsibilities. The leader is the spokesperson for the team, the day to day authority, and is responsible for overall coordination.

11. Title. Role of the Team Leader within the supplier’s organization 12. Phone. Phone number of the Team Leader, including country code. 13. Email. Email address of the Team Leader 14. Team Members. Cross-functional personnel assigned to resolve the problem.

D2 – Describe the Problem

15. Describe the Problem. Specify the customer problem by identifying in quantifiable terms the who, what, when, where, why, how, how many (5W2H) for the problem.

D3 – Implement Ongoing Containment

16. Implement and Verify Interim (Containment) Actions. Define and implement containment actions to isolate the effect of the problem from Key Technology until corrective action is implemented. Verify the effectiveness of the containment action.

D4 – Define and Verify Root Causes

Note: D4, D5, and D6 recognize that two failures occurred that resulted in Key Technology receiving defects. The first failure led to the defects being made at the supplier. The second failure led to the defects escaping the supplier’s quality system and being shipped to Key Technology.

17. Define and Verify Root Causes – Why Made (17a) and Why Shipped (17b). Identify all potential root causes which could explain why the problem was made and why the problem was shipped to Key Technology. Isolate and verify the root causes by testing each potential cause against the problem description and test data.

Released: May 23 2011

D5 – Choose and Implement Corrective Actions

18. Choose and Implement Corrective Actions – Why Made (18a) and Why Shipped (18b). Define and implement the best permanent corrective actions for why the problem was made and why the problem was shipped to Key Technology. Through preproduction tests quantitatively verify that the selected corrective actions eliminate the root causes and will not cause undesirable side-effects.

D6 – Validate the Effectiveness of the Corrective Actions

19. Validate the Effectiveness of the Corrective Actions – Why Made (19a) and Why Shipped (19b). Once in production, monitor the long-term effects and effectiveness of the corrective actions.

D7 – Prevent Recurrence

20. Prevent Recurrence. Modify the management systems, operating systems, practices, and procedures to prevent recurrence of this and all similar problems.

D8 – Closure

21. Team Leader. Sign and date. 22. Buyer. Key Technology Buyer sign and date. 23. QE. Key Technology Quality Engineer sign and date.

CAR - May 2011

Corrective Action ReportDate Opened: CAR Title (Description): Key CAR #:

Part Number: Part Name: Supplier Name: Buyer: QE:

ProblemDescription:

D1 - Use Team Approach Team Leader: Title: Phone: Email:

Team Members:

D2 - Describe the Problem

D3 -

D4 - Define and Verify Root Causes - Why Made D4 - Define and Verify Root Causes - Why Shipped

D5 - Choose and Implement Corrective Actions - Why Made D5 - Choose and Implement Corrective Actions - Why Shipped

D6 - Validate the Effectiveness of the Corrective Actions - Why Made D6 - Validate the Effectiveness of the Corrective Actions - Why Shipped

D7 - Prevent Recurrence

D8 - Closure Team Leader Buyer QE

Implement and Verify Interim (Containment)

Actions

1 2 3

4 5 6 7 8

9

10 11 12 13

14

15

16

17a 17b

18a 18b

19a 19b

20

21 22 23

CAR - May 2011

Corrective Action ReportDate Opened: CAR Title (Description): Key CAR #:

Part Number: Part Name: Supplier Name: Buyer: QE:

ProblemDescription:

D1 - Use Team Approach Team Leader: Title: Phone: Email:

Team Members:

D2 - Describe the Problem

D3 -

D4 - Define and Verify Root Causes - Why Made D4 - Define and Verify Root Causes - Why Shipped

D5 - Choose and Implement Corrective Actions - Why Made D5 - Choose and Implement Corrective Actions - Why Shipped

D6 - Validate the Effectiveness of the Corrective Actions - Why Made D6 - Validate the Effectiveness of the Corrective Actions - Why Shipped

D7 - Prevent Recurrence

D8 - Closure

Implement and Verify Interim (Containment)

Actions

Team Leader Buyer QE


Appendix D – Workmanship Requirements 1. Welding

All welds shall comply with Key Technology Visual Weld Inspection Standard, 06-02. Where designated by engineering drawings as being in the food contact zone, product shall also comply with the appropriate Key Technology Enhanced Sanitation Fabrication Standard.

