Purchasing: OP-84-01 Rev - Quality Name Plate · Purchasing - OP-84-01 Revision - Purchasing: OP-84-01 Rev - Effective Date: 11-15-17 Owner Approval by Andrew Adams, QA Manager, on

Purchasing - OP-84-01 Revision -

Purchasing: OP-84-01 Rev - Effective Date: 11-15-17 Owner Approval by Andrew Adams, QA Manager, on 11/14/17 Management Approval by Craig O. Garneau, President on 11/14/17

Printed copies of this document are for reference only and are uncontrolled. Printed copies are not valid after the date of printing.

Purchasing

1. PURPOSE

To establish a consistent process for the purchase of items related to customer contracts and product

quality in order to ensure that externally provided processes, products and services conform to

defined requirements.

2. RESPONSIBILITY

The table below identifies QNP personnel and their responsibility relating to this procedure:

Person Responsibility

Controller Accounts Payable Clerk

Maintains Accounting System Pays on Invoices for Received Products and Services

QNP Management Quality Assurance Manager Purchasing Manager

Evaluate and select suppliers based upon their ability to supply product in accordance with QNP's requirements.

Maintains Approved Vendor List.

Establish level of controls and performance ratings appropriate to suppliers on the Approved Vendor List.

Disqualifies and re-qualifies Vendors whose performance falls below defined acceptable level

QNP Buyers

Department Supervisors

Personnel identified on the Purchasing Authority Control List

Issue purchase order requisitions.

Approve requisitions and issue purchase orders as authorized.

Maintain open lines of communication with QNP Management regarding supplier history and quality issues.


3. APPLICABLE FORMS OR REFERENCES

The table below identifies the code number and title of documents and references applicable to this

procedure;

Form/Reference Number Title

AS9100 Quality Management Systems - Requirements for Aviation, Space and Defense Organizations

OP-84-02 Verification of Purchased Product

OP-84-03 Counterfeit Avoidance and Mitigation

SR-85-01 Supplier Quality Requirements

FM-84-01 Approved Vendor List/Form

FM-84-02 Purchase Order

n/a Purchase Requisition for Supplies

FM-102-01 Escape Report/Form

FM-102-02 Correction Action Request Form

4. General

4.1. Regardless of a vendor’s status or history, Quality Name Plate is responsible for the conformity

of all purchased products, including products purchased from customer defined sources.

4.2. QNP’s process for managing the risks associated with the accidental procurement and use of

counterfeit materials is documented in Operating Procedure, OP-85-03, Counterfeit Avoidance and

Mitigation

5. Purchasing Authority

5.1. The purchasing authority and responsibilities for individual employees are defined within the

Employee Training Database.

5.2. Purchase orders should only be issued by employees with the appropriate training and authority.

Employees without purchasing authority may submit a requisition for products/services to an

authorized buyer.


6 Purchase Orders/Flow Down

6.1. The primary source of sequentially numbered purchase orders is the FileMaker Purchasing

database. A Purchase Order shall contain;

Vendor Name and contact information

Ship to/Bill to Address

QNP Buyer contact information

Items Ordered, including as applicable

o A specific description of the item ordered

o The type, class, grade, revision, or other precise identification

o Quantities Ordered

o Prices, if known

o Certification requirements

o Shipping Information or other special instructions

6.2. As appropriate, purchase orders shall also specify;

Requirements for approval of product, procedures, processes and equipment

Requirements for the qualifications of personnel

Supplier QMS requirements

Positive identification and applicable issues of specifications, drawings, process requirements,

inspection instructions, and other relevant technical data,

Requirements for test specimens for design approval, inspection, investigation or auditing

Requirements relative to notifying QNP of nonconforming product, and arrangements for

QNP's approval of nonconforming materials,

Requirements for the supplier to notify QNP of changes in product and process definitions,

and obtain our approval as necessary,

Right of access by QNP, our customers, and appropriate regulatory authorities to all facilities

involved in the order, and their records,

Requirements for the supplier to flow down applicable requirements to sub-suppliers in their

purchasing documents, including key characteristics where required.

6.3. In those cases where Quality Name Plate may be required to verify/source inspect purchased

product or subcontractor service at their premises, Quality Name Plate will specify verification

arrangements and method of product release in purchasing documents, and maintain suitable quality

records.

6.4. If a contract with a customer requires the use of a specific source for a special process, those

requirements shall be flowed down to sub-suppliers through our purchase order. It is the responsibility

of the buyers to periodically verify that suppliers are meeting flow down requirements.

6.5. Supplier quality requirements in addition to those listed on individual purchase orders are defined

in SR-85-01, Supplier Quality Requirements, which is available online at http:QNP.com/AS9100/SR-

85-01.pdf or by request.

6.6. For materials, supplies or processes that are not directly incorporated into QNP products (non-

product buys), a buyer may issue a purchase order though a supplier’s web site or other similar

method. In such cases, where a sequentially numbered QNP purchase order is not issued, it is the

buyer’s responsibility to maintain the appropriate documentation and control to ensure that the

necessary receiving inspection and accounting functions can be performed.


7. Approved Vendor List

7.1. QNP maintains a register of approved suppliers. The Approved Vendor List, FM-84-01, identifies

suppliers by;

Company name,

Address/Contact Information

Products and/or services supplied,

Quality system,

Approval status (approved, conditionally approved, or disapproved),

Scope of approval,

Classification as a critical, key, or non-key supplier

7.2. To be accepted and maintain an approved status on the Approved Vendor List, FM-84-01,

Vendors and Subcontractors must consistently meet Quality Name Plate requirements for:

On-time delivery

Product Quality

Certs/Documentation as appropriate

Additional flow-down and quality system requirements as specified on individual purchase

orders and/or SR-85-01, Supplier Quality Requirements.

