pr0303 supplier quality manual · 2018-05-03 · development. when required, the supplier must...

Supplier Quality Manual PR0303 – Rev14

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CONFIDENTIAL & PROPRIETARY

This document contains confidential and proprietary information of CVT CORP and is protected by copyright, trade secret and other State and Federal laws. Its receipt or possession does not convey any rights to reproduce, disclose its contents, or to manufacture, use or sell anything it may describe. Reproduction, disclosure, or use without

specific written authorization of CVT CORP is strictly forbidden.

PR0303 SUPPLIER

QUALITY MANUAL

Responsable :

Name Fonction Date

Prepared by : R. Trudeau Qualité 2018-03-06 Revised by : R. Trudeau Qualité 2018-03-06 Approuved by : B. Plourde Méthode/Qualité 2017-03-06


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Revisions

Rev Changes Changed

By Approved

By Issue Date

00 Initial release 2010-08-3

05 Part number and part serialization marking rev.

LPM PDE 2011-03-11

06 AQL link to KC marking; Document title

LPM PDE 2011-08-16

07

Revision table, TOC added Notes about prototypes, note about cleanliness, marking table

PDE DC 2011-10-21

08 Marking and traceability Shipping Authorisation

PDE DC 2012-05-04

09 Supplier sub-contractors DC DC 2014-08-05

10 Dérog. Writing on parts DC JPG 2014-08-05

11 Modifications P.7 (section 11) and p.10 (section 18)

F.Du FD 2017-08-04

12 New format of supplier quality Manual

RT BP 2018-01-29

13

Page 5 add LTA in abbreviation Page 12 add note for none PPAP Parts

Page 15 contact modified for e mail

Page 16 add the warranty LTA only

RT BP 2018-03-06

14 Page 11 Add the information of part Identification

BP BP 2018-04-07


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Table of Contents Page # Introduction & Definitions………………………….………………………………. 4 Language, acronyms and abbreviation Supplier Approval ……………………………………………………………………

5 6

Advanced Product Quality Planning ………………………………………………. 6 Production Part Approval Process ………………………………………………… 7 Purchase Order Requirements ……………………………………………………. 8 Tooling and Fixtures ………………………………………………………………… 8 Subcontracting ………………………………………………………………………. 9 Supplier Development………………………………………………………………. 9 Chemical and Mechanical Test Reports …………………………………………. 9 Welding and Brazing Procedure …………………………………………………... 9 Age Control …………………………………………………………………………. 10 Painting and Finishing Requirements ……………………………………………. 10 Certification …………………………………………………………………………. 10 Part Identification, Handling, Labeling, Preservation, Packaging and Packing 11 CVT CORP Source Inspection …………………………………………………… 11 Inspection of Supplies ……………………………………………………………… 11 Supplier Inventory…………………………………………………………………… 11 Quality System Requirements……………………………………………………... 12 Product Quality Assurance for NON PPAP products…………………………… 12 Product Quality Assurance for PPAP products…………………………………. 12 Non-Conforming Material …………………………………………………………... 14 Warranty ……………………………………………………………………………… 16 Provisional Containment…………………………………………………………… 17 Shipping Requirements ……………………………………………………………. 18 Sub Supplier Control ………………………………………………………………... 18 Contingency Plan……………………………………………………………………. 19 Supplier Quality Performance Evaluation …………………………………………. 20

Receipt and Acknowledgement:

Dear Supplier:

Please sign below (from authorized personnel Quality or Plant Manager) to demonstrate that you have received this Supplier Quality Manual and submit a copy of this page to your Supplier Quality Responsible at e mail address (AQ@CVT CORP.com) ___________________________________ _________________ Sign-off Date


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Introduction

CVT CORP develops and manufactures mechanical continuously variable transmissions (CVTs) for high power applications that improve system efficiency in agricultural, off-highway and industrial equipment.

CVT CORP has tremendous commitment to quality, delivery and service to our customers. It is imperative that we maintain this high level of customer confidence through the production of superior and reliable product delivered on time. This cannot be done without the assistance of suppliers.

CVT CORP recognizes that communication and understanding of goals and expectations are key elements to a successful operation. This Supplier Quality Manual (SQM) has been developed to help Suppliers understand the requirements of CVT CORP and its customers. SQM applies to all intercompany and external Suppliers of production material as well as direct subcontract Suppliers and other related manufacturing technologies. The basis for SQM is the Quality System requirement of ISO 9001:2015.

