3.3 Quality Procedures

Master List of Quality Procedures Index

1. Document Control QP-423 2. Control of Quality Records QP-424 3. Management Responsibility QP-500 4. Competence, Awareness and Training QP-622 5. Infrastructure QP-630 6. Planning of Product Realization Processes QP-710 7. Customer Related Processes QP-720 8. Design and Development QP-730 9. Purchasing QP-740 10. Control of Production and Service Provision QP-750 11. Identification and Traceability QP-753 12. Customer Property QP-754 13. Preservation of Product QP-755 14. Control of Monitoring and Measuring Devices QP-760 15. Monitoring, Measuring and Analysis of Customer Satisfaction QP-821 16. Internal Audits QP-822 17. Monitoring and Measuring of Product and Realization Processes QP-824 18. Control of Nonconforming Product QP-830 19. Corrective Action QP-852 20. Preventive Action QP-853

QP-423-07

Document Control

Document Control Page 1 of 6 Printed 9/19/08

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Document Control

1.0 Purpose

1.1 To establish a general policy and to provide guidance on controlling quality system documents.

2.0 Responsibilities

2.1 The General Manager shall approve all Quality Policy changes.

2.2 The General Manager shall approve all Quality Manual changes.

2.3 The General Manager is responsible for assigning authors for documents.

2.4 The author is responsible for writing the document, creating related forms, getting a document number and submitting the document to the department manager for review.

2.5 Department managers along with the Quality Coordinator are responsible for approving documents within their area of responsibility.

2.6 The Quality Coordinator is responsible for assigning document numbers, maintaining the master list, posting new and revised documents on the network, distributing hard copies of documents and revising documents.

2.7 All employees are responsible for reviewing the documents as they use them and submitting document change requests to update documents as necessary.

2.8 The network administrator is responsible for backing up the network (JWI-423-002).

3.0 Definitions

3.1 Procedure: Document outlining specific work processes and how the requirements of the ISO 9001 standard are being met.

3.2 Job Work Instructions (JWI): Step by step directions on how a task should be done.

3.3 Attachments: Documents used to further clarify or show examples of information described in the procedures and work instructions.

3.4 Forms: Documents used to make a record of completing all or part of the process described in procedures and work instructions.

3.5 Records: Completed forms or information generated as a result of the process described in a document and retained as indicated in the Control of Quality Records Procedure.

3.6 References: external documents or sources used in preparing documentation and completing work.

QP-423-07 Document Control


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3.7 Related Documents: Other documents that may need to be altered if the current document is revised or changed.

3.8 Templates: Electronic documents used to create quality system documentation.

4.0 Equipment/Software

4.1 Not Applicable.

5.0 Instructions

5.1 Quality Document Creation

5.1.1 When the need for a document is identified, the General Manager will assign an author for the document.

5.1.2 The author writes the document and prepares following forms (where applicable).

The Quality Manual

Procedures

Work Instructions

Attachments

Forms

References

Templates 5.2 Quality Document Approval

5.2.1 The author submits the documents to the department manager and the Quality Coordinator for review and approval. The Document Change Request Form (F-423-003) is signed as evidence of their approval.

5.2.2 Proposed significant changes to the quality system documents are reviewed at the ISO Steering Committee Meeting for approval.

5.2.3 The Quality Coordinator inserts the approver’s initials on the master list for any controlled documents when posting approved documents to the network.

5.3 Quality Document Identification and Distribution

5.3.1 All documents contain the following information:

a) Document Title

b) Document Number

c) Current Revision and Date

d) Location of Document Template on Network



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5.4 Quality Document Numbering

5.4.1 Procedures, work instructions, forms and attachments are numbered using the following number scheme: Procedures are numbered QP-XXX-00 where the letter “QP” is used to indicate Quality Procedure. A three-digit number XXX is made from the number of the clause of the ISO 9001 standard, and 00 represents the current revision level of the document. For example, Control of Documents relates to section 4.2.3 of the standard and hence the procedure related to this section would be QP-423-01.

Job Work Instructions are numbered JWI-XXX-000-00, where XXX is the related procedure number, 000 is a number assigned sequentially as work instructions for that procedure are entered and 00 is a number assigned sequentially indicating the current document revision level. For example, JWI-423-001-01 is the work instruction for maintaining the master list. 423 relates to section 4.2.3 in the quality manual, 001 is the first job work instruction related to section 423 and 01 is the first revision for this document.

All forms and attachments are numbered using the same format as the work instructions but using F and A respectively in place of the JWI. For example, F-423-003-01, is the document number assigned to the Document Change Request Form

5.4.2 Quality control checklists shall be labeled such that they are identified as a Quality Control Checklist. Each QC checklist shall have the latest revision number and Title identifying what product the QC checklist is for. The QC checklists will be saved to the network using the product name in abbreviated form. For example: fftank9.doc would be the 9th revision level for the Fire Flex tank QC checklist.

5.4.3 Authors obtain the document number from the Quality Coordinator.

5.5 Quality Document Distribution

5.5.1 The Quality Coordinator posts new and revised documents on the network and distributes hard copies to points of use according to the Quality Manual Distribution List.

5.5.2 Hard copies are controlled by listing the distribution of the document on the master list.

5.6 Quality Document Revisions

5.6.1 Documents are reviewed during regular use and during internal audits and are updated as found necessary during these reviews.

5.6.2 Documents are revised to update or clarify information using the Document Change Request form (F-423-003).



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5.6.3 Revisions are made electronically and a revision summary and date of the revision is recorded in the revision section of the document.

5.6.4 Revisions to documents go through the preceding document approval, identification and distribution steps. Document changes are approved by an individual in the same function that performed the original review and signed the original document indicating approval.

5.6.5 Approved documents are submitted to the Quality Coordinator and entered on the Master List of Quality Control. Approved documents containing original signatures are the “Master” copies and are kept in the Master Document file.

5.7 Obsolete Quality Document Disposition

5.7.1 Electronic versions of obsolete documents are moved to an archive electronic folder for reference use.

5.7.2 Obsolete forms shall be maintained for a minimum period of one year. Specification sheets for original equipment shall be maintained for a minimum period of five years so that SEI Industries Ltd can provide specification sheets to customers with older products.

5.7.3 Copies of obsolete quality system documents are promptly and permanently removed from work locations and other storage sites within the quality system and are promptly disposed of.

5.7.4 The document change request is retained in the Document Change Request binder.

5.8 Sales and Marketing Documents

5.8.1 Sales and marketing and responsible for development of sales brochures, information spec sheets, etc.

5.8.2 All marketing documents (brochures, information spec sheets, etc) will be identified with the following information

a) Product name

b) Product Identification logo (ie: Bambi, Fireflex etc)

c) Date of issue

d) Product description 5.8.3 The product manager requests a product manual, brochure, information

spec sheet, etc from the marketing coordinator by issuing a Marketing Document Creation/Change Form.

5.8.4 The marketing coordinator will assign the following to the marketing document creation/change form:

a) Document title



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b) Document number

c) Dated required by

d) Requested by 5.8.5 The marketing coordinator or assigned person enters a description of the

new document requirements or changes on the form. 5.8.6 If required, the marketing coordinator obtains technical information from

engineering. 5.8.7 The marketing coordinator produces the new or updated document. 5.8.8 The new document is then reviewed and approved by engineering and

the product sales manager. 5.8.9 All members of the sales and marketing department sign the marketing

document creation/change form showing that they have been informed of the update or new document.

5.8.10 The signed document and any relevant documents are stored in the marketing department and are treated as a controlled document.

5.9 Electronic Backup

5.9.1 Electronic documentation is stored on the company network. The network administrator backs the network up daily (JWI-423-002).

5.10 Control of Data

5.10.1 Authorized Service Rep/Maintenance Rep maintain programs controlling equipment in a protected file. Operator’s use read only copies of the programs.

6.0 Forms and Records

6.1 F-423-003 Document Change Request Form

6.2 F-423-004 Document Revision Checklist

6.3 F-423-006 Marketing Document Design Change Form

7.0 Attachments

7.1 None



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8.0 Related Documents

8.1 JWI-423-002 Network Backups

8.2 JWI-423-003 Document Control – Drawings

8.3 JWI-423-004 Document Control – System Quality Documents

8.4 T-001 Procedure Template

8.5 T-002 Work Instruction Template

9.0 References

9.1 None

10.0 Revisions

REV. SECTION SUB-SEC. PARA. CHANGE REQUEST # DATE APPROVED BY

2 2004-03 6-Oct-04 D.H. 3 2005-17 16-Dec-05 I.W. 4 2006-04 23-Mar-06 I.W. 5 2006-06 10-Apr-06 I.W. 6 2007-02 27-Feb-07 I.W. 7 2.0 2.1-2.3,

2.5-2.6 2008-19 15-Jul-08 B.W/I.W

5.0 5.1 5.1.1

6.0 8.0

5.2 5.3 5.4 5.5

5.7

6.1,6.4 8.1

5.2.1,5.2.3 5.3.1 (a)

5.4.1,5.4.4 5.5.1,5.6.3 (a)

5.6.5 5.7.1

QP-424-03 Control of Quality Records

Control of Quality Records Page 1 of 2 Printed 9/19/08

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Control of Quality Records

1.0 Purpose

1.1 This procedure describes the process for controlling records generated in the quality system.


2.1 Responsibilities for control of quality records are listed in the Quality Records Table. (F-424-001)

3.0 Definitions

3.1 Quality Records: information generated from the processes described in quality system documents, and retained as indicated in this procedure.


4.1 Not Applicable.

5.0 Instructions

5.1 Each “work instruction” lists the quality records generated in relation to the documented process.

5.2 All quality records maintained by SEI Industries Ltd are listed in the Quality Records Table. The table contains the following information:

5.2.1 Document number: the document of the quality system to which the record is related.

5.2.2 Document Identification: a description of the record. 5.2.3 Responsible: the position responsible for collecting and maintaining the

record. 5.2.4 Index: manner in which the record is filed. 5.2.5 Filed: work area where the record is stored. When necessary, records are

moved to the record archives. 5.2.6 Retention Period: minimal period for which the record is kept. 5.2.7 Disposition: what is done with the record after the retention period

expires. 5.3 Facilities

5.3.1 Access to SEI’s records is limited to employees and authorized visitors. 5.3.2 Records are readily retrievable by referring to the records table for

QP-424-03 Control of Quality Records

Control of Quality Records Page 2 of 2 Printed 9/19/08

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location and indexing. 5.3.3 All employees have access to the quality records that they need for

carrying out responsibilities. 5.3.4 Records are stored in such a way to prevent damage, deterioration or

loss. Records may be stored in files, drawers, in boxes or other designated storage.