- 06-13: Enhanced Sanitation Fabrication Standard for Vegetable, Meat, & Poultry Equipment - 06-53: Enhanced Fabrication Standard for Dairy & Dairy Related Equipment - 06-71: Fabrication Standard for Snack Food and Related Equipment - 06-95: Enhanced Sanitation Fabrication Standard

2. Electrical/Electronics

All electrical/electronics processes shall comply with Key Technology Electrical/Electronics Process Standard 7-0004, which specifically includes IPC-600, IPC-A-610, BS EN 60204-1, and UL508A.

3. Plated and Painted Products

A. General - The criteria provided in this section relates to visual appearance of parts which have been plated, painted, or both. Of major importance are those surfaces that will be highly visible on critical surfaces; somewhat less stringent requirements are imposed in other areas. Major Defect – The type of defect that: • Is clearly visible in an un-highlighted condition • Exposes bare metals or substrate surface • Exceeds stated criteria or other specific requirements • Is easily felt with a fingernail (dents or scratches) • Would leave a greater flaw if removed or reworked (inclusion) • Is non-uniform surface finish (shaded appearance) • Would cause corrosion, rust, peeling, delamination, etc. Minor Defect – The type of defect that: • Is clearly not visible in an un-highlighted condition or when assembled into an assembly • Barely felt with a fingernail • Tends to fade out or blend in with surrounding surface • Would be concealed during next process or assembly level Normal Viewing Plane: The normal viewing plane is defined as the view obtained when observing the assembled unit top, front, sides, and back exterior surfaces in a plane perpendicular to these surfaces. The part will not be rotated except to eliminate any glare from surrounding light that tends to produce a “highlighted” condition.


Light condition: 75 – 90 foot candles Viewing distance: These are appropriate based on the part in an installed position. Surface Class A: 18 inches Surface Class B: 36 inches Surface Class C: in excess of 36 inches not to exceed 72 inches Viewing Time All surfaces 10 seconds maximum

B. Surface Classification - Surfaces are grouped into three categories for inspection purposes: Class A – User's Primary Product Exterior: Doors, chassis skins, cabinet tops, rack mount flanges, control panels, exposed areas of cabinet frames; Any surface that is normally and immediately visible to the customer or end user while the product is being used in its normal operating condition and visible to the user without opening service doors. These surfaces will be free of all major defects and reasonably free of any minor defects. Defects on these surfaces are likely to be seen and associated with a perceived reduction in the overall quality or appearance of the product. Note: Slight imperfections characteristic of individual process capabilities may be visible on Class A surfaces. Acceptance of these slight imperfections shall be judged on an individual basis. Class B – User Access Interior: Chassis skins, cabinet and enclosure tops, internal control panels, interior side of enclosure and card cages, power distribution, front panels, interior items with user information / silk-screening; areas which are visible when the user access doors are open. Expected to appear consistent, of good integrity, and with limited appearance of flaws. These surfaces may have some minor defects but will be free of all major defects. Minor defects on these surfaces are not likely to be seen or viewed as a perceived reduction in the overall quality or appearance of this product. Any surface that can be seen from the front (but not the front surface of the unit) with the unit and/or cover plate removed. Any surface that is visible from the rear after installation, or the rear surface of the individual removable option card. For example, rear panels, side panels, top and bottom surfaces are commonly Class B surfaces Class C – Structural Interior: Areas not visible without disassembly. Coatings are for corrosion protection only. Class C surfaces may have any or all minor defects and some major defects.


Defects on these surfaces, if seen by the customer, are not likely to be regarded as detracting from the overall cosmetic or functional quality of the product. Interior surfaces or areas to be covered by labels or other panels are examples of “C” surfaces.