It is the goal of CVT CORP to ship to our customers zero defect shipments on time at the lowest total cost. CVT CORP set the Zero-defect policy which will be achieved through relentless process improvements, “kaizen” efforts and Supplier development initiatives. It is imperative that Suppliers deliver zero defect parts on time.

Lean initiatives will eliminate the need to inspect product received from our Suppliers. While some audits may take place, Suppliers must warrant that product supplied will conform to all specifications. Strategic delivery and effective inventory levels will be applied. The supply chain must make every reasonable effort to support this methodology.

Definitions

Supplier: The term *supplier* refers to the contractual part of CVT CORP’s suppliers and their subcontractors. In cases, the supplier can also be the manufacturer.

CVT CORP Partner: When a partner signs a license agreement(FO0107), the partner shall ensure that quality control over their outsourced processes meets all CVT CORP requirements. The control over such processes does not absolve the partner and their subcontractors of the responsibility of product conformity to all CVT CORP requirements. This includes costs incurred by CVT CORP as a result of non-quality or incidents including delivery disruptions


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Language, acronyms and abbreviations Unless other wise specified, all quality documentation (inspection reports, CFC, etc. shall be in English to ensure consistent communication though the supply chain. All other communication should be in French is possible. SQM: Supplier Quality Manual APQP: Advanced Product Quality Planning AIAG: Automotive Industry Action Group PPAP: Production Part Approval Process SQE: Supplier Quality Engineer NCR: Non-Conforming Report RTV: Return to Vendor FAI : First Article Inspection FMA : Failure Mode Analysis LTA : Long Term Agreement


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Supplier Approval To ensure consistency and effectiveness, it is necessary for CVT CORP to employ a structured process of selecting and monitoring Suppliers. This process involves:

Completion of CVT CORPs NON-Disclosure Agreement FO0106 by Supplier.

Evaluation of relevant experience, price and references.

Audits of Supplier quality management system by Supplier Quality Engineer and evaluation of their capability to provide required product efficiently and within schedule. Conformance to a registered quality system like ISO 9001:2015 if ISO TS 16949 or any other quality system is preferred.

A financial assessment to assure the viability of the Supplier throughout the intended period of supply.

When requested, the Supplier must also be able to demonstrate compliance to national and / or international standards and regulations for health, safety and environmental impact relative to its business.

The Suppliers that provide non-direct products such as stationary plus laboratories and consultants are approved based on the recommendations of the previous users, previous history or evidence of appropriate certification by an independent agency.

Since product specifications and quality assurance requirements are not completely defined while the product is being developed, there are unique assessment requirements for potential suppliers of prototype and test parts. The Manager of Engineering shall give temporary approval status to any Supplier to produce parts for research and development work. When the Supplier is asked to produce production parts, then the entire supplier approval process shall be applied.

APQP-- Advanced Product Quality Planning

When applicable, Suppliers will be required to follow the APQP process for new program / development. When required, the supplier must provide APQP status reports for a new product in order to ensure quality, cost, design and delivery are met. CVT CORP will provide format, frequency and required content of these reports. Ref. FO0609 Advanced Product Quality Planning

Supplier Status Report Reference AIAG Advance Product Quality Planning.


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Production Part Approval Process (PPAP) Every Supplier of production material is required to submit a level 2 or level 3 PPAP for each part number prior to initial shipment of product unless otherwise instructed by CVT CORP. All changes in process will require a resubmission of PPAP as specified by the Supplier Quality Engineer. All design changes shall be approved by CVT CORP Engineering through the Supplier Derogation Request Process (FO0315). All process changes must be approved by the Supplier Quality Engineer in writing. All key characteristics as defined by CVT CORP must be accompanied by process capability studies conducted on a minimum of 30 pieces unless otherwise specified. If there are no key characteristics on the print, the SQE can determine the key characteristics depending on fit/form/function requirements. The documents will be reviewed and approved by CVT CORP Quality Assurance Department.

