revised: 10/23/00
SUBCONTRACTOR RELATIONS AND REQUIREMENTS MANUAL
The foregoing manual has been compiled to introduce you to Elyria Manufacturing Corp.(EMC) and is your guide to compliance to the standards established by EMC and its customers.
This manual describes our Operating Policy as well as policies in the areas of Quality, Delivery, Service, and Pricing. Also addressed are the areas of Vendor Surveys, Performance Ratings and Packing Requirements. A facilities list is included at the end of this manual.
Elyria Manufacturing was founded in 1925 to manufacture screw machine products. Located in Elyria, and North Ridgeville, Ohio, EMC plans to remain a locally owned business.
EMC is certified to ISO 9002 and QS 9000 and manages its business in accordance with the requirements set forth within those quality standards. Several key elements within QS 9000 govern the relationships with our subcontractors significantly enough to warrant this manual. References to those key elements will be applied throughout this text.
Our customers included industrial equipment manufacturers, appliance, pneumatic, and heavy equipment manufacturers. EMC operates four facilities, employs approximately 130 people and is positioned to be a leader in our industry by committing ourselves to serve our customers requirements with "100% CONFORMANCE TO SPEC". That commitment is supported by the most up to date quality assurance equipment and techniques operated by highly trained and dedicated employees to provide our customers the service they require and thus helping them to be leaders in their respective industries.
GENERAL OPERATING POLICY
EMC manages its business in accordance with the requirements of QS 9000, third edition. Several key elements within QS 9000 govern the relationships with our subcontractors significantly enough to warrant this manual. References to those key elements will be applied throughout this text.
We intend to aid our subcontractors in any way possible to insure their understanding of QS 9000, our customer specifications or functional requirements toward the successful completion of their awarded function. That mandate is clearly defined in this key element of QS 9000:
Section 4.6.2.1 - Subcontractor Development states that:
"The supplier shall perform subcontractor quality system development with the goal of subcontractor compliance to QS 9000 using Section I of QS 9000 as their fundamental quality system requirement."
Your acceptance of any purchase order requirements from EMC warrants that you are compliant with all governmental and safety regulations related to the use and disposal of restricted, toxic and hazardous substances relative to your performance of the order.
This requirement is clearly defined in this key element:
Section 4.6.1.2 - Government, Safety and Environmental Regulations states that:
"All purchased materials used in part manufacture shall satisfy current governmental and safety constraints on restricted, toxic and hazardous materials; as well as environmental, electrical and electromagnetic considerations applicable to the country of manufacture and sale."
CONFIDENTIALITY
EMC respects the proprietary rights of the information disclosed on the drawings furnished by its customers. We require that our subcontractors do not divulge the customer's name or any information pertaining to that customer or drawing to any other organization without the written consent of EMC or its customer. EMC adheres to a respect for business ethics and does not solicit or offer any information that may be construed as confidential or not of public knowledge. We require our subcontractors follow that same discipline.
QUALITY
EMC strives to maintain quality standards consistent with customer requirements and expects its subcontractors to support that effort with 100% CONFORMANCE TO SPEC.
Traceability to materials used or processes performed shall be required of all subcontractors and available when requested.
We may make specific requests for data from you. The need to have this information is based upon the importance of the product or service provided as identified in the characteristics defined in the customers drawing. They may be described as Safety Related Characteristics and Major Characteristics.
Safety Related Characteristics identify features that if violated may cause a failure or malfunction resulting in:
- An unreasonable risk of personal injury or death.
- A condition of non-compliance with a federal regulation.
Major Characteristics identify features that if violated may cause a failure or malfunction resulting in:
- A major repair.
- An inability to manufacture or assemble the product properly.
- A significant compliant.
Subcontractors are encouraged to implement Statistical Process Control and/or additional test certifications as is necessary based upon the importance of the product or service provided. When a process description is defined as one of the above, the subcontractor may be asked to provide Statistical Process Control data, a Process Control Plan or a Process Capability Study. They may be requested on the initial sample run or may be a requirement for each lot processed.
Statistical Process Control data to evidence that the process is within control limits may also be requested with each lot processed.
Process Control Plan consists of the process description, gagging method used, and corrective measures taken.
A Process Capability Study determines if the process is capable of producing results within specification.
A Certificate of Compliance will be required (when requested) with each lot processed to illustrate conformance to the process specification.
On the initial production order or in the event of a significant specification change, the subcontractor may be required to comply with the requirements of the Production Part Approval Process (PPAP). Those requirements are set forth in this key element:
Section 4.2.4.2 Subcontractor Requirementsstates that:
"Suppliers should utilize a part approval process (e.g. PPAP) for subcontractors"
As stated previously, EMC will assist our subcontractors in any way possible to insure their understanding of these requirements.
Quality or performance concerns will be promptly discussed with the subcontractor to effect a resolution.
Repetitive or chronic concerns shall be detailed in a Corrective Action Request exhibit 1. The subcontractor will be required to complete and return this formal request for corrective action.
DELIVERY
EMC is in the service business. We strive to provide timely deliveries in compliance with our customer's requirements. Our subcontractors are a vital link in meeting those requirements. We expect our subcontractors to share the responsibility of on time deliveries and depend upon them to perform to that requirement.