5.4 All quality records shall be legible and where possible, traceable to the applicable product.

5.5 Quality records shall be maintained for a period of 5 years, after which time they may be destroyed.

5.6 Where agreed to by SEI Industries Ltd, SEI will provide quality records for examination by the client or the client’s representative.

5.7 After records are no longer needed and the retention period has been reached, the records are archived or disposed of.


6.1 F-424-001 Quality Records Table

7.0 Attachments

7.1 None


8.1 None

9.0 References

9.1 None

10.0 Revisions

REV. SECTION SUB-SEC. PARA. CHANGE REQUEST # DATE AUTHORIZED BY

2 2004-03 6-Oct-04 D.H. 3 2006-11 25-May-06 I.W.

QP-500-04

Management Responsibility

Management Responsibility Page 1 of 3 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes Management Responsibilities for the Quality Management System (QMS) at SEI Industries Limited.


2.1 Management is responsible for establishing the Quality Policy, and reviewing it for continuing suitability.

2.2 Management is responsible for communicating the Quality Policy, the importance of meeting regulatory, statutory and customer requirements.

2.3 Management is responsible for identifying the Corporate Goals.

2.4 Management is responsible for identifying the ISO Steering Committee.

2.5 ISO Steering Committee is responsible to schedule and conduct management review meetings in compliance with this procedure.

2.6 The Quality Coordinator is responsible for collecting summary reports and data from the responsible functions and for ensuring adequate employee awareness of the company’s QMS.

2.7 The ISO Steering Committee members are responsible for bringing information and progress reports on action items assigned to them at previous review meetings, and information on planned changes that could affect the QMS.


3.1 Not Applicable

4.0 Instructions

4.1 Management has established a Quality Policy, and reviews it for continuing suitability during ISO Steering Committee Meetings.

4.2 Management communicates the Quality Policy and the importance of meeting regulatory, statutory and customer requirements in:

4.2.1 Employee orientation training, 4.2.2 During company and department meetings.

4.3 Management identifies the key goals for the company, and ensures that the results are posted for employees.

QP-500-04



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5.0 ISO Steering Team Review:

5.1 The ISO Steering Team performs monthly reviews to evaluate the continuing suitability and effectiveness of the QMS in satisfying the requirements of ISO 9001, the Quality Policy and Quality Objectives. 5.2 The Quality Coordinator schedules the meeting and notifies team members. 5.3 The Quality Coordinator collects data and summary reports and provides copies to the members of the ISO Steering Committee prior to the scheduled meeting. 5.4 The Quality Coordinator prepares an agenda for each meeting that includes:

a) Follow-up actions from previous management reviews.

b) Planned changes that could affect the quality management system. 5.5 ISO Steering Committee analyzes the data, identifies improvement opportunities and assigns action items, preventive actions and corrective actions as appropriate. 5.6 Management updates the “Summary of Corporate Goals with new quality objectives and improvement goals as appropriate to achieve continual improvement. 5.7 Minutes are taken at each meeting, recording discussions, decisions, actions and assigned due dates. Data and reports that are reviewed are attached to the minutes of the ISO Steering Committee Meeting. 5.8 The minutes, with attached data and reports, are maintained as a record of management review.


6.1 F-500-02 Agenda for ISO Steering Committee Meeting Minutes

7.0 Attachments

7.1 None


8.1 Quality Manual

9.0 References

QP-500-04



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9.1 None

5.0 Revisions


2 2004-03 06-Oct-04 D.H. 3 2005-11 04-Oct-05 D.H. 4 2006-07 9-May-06 I.W.

QP-622-06 Competence, Awareness and Training

Competence, Awareness and Training Page 1 of 3 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes the process for ensuring that each employee is competent for the job they are performing.


2.1 Department supervisors are responsible for identifying the necessary competency requirements for each position that affects product quality.

2.2 Department supervisors are responsible for identifying specific training requirements for positions in their area.

2.3 Department supervisors are responsible for scheduling training for their employees, and measuring the effectiveness of training.

2.4 Manufacturing department supervisors are responsible for maintaining a training matrix for their employees.

3.0 Definitions

3.1 Regulatory – To control or direct according to rule, principle, or law.

3.2 Statutory - Imposed by law.


4.1 No additional equipment or software required.

5.0 Instructions

5.1 Each manufacturing supervisor is responsible for the completion of the new employee’s checklist, which will be filed in the employee’s personnel file.

5.2 New employees attend an orientation that includes training on:

5.2.1 The quality system (ISO – generic) 5.2.2 The quality policies that relate specifically to their job function. 5.2.3 a) The importance of meeting regulatory requirements. (if applicable)

b) The importance of meeting statutory requirements. (if applicable) c) Customer requirements and the need for ensuring customer satisfaction.

5.2.4 The relevance and importance of their activities and how they contribute to the achievement of the quality objectives.

5.2.5 This training is repeated for all employees as management or the management representative identifies the need to retrain employees.

QP-622-06

Competence, Awareness and Training


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5.3 Each manufacturing supervisor is responsible for identifying job specific training requirements for each position in their area. These requirements are documented in their training matrix.

5.4 The employee’s supervisor schedules the required training. Employee training may include on the job training, group training, or outside training courses.

5.4.1 Outside courses: a) The employee attends the course and submits a record of

attendance and any record of effectiveness such as grades or test results.

b) If there is no measure of test results the employee’s supervisor will evaluate effectiveness.

5.4.2 On the job training: a) An employee that has demonstrated competence on the task may

conduct on the job training. The employee in need of training attends the training session on that task.

b) On the job training may include a measurement of effectiveness determined by the trainer.

c) See 5.4.1 (b).

5.4.3 Group training: a) The employee attends the scheduled group training.

b) Group training may include a measurement of effectiveness such as a quiz or other exercise.

c) See 5.4.1 (b).

d) Group training records will be kept with the HR manager.

5.5 Training effectiveness evaluation:

a) The supervisor evaluates the training effectiveness.

b) If the training was effective, the supervisor’s training matrix will indicate that the employee has passed the training.

c) If the training was not effective, retraining will be scheduled and the supervisor’s training matrix will not show that the employee has passed the training.

d) During the annual production colleague review process, the job specific training matrices will be updated (by manager/supervisor) to reflect the employees current abilities.

5.6 Training materials, tests, certificates, etc., that the employee may obtain through training, will be placed in the employee’s personnel file.

QP-622-06

Competence, Awareness and Training


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6.1 F-622-002 Group Training Record

6.2 New Employee Checklist

6.3 Employee Training Matrix

7.0 Attachments

7.1 None


8.1 Quality Manual

9.0 References

9.1 None

10.0 Revisions


2 2004-02 6-Oct-04 M.T. 3 2004-03 6-Oct-04 D.H. 4 2006-22 21-Nov-06 I.W. 5 2007-21 22-Oct-07 I.W. 6 2007-29 7-Jan-08 B.W

QP-630-02

Infrastructure

Infrastructure Printed 9/19/08

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Infrastructure

1.0 Purpose

1.1 This policy outlines maintenance requests and general preventative maintenance guidelines for production equipment, production support equipment, and for facilities equipment referenced in the accompanying documents.


2.1 Department supervisors are responsible for determining which pieces of production and production support equipment be placed on a preventative maintenance program. This also includes schedule frequency.

2.2 The Plant Manager is responsible for determining which pieces of facilities equipment require regular routine maintenance. This also includes schedule frequency.


3.1 Not Applicable.

4.0 Instructions

4.1 The department supervisors shall instruct any and all personnel performing routine maintenance regarding the correct completion and filing of maintenance records. 4.2 The Plant Manager will maintain maintenance records for facilities equipment. 4.3 Company Personnel may request maintenance items via the maintenance request form (F-630-002). These forms are to be completed and submitted to the department supervisor or Plant Manager for assignment or action completion.

QP-630-02

Infrastructure

Infrastructure Page 2 of 3 Printed 9/19/08

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5.1 F-630-001 Maintenance Schedule

5.2 F-630-002 Maintenance Request Form

5.3 F-630-003 Equipment Service & Maintenance Report

5.4 F-630-004 Forklift Maintenance Log

5.5 F-630-005 Gas, Propane or Diesel Lift Truck – Daily Inspection Checklist

5.6 F-630-006 Electric Lift Truck – Daily Inspection Checklist

5.7 F-630-007 Bambi Test Winch – Weekly Lubrication and Visual Inspection

5.8 F-630-008 Bambi Test Winch – Monthly Lubrication and Visual Inspection

5.9 F-630-009 Sewing Equipment Service and Maintenance Report

5.10 F-630-010 Safety Request Form

5.11 F-630-011 Forklift Charger Maintenance Log

6.0 Attachments

6.1 None


7.1 JWI-630-001 Not initiated

7.2 JWI-630-002 Sample Maintenance Request Form

7.3 JWI-630-003 Sample Equipment Service and Maintenance Report

7.4 JWI-630-004 Sample Forklift Maintenance Log

7.5 JWI-630-005 Sample Gas, Propane or Diesel Lift Truck – Daily Inspection Checklist

7.6 JWI-630-006 Sample Electric Lift Truck – Daily Inspection Checklist



7.9 JWI-630-009 Sample Sewing Equipment Service and Maintenance Report



QP-630-02

Infrastructure

Infrastructure Page 3 of 3 Printed 9/19/08

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8.0 References

8.1 None

9.0 Revisions

REV. SECTION SUB-SEC. PARA. CHANGE REQUEST # DATE APPROVED BY

1 2007-18 1-Oct-07 I.W. 2 5.0

7.0 5.2-5.4 7.2-7.3

2008-22 6-Jun-08 B.W.

QP-710-05

Planning of Product Realization Processes

Planning of Product Realization Processes Page 1 of 2 Printed 19/09/2008

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1.0 Purpose

1.1 This procedure describes planning of all product realization processes.


2.1 Management is responsible for assigning responsibility to a project manager or design engineer for the quality planning for new products, processes or projects.

2.2 Project engineers are responsible for completing a design project according to the Design and Development procedure.

2.3 To support Product Realization requirements, the project engineer must complete the design outputs defined in QP-730-05 (Clause 5.8.1)

3.0 Definitions

3.1 Product Realization: Processes (from customer input through delivery and service) that lead to the creation of the final product or service.



