supplier guidelines manual - ucal systems...ucal systems inc will not compromise its principle for...

SUPPLIER GUIDELINES MANUAL

UCAL SYSTEMS INC

Document Title: Supplier Guidelines Manual Document No: WI43QA

Document Rev Level: 22 Created By: Atulya Narendranath

Approved By: Sivasangar Subramanian Revision Date: 12/10/2020 Page 1

SUPPLIER GUIDELINES MANUAL

This document is controlled and edited by UCAL SYSTEMS INC.

Printed versions are for reference purpose only. It is the supplier’s responsibility to assure

that only the latest revision of this manual is used, and all prior editions are identified as

obsolete.

This manual is the property of UCAL SYSTEMS INC and Suppliers are responsible for

obtaining and using the current revision of this document. This Manual is also available

on the Ucal Website: https://ucalsystems.com/supplier-info/

https://ucalsystems.com/supplier-info/




0.1 REVISION CONTROL

1 Released per QS 9000 requirements 10/20/1997

2 Revised 5.0 Production Part Approval Process 3/9/1999

3 Revised as Work Instruction / Reformatted / added WI44QA. 12/5/2002

4 Revised approval authority to include VP, Operations 6/3/2003

5 Eliminated VP, Operations 2/20/2004

6 Revised Paragraph 3.6.1. 6/4/2004

7 Revised Paragraphs 4.1; 6.1; 6.2.1; 6.3;7.1; 7.3 8.3; & Supplier Rating Form 2Q04 Added

form; WI43qc supplier survey developed.

6/14/2004

8 Revised scope from QS 9000 to TS 16949. Revised paragraphs 4.1, 4.2, 7.1, 8.2 9/4/2004

9 Revised scope for automotive suppliers; revised paragraphs 4.2, 8.1; added new section

6.0 “Supplier Development”

3/3/2005

10 Name Changes 4/14/2005

11 Revised 3.8 to include Corrective Action for 3 consecutive months of less than 100%

On-Time Delivery.

6/20/2006

12 Revised 3.8 to include Corrective Action for 3 consecutive months of less than 100%

On-Time Delivery.

6/20/2006

13 Revised to include approval of the Director of Engineering. 4/24/2008

14 Revised to include names of new approvals. 4/24/2008

15 Reviewed and revised for better clarity. 12/18/2014

16 Reviewed and revised for better clarity OF Scope and General Requirements. 12/23/2014

17 Updated per the new IATF 16949 standard and General requirements 5/10/2017




18 Update the Criteria in clause no. 3.9 06/29/2018

19 Updated company name to UCAL SYSTEMS INC and criteria as per AS9100 Rev D 07/08/2019

20 Updated as per new Risk Assessment Criteria 11/21/2019

21 Updated retention period requirement for supplier documents (Refer section 3.2) 2/25/2020

22 Updated the requirement of conflict minerals report (3.3), Supplier Assessment

frequency (4.2), Second Party Audit Criteria (Section 8)

12/10/2020

0.2 TABLE OF CONTENTS

Sl.No CONTENTS PAGE

0.0 Title Page 1

0.1 Revision Control Sheet 2

0.2 Table of Contents 3

0.3 Approvals 4

0.4 Company Structure 5

0.5 Quality Policy 6

0.6 Mission Statement 7

1.0 Purpose 9

2.0 Scope 9

3.0 General Requirements 9

4.0 Supplier Evaluation, Selection and Approval Process 11

5.0 Production Part Approval Process 12

6.0 Supplier Development 12

7.0 Supplier Monitoring and Re-evaluation Process 13

8.0 On-Site Quality System Assessment /Evaluation 15

9.0 Supplier Non-conformance Report and corrective action 16




0.3 APPROVALS

Approved By: Ganesh Subramanian

President

Approved By: Ravi Narayanan

V.P. of Engineering & Quality

Approved By: Baskaran Narayanarao

Plant Manager

Approved By: Don Brown

Purchasing Manager

0.4 COMPANY STRUCTURE

Company Address: UCAL SYSTEMS INC,

1875 Holmes Road,

Elgin, Illinois 60123-1298

UCAL SYSTEMS INC maintains an organizational chart with designating positions

and responsibilities of officers, managers, and other employees.