Following are typical requirements of CVT CORP Level 2 PPAP

CVT CORP ballooned drawings Material Test Reports (MTR’s) Surface Finish test reports Functional requirements’ test reports Dimensional Inspection Reports An Appearance Approval Report (for designated appearance items) PPAP parts need to be numbered per Dimensional Inspection Report

Following are typical requirements of CVT CORP Level 3 PPAP:

Part Submission Warrant ref. FO0336.

6 pcs dimensional / functional inspection report per drawing.

Copy of approved CVT CORP drawing / part request form.

6 sample pieces or less as defined by the SQE.

Process flow diagram.

Control plan.

PFMEA.

Material test reports.

Capability study report (Cpk> 1.33 and Ppk > 1.67).

Gauge R&R Study report FO0337 (≤ 10% OR as approved).

Functional test reports like leak tests / vibration tests / continuity tests etc.

Any other requirements as specified by CVT CORP Supplier Quality Engineer.


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Documented results of the review by CVT CORP shall be provided to the Supplier indicating approval of the submitted sample. Such approval does not release the Supplier from liability for failure to adhere to the applicable specifications and/or drawing requirements referenced on the purchase order. No does it imply or ensure the NO future rejections may be made against their shipments, even though these shipments may be consistent with the initial sample submitted.

In the event of a rejected PPAP submission, all pertinent material shipped to CVT CORP will be rejected and returned at the Supplier’s expense. Samples which are not approved will require resubmission by the Supplier to CVT CORP. Written approval by CVT CORP is required prior to authorization for manufacture.

The Supplier may request Waiver of PPAP. Request for Waiver must be forwarded to a Supplier Quality Engineer at CVT CORP for evaluation. The Supplier will be notified of the acceptance or rejection of their Request for Waiver by the issuance of a letter from CVT CORP. If the Supplier has not received a written response from CVT CORPs QA Department within ten (10) days from the submission date of the Request for Waiver or First Piece Report, the Supplier should contact the Supplier Quality responsible (QA@CVT CORP.com) at CVT CORP.

Items affected by implementation of approved Material Change Notice must be segregated, identified and packed separately from other production material, parts and assembly. FAILURE TO COMPLY WILL RESULT IN REJECTION OF MATERIAL, PARTS AND ASSEMBLIES RECEIVED.

Purchase Order Requirements

All CVT CORP Purchase order requirements shall be met. Any exceptions shall be documented, communicated to CVT CORP and approved prior acceptance of a CVT Corp purchase order.

Tooling and Fixtures

There shall be no additional tooling charges above those at the beginning of the program as applicable. The Supplier is responsible for tooling replacement costs and day to day routine maintenance.

Tooling, drawings and documentation owned by CVT CORP shall remain the property of CVT CORP and shall be clearly marked “Property of CVT CORP”. The aforementioned must be used solely for CVT CORP production, unless otherwise authorized. The Supplier shall maintain all tooling and fixtures to the latest engineering revision at all times. CVT CORP reserves all rights of inspection or removal of all tooling and fixtures at any time, at no cost to CVT CORP. (The one exception being freight charges).


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Subcontracting

BAR STOCK shipped in heat code batches must be segregated according to heat codes. Parts must not be mixed in containers and containers must be identified accordingly. All bar ends must be sent with cut pieces in the appropriate containers.

Material shipped to you for processing will have a traceability identifier. Each traceability identifier lot must be kept separate and documented accordingly.

Supplier Development

CVT CORP reserves the right to conduct, by its staff or third-party agents, system surveys and follow up audits, at the Supplier’s facility at no increase in cost or delays to CVT CORP. Access to the Supplier’s facility or facilities shall be granted to CVT CORP representatives to investigate production facilities and any information pertinent to the Supplier’s end product sold to CVT CORP. Reasonable notification shall be given prior to a survey being conducted.

Supplier must adhere to the Supplier Quality Manual and maintain acceptable status.

Chemical and Mechanical Test Reports

The Supplier furnishing components or assemblies to CVT CORP shall maintain a complete file of results of all chemical and/or mechanical test reports (i.e. chemical analysis, tensile tests, Charpy V notch impact tests, bend tests, fillets, etc.), metallurgical analysis, or any other reports necessary to substantiate that all material used in the manufacture of components or assemblies, whether purchased or manufactured by the Supplier, meet the drawing(s) or specifications. The Supplier must furnish copies of these reports with each shipment as applicable.