5.0 Instructions

5.1 As new products, processes or projects are introduced, quality objectives and product requirements are developed as part of the design output requirements.

5.2 Design projects are conducted according to the Design and Development Procedure. (QP-730)


6.1 None

7.0 Attachments

7.1 None


8.1 None

QP-710-05

Planning of Product Realization Processes

Planning of Product Realization Processes Page 2 of 2 Printed 19/09/2008

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9.0 References

9.1 None

10.0 Revisions


2 3

2004-03 2005-20

6-Oct-04 9-Feb-06

D.H. I.W.

4 2006-06 5-May-06 I.W. 5 2.0

3.0 5.0

6.0 8.0

2.2-2.4 3.2 5.1 5.2

6.1-6-2 8.1

5.1.1-5.1.4 5.2.1-5.6

2008-26 10-Jun-08 M.T.

QP-720-12

Customer Related Processes

Customer Related Processes Page 1 of 9 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes the process used for communicating with customers and reviewing information from the customer, including customer feedback.


2.1 Sales Department Representatives are responsible for taking orders from clients, determining customer requirements, and reviewing the orders for acceptance.

2.2 Sales Department Representatives are responsible for communicating with the client, keeping them informed as the project progresses, and getting feedback from the client.

2.3 Employees that receive feedback from customers are responsible for communicating the feedback to Sales Department Representatives.

3.0 Definitions

3.1 Sales Department: sales and marketing representative or the product manager


4.1 Goldmine Contact Resource Management Software

4.2 SBT Accounting Software

5.0 Instructions

5.1 Determination of requirements:

5.1.1 Orders are accepted by phone, fax or email. 5.1.2 When the Sales Department receives a request for product or services

from a customer or a potential customer, the Sales Department identifies and documents customer requirements.

5.1.3 All quotes beyond $250,000 dollars as well as for liquid storage and transfer systems over 100,000 USG prior to quote. Sales person to fill out the Scope of Work form (F-720-001) and consult production and engineering staff.

5.1.4 The Sales Department will collect all required information from the customer and document the information in Goldmine. Requirements are confirmed with the customer before acceptance via a written or by email confirmation.

Required information includes:

Customer ID number (if new customer create one in SBT)

Product catalogue number or other ID

QP-720-12


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Quantity

Delivery date requirements

SBT Order requirements:

Correct billing address

Correct ship to address

Customer name (Automated)

Customer ID number (Automated)

Ship Via (Add company name and terms)

FOB (Point of shipment: Origin, Factory, Airport, City)

Payment Terms (Authorized by credit department)

PO Number (Provided by customer)

Your initials

Reference No.

Comments (List contact person, contact person, if shipping to the USA a federal identification number is required, special shipping instructions, invoicing instructions or credit instructions)

Line Item Entries:

Select standard product – standard product orders

Select standard product – include minor changes such as fitting size changes or additional fittings in note section under specific line type.

Select custom product and appropriate product type.

Quantity: number of items

Price: Enter selling price per unit at full list.

Discount: Enter discount price for dealer or special deal.

Date Required: Enter the ship date, confirm with production.

On any sales to a BC company sales must:

1) Ask for customers PST exemption number and place it in the comment section of the sales order for new customer. If current customer, check PST exemption number is on file in SBT.

OR

2) Sales must charge PST on the purchase.

Tax: N = no tax, G = GST, B = Both PST and GST

QP-720-12



Tran Cat: This code includes two parts. The Scode, which indicates the region of the sale and Lcode, which indicates which product is being sold.

Note: This is the section where you can list any special instructions or custom features.

Shipping instruction on sales order:

Ground, Sea or Air?

With which carrier?

On customer account or prepaid and charged?

Contact person and contact number.

Brokers name if going to the USA.

Federal Identification number if going to the USA.

Every Sales Order must have a separate line for freight, regardless of cost

Freight value, freight quote cost + 10% (this is already provided during freight quote)

If customer P/U, freight value to be zero

If warranty, freight value to be separate line item

If freight built into product price, still to include freight line at freight cost then discounted at 100%. With additional note detailing that freight was built into product price.

Informal customer and/or user feedback

Customer and/or user satisfaction surveys

Industry journals

Competitor information

Requirements unstated by the customer

Statutory and regulatory requirements

Additional requirements that SEI may insist on 5.2 Review of requirements:

5.2.1 The Sales Department reviews the customer’s requirements to make sure:

a) The customer requirements are adequately defined through a series of questions based on application and experience of the sales person,

b) SEI Industries has the capability and capacity to meet the customer’s requirements,

c) Any requirements that are different than previously expressed are

QP-720-12



resolved.

d) If SEI Industries is unable to meet the customer’s requirements, the Sales Department will contact the customer to resolve the differences between what SEI can provide and the customer requirements, or tell the customer that SEI cannot provide the product or service.

5.2.2 If SEI Industries is able to meet the customer’s requirements, accept the order, contract or project.

5.2.3 If the order is in stock, credit has been approved and received in the accounting in-basket before 3:00 p.m, then the item will be shipped by the end of the next business day.

5.2.4 For customer orders that are in stock and received after 3:00 p.m. with next day delivery required, the sales representative will need to obtain credit approval by hand carrying the order to accounting and hand delivering the order to production control by 4:30 p.m.

5.2.5 If a custom drawing is required, the customer may be asked to sign a copy of the drawing as evidence of their approval. Custom drawings requiring approvals include, newly designed products and custom Litre Hosen products. a) If custom silk-screen or labeling is required, sales person is responsible for communicating what the customer requires to the Marketing Department for silk-screens and custom labeling.

5.2.6 Modifications of standard products will require new part# and new drawing.

5.2.7 The initials of the salesperson will appear in the salesperson box on the sales order indicating that the order has been reviewed and approved.

5.3 Credit Approval

5.3.1 Confirm if the customer’s account is in good standing and if they have the credit limit for purchase; discuss order with accounting (either SEI Vancouver or SEI International) for credit approval or credit terms.

5.3.2 If new customer, provide credit application to accounting department (either SEI Vancouver or SEI International) to check credit.

5.4 Production

5.4.1 Confirm with production that we can provide products by the required dates.

5.5 Engineering

5.5.1 Obtain custom order drawing by providing all final product details.

5.5.2 In some instances, you may need to revise or update the price quote from

QP-720-12



engineering. Engineering provides cost quotes only; standard margins must be applied to engineering price quotes. Engineering provides quotes for:

Custom Litre Hosen products.

Newly designed products.

Modified products based on standard designs.

Custom sized products based on standard designs.

5.5.3 Sales should go to engineering for quotes when:

Quotes do not need to be provided within 24 hours.

Engineering drawings need to be provided.

5.5.4 Issuing of drawings with Sales Orders.

1. Orders for items normally kept in stock: The sales order does not require a drawing attached. 2. Orders for items not normally kept in stock: 2a. If there is a drawing already existing, the sales person needs to ask the associated product engineer to print the latest copy of the drawing so that the sales person can attach it to the sale order. The sales person and the product engineer share the responsibility of issuing the correct drawing to production. 2b. If there is no drawing existing, the sales order will be stamped with the following information so that the appropriate product engineer can fill in the blanks. The sales order is then released. Once the drawing is completed, the assigned engineer can issue the drawing to the appropriate foreman. Stamp information: Part number: _________________ Drawing number: ______________ Drawing date: _________________ Engineer: ____________________

5.5.5 Picklists. 1. Engineering department create the standard pick lists for all standard product lines. The pdf files of all standard pick lists are stored in a proper directory in the network

QP-720-12



2. An index of the pick lists is created. The index includes the pick list number, product name and the model number (e.g. 2500 USG or bigger desert king tanks), the revision of the pick lists, the date of the revision, etc. The index will be stored in the same directory of the pick lists. 3. It is the engineering department’s responsibility to ensure the pick lists and their index to be updated. 4. For the standard products, the sale department needs to put the product names only on the sale orders. The production department needs to use the standard pick lists to prepare the product package for the order. 5. For the custom products, the sale department needs to specify all customer requirements on the sale order, including the requirement for the fitting kit. 6. For the optional items, the sale department needs to add extra lines for the items. For example, the customer is asking for a fill/drain kit for a 1000 USG Aquashield tank. The fill/drain kit is not included in the standard tanks pick list for the tank with less than 2500 USG capacity. The sale department needs to add the fill/drain kit to the sale order as an extra item. 7. If no special customer requirement and no extra item are put on the sale order, it will be assumed as an order for the standard products and will ship all items on the standard pick lists only, nothing else. 8. The production department needs to make a purchase request for all items on the pick list. The purchasing department needs to purchase the items based on the production request. The production department shall not order the purchase items any more to avoid duplicate order.

5.6 Large Tender Type Contracts 5.6.1 Large tenders involving numerous communications and complex financial terms are to be assigned a “Green File” that is kept in the Division manager’s office. All communications, financial transactions, legal documents, price information and relevant technical documents shall be kept in the “Green File” for the duration of the bid. 5.6.2 When a sales order must be generated prior to receipt of approved financial arrangements, the order shall be clearly labeled as a “Bid” only and should include as much technical details as possible. 5.6.3 A final sales order shall be generated prior to the acceptance of the letter of credit or appropriate financial arrangements. 5.6.4 Final sales orders will reference or have attached all details, specifications and engineering drawings as necessary, to completely specify the customer’s requirements. 5.6.5 Before the final sales order can proceed to production, the sales order

and any attached drawings or technical documents must be reviewed and

QP-720-12



signed by the customer and SEI Agent.

5.7 Contract amendments 5.7.1 When the customer or SEI Industries initiates a change to an approved contract, a contract amendment is required. 5.7.2 The Sales Department and the customer discuss the contract amendment. If both parties agree to the changes they are documented in the customer’s file and confirmed in writing with the customer. The Sales Department is responsible for communicating the contract changes to all employees that need to know about the changes, and relevant documents are amended and added to the customers file.

5.8 Customer communication 5.8.1 Product Information

e) Product information is communicated to the customer by product information sheets, catalogues, communication from sales and marketing, Internet information, videos or by other methods acceptable to Sales and Marketing.

f) Printed information is reviewed and approved before release according to the document control procedure (QP-423).

g) Sales and marketing information is a controlled document and is maintained on the network.