Scope for IATF: Manufacturer of Precision Metal Components for use in customer

applications in systems but not limited to Fuel, Powertrain, Ride Control, Sensor,

Brake, Air conditioning, Hydraulic Valves and Pumps.

Scope for AS9100: Manufacturer of Precision Metal Components for use in aviation,

Space and defense applications.

UCAL SYSTEMS INC Customers base consists of large, multi-national companies.

UCAL SYSTEMS INC requires suppliers to support the following key elements in

meeting UCAL SYSTEMS INC’s goals and targets.




0.5 UCAL SYSTEMS INC QUALITY POLICY

To achieve our mission through providing superior engineering, combined with

quality tooling and workmanship, resulting in high quality defect-free products on

time, every time.

UCAL SYSTEMS INC Quality Statement:

The commitment to quality and the policy for quality of UCAL SYSTEMS INC’s

management is reflected in the company’s mission statement and in the following

objectives for quality.

UCAL SYSTEMS INC General Objectives:

1. Provide exceptional quality products and services by striving to exceed our

customer’s expectations.

2. Maintain a formal quality system meeting all requirements of the ISO 9001, IATF

16949 and AS9100 standard.

3. Foster an atmosphere of continuous improvement and problem prevention.

4. Empower employees so that they can help improve the systems that affect their

work.

5. Provide education and training to all employees to support their health,

welfare, and safety as a top priority.

6. Communicate our mission and quality objectives to all employees.

7. Develop relationships with our suppliers that emphasize continuous

improvement in product quality, service, and support.

8. Provide an environment that supports teamwork.

UCAL SYSTEMS INC Quantitative Objectives:

UCAL SYSTEMS INC’s quantitative objectives are identified in the Company’s formal

business plan.




0.6 UCAL SYSTEMS INC’S MISSION STATEMENT:

“To be our customers leading supplier of precision components “

STRATEGY:

To accomplish our mission through our continued commitment to our guiding

principles:

Code of Ethics

UCAL SYSTEMS INC will conduct its business honestly and ethically and expect our

clients and External Service Providers to do the same. We will continually improve

our products, services and operations throughout training and ethical

consideration. UCAL SYSTEMS INC will create reputation for honesty, fairness,

respect, responsibility, integrity, trust and sound business judgment. No illegal or

unethical conducts on the part of employees is in the company’s best interest.

UCAL SYSTEMS INC will not compromise its principle for short term advantage. The

ethical performance of this company is the sum of the ethics of the men and

women who work here. Thus, we are all expected to adhere to high standards of

personal integrity.

Quality

Superior engineering, combined with quality tooling and workmanship,

resulting in high quality, defect-free product, on time, every time.

Integrity

Open and honest communication in all business activities - satisfaction of all

commitments.

Excellent Customer Service

Development of long-term relationships with our customers by continually meeting

or exceeding their expectations.

Growth




We will grow with our customers through internal expansion and strategic

acquisitions, to assure that their needs are met today and in the future.

Facilities and Equipment

State-of-the-art, world class, temperature-controlled facilities - with expansion

capabilities to meet our future needs.

Human Resources

Highly dedicated, qualified people trained and professionally educated for

continuous skill improvement.

1.0 PURPOSE

This instruction supplements UCAL SYSTEMS INC’s purchase orders; it does not

alter or reduce any active contractual requirements. This instruction establishes

uniform guidelines for acceptable quality systems.

2.0 SCOPE

This instruction applies to all UCAL SYSTEMS INC External Service Providers who

provide raw material, components, and/or services to finished products of UCAL

SYSTEMS INC.

External Service Providers who supply raw material, components, and/or services

to UCAL SYSTEMS INC for the automotive end users are controlled using IATF

16949 and for the aerospace industries are controlled using AS 9100 requirements.

IATF 16949 states that the goal of all External service providers within the

automotive supply chain is to become certified to IATF 16949. Conformity with ISO

9001 is the first step in meeting that goal

External service providers who supply raw material, components, and/or services

to non-automotive end users are encouraged by UCAL SYSTEMS INC to also

conform to ISO 9001.