Welding and Brazing Procedure

The Supplier supplying parts or assemblies to CVT CORP which require welding and brazing shall prepare and submit for approval by CVT CORP one (1) copy of their procedure, in accordance with the applicable specifications, prior to production shipments.


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Age Control

A Supplier supplying adhesives, rubber, hose, hose assemblies, paint and primers etc. shall mark the parts and the exterior of the shipping container in accordance with applicable specification. The date of manufacture and expiration date (quarter and year) is required as applicable. The period commencing with the date of manufacture and ending with the earlier of the acceptance at CVT CORPs facility or half of the standard shelf life of the product shall not exceed six months.

Test data must be submitted by the Supplier to CVT CORP for each shipment of parts.

Painting and Finishing Requirements

The Supplier furnishing materials, component parts, or assemblies that require protective coatings such as primers and enamels, must accomplish all cleaning and surface preparations as outlined on the drawing or the purchase order prior to the application of the finish coatings. The primer and/or enamel/polyurethane/epoxy applications must be accomplished using products that are procured in accordance with the applicable purchase order.

In certain instances, the purchase order may contain specific instructions regarding paint applications to facilitate subsequent operations.

Certification

The Purchase Order will specify the following requirements, if applicable:

Certification of Conformance of Test results, as required by the purchase order or the Quality Assurance Requirements, MUST ACCOMPANY A SHIPMENT of material to CVT CORP.

Certificates must include the following identifying data:

Part Name Part Number Revision Level Purchase Order Number Lot Number Heat Number Drawing Number(s)* Specification(s)* Supplementary Quality Assurance Provisions / QA Provisions / QA Requirements* Shipment Number Test Results (as required) Supplier Name (* if applicable, revision and date of revision is required to be listed on the certification.)


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CVT CORP Quality Assurance reserves the right to request test data supporting the Certificate of Conformance. When requested, test data shall be received by CVT CORP within five (5) working days.

Part Identification, Handling, Labeling, Preservation, Packaging and Packing

The Supplier shall accomplish parts identification, cleaning, preservation, packaging packing and labeling in accordance with the applicable drawings, specifications and instructions as referenced on the purchase order. The procedure PR0313 describes how the parts must be identified and the what are the approved methods to perform the Identification. All materials, parts or assemblies shipped direct to CVT CORP shall be packaged or crated by the best commercial or domestic practices, in accordance with terms and conditions of the purchase order or by specific instructions issued by CVT CORP purchasing department.

Unless otherwise specified, all uncoated or unprotected ferrous and nonferrous metal surfaces (internal and/or external) must be protected against rust and corrosion and be suitably packed to prevent damage from handling or shipping as deemed necessary to protect and facilitate CVT CORP manufacturing processes. (CVT CORP has a global supply chain and as such the above applies to overseas shipment, inclusive of subcontractors for suppliers of CVT CORP).

The Supplier shall package material in CVT CORP supplied dunnage. All supplied dunnage must be accountable and only to be used for CVT CORP material.

CVT CORP Source Inspection

The items covered by the purchase order are subject to CVT CORP Source Inspection (FO0324) and/or tests prior to shipment from Supplier’s plant. Please contact CVT CORP for further instructions.

Inspection of Supplies

Quality records shall be available upon request by CVT CORP and shall be retained by the Supplier for (5) years after the last part pursuant to the purchase order is delivered to CVT CORP.

Inspections under this paragraph is for audit purposes only and shall not release the Supplier from its obligations to conform to any drawing or quality requirements.

Supplier Inventory An inventory management system shall be established and documented to continuously optimize inventory turns, stock rotation (FIFO) and minimize inventory levels.


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The Supplier will maintain such inventory levels as are required to buffer any quality, capacity or delivery concerns that may arise.

Quality System Requirements

Certified supplier: For PPAP Parts suppliers: Parts that need a PPAP Level according to the standard TS 16949 or IATF 16949.

Preferred supplier: the supplier shall have at least a valid ISO 9001:2015 or process specific certification.

