Application: LMG purchase orders shall flow-down requirements to its suppliers & sub-tier suppliers and/or process suppliers by using the following Quality Clauses as requirements when purchasing services and/or goods from outside suppliers.
QC- 1 QUALITY SYSTEM REQUIREMENTS
The supplier shall have in place a system / program that conforms to:
Quality Management System / Program Requirements
QC-1.1 ISO 9001-2000, AS9100, MIL-I-45208A
QC-1.2 ANSI/NCSL Z540-1 as applicable.
QC- 2 CERTIFICATE OF CONFORMANCE
( C OF C )
Each shipment shall be accompanied by a dated certification signed by a responsible representative of the supplier, stating that the items were manufactured in conformance with the purchase order, engineering drawing, revision, and specification requirements, and the manufacturing data is on file for examination.
QC- 3 MATERIAL CERTIFICATION
Each shipment shall be accompanied by a dated certification signed by a responsible representative of the supplier, stating that the items were produced from:
QC-3.1 Materials furnished by LMG. The certificate of conformance shall list the Lean Manufacturing Group code number assigned to the furnished material.
QC-3.2 Materials which the supplier has available for examination and objective evidence of conformance to the purchase order and applicable specifications. The specifications shall be listed, including the revision or date.
QC- 4 PHYSICAL AND CHEMICAL ANALYSIS
Test report which list actual chemical/mechanical values and which state conformance to applicable material specifications shall be submitted on each shipment.
QC- 5 FOREIGN OBJECT DEBRIS / DAMAGE (FOD / FOE) Supplier is required to establish and maintain a Foreign Object Debris (FOD) prevention program that employs appropriate housekeeping practices to assure timely detection and removal of residue/debris generated, during operations and normal daily tasks.
QC- 6 ACCEPTANCE TEST RECORDS
Include with each shipment a true copy, signed – stamped by a responsible representative of the supplier, of the results of the lot or item acceptance tests required by the applicable specification. The report shall indicate the actual values obtained.
QC- 7 SUPPLIER SURVEY
The supplier’s Quality Assurance system is subject to an initial survey and approval by LMG and/or their customers. Subsequent review of supplier and/or processors may be conducted on an on-going basis. Deficiencies identified as a result of on-going monitoring shall be noted and follow-up activities taken to ensure proper corrective actions have been implemented.
QC-8 SUPPLIER PROCESS APPROVAL
All processes used in conjunction with the purchase order are subject to approval through LMG and/or their customers. To include off-loads to sub-tiers.
QC- 9 GOVERNMENT SOURCE INSPECTION
Government source inspection (GSI) is required and shall be performed at supplier’s facility prior to shipment. As directed by LMG /GSI any in-process inspection is also mandated by this clause. A minimum of 48-hrs notice to LMG, prior to inspection, is required when this clause is invoked. Supplier shall provide evidence of GSI source inspection with each shipment.
QC- 10 FIRST ARTICLE INSPECTION
Supplier shall perform a First Article Inspection on all items of the purchase order in accordance with the requirements set forth. Supplier shall forward a copy of the FAI report to LMG’s Quality Control for review, prior to the continuation of any production runs. Supplier shall notify LMG 24 hours prior to estimate completion of FAI.
QC- 11 SOURCE INSPECTION
LMG reserves the right to inspect, at supplier’s facility, any product under the purchase order. LMG shall contact supplier to confirm or waive source requirements. In the event that contact has not been made between LMG and supplier before time of completion, or interim inspection, the supplier is authorized to ship product to LMG, provided the requirements of clauses are fulfilled and accompany shipment. All pertinent customers of LMG (including Government representatives) reserve the right to be present during any source inspection performed per this clause. Acceptances of product during Source Inspection does not constitute rejecting of the suppliers QMS.
QC- 12 NONCONFORMANCE
A system shall be in effect for control of material nonconforming to drawings specifications or other Purchase order requirements.
Such material shall be withheld from shipment until authorized by the LMG Purchasing Department with an approved Nonconformance Report ( NCR ).The NCR shall describe the nonconformance in detail, the quantity, the cause and corrective action to preclude a recurrence. Acceptance of the NCR by LMG review board will not affect the suppliers rating providing no nonconformance is found at receiving.
QC- 13 CORRECTIVE ACTION
Materials or services found to have a quality problem will result in a formal request for corrective action. Such requests require a timely response. On government source inspected material the supplier shall coordinate the corrective action reply with the government QAR assigned to his plant.