3.0 GENERAL REQUIREMENTS

3.1 External service providers are required to provide products and services that

conform to current UCAL SYSTEMS INC drawings and specifications. They should

be aware of their contribution to product, services, product safety and its

conformity. External service providers are responsible for verifying revision levels

of those drawings and specifications to the purchase order.

3.2 External service providers are required to maintain documented evidence (QMS) of

compliance to record retention; and be able to produce such documentation upon

request. Document retention period for automotive suppliers and aerospace

suppliers varies as per UCAL’s customer requirements.




RETENTION PERIOD FOR AUTOMOTIVE AND AEROSPACE SUPPLIERS

Sr No

Documented Information Industry Retention Period [n.a.= not applicable]

Automotive Aerospace

1 Quality Requirement Documents Product Active Life + 1 year (minimum 15 years after the process is rendered invalid)

15 years

2 Management Review Documents 3 years 3 years

3 Quality Records Product Active Life + 1 year (minimum 15 years after creation)

15 years

4 Product/Process Development Records Product Active Life + 1 year (minimum 15 years after creation)

15 years

5 Change Management and Engineering Changes Product Active Life + 1 year (minimum 15 years after creation)

15 years

6 First Article Inspection (If Applicable) Product Active Life + 1 year (minimum 15 years after creation)

15 years

7 Production Part Approval Product Active Life + 1 year (minimum 15 years after end of production)

15 years

8 Annual Validation Product Active Life + 1 year (minimum 15 years after creation)

n.a.

9 Traceability Product Active Life + 1 year (minimum 15 years after creation)

15 years

10 Product Specifications: Purchase Orders and Amendments, drawing, BOM, Purchase Orders for Customer Owned Tooling

Product Active Life + 1 year (minimum 15 years after creation)

15 years

11 Tooling Preventive Maintenance 3 years 3 years

Product Active Life = Length of time, that the part (or family of parts) is active for production and service requirements [EOP], plus one calendar year, unless otherwise specified by UCAL SYSTEMS INC.




Upon completion of above retention period, the supplier shall discard the

documents as per their internal procedure for disposition and ensure that the

confidential information is protected.

In the event of a termination of business, all Supplier shall transfer any applicable

records pertaining to raw parts/or services provided to UCAL.

3.3 External Service providers shall document their processes to ensure that applicable

statutory and regulatory requirements are conformed to the country of receipt and

to country of shipment. Material smelted from the Democratic Republic of Congo

or adjoining countries shall not be used in any products sold to UCAL. If Supplier

identifies conflict minerals sourced and used within their supply chain, Supplier shall

take immediate action to identify alternatives from known non-conflict sources.

Upon reasonable request by UCAL, suppliers shall submit the Conflict Minerals

Report within 4 weeks.

3.4 External Service provider must give right of access to UCAL SYSTEM INC, it’s

customers and regulatory authorities to their applicable areas and process

documented information at any level of the supply chain.

3.5 External service providers shall achieve zero defects on all products and services

provided to UCAL SYSTEMS INC. The External service providers shall use a system

of prevention in order to detect defects at the earliest possible time and also

prevent the use of counterfeit parts. It is the External service provider’s

responsibility to replace or sort any defective material discovered at UCAL

SYSTEMS INC or at UCAL SYSTEMS INC’s customer and reimburse UCAL SYSTEMS

INC for all costs incurred as a result of the defective material that is needed

immediately will be sorted at the External service provider’s expense.




3.6 External service providers shall reply immediately to notification of defective

material and provide corrective action plan.

3.5 Critical/ Special/significant/Key product characteristics will be identified on prints

and specifications that are provided to External service providers. External service

providers should use statistical techniques for product acceptance and related

instructions for acceptance by UCAL SYSTEMS INC. It is expected that statistical

process control is maintained on these product characteristics with a minimum

CpK of 1.67. Reports providing capability analysis (CpK data) shall be made

available to UCAL SYSTEMS INC upon request. External service providers should

provide test specimens for design approval, inspection, production process

verification, investigation or auditing.