Product Quality Assurance for NON-PPAP product

CVT CORP expects from its Suppliers when they produce a part for the first time, that one part be 100% inspected (that is one result for every dimension / requirement of the detailed drawing/specification). These results will be provided with shipment authorization request. This measured part will be tagged as “F.A.I.” (first article inspection) in order for CVT CORP to be able to trace the inspection results back to that one part. In addition, CVT CORP requires that some key characteristics be inspected as per specific sampling rates depending on the criticality level assigned to a specific tolerance on the print. Key characteristics are marked on the detailed drawings with an alphanumeric oblong hexagonal or in circular symbols. Refer to the document PR0302 for the detailed sampling rates. For critical processes (Heat treating, Nitriding, etc.) a process certificate is required. For critical material (4340‐HT ASTM‐A434 class BD, AMS 6440 grade 52100, etc.), a mill certificate is required. If there’s any need to derogate from what’s specified by the requirements, the supplier must get an authorization by CVT CORP by means of a Derogation Request Form (FO0315) prior to shipping parts. A copy of the accepted and signed derogation request form shall accompany the shipped parts. All non‐conforming parts have to be identified with the mention ‘’DEROG’’ CVT CORP allows in-process inspection to qualify parts on all possible characteristics .

Dimensional result shall be reported in process forms showing inspection of key

characteristic as per sampling plan requirements described in PR0302 Sampling Plan. The

results will have to be submitted with the authorization of shipping. The supplier can use the

form FO0338 In-Process Inspection Results or the one they have produced.


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Product Quality Assurance for PPAP product

CVT CORP expects its Suppliers to be aggressive with continuous improvement efforts to their process in order to achieve zero defects. This plan must include education and training in problem solving techniques (statistical), employee involvement, and cost of quality, with implementation target dates, assigned responsibility and regularly scheduled management reviews.

Process capabilities and special characteristics must be demonstrated to ensure that the initial process capability is CpK ≥ 1.33 unless otherwise specified on the Purchase Order. The Supplier shall prepare documented process monitoring and operator instructions for all employees having responsibilities for operation of process in order to maintain production capability of ≥ 1.33 Cpk. For any characteristic that does not meet the above criteria, a corrective action plan must be submitted for approval. Effective, January 2018, the Supplier shall be required to supply the following information to the assigned Supplier Quality Engineer every month, commencing with data from January 2018: Dimensional Functionally Based Parts:

30 pieces capability study on all dimensions per drawing. Required capability – Cpk > 1.33

1 piece dimensional layout. 6 pieces functional test report wherever applicable.

Mechanical (Hydraulic, Electrical and others) Functional Based Parts: Dimensional requirements per drawing, as required, unless otherwise agreed upon by

the quality assurance group. 6 pieces functional test report as required based on supplier current quality practices

The Supplier shall comply with all specifications required by the drawing and engineering specification. These requirements cover the MINIMUM inspection necessary to assure compliance with established requirements. All functional characteristics shall be inspected by the Supplier using one (1) or more of the following:

Sampling plan based on performance. One hundred percent (100%) inspection, for all features with unstable process CpK<

1.33. Implementation of a Statistical Process Control program.

Sampling procedures, inspection records, examinations, and/or test reports must be complete and available to CVT CORPs inspection department as required. The Supplier is responsible to conduct inspections and tests at a frequency in accordance to applicable test methods or procedures, drawing requirements and engineering specifications.


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Unless otherwise specified, the Supplier may utilize its facilities, or those of any certified laboratory to conduct such tests.

The Supplier shall provide and maintain gauges and other measuring and testing equipment considered necessary for conformance to the applicable tolerances. The inspection gauges, devices, etc. shall be calibrated periodically with suitable calibrating equipment that must be traceable to National Standards.

Revision or drawing changes pertinent to materials, parts and assemblies currently in production must reflect the change at the established effective date of incorporation.


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Non-Conforming Material Upon detection of a Non-Conformance, an NCR (Non-Conforming Report) Ref.FO0315 will be issued by a CVT CORP Quality Assurance representative, and the Supplier will be contacted.

The Supplier will be informed of:

Part number, part name, revision level, description of defects, and stage at which defect was found.

Information will be given on whether a sort is required and a corrective action needs to be implemented.

Once informed of the problem, the Supplier has four options:

Allow the return of the defective part / lot. There will be a RTV charge of $250.00 Cdn plus the cost of inbound freight.

Authorize parts to be scrapped at CVT CORP within 72 hours else parts will be scrapped at the Supplier’s expense.

