Supplier Quality Management Procedure

04-200009-01 Supplier Quality Management Procedure / Version: 4 / Page 1 of 7

Supplier Quality Management Procedure

Owner is the Department Manager or designee responsible for maintaining this document.

The “QMS Procedure Responsibility Matrix” defines management responsibility to approve this document prior to publishing.

As procedures are updated the cover page will change to the format below.

The content format is grandfathered and does not require changing.

Owner
(mark w/ “X”) / Function / Mark w/ “X” if Approval Required / Approval
(Embed E-mail Approval)
President
X / Quality / X /
Channel Mgt / Commercial Mkt
Engineering / Vertical Solutions / X /
Operations / X /
Finance / X /
Human Resources

It is the user’s responsibility to ensure that this document is the current version.

All Quality Management System documents are maintained within the Engineering Document Control System, (EDCS).

For information on revision changesreference the Engineering Document Control System version history records.

To view approval signatures click on the embedded approval email.

Purpose......

Scope......

References......

Procedure......

Section A. Supplier Evaluation......

Section B. Supplier Performance Monitoring...... 3

Section C. Records – Supplier Survey Questionnaire......

Section D. Records – Supplier Report Card...... 4

Section E. Records – 'Vendor ID' - Conflict Materials Declaration .4

Section F. Records – RoHS2 Certificate of Compliance ………………5

Section G. Records--Declaration of nanoscale Compliance ………..5

Definitions...... 5

Certified Thresholds Table...... 6

Flowchart...... 6

Purpose

This document provides an overview of Microscan Systems, Inc. Supplier Quality Management Program; a program designed to select, manage and promote suppliers who can assist Microscan Systems, Inc. in achieving its Quality Goals and customer satisfaction. It shall be used in parallel with the Component Qualification Procedure.

Scope

This document applies to Microscan Systems, Inc. and to all its suppliers of production inventory material and quality critical service suppliers.

References

04-200011Component Qualification Procedure

04-200024Corrective/Preventive Action Request Procedure

05-040005Supplier Survey Questionnaires (SSQ)

NA'Vendor ID' - Conflict Materials Declaration

NAMicroscan RoHS Supplier Survey

NAAnnual declaration of nanoscale substances

Regulatory Requirements

All Microscan suppliers are required to comply and provide evidence of compliance to the following:

Dodd-Frank law, As defined in 2010 United States legislation, Dodd-Frank Wall Street Reform and Consumer Protection Act, Section 1502(e)(4):
CONFLICT MINERAL.—The term ‘‘conflict mineral’’ means—
(A) columbite-tantalite (coltan), cassiterite, gold, wolframite, or their derivatives; or
(B) any other mineral or its derivatives determined by the Secretary of State to be financing conflict in the Democratic Republic of the Congo or an adjoining country. (Available at

All active suppliers are required to provide the EICC “'Vendor ID' - Conflict Materials Declaration” completed form.

Reference: for additional information.

RoHSDirective 2011_65_EU of the European Parliament and of the Council of 8 June 2011 on the restriction of the use of certain hazardous substances in electrical and electronic equipment.

(Available at:

All active suppliers are required to provide as a minimum,a Certificate of Conformance stating compliance to the RoHS Directive 2011_65_EU.

Reference: for additional information.

Nanoscale: French MINISTRY OF ECOLOGY, SUSTAINABLE DEVELOPMENT. TRAINSPORT AND HOUSING

Decree no. 2012-232 of 17 February 2012 on the annual declaration of substances at nanoscale in application of article R. 523-4 of the Environment code.

Entry into force: 1st January 2013, with the exception of the provisions of sanctions, which will enter into force on 1stJuly 2013. Reference: 19 February 2012 OFFICIAL JOURNAL OF THE FRENCH REPUBLIC Text 4 / 44.

Reference: for additional information.

Any supplier questions in regards to the above requirements are to be directed to Microscan purchasing department.

Forms: Forms to support the regulatory requirements can be located on the Microscan website at:

Microscan Supplier Documents Suite:

Procedure

Section A. Supplier Evaluation

ResponsibilityAction

Quality / A-1 / Quality and Purchasing will determine whether a new or existing supplier will require evaluation based on product requirements; defined in the component qualification procedure, size of supplier and current business considerations.
New or existing suppliers that do no require evaluation shall be assigned the Supplier Qualification Level of “Evaluation Not Required” in the “Supplier Qualification Level” user defined field in the Vendor Maintenance Module of Visual Manufacturing.
Quality & Purchasing / A-2 / If determined a supplier will be evaluated a Supplier Survey Questionnaire (05-040005) will be sent to supplier requiring evaluation. Suppliers with a completed Supplier Survey Questionnaire on file may or may not be required to complete another based on the time since their last evaluation and/or major changes to their Quality System. Proceed to step A-5 for Suppliers not required to complete the Supplier Survey Questionnaire.
Suppliers / A-3 / Return completed Supplier Survey Questionnaires to Microscan, Systems, Inc. (e-mail is the preferred format) and associated documentation as requested in the Supplier Quality Questionnaire (i.e. Quality Manual, Organization Charts, Procedures, etc…).
Quality / A-4 / Review Suppliers response to the Supplier Survey Questionnaire. If deemed necessary, additional information or clarification may be requested including a visit of the supplier’s facilities to validate responses to Survey Questionnaires.
A-5 / Perform evaluation of supplier based on Supplier Survey Questionnaire response, Trip/Vendor visit Report, and/or review of past performance if applicable.
A-6 / Update the supplier’s evaluation status in the “Supplier Maintenance” module of Purchased Part Quality Database (PPQD).
The selections for approval status are “Approved,” “Conditionally Approved,” “Disapproved,” and “Evaluation Not Required.” Conditions for “Approved” are documentedin theApproved Thresholds table at the end of this procedure.