3.7 External service providers must notify UCAL SYSTEMS INC of all changes to

processes, products or services including changes to their external providers or

location of manufacture and obtain UCAL SYSTEMS INC’s approval prior to their

implementation. All requests must be made to UCAL SYSTEMS INC’s buyer (using

UCAL SYSTEMS INC form WI201EN). The form can be requested anytime from

UCAL SYSTEMS INC Buyer or Quality contact. No changes are allowed without prior

authorization from UCAL SYSTEMS INC and our customers.

3.8 External service providers are required to demonstrate measurable continuous

improvement for all aspects of products/services supplied including, but not limited

to; cost, quality, delivery, etc.

3.9 The Buyer monitors the External service providers for 100% on-time delivery

performance. Suppliers are expected to meet 100% on time deliveries. Any delivery

performance which affects UCAL SYSTEMS INC Production line or its customers,

requires an immediate corrective action.




4.0 SUPPLIER EVALUATION, SELECTION AND APPROVAL PROCESS

4.1 UCAL SYSTEMS INC Purchasing Department, in conjunction with Engineering &

Quality has primary responsibility for initiating approval of External service

providers prior to awarding business and placement of the initial order.

4.2 New potential suppliers are required to perform a self-assessment (form WI43cQA)

before business can be awarded. All suppliers are required to perform the self-

assessment once in every 5 years cycle. UCAL SYSTEMS INC may schedule a visit

to the External service provider’s facility to further evaluate production capabilities,

processes and systems (see Quality System Assessment section 8.0 below). This

visit (on-site audit) may include representatives from Purchasing, Quality,

Manufacturing, and/or Engineering to aid the audit process. A new supplier for an

automotive component and/or service is also required to submit proof of ISO 9001

or IATF 16949 certification or AS9100 Certification (if certification is not yet achieved,

see Customer Development, section 6.0 below).

4.3 New suppliers of UCAL, who have scored more than 160 points in self-assessment

(form WI43cQA), may be approved conditionally by the UCAL Team. All new

suppliers will go through a probation period of minimum 60 days before they get

officially approved status by UCAL SYSTEMS INC.

4.4 The criteria for approval are a minimum score of 7 on every applicable element,

and a minimum total score of 160. Corrective actions are required within 60 days

for those elements that score less than 7 or a minimum total score less than 160. A

resurvey of the deficient areas may take place after corrective action has been

verified.

4.5 External service providers should apply appropriate controls to their sub-tier

external providers to ensure that all requirements by UCAL SYSTEMS INC are met.




4.6 UCAL SYSTEMS INC Purchasing Dept. reserves the right to use an External service

provider for limited use (30 – 60 days) pending response to the self-survey and/or

scheduling of an on-site audit at the supplier’s facility, or receipt of quality system

certification by an accredited third-party registrar.

4.7 UCAL SYSTEMS INC Quality Dept. will determine the method of verifying the

suitability of the External service provider’s quality system based on the quality

requirements specified in this instruction. If a Supplier Quality System Assessment

is conducted by UCAL SYSTEMS INC (see Section 7.0), a copy of the completed

assessment will be provided as a continuous improvement/corrective action guide.

5.0 PRODUCTION PART APPROVAL PROCESS

5.1 All External service providers to UCAL SYSTEMS INC are required to submit a

Production Part Approval Process (PPAP) as per the requested Level by UCAL

SYSTEMS INC.

5.2 External service provider are required to submit representative production samples

if required by Engineering and receive PPAP Approval prior to production

shipment.

5.3 External service providers must notify UCAL SYSTEMS INC’s Purchasing and Quality

Department of all process/product changes prior to implementation. Notification

must be made in writing and explain the reason for the change (i.e. cost reduction,

quality improvement, equipment changes etc.). Upon UCAL SYSTEMS INC’s

request, a Re-PPAP will have to be submitted to the PPAP revision level as

described by Engineering or Quality, prior to implementation.




6.0 SUPPLIER DEVELOPMENT

6.1 UCAL SYSTEMS INC is adhering to all requirements specified in the IATF 16949 and

AS9100 Standard. This specification states that UCAL SYSTEMS INC performs

supplier quality management system development with the goal of supplier

conformity with the IATF 16949 or AS9100 Standard, as applicable. Conformity with

ISO 9001 is the first step in achieving this goal.