7.3. As part of the approval process, suppliers shall be analyzed in terms of the risks associated with

their processes, products and services. Evidence of the identification and management of these risks

shall be documented in the Approved Vendor List, FM-84-01.

7.4. The selection of vendors and the type and extent of control imposed upon them is dependent

upon:

The type and complexity of the materials, components, and services they supply

Identified risks

The impact they have on the quality of our customer’s orders

8. Evaluation and Monitoring or Supplier Performance

8.1. Suppliers are expected to maintain acceptable On Time Delivery and Quality ratings as tracked

through QNP’s FileMaker Purchasing Database and the Approved Vendor List, FM-84-01.

8.2. As products and services are received on individual purchase orders, QNP purchasing personnel

enters the delivery dates and records any non-conformances into QNP’s FileMaker Purchasing

Database. The database uses that information to provide live calculations of On Time Delivery and

Quality Ratings for active Suppliers.

8.3. The current On Time Delivery and Quality ratings for active suppliers are accessible to QNP

purchasing personnel through the QNP FileMaker Purchasing Database and Approved Vendor List,

FM-84-01. Supplier ratings are compared against established minimum acceptable levels (as set in

the Approved Vendor List), and warnings are generated for under-performing suppliers. Buyers are

prompted to check with Management and take appropriate action before issuing purchase orders to

under-performing vendors.


8.4. QNP purchasing personnel is encouraged to document additional details and provide feedback

regarding supplier performance in the Approved Vendor List, FM-84-01.

8.5. Trends, statistics, open corrective actions, and other data related to QNP’s purchasing process

are maintained and posted for review on the Purchasing Process display boards located in the QNP

office.

8.6. Overall supplier performance is reviewed by management during periodic reviews of the

Purchasing Process and Management Review Meetings.

9. Qualifying New Suppliers

9.1. As necessary, QNP may procure materials, components, and services from non-approved

suppliers. A buyer may issue one (1) purchase order to a supplier before that supplier shall be

considered for addition to the Approved Vendor List. Until the supplier has been added to the

Approved Vendor List, that supplier shall be considered "conditionally approved" under the

purchasing authority of the buyer.

9.2. Upon receipt of a satisfactory order, verified to meet material requirements, a supplier may be

added to the Approved Vendor List, FM-84-01. If appropriate, a probationary period may be defined

for the supplier during which time it may be subject to an increased level of receiving inspection or

review of performance data.

9.3. Suppliers may be added to the Approved Vendor/Subcontractor List, FM-84-01, based on

supplier quality data obtained from objective and reliable external sources. Example: Hamilton

Sundstrand's 80/85 Approved Supplier List.

10. Recording/Managing Quality & Delivery Problems

10.1. Quality problems and product non-conformances from vendors shall be recorded on the

Approved Vendor/Subcontractor List, FM-84-01.

10.2. If QNP Management determines that it is appropriate to issue a request for corrective action

from a vendor, it shall be recorded on the FM-102-02, Corrective Action Form, and coded with the

prefix "S" to indicate that is a "Supplier" corrective action request.

10.3. As appropriate, a buyer may choose to request an informal action plan to address quality or

delivery problems. In such cases, communications between QNP and the supplier, and the follow up

activities should be documented in the Approved Vendor List, FM-84-01.

10.4. If necessary, QNP may choose to assume the risk for the continued use of an underperforming

vendor.

11. Supplier Disqualification

11.1. QNP Management may determine that a vendor does not meet QNP's quality system

requirements if the vendor;

Consistently under-performs on its delivery and quality metrics

Is unable to correct errors in a timely fashion,

Fails to respond to Corrective Action Requests,

Jeopardizes QNP's relationship with its customers.


11.2. When it has been determined that a supplier cannot meet QNP’s quality system requirements,

they shall be listed as “Disapproved” and deactivated as an active supplier on the Approved Vendor

List, FM-84-01.

11.3. Disapproved suppliers shall be notified of their disqualification and given the reasons why.

11.4. Should a customer notify QNP that we are not allowed to procure materials or services from a

sub-tier supplier, that information will be documented in the Approved Vendor List, FM-84-01, and

appropriate controls shall be implemented to prevent the unintended use of materials or services from

that supplier for that customer.

12. Supplier Re-qualification

12.1. Upon request for re-qualification from a disqualified supplier, QNP Management shall re-

evaluate the vendor to ensure that corrective action has been implemented to correct the problem

that led to the disqualification.

12.2. If appropriate, a disqualified supplier may be re-approved for active status on the Approved

Vendor List, FM-84-01. As appropriate, that supplier may be granted a probationary re-approval

status which entails additional monitoring and/or control.

13. RECORDS/OBJECTIVE EVIDENCE

The retention duration for records referenced in this procedure are available on-line in the FM-75-01

Master Document List with Revision History.

Records are maintained in accordance with OP-75-01 Control of Documented Information.

14. REVISION HISTORY

Revision, approved date, effective date, and a document change summary for this document is

located on-line in the FM-75-01 Master Document List with Revision History.

Documents

Purchasing: OP-84-01 Rev - Quality Name Plate · Purchasing - OP-84-01 Revision - Purchasing: OP-84-01 Rev - Effective Date: 11-15-17 Owner Approval by Andrew Adams, QA Manager, on