Section B. Supplier Performance Monitoring

The performance of a supplier shall be monitored and recorded via a Supplier Report Card generated from the Purchased Part Quality Database (PPQD). The Supplier Report Card will contain the Suppliers Quality, On-Time Delivery, Supplier Corrective Action Request (SCAR) response and Dock to Stock performance.

ResponsibilityAction

Quality / B-1 / Identify the suppliers to be monitored. Typically, the top 20 suppliers by dollar volume are monitored on a monthly or quarterly basis. If deemed appropriate, more frequent monitoring can be arranged.Supplier Report Card for other suppliers shall be generated on as required basis.
B-2 / A Supplier Report Card for the suppliers identified in B-1will be generated through the “Supplier Management” module in the PPQD.
B-3 / Review the Suppliers Performance as documented on the Supplier Report Card.
Quality and Purchasing to review the data in the report and make adjustments as needed.
Determine need for Supplier Corrective Action Request (SCAR) based on the supplier’s failure to meet threshold requirements for the current reporting period. Consideration for a SCAR may also be based on negative trends in performance as well.
If needed, generate and issue a SCAR in accordance with the Corrective/Preventive Action Request Procedure (04-200024).
Poor performance may also lead to a re-evaluation per Section A and possibly the demotion of the supplier’s qualification level and/or disapproval.
Quality & Purchasing / B-4 / Supplier Report Card shall be made available, and reviewed with the supplier as required.

Section C. Records – Supplier Survey Questionnaire

ResponsibilityAction

Quality / C-1 / Collected:Electronically on the QA Shared Drive and or Document Control System
C-2 / Indexed/Filed:By Supplier Name
C-3 / Storage:Electronically per company document control procedures.
C-4 / Access:Open to all Microscan employees. Available to customers, and designated parties as requested and approved through Purchasing.
C-5 / Retention Time:Reports will be maintained for a minimum of three (3) years from the date of completion.
C-6 / Disposal:Reports will be disposed or recycled after retention period.

Section D. Records – Supplier Report Card

ResponsibilityAction

Quality / D-1 / Collected:Generated from the PPQD
D-2 / Indexed/Filed:By Supplier Name
D-3 / Storage:Electronically on the QA Shared Drive and or Document Control System
D-4 / Access:Open to all Microscan employees, Available to customers, and designated parties as requested and approved through Purchasing.
D-5 / Retention Time:Reports will be maintained for a minimum of three (3) years from the date of completion.
D-6 / Disposal:Reports will be disposed or recycled after retention period.

Section E. Records – 'Vendor ID' - Conflict Materials Declaration

ResponsibilityAction

Quality / D-1 / Collected:Received from Microscan Supplier
D-2 / Indexed/Filed:By Supplier Name
D-3 / Storage:Electronically on the QA Shared Drive and or Document Control System
D-4 / Access:Open to all Microscan employees, Available to customers, and designated parties as requested and approved through Purchasing.
D-5 / Retention Time:Reports will be maintained for a minimum of three (3) years from the date of completion.
D-6 / Disposal:Reports will be disposed or recycled after retention period.

Section F. Records – RoHS2 Certificate of Compliance

ResponsibilityAction

Section G. Records – Declaration of nanoscale compliance

ResponsibilityAction

Definitions

Evaluation Not Required:Suppliers who do not supply commodities which affect the quality of Microscan product.

Approved Supplier:Suppliers who have had their quality systems evaluated, and continue to perform to the Approved Thresholds listed below.

Conditionally ApprovedSuppliers who are not meeting the Approved supplier thresholds, require a monthly review, and are subject to disapproval.

Disapproved Supplier:Suppliersthat either show; an unsatisfactory quality systemor poor performance to the extent that they are deemed unusable by Quality Assurance.

Supplier:“Vendor” and “supplier” mean the same throughout this procedure and refer to a company that provides products or services to Microscan Systems, Inc.

Certified Thresholds Table

Performance Indicator / Approved Thresholds
% On-Time Delivery / 98%
% Shipments Accepted / 97%
% Accepted Parts from WIP / 99.7%
% On-Time SCAR Responses / 100%
# of Repeat SCARs / 0

Process Flowchart

Supplier Quality Management Procedure

CONTENTS