6.2 To meet the requirement of supplier development, UCAL SYSTEMS INC, requires

all External service providers for automotive end-users to be third party registered

to ISO 9001. In rare situations, if the External service provider is not ISO 9001:

registered, UCAL SYSTEMS INC may use the ESP based on automotive customer’s

approval. End Customer requirements may necessitate re-sourcing business based

on lack of certification to ISO 9001.

6.3 If an External service provider for non-automotive customer is pursuing certification

to ISO 9001, a detailed action plan (with dates) must be submitted to UCAL

SYSTEMS INC Purchasing. UCAL SYSTEMS INC may monitor progress of this

timeline. UCAL SYSTEMS INC may award business to suppliers who conform to

ISO 9001 but are not yet certified for other Non-Automotive customers.

7.0 SUPPLIER MONITORING AND RE-EVALUTION PROCESS

7.1 UCAL SYSTEMS INC Quality Assurance, Purchasing, and Engineering determine the

frequency and necessity of External service provider Quality System assessments

based on supplier performance. Ongoing approval is contingent upon maintaining

a minimum supplier performance rating. (Form WI17bQA)

7.2 Supplier are evaluated/re-evaluated based on the risk, which considers four

criteria’s namely, UCAL’s Customer issues, late deliveries, quality issues & UCAL’s




internal issues. Any issue occurred at UCAL’s Customer end, will be given weightage

of 3 and the remaining criteria’s such as late deliveries, quality issues, UCAL’s

internal issue will be given a weightage of 1. Based on these criteria, a cumulative

risk rating is calculated which determines the supplier monitoring frequency.

7.3 Supplier monitoring Frequency is evaluated based on the cumulative risk rating

criteria mentioned below in the table,

Supplier Monitoring Frequency Criteria

Cumulative Risk Number

Risk Associated Level Monitoring Frequency

0 Very Low Annual

1 Low Annual

2 Medium Semi-annual

3 High Quarterly

> 3 Very High Quarterly

Example for Supplier Risk Evaluation and Monitoring Frequency:

Supplier Name: “ABC”

SUPPLIER

NAME

LATE

DELIVERIES:

QUALITY

ISSUES:

UCAL'S

INTERNAL

ISSUES:

UCAL'S

CUSTOMER

ISSUES:

CUMULATIVE

RISK RATING:

ABC 1 0 0 3 4

Conclusion: - Based on the above table, supplier “ABC” is having a Cumulative Risk Rating

of 4 which puts them into “Very High” Risk Category and to be monitored quarterly.




7.4 Supplier Report Card Assessment Criteria is as follows:

I. QUALITY 40 Possible Points

Less than (<) 50 PPM 40 points

Between 50 – 100 PPM 35 points

Between 100 - 200 PPM 30 points

Between 200 – 500 PPM 20 points

Greater than (>) 500 PPM 0 points

II. ON-TIME DELIVERY 30 Possible Points

Points are assigned on an actual percentage of shipments received at UCAL

SYSTEMS INC within a 2-day workday window of the required receipt date.

100% delivery 30 points

90-99% delivery 20 points

80-89% delivery 10 points

< 80% 0 points

III. PRICE 20 Possible Points

Price Reduction (5% & above) 20 points

Price Reduction (Up to 5%) 10 points

Price Reduction (Nil) 0 points

IV. RESPONSIVENESS 10 Possible Points

Responsiveness to Schedule Changes (maximum) 5 points

Responsiveness to Quality Issues (maximum) 5 points

TOTAL POSSIBLE POINTS 100 POINTS

7.5 A total rating of less than 70 points excluding price reduction points requires

Corrective action response within 15 days of receipt of scorecard.




7.6 Failure to submit the required corrective action plan and/or a continued rating of

less than 70 points over a one-year period will result in management re-evaluation

of the poor performance and potential removal of External service providers from

the UCAL’s Supplier List.

8.0 SECOND PARTY AUDIT CRITERIA AND QUALITY SYSTEM ASSESSMENT

8.1 UCAL may require an on- site or Remote Quality Audit to assess the ESPs current

status related to Quality, Product Safety, Delivery and Cost. The purpose of the

Audits can be announced because of poor performance, to check potential risks,

or as a planned preventive or repetitive action.