Authorize CVT CORP/representative or third-party sorting company to sort parts to feed production and to detect defects prior to line use.

Authorize CVT CORP to rework, assuming responsibility for all rework costs. After informing the Supplier of the rejection, CVT CORP requires from the Supplier disposition of the lot within 8 working hours. If disposition is not given, the Supplier is responsible for sorting / rework charges. Whether the material is returned to the Supplier or not, the Supplier shall conduct an immediate failure analysis and process investigation to take corrective action to preclude reoccurrence of the disclosed defect(s). Returned materials are to be reworked or replaced by the Supplier in accordance with the applicable technical requirements and re-inspected per the Product Quality Assurance section of this manual.

The Supplier must immediately notify CVT CORP upon discovery that they may have shipped non-conforming or suspect product to CVT CORP. Notification in writing must go to the Supplier Quality Engineer and the Material planner.

CVT CORP will not absorb the cost of any machining or value-added services unless otherwise specified on the Purchase Order. All parts rejected by CVT CORP must be replaced immediately by the Supplier. When machine / assembly reveals causes for rejection, (i.e. porosity, shrinkage, gas holes, blow holes, sand inclusions, lamination cracks, tears, hard spots carbides, dimensional etc.) the parts will be returned and value added services performed by CVT CORP will be debited to the Supplier’s account.

A written Corrective Action response may be required from the Supplier detailing the root cause of the nonconformance, and the actions implemented to prevent future occurrence. A formal written corrective action plan is required within 2 working days of notification. The initial submission must identify the problem and what immediate containment actions have been taken. A completed corrective action plan listing root cause, corrective actions, verification of action taken (if completed) and preventive actions is required within 20 working days of the


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identification date. Failure to respond within the specified time parameters will adversely affect the Supplier’s scorecard. Corrective action meetings with Supplier and CVT CORP may be requested by any party to help resolve difficult problems in an atmosphere of teamwork and partnership.

Levels of Containment:

Level 1 Containment:

When a nonconforming part is discovered and dispositioned as supplier error, the part will be rejected and placed on Level1 containment. The vendor will then be required to 100% certify the parts to be free of the identified defect(s) for a period of 30 days. Any reoccurrence of the issue or any other issue on the same part during the 30 day containment period, will extended the Level 1 containment period to 60 days. Any reoccurrence / new issues on the same part during the 60 day containment period will automatically increase duration of Level 1 containment to 90 days. The method of certification will be determined in conjunction with CVT CORP’s SQE. All parts must be clearly identified on all four sides of the container, skid or dunnage as 100% certified for the applicable defect.

Level 2 Containment:

If, during the 90 day Level 1 containment period, any additional non-conformances are identified on the same part, the part will automatically be placed on Level 2 Containment. During Level 2 containment, parts will be 100% inspected and certified by a third party inspection agency. The inspection will be conducted at the supplier’s premises or at CVT CORP depending on the requirement. The cost of third party inspection will be the responsibility of the supplier. Initially Level 2 containment duration will be 30 days, which may be extended depending on effective resolution of the issue. Exit of Level 2 containment will be considered completed upon resolution of issues with validated corrective and preventive measures put in place to prevent recurrence.

Line Stoppage (Certified Suppliers only):

The Supplier at any time can dispute rework charges, return charges and associated with non-conforming material within 72 hours. The dispute shall be made in writing and addressed to the Supplier Quality Engineer and/or subsequently the Quality Manager.

It is not the policy of CVT CORP to accept product that does not meet the requirements of our drawings and specifications. Shipment of nonconforming parts and/or assemblies by the Supplier is limited to only those items having approved deviations for the applicable shipments. The request for approval and acceptance shall be initiated by the Supplier through the Quality email address [email protected] . The shipment shall be deferred until the request is approved. Any unauthorized shipment of material prior to CVT CORP approval will result in rejection of that material. Shipment of unauthorized lots will be returned to the Supplier at their expense.


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All material shipped to CVT CORP with an approved Request for Deviation shall be inspected as required by CVT CORP. The items must be segregated, identified and packaged separately from other production material. FAILURE TO COMPLY WILL RESULT IN REJECTION OF LOT PARTS RECEIVED.