QC- 14 UNAUTHORIZED REPAIRS
Repairing of material by plating or anodize build-up, welding, brazing plugging or any other method is prohibited unless authorized by LMG.
QC- 15 RIGHT OF ENTRY
LMG and their pertinent customers (including Government representatives) reserve the Right-Of-Entry into supplier organization to determine and verify quality of work at any and all stages of production.
LMG requires all suppliers to notify the organization of changes in product and/or process definition and, where required, obtain organization approval.
QC-17 PURCHASE TERMS AND CONDITIONS
Suppliers accepting a Purchase Order by Lean Manufacturing Group shall comply with the following AS9100 Terms and Conditions as required by LMG Quality Management System.
- The Supplier will notify LMG of all non-conforming product/s, and when applicable make arrangements for LMG approval for disposition of nonconforming material.
- The Supplier will notify LMG of changes in product and/or process definition and when applicable obtain approval by LMG.
- The Supplier will grant right of access to LMG, their customers, and regulatory authorities to both its manufacturing facilities and applicable records involved.
- The Supplier will flow down to sub-tier suppliers applicable Lean Manufacturing Group requirements (including Special and/or Critical requirements).
- The Supplier including sub-tier suppliers shall retain records for a minimum of 10 years.
QC-18 ITAR REQUIREMENTS
The International Traffic in Arms Regulations (ITAR) requirements apply to this Lean Manufacturing Group Purchase Order.
QC-19 PREVENT THE USE OF COUNTERFEIT PARTS
To prevent the purchase of counterfeit or suspect/unapproved products and to ensure product identification and traceability (and for other reasons). Supplier will institute controls that include the requirement of Material Certificates, Certificates of Conformity, and/or other supporting documents as is appropriate.
Material and part substitutions are not allowed.
Supplier will notify LMG of changes of any product or process changes or changes in approval status that may affect LMG product and are subject to re-survey and approval.
Notify LMG of changes to processes, products, or services, including changes of their external providers or location of manufacture, and obtain LMG approval.
Flow down to external providers applicable requirements including customer requirements.
When requested by LMG or it’s customers, Supplier will provide test specimens for inspection/verification, investigation and/or auditing purposes.
Suppliers supplying product with special processes listed with processing specification listed on blueprint and covered under Nadcap requirements are required to be Nadcap certified or use a Nadcap approved supplier.
If indicated in the Purchase Order that a NADCAP approved Supplier is required, the Supplier must not perform any work or process any part if they are not NADCAP approved. Should a Supplier have a change to their NADCAP certification or accreditation, the Supplier MUST notify LMG per the terms of the NADCAP requirements.
QC-20 Ensuring that persons are aware of: their contribution to product or services conformity; their contribution to product safety; the importance of ethical behavior.
Supplier must be committed to the highest standards of ethics and business conduct. Supplier must comply with the law, honor commitments, act in good faith, and be accountable. Supplier must strive to maintain full compliance with all laws and regulations applicable to the operation of the business and customer relationships. Supplier must not offer, promise, authorize, or provide, directly or indirectly, anything of value (including business gifts or courtesies) with the intent or effect of inducing anyone to engage in unfair business practices. Supplier will avoid involvement in activities that may be perceived as a conflict-of-interest. Supplier will respect the legitimate proprietary rights and intellectual property rights of customers and Suppliers and take proper care to protect sensitive information, including confidential, proprietary and personal information.
Supplier will support product safety by ensuring robust management of special requirements, critical item and key characteristics. If there are concerns with respect to product safety, Supplier will communicate them to LMG. if there is a concern at the Suppliers premises with respect to safety during the manufacturing of the product. Supplier will notify it’s own employees of the concern and whenever possible, mitigate the concern.
Supplier will ensure that employees and people working on it’s behalf are aware of:
- Their contribution to product or service conformity
- Their contribution to product safety
- The importance of ethical behavior
QC-21 Control and Monitoring of Suppliers Performance
LMG will score Suppliers based on Quality, Delivery, and /or Service. Suppliers will be issued corrective actions as warranted. Suppliers demonstrating below 3 on scorecard or 3 or more late shipments or corrective actions in a single quarter will be reviewed at Management Review meetings for increased action at Management discretion. Any outcome will be documented in Management Review Meeting Minutes. Suppliers that fail to perform in these areas may receive further corrective actions and may be considered for probation or removal from LMG Approved Supplier List.
QC-22 Verification or Validation at Suppliers premises.
Lean Manufacturing Group and its customers reserve the right to perform verification and/or validation activities and test records at the Suppliers premises.