5.8.2 Enquiries, contracts or order handling

h) Orders are received by the Sales Department. The Sales Department is responsible for all communication with the customer until order acceptance.

i) Once the order is accepted, the Sales Department is responsible for communication with the customer after order acceptance. The Sales Department keeps the client informed and gets client approval in the event that SEI initiates contract amendments. Client approval may be either written or email conformation.

5.8.3 Customer feedback

j) The Sales Department may receive customer feedback.

k) All customer feedback is recorded in Goldmine.

l) When the Sales Department receives a customer inquiry, they take immediate action as necessary to satisfy the customer. The product manager determines if the inquiry is a complaint and if corrective action is necessary (QP-852). If it is, they will initiate a corrective action request.

m) Customer feedback is requested from customers by using scheduled customer surveys and feedback through calls to the customer.

NCR/RGA’s

QP-720-12



Product managers make routine calls to the customer as the project requires, and at the end of the project to ask the customer if requirements were met or exceeded. Feedback is recorded on the weekly SAR’s or in Goldmine.

n) Customer feedback, including complaints are measured and analyzed according to the Monitoring, Measuring and Analysis of Customer Feedback procedure, QP-821.

6 Forms and Records

6.5 Customer File/Record

6.6 F-720-001 Scope of Work

7 Attachments

7.5 None

8 Related Documents

8.5 None

9 References

9.5 None

QP-720-12



10 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-02 11-Apr-05 P.R. 4 2006-07 9-May-06 I.W. 5 2006-15 27-June-06 I.W. 6 2006-19 10-Nov-06 I.W. 7 2006-26 8-Dec-06 I.W. 8 2007-01 11-Jan-07 I.W. 9 2007-09 18-Apr-07 I.W. 10 2007-17 7-Aug-07 I.W. 11 2007-26 19-Nov-07 I.W. 12 2007-30 2-Jan-08 P.R.

QP-730-05

Design and Development

Design and Development Page 1 of 4 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-730-05.doc

1.0 Purpose

1.1 This procedure describes the process for controlling the design and development of product or services.


2.1 The project engineer is responsible for assigning project numbers to each project and are assigned sequentially.

2.2 The project engineer/s is responsible for initiating the project design plan, getting appropriate approvals and holding design reviews.

3.0 Definitions

3.1 Design Verification: determination that the product meets requirements.

3.2 Design Validation: determination of the product’s ability to meet user needs.

3.3 Design Changes: changes made to the inputs or plan during design and development activities.


4.1 AutoCAD: Primary design and drafting software

4.2 Solid Works: Primary 3D modeling software

4.3 MS Excel: Spread sheet software

4.4 MS Word: Documentation software

4.5 MS Power Point: Presentation Software

4.6 Project Log: Maintain with Quality Coordinator

5.0 Instructions

5.1 Design and development projects are initiated for new product or process development. The need for a new product or process may arise from customer requests, market needs, new ideas, new technology or other situations.

5.2 When developing a new product line, the division manager will use form New Product Line Decision Table (F-730-005) as a reference tool.

5.3 The division manager designates a project engineer for the project.

5.4 The Project Engineer will assign a project number from the project log, and will obtain a G/L code from the Accounting department. All invoices related to the project are to be charged to this G/L code. The project engineer is responsible for recording engineering time spent on the project and for

QP-730-05



O:\ISO 9001-2000\QP\QP-730-05.doc

summarizing project costs for potential R&D tax credits.

5.5 The project engineer will create a project file folder for the project. The project file folder will be stored with the project engineer.

5.6 The project engineer develops a New Product Design Plan and documents the plan on form (F-730-001).

5.7 The project engineer identifies the design inputs and documents the inputs on the New Product Design Plan form (F-730-001).

5.7.1 Inputs include:

a) Functional and performance requirements

b) Applicable regulatory and legal requirements

c) Information from previous or similar designs (where applicable)

d) Cost targets if applicable 5.8 The division manager as well as others who may have approval

responsibility review the project design plan and sign off on the project plan as evidence of their approval.

5.9 Design outputs are documented in a manner that enables them to be verified against the design inputs.

5.9.1 Outputs include:

a) Manufacturing instructions, inspection & test methods, and criteria for acceptable quality.

b) Engineering drawings and Bill of Material with costs

c) Operations and maintenance manual 5.10 The project engineer hold a meeting with his supervisor to review

verification results. If verification is acceptable, the project will proceed to design validation. Decisions are documented and placed in the project file folder.

5.11 Design validation is performed according to the project design plan and must include in house testing as well as:

For complex products: Customer beta testing over at least 4 months.

For simple products (i.e. berms, pumps): Follow up discussions with customers regarding product performance over at least 4 months.

5.12 Results of validation activities are documented and filed in the project folder.

5.13 The project engineer will hold a meeting with his supervisor to review validation results and determine if they are acceptable. If they are acceptable, the project engineer will obtain project sign-off using the validation sing off form (F-730-004) and the design output documents are released to production.

QP-730-05



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5.14 Upon completion of the project, the project file will be transferred to the division manager for filing. 5.15 If an employee identifies the need for a design change, the project engineer documents the proposed change and the reason for the change on a design change form. 5.15.1 Design changes will be approved by the division manager and plant manager and filed with the Quality Coordinator. 5.15.2 On the design change form, the originator needs to identify the implementation plan for the proposed change. The implementation plan will include the incorporation point including the date for the change and where applicable the serial number that the change will start. In addition, the implementation plan should identify the disposition of current inventory including either rework of existing inventory, scrapping of inventory, or the depletion of current inventory before the change is implemented.


6.1 F-730-001 New Product Design Plan

6.2 F-730-002 Obsolete

6.3 F-730-003 Product Design Change Request Form

6.4 F-730-004 Validation Sign Off Form

6.5 F-730-005 New Product Line Decision Table

7.0 Attachments

7.1 None


8.1 PFD-004 Design and Development – Process Flow Diagram

8.2 JWI-730-001

9.0 References

9.1 None

QP-730-05



O:\ISO 9001-2000\QP\QP-730-05.doc

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2006-16 28-June-06 I.W. 4 2007-27 27-Nov-07 I.W. 5 4.0

5.0 6.0 8.0

4.6 5.1-5.13 6.1-6.6 8.1-8.3

2008-21 10-June-08 M.T

QP-740-09

Purchasing

Purchasing Page 1 of 4 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-740-09.doc

1.0 Purpose

1.1 This procedure describes the process for controlling the purchasing process at SEI Industries to ensure that purchased product conforms to requirements.


2.1 The purchasing manager is responsible for maintaining records of evaluation in the supplier files.

2.2 The purchasing manager is responsible for performing periodic evaluation of suppliers.

2.3 The purchasing manager is responsible for documenting supplier product or service quality problems.

2.4 The purchasing manager is responsible for performing periodic price performances.

2.5 Receiving staff is responsible for initiating verification of purchased product.

3.0 Definitions

3.1 None


4.1 SBT: Accounting package software.

5.0 Instructions

5.1 When purchased material has an impact on product or service quality the suppliers of the material are evaluated and selected based on their ability to supply product that meets requirements.

5.2 Suppliers are selected by one of the following methods:

5.2.1 Purchasing reviews and maintains a copy of the suppliers’ quality management system certificates and/or information on file. The supplier may be ISO 9000 registered.

5.2.2 The supplier provides graded or classed material, and provides Certificate of Analysis with the material or item.

5.2.3 For fabrics, samples of the material are provided for inspection and test, with satisfactory results.

a) Completed test records show the criteria for acceptance and the actual results. The results are then logged and kept in Engineering.

5.3 The purchasing manager will maintain the suppliers rating system as per JWI-740-001.

QP-740-09

Purchasing


O:\ISO 9001-2000\QP\QP-740-09.doc

5.4 Vendor Audits:

5.4.1 A minimum of six supplier evaluations must be performed annually through the Supplier Assessment Survey form. The suppliers will be evaluated on their performance against criteria, which includes:

a) Meeting our design specifications

b) On time delivery

c) Correct quantity

d) Quality and condition

e) Competitive pricing 5.4.2 When a product or service provided does not meet the requirements of

the order, purchasing or engineering completes a Non-Conformance Report (NCR).

a) The Quality Department sends a copy of the NCR to the supplier for follow-up.

b) All follow-up information received from the supplier will be attached to the original NCR form.

5.4.3 All re-occurring supplier nonconformances are summarized and presented at management review via the Quality Department.

5.4.4 Form Initial Supplier Assessment (F-740-005) to be faxed to prospective vendors prior to purchase.

5.5 Purchase Orders:

5.5.1 The purchasing department shall ensure that all material purchased from suppliers is clearly described and that there is agreement between the supplier and SEI as to the applicable specification standards (e.g. ASTM and other international standards). The purchase order will contain:

a) Catalogue number, item number or other accurate description of the item

b) Quantity

c) Required delivery date

d) Any special delivery requirements

e) Any specific quality requirements such as approval or qualifications Where applicable, specifications must be clearly stated on the purchase order and include the type, class, grade or other necessary information to uniquely identify the material or component.

5.5.2 The purchase order will then be sent to the supplier with a Purchase Order Confirmation form. After confirmation from the supplier, the purchase order will be signed and dated indicating it has been reviewed and approved.

QP-740-09

Purchasing


O:\ISO 9001-2000\QP\QP-740-09.doc

5.5.3 When an engineered drawing is supplied with a purchase order, SEI

Industries shall clearly specify, on the purchase order, that the final product must meet the specifications of the drawing.

5.5.4 To order a supply or service,

An employee can complete a purchase requisition, and submit it to the purchasing manager for approval. (F-740-007)

An employee can make a verbal request to the purchasing manager.

The purchasing manager in conjunction with production reviews sales orders and determines required supplies.

The purchasing manager determines required fabric based on the Fabric Inventory Sheet. (F-740-008)

5.5.5 The purchasing manager reviews the information on the purchase order for accuracy and completeness.

5.5.6 The purchasing manager signs the purchase order to indicate approval. 5.5.7 For items requiring an Inspection Report, form F-740-006 will be attached

to the PO and is to be completed by the appropriate department. 5.6 Purchased product is verified before use.

5.6.1 Receiving checks the order against purchasing documents to verify the identification (if applicable), quantity and condition of the items in the order.

5.6.2 Receiving initials and dates the packing slip documents to indicate acceptance of delivered items and places the packing slip into the receiving folder/receiving tray.