C. Acceptance Criteria - Three acceptance designations are used in the following table to describe the criteria. None Allowed – No occurrences of the attribute are permissible. Items with this designation are typically functional in nature, and will result in product degradation. These attributes are not subject to the cursory inspection described below. Not Apparent – Attribute is not discernible in the final application of the part. Attributes with this designation are aesthetic in nature. Visual inspection for aesthetics is to be conducted in a manner which best duplicates the end use of the part. The preferred viewing angle and distance being that which would exist if the part was installed in its final location, and the inspector is standing where the operator would stand while using or accessing the equipment. Minimum viewing distance should be three feet. The intention of the aesthetic inspection is to avoid usage of parts which detract from the appearance of the final product. Inspection time is limited to that which is necessary to scan (cursory inspection) all areas of the part. Acceptable – Aesthetic in nature; will have no effect on the function of the part and will not detract from the appearance of aesthetic viewpoint. Some flaws may have acceptable as well as not-acceptable attributes, e.g. a scratch which does not break the surface of the coating may be acceptable (depending on the class of surface), whereas if the coating is broken, there is a coverage void (Not Acceptable). Characteristic Class A Class B Class C Scratches None Allowed Not Apparent Acceptable* Tooling Marks None Allowed Acceptable (Uniform) Acceptable (Uniform) Corrosion None Allowed None Allowed None Allowed** Coverage Voids None Allowed None Allowed None Allowed** Non-Adhesion None Allowed None Allowed None Allowed Blisters None Allowed None Allowed None Allowed** Burns (Plating) None Allowed None Allowed Acceptable Color Variegation None Allowed Acceptable Acceptable Color Deviation Not Apparent Not Apparent Acceptable Rinse Stains None Allowed Not Apparent Acceptable Finger Printing None Allowed Not Apparent Acceptable Orange Peel None Allowed Not Apparent Acceptable Paint Runs None Allowed Not Apparent Acceptable * Any apparent scratches after plating will not be allowed. For scratches that are not apparent there cannot be removed metal and the scratches may not be detected by feel. ** Acceptable if repaired, providing that corrosion is removed prior to repair, area void of coating is supplemented with paint, and that the defect is not merely a symptom of further problems with the coating.


Appendix E – Traceability Requirements Certain critical components have the potential to require field action to rework, repair, or remove from service a subset of all production parts due to manufacturing or design defects. To ensure that Key Technology is able to quickly locate suspect components and protect its customers from the effects, it is necessary to establish traceability requirements for major assemblies and critical subcomponents.

A. Engineering will identify items that require identification and serialization on the engineering print or specification. When required, the finished item shall be permanently identified with: • Part Number • Revision Level • Serial Number

The exact location and means of identification shall be defined in the engineering print or specification.

B. The serialization format shall include traceability to the date of manufacture. The preferred

serialization method follows the following format: SSS YY DDD nnn SSS = Supplier Code – last three digits of the Key assigned supplier code YY = Last 2 digits of the year DDD = Day of year/Julian date nnn = sequentially assigned within that day’s production For example, the Serial Number 26511045003, would be read as: 265 – Computrol 11 – 2011 045 – February 14th 003 – Third unit made that day

C. When an assembly contains serialized components, the traceability information (Part Number,

Rev., and Serial Number) of the included serialized components shall be recorded at the time of integration, and a searchable computer record maintained.

Appendix F

Released: December 30, 2011

Key Technology Supplier Code of Conduct At Key Technology, we have always set high standards for the way we conduct business - in areas from corporate and social responsibility to sound business ethics, including compliance with all applicable laws and regulations. In turn, we expect the same commitment from our suppliers. While Key Technology recognizes that different cultural and legal systems exist in the countries in which its suppliers operate, this code of conduct sets forth certain basic requirements that all suppliers to Key Technology must satisfy as a condition of doing business with us. Compliance with the Law. Suppliers will comply with all applicable laws and regulations in all locations where they conduct business. Health and Safety. Suppliers will provide their employees with a safe and healthy workplace in compliance with all applicable laws and regulations. Consistent with these obligations, suppliers must have and implement effective programs that encompass life safety, incident investigation, chemical safety, ergonomics, etc., and provide the same standard of health and safety in any housing that is provided for employees. Suppliers should strive to implement management systems to meet these requirements. Child Labor. Suppliers will not use child labor. The term ’child" refers to any person employed under the age of 15 (or 14 where the law of the country permits), or under the age for completing compulsory education, or under the minimum age for employment in the country, whichever is greatest. We support the use of legitimate workplace apprenticeship programs which comply with all laws and regulations applicable to such apprenticeship programs. Forced Labor. Suppliers will not use forced or involuntary labor of any type (e.g., forced, bonded, indentured or involuntary prison labor); employment is voluntary. Harassment or Abuse. Suppliers will treat all employees with respect and will not use corporal punishment, threats of violence or other forms of physical coercion or harassment. Nondiscrimination. Suppliers will not discriminate in hiring and employment practices on grounds of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, gender identity or expression, marital status, pregnancy, political affiliation, or disability. Working Hours. Except in extraordinary business circumstances, workers shall not be required to work (inclusive of overtime) more than the legally prescribed limits or 60 hours, whichever is less, and one day off in every seven day period shall be provided. Production facilities shall comply with applicable laws that entitle workers to vacation time, leave periods and holidays. Wages and Benefits. Wages are essential for meeting the basic needs of workers. Workers will be compensated by wages, including overtime pay and benefits which satisfy all applicable laws and regulations.