Quality Spills:

Spills are defined as occurrences of repeat issues on the same part or family of parts supplied by the Vendor, generally attributable to similar root cause. Spills can also occur from various functional root causes which may affect the same part or multiple parts, but can be traced to a systemic root cause.

CVT CORP identifies the ‘Spills’ from the trend of non-conformances in a month or quarter and notifies the supplier.

All Spill notifications will follow with an Incoming Quality (IQ) meeting with the Vendor. The CVT CORP Supplier Quality Engineer is responsible for setting up the meeting and provide the initial data of non-conformances and corrective actions generated during the period under review.

The review of the issues will take place in the form of a presentation by the vendor which may include following topics.

Pareto chart of issues

Containment review

Review of previous strategy

Corrective action summary

All issues identified as part of the IQ meeting shall have containment actions in place as per the levels of containment mentioned in this manual.

Warranty (L.T.A. Only)

Per CVT CORPs Purchase Order Terms and Conditions “Costs incurred by CVT CORP resulting from defective Seller supplied product shall be settled within a ten-working day time period from notification by CVT CORP. The Seller warrants that all articles covered by the Purchase Order will be in strict accordance with the specifications, drawings and other descriptions furnished by CVT CORP, and free from defects in material and workmanship. Consent shall not relieve the Seller of its warranty responsibility. In the event of a recall, by CVT CORP, necessitated by a defect in material or workmanship in a Seller’s part, the Seller will assume full financial responsibility for the cost of the recall, as well as replacement parts.”

As well as “Non-conforming product shall be returned to the Seller in accordance to Seller’s return authorization. CVT CORP shall debit Seller’s account for full purchase order price, plus any applicable surcharges and associated costs”


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Provisional Containment

Notification of Level 1 Containment to supplier

Determine the type of non-conformance and report to supplier

Initiate 8D and report progress during containment or within 2 working days

Determine a break point for suspect material at CVT CORP

Initiate sort to contain suspect material at all levels of process. Sort back to the last good part

Identify all future shipments (number of which to be determined by SQE) with 100% containment tag (to be approved by SQE via e-mail).

Communicate all findings to CVT CORP SQE

Is there reoccurrence of the issue?

Notify supplier of reoccurrence.

Notification of Level 2 Containment

Third party sorting company activated

Re-establish a break point for suspect material at CVT CORP

Establish work instructions and boundary samples. Communicate to third party sorting company.

Provide progress reports to supplier production source as well as CVT CORP

All suspect material to be taken to designated containment area (containment cannot be done on-line)

Provide workplace assessment. Examine inspection location and techniques to ensure repeatable and thorough checks to safeguard CVT CORP and its customer.

Obtain process control through permanent problem resolution.

Yes

No

Defect free shipments

CVT CORP Inc. Supplier Sorting Company Legend:


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Shipping Requirements

*** CVT CORP expects 100% on-time delivery from all of its Suppliers***

All orders should be shipped complete unless otherwise specified by CVT CORP Material / Purchasing Department personnel.

All scheduled due dates are subject to change by a CVT CORP Agent. A release will be issued by CVT CORP to notify Suppliers of the change in scheduled delivery dates. The release must be acknowledged by the Supplier.

If the Supplier is unable to adhere to scheduled due dates, they must advise the CVT CORP Materials Department immediately.

All material shipped to CVT CORP must bear full identification as specified by CVT CORP. Labels must permit traceability to specific Supplier manufacturing and inspection records.

The Supplier must inform CVT CORP about any lost / damaged dunnage.

MSDS sheets and WHMIS labels must accompany every shipment that contains hazardous materials.

All material used in past manufacture shall satisfy current government and safety constraints on restricted toxic and hazardous material, as well as environmental, electrical and electromagnetic considerations applicable to the county of manufacture and sale.

All packing slips and invoices must reference the following: part number, revision level, purchase order number, quantity shipped and the quantity on back order.

A Canada Customs invoice must be completed for each shipment to CVT CORP if outside Canada.

The Certificate of Origin (NAFTA) must have the 10-digit Canadian HS code to clear customs. AMPS penalties will apply if not correct.