5.6.3 If the order is incomplete, the items shipped are checked off on the original PO. PO is received in the system and then PO is reprinted showing outstanding quantities.

5.6.4 Outsourced manufactured parts require an inspection report, form (F-740-006). Quality and description are verified by the shipping department, goods are to be quarantined until inspected by the appropriate department. The completed inspection report is returned to the Purchasing Office for filing.


6.1 F-740-001 Supplier Quality Report

6.2 F-740-002 Non-Conformance Report

6.3 F-740-003 Supplier Assessment Survey

6.4 F-740-004 Purchase Order Confirmation

QP-740-09

Purchasing


O:\ISO 9001-2000\QP\QP-740-09.doc

6.5 F-740-005 Initial Supplier Assessment

6.6 F-740-006 Inspection Report

6.7 F-740-007 Purchase Requisition

6.8 F-740-008 Fabric Inventory Sheet

7.0 Attachments

7.1 None


8.1 JWI-740-001 Vendor Rating System

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-01 22-Feb-05 M.T. 4 2005-10 1-June-05 D.H. 5 2005-19 16-Dec-05 I.W. 6 2006-03 16-Mar-06 I.W. 7 2006-05 23-Mar-06 I.W. 8 2007-11 27-Apr-07 I.W. 9 2007-23 6-Nov-07 I.W.

QP-750-05

Control of Production and Service Provision

Control of Production and Service Provision Page 1 of 3 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-750-05.doc

1.0 Purpose

1.1 This procedure describes the process used to provide controlled conditions under which the key product realization processes are performed.


2.1 Trained personnel throughout the facility perform this procedure.

3.0 Definitions

3.1 None


4.1 None

5.0 Instructions

5.1 Product realization processes are controlled and managed to achieve product conformance and continual improvement.

5.2 For manufacturing processes product realization processes are planned according to Planning of Product Realization Processes, QP-710.

5.3 For engineering design processes, product realization processes are designed according to Design and Development, QP-730.

5.4 Quality control measures that specify appropriate monitoring and control guidelines and inspection and test requirements are documented in manufacturing process procedures (SOP’s) or quality control checklists.

5.5 The Product Teams approve all processes and equipment by approving the process and equipment quality plans, procedures, or work instructions.

5.6 The written work instructions are presented in a clear and practical manner.

5.6.1 Standard Operating Procedures (SOP’s) are used, as appropriate, to provide clear work instructions.

5.6.2 Quality control checklists shall be used for each product and shall indicate checkpoints in the manufacturing process and any physical inspections required.

5.7 All processes are performed using employees qualified according to the Competence, Awareness and Training procedure (QP-622).

5.8 For manufacturing processes the need for validation is identified during the Planning of Product Realization Processes (QP-710).

QP-750-05



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5.9 For engineering design, a design plan will be developed according to QP-730 and the responsibility will be assigned to a qualified employee.

5.10 Post delivery activities, which include installation, activities relating to service contracts, and warranty repairs, will be performed following documented work instruction, prints or contracts. Management is responsible to appoint responsibility to an internal employee or external authorized agent. The master Agent Database is managed and maintained by the marketing coordinator.

5.11 The service of process equipment will be determined according to the maintenance logs.

5.12 Any employee or department may offer input to improve quality, efficiency or productivity.

5.13 Changes or adjustments to fabrication methods, materials or equipment shall not be made without the approval of the Product Teams.

5.14 When changes are approved, the Engineering department shall issue a Design Change Notice, and will revise all relevant documents pertaining to the design change. All copies of superseded documents shall be retrieved and replaced with the current document issues.


6.1 Snag Sheet form

6.2 F-730-003 Product Design Change Request Form

7.0 Attachments

7.1 None


8.1 QP-622 Competence, Awareness and Training Procedure

8.2 QP-710 Planning of Product Realization Processes

8.3 QP-730 Design and Development

9.0 References

9.1 None

QP-750-05



O:\ISO 9001-2000\QP\QP-750-05.doc

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-09 21-Jul-05 D.H. 4 2006-24 2-Jan-07 I.W. 5 2007-03 22-Feb-07 I.W.

QP-753-06

Identification and Traceability

Identification and Traceability Page 1 of 4 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-753-06.doc

1.0 Purpose

1.1 This procedure describes the process for identifying materials and product throughout production, service and delivery.


2.1 This procedure applies to all departments of SEI.

3.0 Definitions

3.1 None


4.1 TIW: Scheduling software that generated work orders and bills of materials

5.0 Instructions

5.1 Product identification

5.1.1 All parts or materials to be brought into finished goods are identified by tags or are segregated in labeled parts bins indicating part number or material description, or are accompanied by a Quality Control checklist.

5.1.2 Finished products are identified by tags and will have the following listed on the tag:

a) The product ID number, to identify the product.

b) The sales order number, work order number, or serial number, as an identifier.

5.1.3 A work order, route, and QC checklist accompany each lot of product through production. A bill of materials is included on the work order, unless the product is custom, prototype or assemblies made for the International Division. The bill of materials for custom or prototype products will be included on the drawing.

5.1.4 Work orders identify the product in process. The work orders are kept with the lot of product at all times, either by being posted at the workstation performing the work, or by being placed with product as it travels through production.

5.2 Identification of Measuring and Monitoring Status

5.2.1 The QC checklist identifies the inspection and testing required at each step in the manufacturing process. Operators initial the QC checklist, indicating that the work they have performed has passed the indicated inspection.

QP-753-06 Identification and Traceability


O:\ISO 9001-2000\QP\QP-753-06.doc

5.2.2 If a product fails inspection, the following must occur:

a) The department Foreman is immediately notified.

b) The foreman then determines if the Quality Department should be notified for further investigation. If not, the Foreman determines a course of action to repair the product. Repairs are recorded on the QC checklist and signed off by the Foreman.

5.2.3 Products that do not pass inspection are identified with a Yellow Tag and handled according to the Control of Nonconforming Product procedure, QP-830.

5.3 Traceability

5.3.1 Identification and traceability of SEI manufactured product is maintained throughout all stages of production by using the sales order number or work order number as an identifier.

5.3.1.1 Where vendor lot number traceability is required (fabrics) the following procedure will be used.

● After the receiving process is completed (Ref QP-740), production is to verify the fabric product has been identified with the vendor serial number, tag number, lot number (whichever is applicable for that vendor) and roll number on each roll.

● The vendor “traceability number” will be utilized as the SEI lot number. ● The (“Traceability number”) SEI lot number will be recorded on the quality checklist for incoming fabrics at a time of testing (Ref form F-753-001).

● Each vendor will have a separate binder for filing of checklist reports.

● The report binders will be stored in the engineering test lab.

5.3.1.2 Once materials pass our testing the operator will mark the product label or packaging with the word “passed” and legibly mark their initials and date beside the word. 5.3.1.3 The SEI lot number for fabrics will subsequently be used on the SEI manufactured product QC Checklist. 5.3.1.4 Once roll is opened, partial rolls returned to stock will be labeled using SEI product identification tag. The fabric type (description), SEI lot number (Serial#), and part number will be filled out on each tag. 5.3.2 A work order number and sales order number (if applicable) will

appear on the QC checklist.



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5.3.3 The Customer’s name (if applicable) will appear on the QC checklist.

5.3.4 Completed QC checklists are returned to the CQO for review. Once reviewed, they are filed in the downstairs office. If any operator initials or Foreman approvals are missing, the checklists are returned to the Foreman for completion.

5.3.5 Scrap materials shall be stored as follows:

a) Metals shall be placed in scrap boxes and separated by type, such as, Aluminum, Steel, etc.

b) End cuts of fabric will be rolled and labeled with the fabric type and SEI lot number and placed in the scrap storage rack.

c) Pieces considered to small to be used will be disposed of in the garbage at day’s end.

5.3.6 Customer received product will be tagged and labeled with the following:

Customer’s name

Customer’s PO number (if applicable)

Work order number

Date product was received

5.3.7 Once the customer-supplied product has been properly tagged, the department requiring it will be notified of its arrival, and then moved there for processing.

5.4 Goods Received for Repair

5.4.1 If customer goods are returned for inspection or repair, shipping will do the following:

a) A work order will be created with a copy given to the Sales Department and Scheduling. A copy of the work order is kept in the Shipping Department filling cabinet.

5.4.2 The products shall be tagged with a fabric tag and labeled with the following:

a) Customer name

b) Model number / product ID number

c) Work order number 5.4.3 Goods to be inspected / repaired will be stored separately from SEI

stock, on a shelf or in an assigned area.



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Forms and Records

5.5 Quality Control Checklist

5.6 Work Order

5.7 Router

5.8 Sales Order

5.9 F-753-001 QC Checklist for Incoming Fabrics

6.0 Attachments

6.1 None


7.1 None

8.0 References

8.1 None

9.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-08 26-May-05 D.H. 4 2005-18 19-Dec-05 I.W. 5 5.0

5.0 5.1 5.3

5.1.3 5.3.1,5.3.1.1

2008-01 18-Feb-08 B.W/P.R

6 5.3 5.4

5.3.4 5.4.1 (a)

2008-15

22-Apr-08 I.W.

QP-754-03

Customer Property

Customer Property Page 1 of 2 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-754-03.doc

1.0 Purpose

1.1 This procedure describes the process used to identify, verify, protect and safeguard customer property.


2.1 It is the responsibility of all employees to follow the appropriate procedures for handling customer property.

3.0 Definitions

3.1 Customer property: Property owned by the customer and provided for use in meeting the requirements of the contract. Customer property can include intellectual property.


4.1 None

5.0 Instructions

5.1 SEI Sales staff make note of any customer supplied components for inclusion in a SEI product. The production department will be given specific instructions, where applicable, for storage and safekeeping of customer-supplied property.

5.2 Customer property is preserved and protected from damage according to the Preservation and Handling procedure QP-755.

5.3 Intellectual property belonging to the customer is protected according to confidentiality agreements with the customer.

5.4 Unless otherwise specified in the contract, SEI shall accept such components as meeting the requirements of the contract and shall assume that the part or component has been tested by the supplier, meets their standards and is in working order. Verification of the part by SEI does not absolve the customer of its responsibility to provide acceptable parts and components.

5.5 All customer-supplied property, including parts and components, shall be identified according to the Identification and Traceability procedure QP-753.

5.6 All property unsuitable for use, damaged or lost is reported to the customer.

5.6.1 If any component or part is lost, damaged or otherwise unsuitable for use, SEI will notify the customer by e-mail and record it in Goldmine.