Released: December 30, 2011

Freedom of Association. Suppliers shall respect the legal rights of employees to join or to refrain from joining worker organizations, including trade unions. Suppliers have the right to establish favorable employment conditions and to maintain effective employee communication programs as a means of promoting positive employee relations that make employees view third-party representation as unnecessary. Protection of the Environment. Suppliers will operate in a manner that is protective of the environment. At a minimum, suppliers must comply with all applicable environmental laws, regulations and standards, such as requirements regarding chemical and waste management and disposal, recycling, industrial wastewater treatment and discharge, air emissions controls, environmental permits and environmental reporting. Suppliers must also comply with any additional environmental requirements specific to the products or services being provided to Key Technology as called for in design and product specifications, and contract documents. Suppliers should strive to implement management systems to meet these requirements. Conflict Materials. Suppliers shall exercise due diligence to ensure they do not source so-called “conflict materials”. Ethical Dealings. Key Technology expects it suppliers to conduct their business in accordance with the highest ethical standards. Suppliers must strictly comply with all laws and regulations on bribery, corruption and prohibited business practices.

Appendix G

Company Name:

Address:

Primary Contact:

Type of Business:

Quality: ________________________ Phone: ___________________ Email: ___________________________

Supplier Profile

Supplier Quality Management System Audit

Principle Personnel

Revised: June 1, 2012

Quality: ________________________ Phone: ___________________ Email: ___________________________

Gen. Mgmt.: ________________________ Phone: ___________________ Email: ___________________________

Operations: ________________________ Phone: ___________________ Email: ___________________________

Technical: ________________________ Phone: ___________________ Email: ___________________________

Other: ________________________ Phone: ___________________ Email: ___________________________

Other: ________________________ Phone: ___________________ Email: ___________________________

Is Quality Management System compliant with an International/National Standard? Yes No

If Yes, to what standard? ___________________________

Has the Quality Management System been certified to this standard? Yes No

If Yes, please provide a copy of the Certificate.

Quality Management System

Revised: June 1, 2012

Supplier/Location: Date:

There are 65 questions which are to be answered as follows:

Check Description Score

Yes System meets the requirement 2

N/I System is in place but needs improvement to fully meet the requirement 1

No System is not in place or needs major improvement to meet the requirement 0

N/A System does not apply to this supplier 2

As a result of the audit, a supplier’s Quality Management System will be ranked:

Corrective Action


Audit Scoring and Requirements

There are 11 questions for which compliance is mandatory to receive full approval. These questions are in bold &

italics on the audit questionnaire.

Status

Fully Approved No corrective action is required.

Criteria

Score ≥ 125

All Mandatory Questions = 2

Comments:

Conditionally

Approved

Not Approved

Audit Results

A written corrective action plan is required.

All mandatory questions must be corrected

prior to production shipments.

A written action plan is required.

A re-audit is required

All Mandatory Questions = 2

Score ≥ 110

Some Mandatory Questions = 1

No Mandatory Questions = 0

Score < 110

Any Mandatory Questions = 0

Supplier/Location: Date:


Overall Scoring Mandatory Question Scoring

Result Number Score Ext. Result Number Score Ext.

Yes 0 2 0 Yes 0 2 0

N/I 0 1 0 N/I 0 1 0

No 0 0 0 No 0 0 0

NA 0 2 0 NA 0 2 0

0 Total 0 0 Total 0

Conclusion:

Approvals: ___________________________________ ____________________________________

Key Technology Quality Assurance Key Technology Quality Manager


Supplier/Location: ____________________________________________________ Date:

Quality Management Yes N/I No N/A

1.

Does the supplier have written Quality Policies consistent with

Quality Management System Requirements and business/product

complexity?

2.Does the supplier have a documented procedure for review, update,

and approval of Quality Management System procedures?

3.Does the supplier have sufficient personnel to implement the stated

policies?

4.

Does the supplier have a written procedure for the control,

retention, and retrieval of records to support the Quality

Management System?

5.Does the supplier maintain a QA personnel training program which is

consistent with product demands?

6.Does the supplier have a documented procedure defining its

internal quality audit system?

7.Does the supplier’s Quality organization clearly have the authority to

withhold items that have not met acceptable quality levels?

Quality Planning Yes N/I No N/A

8.Does Quality Assurance review drawings, specifications, test

procedures, etc. to assure compliance to contracts?