Sub Supplier Control

CVT CORP Suppliers are required to control and develop their supply base. Sub Suppliers that provide products with key characteristics must implement appropriate control methods for their process. The Supplier must review Sub Supplier controls and continuous improvement efforts on a periodic basis to ensure conformance to drawing specifications and Quality System performance. If you should require assistance in the control of Sub Suppliers, a CVT CORP Supplier Engineer should be contacted.


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Contingency Plan

Suppliers must develop a contingency plan for potential catastrophes disrupting material flow to CVT CORP and inform CVT CORP immediately in the event of an actual catastrophe. In an actual catastrophe, Suppliers will provide CVT CORP access to CVT CORP owned tooling. The Supplier is responsible for CVT CORP tooling.

Supplier Quality Performance Evaluation

CVT CORP has developed this rating system as an objective, data based measurement system in order to monitor and develop Supplier performance in the areas of Quality, Delivery and Operations which are key performance indicators (KPI).

The Supplier Scorecard is intended to be a measurement tool to provide CVT CORP and its supply partners with the information required to continually improve their internal processes in order to provide the highest quality products and services. Effective communication of expectations and measurable targets within the supply chain will fortify our processes and ultimately, together we will build a better product.

A copy of the “Supplier Scorecard” will be e-mailed to all Suppliers informing them of their current overall rating. Suppliers failing to supply an active e-mail address for their customer representative will not receive a copy of the rating. The goal of this program is to have all of our Suppliers achieve “Acceptable” status.

CVT CORP categorized 8 types of Suppliers:

Electrical and Control Systems

Raw Material Casting/Forging

Machining

Fastener

Hydraulics

Special process

Services

Miscellaneous/Others


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Rating Criteria:

A. Quality Leg Indicators:

This is determined by the number of corrective actions (CARs) issued. The criteria for issuing a CAR are:

Unacceptable score in any leg (quality, delivery and operations)

Customer spill resulting from a supplier non-conformance and

Any supplier non-conformance deemed by the plant operating committee to require a corrective action.

0 CARs = 100% (Green); 1 – 2 CARS = 50% (Yellow); ≥ 3 CARs = 30% (Red)

B. Delivery Leg Indicators:

This is determined by the number of backlog or order follow ups.

≤ 1 backlogs = 100% (Green); 2 – 3 backlogs = 50% (Yellow); ≥ 4 backlogs = 30% (Red)

C. Operation Leg Indicators:

This is determined by the number of line disruptions via NCR’s.

≤ 1 line disruptions = 100% (Green); 2 – 3 line disruptions = 50% (Yellow); ≥ 4 line disruption = 30% (Red)

D. Responsiveness Leg Indicators:

This is determined by the vendor’s responsiveness for issues with respect to:

I) Failure to contain the issue in terms of sorting the parts, providing good replacement parts, issuing RGA(replacement good authorization) number and providing written initial response with 48 hours of notifying the issue.

II) Failure to resolve the issue with permanent corrective and preventive actions within 30 days from the date of receipt of corrective action request.

Total Responsiveness Issues = (I) + (II)

≤ 1 responsiveness issues = 100% (Green); 2 - 3 responsiveness issues = 50% (Yellow); ≥ 4 responsiveness issue = 30% (Red)


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Cumulative Leg Scoring:

The cumulative leg groups the quality, delivery, operation and responsive legs. It’s score is the sum of the scores for the four legs.

400 Maximum Score

≥ 350 Acceptable - GREEN

250 > 350 Fair - YELLOW

≤ 250 Unacceptable - RED

Continued poor performance in this score range for 2 consecutive quarters may result in re-sourcing of current business.

The contents of the Supplier Scorecard are in addition to, and an elaboration of the terms and conditions contained in the CVT CORP purchase order and other binding legal agreements entered into between the parties relating to the supplier relationship (‘Supplier Contract(s)’).

The provisions of this Supplier Scorecard are for the exclusive benefit of CVT CORP and may be varied or modified by CVT CORP in its absolute discretion, without prior notice to any third party.

This Supplier Scorecard is a controlled document and the property of CVT CORP. It is intended exclusively for use by CVT CORPs Suppliers and shall be used for no other purpose or by any other party. It shall not be reproduced, electronically or otherwise, without CVT CORP’s express prior written authority. All rights are expressly reserved by CVT CORP.

pr0303 supplier quality manual · 2018-05-03 · development. when required, the supplier must...

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