5.7 Obtaining customer supplied parts (or replacement parts) for sales orders is usually the responsibility of the sales staff, but can also be handled by Engineering or Production when required.

QP-754-03

Customer Property

Customer Property Page 2 of 2 Printed 9/19/08

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6.1 NCR/RGA Form

7.0 Attachments

7.1 None


8.1 QP-753 Identification and Traceability

8.2 QP-755 Preservation and Handling

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-13 5-Oct-05 D.H.

QP-755-06 Preservation of Product

Preservation of Product Page 1 of 3 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-755-06.doc

1.0 Purpose

1.1 This procedure describes the process for handling, packaging, storage and protection of materials, parts and products to preserve the conformity of product through delivery to its intended destination.


2.1 Add your responsibilities here

3.0 Definitions

3.1 None



5.0 Instructions

5.1 Handling

5.1.1 All incoming ordered product is properly identified and checked off against the purchase order. The product is then properly marked and stored.

5.1.2 All items subject to corrosion or damage are preserved in an appropriate location.

5.1.3 Work in process is identified with the work order number. 5.1.4 Work in process is handles and stored in such a way as to avoid damage

to the goods. 5.1.5 A color coded ticket system (Work Instructions JWI-755-002 The Proper

use of the Tagging System) is used to locate finished goods in the warehouse to allow shipping to locate and take goods to their area when they are ready.

5.2 Packaging

5.2.1 The shipping department shall ensure the

a) Each shipment is complete and correct per the sales order, including all instruction manuals, repair kits and other accessories.

b) Packaging of all items is in accordance with contract requirements.

c) Bare metal parts and other materials adversely affected by moisture are wrapped in plastic.

d) Packaging is labeled with customer addresses and appropriate waybills.



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e) Product orders have the appropriate quantity and type of instruction manuals attached or that provisions have been made to mail such items (JWI-755-001).

f) The Shipping Dept. provides placards for trucks transporting dangerous chemicals.

9) Outgoing shipments are processed in accordance with JWI-755-001.

h) Shipments for overseas orders are specified by the customer and that the information is relayed to the carrier.

i) For all international shipments all wood used for packaging meets ISPM No. 15 Standards.

5.3 Storage

5.3.1 All components and parts received for stock shall be stored indoors in parts bins, shelves or other areas controlled by the shipping or production departments.

5.3.2 Fabric material and finished fabric products shall be stored inside the building and shall not be in direct contact with the concrete floor.

5.3.3 All components or parts received for specific sales orders shall be tagged or marked as per the quality procedure Identification and Traceability (QP-753), and shall be stored indoors in a place where they will not be subject to damage from hazardous activity as defined by the Workmen’s Compensation Board.

5.3.4 All chemicals shall be stored using the specific instructions of the safety data sheets for that chemical and the appropriate standards of WCB.

5.3.5 Safety data sheets shall be available in a prominent location outside the First Aid Room at the MSDS data station and will be updated as required.


6.1 F-755-001 Certificate of Compliance

7.0 Attachments

7.1 None


8.1 JWI-755-001 Packaging and Shipping Instructions

8.2 JWI-755-002 The Proper Use of the Tagging System

9.0 References

9.1 None



O:\ISO 9001-2000\QP\QP-755-06.doc

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2006-15 10-Aug-06 I.W. 4 2006-17 13-Sept-06 I.W. 5 2007-23 2-Nov-07 I.W. 6 5.0 5.1 5.1.5 2008-27 12-June-08 I.W

QP-760-04

Control of Monitoring and Measuring Devices

Control of Monitoring and Measuring Devices Page 1 of 4 Printed 9/19/08

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1.0 Purpose

1.1 This procedure outlines the requirements for control of measuring and monitoring devices.


2.1 All employees using measuring and monitoring devices are responsible to:

2.1.1 Inform the Quality Coordinator when a measuring or monitoring device (measuring equipment) needs to be added or deleted from the Equipment List.

2.1.2 Check the calibration status of measuring and monitoring devices prior to using the device.

2.2 The Quality Coordinator is responsible to:

2.2.1 Provide proper safeguarding for equipment. 2.2.2 Designate an Equipment Coordinator. 2.2.3 Assign responsibility for calibration and maintenance of equipment.

2.3 The Equipment Coordinator is responsible to:

2.3.1 Maintain the Equipment List and Equipment files. 2.3.2 Schedule calibration. 2.3.3 Review calibration reports for subcontracted calibration services.

3.0 Definitions

3.1 None


4.1 Not Applicable

5.0 Instructions

5.1.1 The engineering department identifies measurement and acceptance tolerances of products on engineering drawings.

5.1.2 Measurements of material requirements for work orders are detailed on the work orders (if applicable) and associated engineering drawings that have been issued to production.

5.1.3 Selection of suitable equipment to perform critical measurements is the responsibility of the engineering department or the production engineer.

5.1.4 Measuring Equipment is maintained, calibrated and controlled as follows:

a) Equipment is identified on the Calibration List (Calibration Index.xls).

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All measuring and monitoring equipment is put on the list, and the following information is recorded on the list:

Type of equipment

Serial number:

If the manufacture serial number exists then enter it onto the Calibration List in the ID column.

If no serial number exists then create a serial number by assigning a 4-digit number to it. The first assigned serial number will start at 1000 and each serial number assigned there after will be assigned sequentially. The prefix “SEI – “ will be added to the front of the serial number. For example, SEI – 1000 would be the first serial number to be created and assigned to a piece of equipment not containing a serial number. The second selected serial number would be SEI – 1001 and so on.

b) Current calibration status

c) Location of equipment

d) Re-Test Date 5.1.5 The Calibration List is maintained in the Equipment Calibration Log Book,

and kept with the Quality Coordinator. 5.2 Before measuring equipment is put into use, an initial verification is done against

a calibrated piece of equipment. If the measuring equipment passes, it is then labeled with a calibration label, and the test status (pass/Fail) is recorded on the Calibration List.

5.3 After each successful calibration test, a new calibration label will be placed on the measuring equipment or you can refer to the Internal/External Index of Calibration Equipment indicating that it is a calibrated measuring device.

5.4 Equipment calibration work instructions are documented in, Inspection and Test Equipment Calibration (JWI-760-001). The work instruction includes:

▪ Calibrated equipment ▪ Method of calibration ▪ Acceptance criteria for calibration

5.5 Equipment is handled, preserved and stored in a manner that protects its accuracy and fitness for use.

5.6 Maintenance and calibration of measuring equipment

5.6.1 Employees must check the for valid calibration labels prior to using the measuring device. If an employee identifies any measuring equipment with an invalid calibration label, they are not to use the measuring device. It must be tagged “Not Calibrated” and brought to Quality Coordinator for re-calibration testing.

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5.6.2 Any test equipment appearing to be inaccurate will be tagged, “Not for use” until it can be re-calibrated and brought to the Quality Coordinator for re-calibration testing. Previous inspections or tests that used the non-conforming equipment will be assessed for validity.

5.6.3 The equipment coordinator performs equipment calibration. Calibrations are performed against certified equipment having a known valid relationship to internationally or nationally recognized standards (where applicable).

5.6.4 All maintenance and calibration is documented in a maintenance log or on the Calibration List.

5.6.5 All calibrated equipment were labeled information cannot be stuck to the surface will have an Serial# for traceability engraved referring back to the Internal Index of Calibration Equipment.

5.6.6 The calibration status of calibrated equipment is on record or labeled on the equipment with a calibration label. The label or the Internal/External Index of Calibration Equipment will contain the following:

a) The date of the most recent calibration

b) The date of the next scheduled calibration

c) The serial number

5.6.7 If measuring equipment has been removed from service, “removed from Service” will appear in the Current Status column for that piece of equipment on the Calibration List. 5.6.8 Whenever the equipment is found to be out of calibration, corrective

action is initiated, including an assessment of the impact on the product. 5.6.9 If equipment is required to be tested by a certified testing agency, the

equipment coordinator reviews calibration reports from testing upon receipt and places a copy in the Master Copies, in the calibration section.

5.7 Calibration Schedule and Recording

5.7.1 The Quality Coordinator shall establish a schedule for calibration. 5.7.2 The results of external calibrations shall be filed in the Master Copies

book, under Calibration. 5.7.3 The calibration of inspection, measuring and test equipment shall provide

an estimate of the accuracy of the equipment (measuring tolerance) and this shall be recorded by the Quality Coordinator in the Calibration List.

5.7.4 The engineering department or the production engineer shall ensure that the tolerance of a measuring instrument is sufficient for its application.

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6.1 Internal Index of Calibrated Equipment

6.2 External Index of Calibrated Equipment

6.3 Calibration Certificates and Records

7.0 Attachments

7.1 None


8.1 QP-622 Competence, Awareness and Training procedure

8.2 JWI-760-001 Inspection and test Equipment Calibration

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2006-09 6-June-06 I.W. 4 5.0 5.1.5,5.3,

5.6.6 2008-10 28-Feb-08 B.W

QP-821-05

Monitoring, Measuring and Analysis of Customer Satisfaction

Monitoring, Measuring and Analysis of Customer Satisfaction Page 1 of 2 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes the process of monitoring and measuring of customer satisfaction.


2.1 The Sales Management Team is responsible for determining the appropriate measures, methods and use for monitoring and measuring of customer satisfaction.

2.2 Sales and Marketing is responsible for analyzing data and reporting it at management review.

2.3 Sales managers are responsible for initiating customer feedback projects.

3.0 Definitions

3.1 Sales Management Team: Sales product managers as well as senior sales managers who oversee the sales and marketing department.


4.1 Goldmine: Contact Resource Management Software

5.0 Instructions

5.1 The Sales Department collects customer feedback according to the Customer Related Processes Procedure (QP-720) and through customer communications.

5.2 The Sales Department analyzes customer feedback.

5.2.1 Data from the product managers’ calls and e-mails to and from customers are summarized in Goldmine and reviewed weekly by the Business Unit Managers.

5.2.2 The Sales Department records data on a Sales Activity Report (SAR) identifying any customer concerns with:

a) Delivery

b) Service

c) Quality

d) Product improvement ideas

e) Complaints

f) Other information that Sales and Marketing may determine useful to improve customer service.