9.Does Quality Assurance review production planning to assure

completeness, sequence of operation and inspection call-outs?

10. Are supplier’s Quality forms identified and revision controlled?

11.Does the supplier have procedures for the storage, maintenance,

inspection and test of Customer furnished material?

Analysis of Data / Metrics Yes N/I No N/A

12.Does the supplier measure the effectiveness of its Quality

Management System?

13.Do these data/metrics measure customer satisfaction, conformity to

requirements, and sub-suppliers?

14.

Does the supplier identify performance targets for these

data/metrics and implement corrective actions when requirements

are not met?



Corrective Action / Preventive Action Yes N/I No N/A

15.Does the supplier have a documented procedure for corrective

action?

16.

Does the supplier include in its root cause investigation both the root

cause for why the nonconformance was made and why it was

shipped to the customer?

17. Does the supplier verify the effectiveness of corrective actions?

18.Does the supplier validate over time the effectiveness of corrective

actions?

19.Does the supplier have a documented procedure for preventive

action?

Drawing and Change Control Yes N/I No N/A

20.Do the supplier’s change control procedures apply to all documents

affecting the Quality Program?

21.Does Quality Assurance monitor changes for compliance to

contractual requirements?

22.Is there a system in place to preclude the use of obsolete drawings or

22.Is there a system in place to preclude the use of obsolete drawings or

specifications?

23. Are uncontrolled copies allowed? Are they marked as such?

24.Do change notices specify effectivity and disposition of parts affected

by the change?

25. Does the supplier have a process to control “red-line” changes?

26. Does Quality Assurance verify changes incorporated and effectivities?

27.

Does the supplier change the part number(s) when introducing

changes which affect the form, fit, function or interchangeability of

the product?

Control of Procured Material Yes N/I No N/A

28.Do supplier’s purchase orders incorporate Quality Management

System requirements?

29.Does the supplier have a process for identifying approved sources

for supply?

30. Are purchase orders placed only with approved sources?

31.Does Incoming Quality use specifications, drawings, and purchase

documents?



32. Are Incoming Quality facilities adequate for the material purchased?

33.Are certifications/test reports furnished with raw material, as

appropriate?

Material Control Yes N/I No N/A

34. Does the supplier have a Production Control System?

35.Does the supplier have an adequate system for the identification of

material; is in-process material identified as to inspection status?

36.Are only accepted and clearly identified materials received into

stock?

37. Is customer furnished material segregated?

38.Does the supplier have a system to prevent the unauthorized reease

of material and parts?

39.Are storage facilities and material handling adequate to prevent

damage to materials?damage to materials?

Inspection Controls Yes N/I No N/A

40.Are Inspection/Test facilities well equipped, clean and properly

lighted?

41.Are inspection points pre-determined within the manufacturing

cycle?

42.Do inspection stations use up to date documents and provide for the

removal of obsolete documents?

43. Are inspection/test procedures utilized?

44. Are workmanship standards maintained / implemented?

45.Does Quality Assurance conduct and/or participate in product

testing?

Calibration Yes N/I No N/A

46.Does the supplier have a process governing the periodic

recalibration of tools, test equipment and gages?

47.Are standards, equipment and environment consistent with

calibration requirements?

48. Are standards traceable to the national or international standards?



49. Are processes defined for calibration, certification and maintenance?

50. Is non-calibrated equipment identified?

51. Is equipment audited to prevent use beyond calibration dates?

52. Are employee-owned tools included in the calibration system?

53. Is production tooling calibrated or periodically inspected?

Non-conforming Material Yes N/I No N/A

54.Does the supplier have a written procedure for the review of

material that deviates from drawing/specification requirements?

55.Is non-conforming material diverted to a controlled area and

properly identified?

56.Is reworked / repaired material routed back through inspection upon

completion?completion?

57. Are records kept and traceable to the material?

58. Is there a system in place for the processing of customer rejects?

59. Is a Failure Analysis Program in effect?

60. Is scrap material permanently identified?

Process Control Yes N/I No N/A

61.Does the supplier use customer approved subcontractors when

required?

62. Is there a system of process control in place?

63.Is the system capable of segregating material processed during out-of-

control period?

64.Does the supplier have processes that ensure that prior to shipment

all inspections, tests, and doc reviews have been performed?

65.Does the supplier have documented procedures for the training of

all personnel performing activities affecting quality?

supplier manualgo.key.net/rs/key/images/supplier%20manual%201%202.pdf · 2012. 6. 1. · 150 avery...

Documents