100% on-time deliveries is a requirement of QS 9000. That mandate is defined in:
Section 4.6.2.2 – Scheduling Subcontractors:
"The supplier shall require 100% on time delivery performance from subcontractors."
To measure delivery performance, we have defined a late delivery as follows:
"A late delivery is defined as one which exceeds the subcontractor promised delivery and results in a production delay or hinders the ability of EMC to meet customer requirements."
The subcontractor shall be notified of late deliveries and may be asked to submit written corrective action as stated above.
SUBCONTRACTOR PERFORMANCE RATINGS
EMC utilizes a Subcontractor Performance Rating System. The evaluation of subcontractors is mandated in:
Section 4.6.2 – Evaluation of Subcontractors, which states:
"The supplier shall evaluate and select subcontractors on the basis of their ability to meet subcontract requirements including the quality system and any specific quality assurance requirements."
As previously stated, the extent of control exercised over the subcontractor is determined by the importance of the product or service and its impact upon the quality of the final product.
Subcontractor selection is based upon the demonstrated ability of the subcontractor to provide the products or services required and/or analysis of information supplied to EMC in the Subcontractor Data Sheet, exhibit 2 and the Quality System Survey, exhibit 3.
The purchasing department maintains an approved subcontractor list. The approved list carries the signatures of the Material Manager and the Quality Assurance Manager. Those subcontractors not meeting minimal requirements may not be included on our Approved Subcontractor List. Any business activity with those subcontractors must have the approval of either the Quality Assurance or Materials Manager.
The EMC Performance Rating System evaluates the subcontractor's performance in supplying product or services with compliance to customer and EMC requirements. Dependent on the subcontractor's classification, this may be performed at least annually. The results of the evaluation are discussed with the subcontractor as necessary.
SERVICE
Service is the act of providing support relative to the completion of the contract commitment. EMC attempts to develop a sense of partnership with its customers by providing process, material or market information which, upon consideration, the customer may determine increases the value of the product or service we provide. EMC strives to develop that same sense of partnership with its subcontractors. We encourage our subcontractors to contribute any information (respecting proper ethics) to achieve that end.
PRICING
EMC strives to provide its customers with a quality product in a timely fashion at a competitive price. We understand our customers need to be competitive and aware of market influences on price. We require a clear understanding of product or service prices before entering into any performance contract.
PACKAGING
PACKAGING, LABELING AND SHIPPING REQUIREMENTS
revision date 8/31/00
Boxed and Palletized Shipments
Shipments to EMC are to be package in such a manner as to protect the product from in-transit damage or loss.
Box labels are to include:
- Part Number
- Quantity
- Purchase Order Number
Box or basket weight is not to exceed 50 lbs.
Packing lists are to indicate any balance due on the order.
All palletized loads sent to vendors for processing must be returned on EMC supplied pallets.
Palletized shipments of either baskets or boxes are to be stacked in such a fashion so as to prevent the load from toppling when strapping is removed. The baskets or boxes are to be arranged Perpendicular to the stringers of the pallet and secured to the pallet with strapping of sufficient strength so as to prevent the load from shifting while on the pallet.
Refer to the photographs on the attached sheet for proper and improper basket palletizing.
Raw Materials in Banded Bundles:
Raw materials shall be supplied to the following specifications:
- Maximum bundle weight is 6000 lbs.
- Standard bundle size is 12-ft dead length. Other lengths will be specified on the individual order. Maximum bundle size is 15 inch in diameter by 18 feet in length.
- Each bundle shall be tagged indicating material size, grade, weight, heat lot number (if applicable) and subcontractor name.
- Shipments must provide for overhead crane unloading.
- Shipments must be tailgate loaded only, front end loaded bundles cannot be unloaded.
- Material certifications are requested on order placement and must be supplied with the shipment.
- Special handling requirements for critical straightness materials are separately detailed in the Shaft Stock Packaging Standard. appendix exhibit 3.
Failure to comply with these requirements can affect the subcontractor's quality performance record.
INCORRECT BASKET STACKING
BASKETS NOT PERPENDICULAR TO PALLET STRINGERS
CORRECT BASKET STACKING
BASKETS ARE PERPENDICULAR TO THE PALLET STRINGERS
"SHAFT STOCK" PACKAGING STANDARD
(Rev 8/18/98)
SCOPE:
This packaging standard shall apply to all shipments of material designated for use as "Shaft Stock". Shaft Stock is any material in which straightness is a Major Characteristic.
DESCRIPTION:
When designated by the purchasing department, the raw material subcontractor shall package shipments to prevent its damage as per this procedure.
PROCEDURE:
Shaft Stock is to be bundled so as to prevent twisting or overlapping of the bars during the banding operation. Bundling and loading is to be as follows
- Max bundle weight of 5000 lbs
- Steel banded per this schedule:
- Bars up to 13 ft lengths - 4 bands
- Bars from 13 to 16 ft - 5 bands
- Bars over 16 ft - 6 bands
- Bundles are to be evenly blocked with a minimum of 4 blocks. Chains are to be located directly over the blocks.
- Bundles shall be bulkheaded to prevent telescoping.
- Shaft Stock under .3125 dia or Ground Material shall be boxed to prevent damage.
- Shipments must be tailgate loaded and on open top trucks.
- Ship to location shall be designated on the purchase order as either:
Elyria Manufacturing Corp.
Homer Street
Dock No. 4
Elyria, Ohio 44035