QP-821-05

Monitoring, Measuring and Analysis of Customer Satisfaction

Monitoring, Measuring and Analysis of Customer Satisfaction Page 2 of 2 Printed 9/19/08

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5.2.3 If immediate action is required to satisfy a customer, then the sales staff coordinates this action with authorization from the business unit manager as required. 5.2.4 The above information is recorded and trended through On-Time Delivery Reports (OTD’s), Non-ConformanceReports (NCR’s), Return Goods Authorizations (RGA’s), Preventive Action Requests (PAR’s), and Snags. 5.3 The business unit managers review customer feedback and assign tasks during

annual reviews with the sales and marketing team.


6.1 Notes from annual sales & marketing product review meeting.

7.0 Attachments

7.1 None


8.1 QP-720-01 Customer Related Processes Procedure

8.2 QP-500-01 Management Responsibility

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-03 11-Apr-05 J.S. 4 2006-12 5-June-06 I.W. 5 2007-16 10-July-07 I.W.

QP-822-06

Internal Audits

Internal Audits Page 1 of 4 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes the process for performing Internal Audits.


2.1 The Quality Coordinator is responsible for scheduling the audits and maintaining the Internal Audit Schedule.

2.2 The Internal Auditor is responsible for initiating and conducting the audits.

2.3 The ISO Steering Committee is responsible for reviewing all corrective actions resulting from internal audits.

2.4 The lead auditor is responsible for communicating with the auditee’s to arrange the audit.

2.5 The lead auditor is responsible for planning and organizing the internal audit.

2.6 The lead auditor is responsible for preparing the final audit report.

2.7 The lead auditor is responsible for initiating corrective actions.

2.8 The Internal Auditor is responsible for reporting the internal audit results to the Quality Coordinator.

3.0 Definitions

3.1 Internal Auditor: May be one or more auditors, including the lead auditor.



5.0 Instructions

5.1 The Quality Coordinator works with the ISO Steering Committee to prepare a master schedule for internal audits. The schedule includes all areas of the facility and covers all Quality Procedures.

5.1.1 The Internal Audit Schedule identifies when the audits will take place and what processes will be audited. Auditors shall not audit their own work. 5.1.2 Each area of the facility will be audited a minimum of once per year. It may be necessary to audit areas in the facility more than once per year based on importance. 5.1.3 The associated table, Applicable Procedures by Work Area (F-822-003) identifies which procedures of the quality management system apply to each work area of the facility. 5.1.4 The Internal Audit Schedule is evaluated at the ISO Steering

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Internal Audits


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Committee meeting. It is revised based on:

a) The results of the audits

b) The number of corrective actions generated

c) System problems identified by corrective actions

d) Other relevant information 5.2 The Internal Auditor initiates the internal audits based on the Internal Audit schedule.

5.2.1 The Quality Coordinator identifies the Internal Auditor on the Internal Audit Schedule. 5.2.2 The Lead Auditor schedules the audit with the manager or supervisor and or acting subordinate’s of the area to be audited. 5.2.3 The Internal Auditor schedules the opening meeting with the manager, Supervisor and or acting subordinate’s of the area to be audited.

5.3 The lead auditor documents the Quality Procedure and area to be audited and records it on the Internal Audit Report (F-822-002).

5.3.1 The lead auditor prepares the Internal Audit Report (F-822-002). The audit team reviews appropriate documentation. 5.3.2 The Internal Auditor reviews previous audit reports for the area. All corrective actions that have been completed from previous audits that require follow-up are identified on the audit reports. 5.3.3 The lead auditor leads the opening meeting with the manager, Supervisor and or acting subordinate’s of the area to be audited.

5.4 The Internal Auditor performs the audit according to the Internal Audit Report. Auditors document all non-conformances on the Internal Audit Report (F-822-002) 5.5 Compliance to the quality system requirements and to the ISO 9001:2000 standard is determined by observation, interview and record review using the internal audit Report as a guide. Auditors record audit results on the Internal Audit Report.

5.6 The Internal Auditor holds a review meeting to agree on and write up corrective action requests. If any non-conformances are found during the audit, the team fills in the Corrective Action Request form (F-822-005).

5.7 The Internal Auditor holds a closing meeting with the manager, supervisor and or acting subordinates of the area audited.

5.7.1 All non-conformances are explained. 5.7.2 The status of the area audited is summarized.

5.8 The lead auditor prepares a final report including:

5.8.1 A summary of the findings 5.8.2 A table of corrective action requests 5.8.3 A copy of each corrective action request

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5.9 The lead auditor puts all audit records into the audit file and submits it to the Quality Coordinator.

5.9.1 Record includes: ▪ Internal audit report ▪ Car’s

6.0 The Quality Coordinator assigns an investigator to handle the corrective actions, in accordance with the Corrective Action Procedure (QP-852). The investigator documents the results of the corrective action on the CAR form (F-822-005).

6.1.1 If the corrective action has been effective, the Quality Coordinator closes the corrective action by checking the “Effective” box, and signing and dating the date closed line.

6.1.2 If the corrective action was not effective, the Quality Coordinator will check the “Not Effective Box”.

6.1.3 The Quality Coordinator notes on the appropriate audit report if corrective actions have been effective, or if they will be reissued.



7.2 F-822-002 Internal Audit Report

7.3 F-822-003 Applicable Procedures by Work Area


7.5 F-822-005 Corrective Action Request (CAR)

8.0 Attachments

8.1 None


9.1 QP-852 Corrective Action

9.2 JWI-822-001 Not released

9.3 JWI-822-002 Sample Internal Audit Report

10.0 References

10.1 None

QP-822-06

Internal Audits


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6.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-12 5-Oct-05 D.H. 4 2006-25 5-Dec-06 I.W. 5 2007-06 17-Apr-07 I.W. 6 5.0 5.3 5.3.1 2008-08 28-Feb-08 B.W 5.4 5.6 5.9 5.9.1 7.0 7.1,7.4 9.0 9.2,9.3

QP-824-07

Monitoring and Measuring of Product and Realization Processes

Monitoring and Measuring of Product and Realization Processes Page 1 of 2 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes the process of monitoring product manufacturing procedures (Product Realization Processes)


2.1 Product engineers are responsible for identifying the appropriate measuring and monitoring requirements for new product and product manufacturing procedures according to the Planning of Product Realization Processes procedure (QP-710). Also, develop or assign Quality Control Checklist as per (QP-750-03). All documents are stored on the SEI network.

2.2 Internal Auditors are responsible to monitor the product manufacturing procedures to ensure that the employees are meeting defined quality expectations.

3.0 Definitions

3.1 None


4.1 Not applicable

5.0 Instructions

5.1 The product engineers will complete the New Product Design Plan (F-730-001) for all new products.


6.1 Quality Control Checklist

7.0 Attachments

7.1 None


8.1 QP-710 Planning of Product Realization Processes

8.2 QP-730 Design and Development

9.0 References

9.1 None

QP-824-07 Monitoring and Measuring of Product and Realization Processes

Monitoring and Measuring of Product and Realization Processes Page 2 of 2 Printed 9/19/08

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10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-15 27-Oct-05 I.W. 4 2006-10 23-May-06 I.W. 5 2006-14 15-June-06 I.W. 6 2006-27 1-Dec-06 I.W. 7 2.0 2.1 2008-28 15-Jul-08 I.W. 5.0 5.1,5.2 6.0 6.1 8.0 8.1

QP-830-05

Control of Nonconforming Product

Control of Nonconforming Product Page 1 of 3 Printed 9/19/08

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1.0 Purpose

1.1 This procedure describes the process used to ensure that product that does not conform to product requirements is identified and controlled to prevent its unintended use or delivery.


2.1 Any employee identifying nonconforming material is responsible for labeling the material according to this procedure.

2.2 The engineer is responsible for the disposition of nonconforming material.

2.3 Area supervisors are responsible for disposition of the material.

2.4 Sales and Marketing is responsible for contacting customers for concession if nonconforming product is to be used.

3.0 Definitions

3.1 Yellow Tag: indicates that the material, part or product is under review and a decision will be made on what corrective action must be taken.

3.2 Red Tag: indicates that the material, part or product will not be used for product and must be scrapped.



5.0 Instructions

5.1 Non-inspected materials or material not passing inspection will be identified and segregated away from the regular production materials. Only inspected materials can be placed into inventory.

5.2 When material, a part or product is identified as nonconforming it is immediately identified and tagged. The absence of a tag shall on any material, part or product indicate that the material, part or product meets specifications.

5.3 Qualified individual must decide whether the material, part or product is to be red or yellow tagged, and will be based on measured tests or experience and judgment.

5.4 When material, a part of product is identified as non-conforming,

5.4.1 A “yellow” tag is attached to the product or material. 5.4.2 The following will be identified on the yellow tag

a) Sales order number, work order number or purchase order number

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b) Date

c) Inspector’s initials

d) NCR number 5.4.3 The item is then moved to an area of the plant determined by the

Production Department, and a Non Conformance Report form (F-852-002) is initiated. On the NCR form, the material, part or product is identified

a) The NCR form is filled out and the non-conformity described

b) The location of the material, part or product is identified on the NCR form.

5.4.4 The quality coordinator, plant manager or engineering reviews the NCR form and identifies the disposition of the product or material as:

a) Scrap

b) Rework

c) Use as is 5.4.5 A member of the management team and or engineering determines if a

corrective action will be initiated. 5.4.6 If product will be “Used as is”, sales and marketing is responsible for

determining and obtaining any necessary customer concession. If there are certain uses that are not appropriate it will be noted on the NCR form.

5.4.7 The NCR form is sent back to the department holding the material. The supervisor of the area is responsible for dispositioning the product according to the NCR form.

a) Scrap is logged on the NCR form.

b) Rework is sent to the appropriate process. Corrected product or material is subject to all product inspection required by the process to demonstrate conformity to requirements.

c) If disposition is “use as is” the item is placed back in the process and noted on the NCR form.

d) When the NCR form is completed, it is sent back to the Quality Coordinator for filing.

5.5 If nonconforming product is detected after delivery or use, Sales and Marketing will contact the customer and take appropriate remedial action, and initiate a corrective action request form (F-852-002).


6.1 F-852-002 Non-Conformance Report/Return Goods Authorization/ Preventive Action Report

QP-830-05



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7.0 Attachments

7.1 None


8.1 QP-852 Corrective Action Procedure

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2007-25 26-Nov-07 I.W. 4 5.0 5.1 2008-07 12-Feb-08 I.W 5 2.0

5.0 5.0

6.0

2.2 5.3,5.4,5.6

5.5

6.1,6.2

5.5.1,5.5.4,5.5.6

2008-24 9-June-08 I.W.