8.2 Audits will be conducted at the ESPs facility or development center if onsite and

may include any sub- SUPPLIER.

8.3 Audits are determined on risk analysis, associated with product / regulatory

requirements, as well the need, type, frequency and scope of the audit, such as,

but not limited to: QMS- Audit, Process Audit, Product Audit or Product Safety

Audit.

8.4 UCAL may use form number WI43cQA (Supplier Questionnaire) while evaluating

the ESP

8.5 Second party audit can be conducted for External Service Provider which are

evaluated and identified in “Medium, "High" or “Very high” risk category by UCAL,

if required. If second party audit is not conducted, then the ESP will be monitored

as per the supplier monitoring frequency until the quality issue is resolved (See 7.3

for Risk Evaluation and supplier monitoring criteria)

8.6 UCAL shall provide the audit report, including scoring and findings, to the ESPs.

8.7 ESPs shall address the audit weaknesses, detected during the audit. ESPs shall

respond to UCAL within 48 hours to contain the finding with a defined

containment.




8.8 ESPs shall address the audit results within 14 calendar days from the receipt of the

audit report. All responses must follow the 8D methodology and timing or as

agreed upon between UCAL SYSTEMS INC and the External Service Provider.

(See section 9.1)

8.9 In the event of deviations being noted during the audit the supplier obligates

themselves to set up a coordinated action plan.

8.10 UCAL’s SUPPLIER audit frequency may be increased due to repetitive quality issues

and poor performance, as warranted by UCAL's Quality Department.

8.11 All ESPs who perform Heat Treat, Plating, etc. are responsible for submitting their

annual CQI Self-Assessment Reports (CQI-9 for Heat Treating, CQI-11 for plating ….

Etc.) Immediately upon annual assessment completion.

9.0 SUPPLIER NON-CONFORMANCE REPORT AND SUPPLIER CORRECTIVE ACTION

(8-D)

9.1 UCAL’s Quality function uses the Non-Conforming Material Report (NCMR) to

document and monitor incidences of nonconforming materials or services. For

those non-conformances which require corrective action as identified and

communicated. The External service providers shall provide corrective action in

Global 8D format or equivalent unless agreed upon between UCAL SYSTEMS INC

and the External Service Provider.

9.2 An UCAL SYSTEMS INC quality Representative will issue a NCMR with input from

Engineering, Manufacturing, and Production. Unless otherwise specified, the

following guidelines will apply:

Initial containment action at the External service provider location is required upon

notification.

Initial corrective action response is required within 48 hours.

Final corrective action response is required within fifteen (15) days or as agreed

upon between UCAL SYSTEMS INC and the External Service Provider.




Cost recovery activities relating to nonconforming materials and services will be

communicated by UCAL SYSTEMS INC purchasing Department to the External

service provider.

Sort rate at UCAL SYSTEMS INC to segregate non-conformances is $30.00 per hour,

the Quality Manager will notify the supplier prior to commencing any sorting

activity. A $250.00 debit charge to cover administrative costs will be debited for

each NCMR issued for defective material regardless of final disposition.

9.3 All NCMR’s and Supplier Corrective Action Reports are reviewed and closed by the

Quality.

9.4 If the external service provider found non-conformity in the products/services, then

it needs to be immediately informed to UCAL Systems Inc. after containment action

and wait for further disposition from UCAL systems Inc.

9.5 The external service provider is responsible for Counterfeit, or suspect counterfeit,

parts and they shall control these parts to prevent re-entry into the supply chain.

9.6 The External Service Provider shall provide timely notification to UCAL with the

pertinent facts if Supplier becomes aware of, or that it has delivered suspect

counterfeit or counterfeit work.

9.7 The External Service provider to maintain suspect counterfeit parts in a segregated

quarantine area separate from nonconforming product; clearly identify as Suspect

counterfeit part and inform UCAL’s team.

9.8 The External Service Provider Collect all traceability documentation associated with

the suspect Counterfeit part and take appropriate remedy/ Corrective actions by

Communication with UCAL team.

9.9 The external service provider shall establish a control process to prevent, detect

and remove foreign objects on the product’s supplied to UCAL.




*END OF MANUAL*