QP-852-09

Corrective Action

Corrective and Preventive Action Page 1 of 5 Printed 9/19/08

O:\ISO 9001-2000\QP\QP-852-09.doc

1.0 Purpose

1.1 This procedure describes the process for eliminating the cause of nonconformances through the use of the Corrective Action system.


2.1 It is the responsibility of all employees to initiate a Non-Conformance Report when they identify a nonconformance.

2.2 It is the responsibility of the Quality Coordinator, with input from management as appropriate, to assign an investigator and an initial due date to each Non-Conformance Report issued.

2.3 It is the responsibility of the Quality Coordinator to track the Non-Conformance Reports and maintain the database according to this procedure.

2.4 NCR/RGA analysis is the responsibility of the Quality Coordinator.

3.0 Definitions

3.1 Originator: The originator is the individual that is initially made aware of the problem. The originator may also be assigned to investigate the NCR.

3.2 Investigator: The investigator is the individual that is assigned to investigate the problem. The investigator is responsible for completing the Corrective Action section of the NCR, including all relevant costing.

3.3 Corrective Action: Action taken to eliminate the cause of a nonconformance that has occurred, and to prevent its reoccurrence. (In this case a nonconformance has already occurred).

3.4 Preventive Action: Action taken to eliminate the cause of a potential nonconformance, and to prevent any future occurrence. (In this case a nonconformance has not yet occurred).

3.5 NCR/RGA/PAR: Conformance Report/ Return Goods Authorization/Preventive Action.



5.0 Instructions

5.1 Corrective Action Requests

5.1.1 The originator, discovering a nonconformance as it relates to a QMS documentation issue or an inadequate or incorrect process, fills out a Non-Conformance Report (F-852-002) and forwards it to the quality department.

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● Using your own words, and utilizing only the facts to describe the problem. ● Do not copy passages from customer e-mails. ● Historical investigated comments may be attached or referenced. The main text of the ‘Description’ section must remain impartial.

Note: Emotion, blame, finger pointing, and negative comments have no place in a NCR. Only the facts should be reported. The quality department reserves the right to return unsuitably worded NCR’s to their originators for them to revise.

5.1.2 When a complaint is received from a client, the employee receiving the complaint completes a Non-Conformance Report (F-852-002) and forwards it to the Quality Coordinator. The above note also applies.

5.1.3 The quality department representative assigns a number to each NCR, assigns it to an investigator and assigns a due date.

5.1.4 The NCR is entered in the Non-Conformance Logbook, which is maintained by the Quality Coordinator.

5.1.5 The Quality Coordinator distributes copies of the NCR to the appropriate individuals (departments) as indicated on the bottom of the form.

5.1.6 Any correspondence or other relevant documentation may be attached to the original NCR/RGA form that is kept in the NCR logbook.

5.1.7 The originator must indicate what is to be done to immediately solve the problem, provided he/she is able too, if not that responsibility falls onto the investigator. The investigator must also suggest a corrective action (i.e. change in procedure, design, etc.) in order to prevent reoccurrence of the problem.

5.1.8 After completion of the Corrective Action section, the investigator is to return copies of the NCR to the quality department.

5.1.9 Once the investigation is complete, the quality department will assign a close off date, Corrective Action 30-day follow-up (if necessary), and re-distribute the closed NCR to the appropriate individuals. In the case of an issue that directly impacts the customer, the solution will be forwarded to the salesperson involved so that our response can be communicated to the customer (i.e. credit, replacement, repair, no charge, etc.)

5.1.10 When a Corrective Action 30-day follow-up is necessary, the assigned individual (usually the investigator) will investigate the results of the corrective action, indicate if the action taken was effective, record the results in the appropriate section, and return the NCR to the quality department.

5.1.11 The Quality Coordinator closes the corrective action. If the action was not effective a new NCR is initiated.

5.1.12 Each week the Quality Coordinator checks to see what NCR’s are due for follow-up, and assigns them for follow-up.

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5.1.13 The Quality Coordinator prepares a summary of the corrective actions to be reviewed at management review according to the Management Responsibility Procedure, QP-500.

5.2 Replacement of Goods

5.2.1 If replacement goods are to be sent to a customer, the quality department will give a copy of the NCR to the sales department.

5.2.2 Sales will generate a sales order for the replacement of goods and give a copy to accounting.

5.2.3 Accounting will generate a no-charge invoice for the goods and give the invoice to the shipping department.

5.2.4 Shipping will then ship the items. 5.3 Repaired or Re-made Product

5.3.1 If the product is to be repaired or re-made, the shipping/scheduling department will generate a work order.

5.3.2 A copy of the work order will be sent to the quality department to be attached to the NCR/RGA form.

5.3.3 The work order will be released to the plant and the product will be repaired or re-made.

5.4 NCR Review

5.4.1 The quality department is responsible for following up with the investigator for the completion of corrective actions by the assigned due date (usually 2 weeks). NCR/RGA’s shall be summarized by category and reviewed monthly at the ISO Steering Committee meeting. They shall also be analyzed annually and the results presented for upper management review and directives.

5.4.2 A copy of the annually summary shall go to the accounting department for cost control.

5.5 NCR/RGA Analysis

5.5.1 In addition to summarizing Non-Conformances and Returned Goods, it is essential that we track and analyze them to discover trends, identify the need for further corrective actions and chart their effectiveness.

5.5.2 NCR/RGA’s shall be costed as follows: a) Value of material and labor for scrapped goods or parts. b) Cost of reworking for repairing items. c) Cost of repairing or replacing items returned from customers. d) Shipping costs for sending out replacements or missed items. e) Selling price of lost orders in the case of cancellations. f) Value of any concessions made to appease the customer.

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g) Allowance for long distance calls, courier fees, etc., needed to resolve the issue.

5.5.3 NCR/RGA’s shall be categorized as follows: a) Customer: Complaints about the quality of goods or services,

generated by the customer after the goods leave the plant. b) Production: Problems noted while goods are still in the plant (e.g.

welding flaws, not following design directions, etc.) c) Contract Review: Problem due to not reviewing or clarifying the

customer’s requirements. d) Process Control: Problem due to incomplete or incorrect internal

processes and documents, such as work orders, bills of materials, drawings, etc.

e) Packing/Shipping: Items short-shipped or sent in error despite having correct packing list, etc.

5.5.4 NCR/RGA’s shall be combined and analyzed annually as follows: a) The total number of occurrences in each category is recorded. b) The total cost of the NCR/RGA in each category is recorded. c) Results are reported and discussed annually at the ISO Steering

Committee meeting. 5.6 Return Goods Authorization

5.6.1 When credit or no-charge parts are to be issued, someone with the appropriate financial authority must sign the RGA form. Authorization limits are as follows:

a) Product Manager: up to $1,000 b) Sales/Marketing Manager: up to $10,000 c) General Manager: up to $30,000 d) Board of Directors: over $30,000

5.6.2 If a credit is issued, a sales person will prepare a reverse order in SBT that show the NCR# in the purchase order line. Then, the sales order is issued to accounting to be invoiced. A credit note will be attached to the customer file. Sales order will be initiated based on cost as per signing authority as per Clause 5.6.1.


6.1 F-852-002 Non-Conformance Report/Return Good Authorization/ Preventive Action Report

7.0 Attachments

7.1 None

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Corrective Action


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8.1 JWI-852-001 Revised part# (JWI-852-002)

8.2 JWI-852-002 Sample Non-Conformance Report

8.3 QP-853 Preventive Action Procedure

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-05 8-Apr-05 D.H. 4 2005-25 3-Feb-06 I.W. 5 2007-06 8-Mar-07 I.W. 6 2007-12 8-May-07 I.W. 7 5.0 5.1 5.1.1 2008-02 22-Jan-08 B.W. 8 6.0 6.1 2008-11 28-Feb-08 I.W. 9 8.0 8.1,8.2 2008-23 3-June-08 I.W.

QP-853-05

Preventive Action


O:\ISO 9001-2000\QP\QP-853-05.doc

1.0 Purpose

1.1 This procedure describes the process for preventing or eliminating the cause of nonconformances through the use of the Preventive Action system.


2.1 It is the responsibility of all employees to initiate a Preventive Action Request when they identify a potential nonconformance.

2.2 It is the responsibility of the Quality Coordinator, with input from management as appropriate, to assign an investigator and a due date to each Preventive Action Request issued.

2.3 It is the responsibility of the Quality Coordinator to track the Preventive Action Requests and maintain the database according to this procedure.

3.0 Definitions

3.1 Corrective Action: action taken to eliminate the cause of a nonconformance that has occurred, and prevent reoccurrence of the nonconformance. (In this case a nonconformance has already occurred)

3.2 Preventive Action: action taken to eliminate the cause of a potential nonconformance and prevent the nonconformance from occurring. (In this case a nonconformance has not yet occurred)



5.0 Instructions

5.1 Preventive Action

5.1.1 Any employee can initiate a Preventive Action Request (PAR) when a condition is observed that could result in a future nonconformance.

5.1.2 The PAR is written up on the Preventive Action Request form (F-852-002). The originator is responsible for describing the issue and providing sufficient background information to justify a Preventive Action.

5.1.3 The Quality Coordinator assigns numbers, investigators and due dates following the same procedure as the (QP-852).

5.1.4 The investigator proposes an action to prevent the nonconformance from occurring. The findings are then communicated to the originator and a decision is made weather to implement the action or not. If all are in agreement, the Quality Coordinator then implements the Preventive Action.

QP-853-05

Preventive Action


O:\ISO 9001-2000\QP\QP-853-05.doc

5.1.5 Preventive Actions are reviewed by the ISO Steering Committee for

effectiveness. The Quality Coordinator signs and closes the PAR when they determine that the action taken was effective.


6.1 F-852-002 Non-Conformance Report/Return Goods Authorization/ Preventive Action report

7.0 Attachments

7.1 None


8.1 QP-852 Corrective Action Procedure

9.0 References

9.1 None

10.0 Revisions


2 2004-03 6-Oct-04 D.H. 3 2005-06 8-Apr-05 D.H. 4 2006-23 5-Dec-06 I.W. 5 5.0

6.0 5.1 6.1

5.1.2, 5.1.3 2008-25 3-June-08 I.W.