R 0 G 0 B 0 R 127 G 127 B 127 R 1 G 104 B 138 R 208 G 91 B 0 R 59 G 47 B 109 R 235 G 169 B 0 R 125 G 12 B 0 R 74 G 133 B 24 Applied Materials Confidential

SQRApplied Materials Confidential

Supplier First Article Inspection Supplier First Article Inspection 2-60.12-60.1

Training Overview

Release 002

For Reference only


Course Objectives

GMRM 2-60.1

FAI Procedure – Review, changes and

Highlighted information regarding FAIs

Question and Answer Session will be allowed at

the end of this presentation.

For Reference only


Supplier First Article Inspection

Purpose of FAIs Applicability of FAI Understanding part categorization affecting FAI Critical Part Requirements Roles and Responsibilities of Suppliers for FAI Required FAI report content Process of FAI creation & reporting GMOX – Supplier Information Website Key Contacts / Acronyms

For Reference only


Applied Materials First Article Procedures

Corporate Procedure 0117-Corporate First Article Inspection Procedure (Applied Materials Internal Procedure)

2-60.1-Supplier First Article Inspection Requirements (Available to all suppliers on the GMOX Website)

2-60.4-Supplier ACA FAI Tool Work Instruction(Available to all suppliers on the GMOX Website)

2-60.5-Third Party Source Inspection Work Instruction (Available to all suppliers on the GMOX Website)

Conditional Approval Supplier Notification Letter (Provided to all conditionally approved suppliers by the assigned CBM)

2-60.7-Conditionally Approved Supplier Inspection Controls(Applied Materials Internal Procedure)

For Reference only


Purpose

• Ensure product conformance to Applied Materials’ specifications prior to the production approval and authorization to ship material to Applied Materials or its customers.

• To demonstrate a Supplier’s capability to meet documented Applied Materials’ requirements

For Reference only


FAI Applicability

When is First Article Inspection Applicable?

When 1st Production Units are supplied to Applied

Including manufactured or distributed units

When a source change occurs (new supplier)

When significant process changes occur

When prototype parts are about to be released to eval status.

Note: First Article Inspections are not required on Prototype parts but can be performed at engineering request when a released or scheduled drawing exists in the Applied Materials drawing vault.

For Reference only


FAI Required on 1st Production Units

FAIs are required to be performed on the first production unit from the supplierThis applies to:

• contract and spot-by purchases• critical and non-critical build to print parts• critical and non-critical sub-assemblies• configurable sub-assemblies• critical and non-critical modified OEM• critical non-modified OEM• Kits

FAIs required on both manufactured and distributed parts

For Reference only


Part and Procurement Variations

Parts can be procured by contract (GSA or other contact type), Spot Buy (non-contract) or Indirect PO (Engineering PO).

For Reference only


Part Number Categories

Typical Part Categories:

OEM – Off the shelf parts (Non-critical OEM parts with a commodity code of greater than 0500)

Applied Spec or Build to Print (BTP)– Parts which are fully designed and specified by Applied Materials – 0010 Assemblies– 0190 Specifications (including

OEM modified parts)– 0240 Kit (collection of parts

w/o a 0242 drawing, controlled by BOM)

- 0290 Configurable Assembly, selectable from BOM

- xxxxxx- System defined Configurable assembly

Typical Applied p/n’s:

P/N > 0500- xxxxx P/N < 0500- xxxxx

For Reference only


Commodity codes that apply for FAI exemption * Commodity Codes which are exempt from the FAI process are as follows:

0045 0070 0080 0110 0120 0130 0160 0170 0180 0195* (non critical) 0205 0210 0220-0223

0230 0235 0243 0250-0251 0255 0260-0261 0280 0288-0305 0320 0400-0405 0500 and above (*if non-

critical)

For Reference only


Critical part requirements****************************

– Critical parts must be procured from Applied Materials approved suppliers regardless of commodity code. This applies to all products that qualify for First Article inspection and are identified as a critical part or assembly in Oracle or on the drawing.

– The primary suppliers shall be responsible for ensuring that purchases of critical parts are from sub-tier suppliers which manufacture parts for Applied Materials and are approved Applied Materials’ suppliers listed in the AMAT AVL (Per AMAT CORP0117)

Note: The primary supplier shall not be allowed to purchase the critical part from a sub-tier supplier / manufacturer that is not approved in the Applied Materials AVL and specifically “supplier locked" for the critical part in question. If the approved supplier is not locked in Oracle then an F-29 must be initiated by AMAT Materials or AMAT Engineering before the First Article can be approved.

For Reference only


F-29 Requirements

If a critical part needs to be moved to a new supplier. What is the process?

– The individual at Applied Materials requesting movement will complete the F-29 form for routing and approval.

– The originator is required to provide the supplier quality performance, NC activity, any PIP status, the current supplier(s) and recommended new supplier.

– The originator is responsible to contact all PBG users to determine what supplier should remain locked in Oracle for the specified part number.

– The originator should also verify that the supplier is CE! training certified.

NOTE: Only 3 suppliers should be locked in Oracle to include the new supplier. Other suppliers should be debarred.

For Reference only


Supplier Roles / Responsibilities

Developing a fully dimensioned drawing for FAI reporting as applicable for 3D Model parts

• Drawing to include Applied part number and same Applied type revision control

For Reference only



As applicable, use only Applied Materials Special Process Suppliers (listing in GMOX website) for Critical, Strategic and Common Special Process Suppliers

Manage the approval of General Special Process Suppliers when not selected from Applied approved General Special Process Supplier listing

For Reference only


Roles / Responsibility of Supplier

Refer to GMOX for the latest in procedure release, FAI Requirements, Special Process Supplier listing, SPS, SNF and more.

Compliance to Applied Materials Copy Exact / Interchangeability requirements and utilize Applied’s SPS & SNF processes for change notification / approval prior to changes.

For Reference only


GMOX – Supplier Information Website

Within GMOX, the Supplier can access Applied Materials Supply Requirements applicable to FAI including current FAI procedures and Approved Special Process Suppliers list.

Other important information is available including: Applied Materials data of Supplier Performance, Forecast data, other supplier needed procedures and notifications, applicable training materials and the ACA FAI application.

For Reference only


GMO Secured Information Website

Once Access is granted to Secured Information, suppliers can access key Notifications, Updates, Procedures, Special Process Suppliers, and other important information.

Suppliers can access through GMOX at http://gmox.amat.com

For Reference only


Supplier Roles / ResponsibilitiesSource Inspection on Critical Assemblies and Critical Parts (CA or CP)

3rd Party Source Inspection(SI) is required at the site of CA manufacture (including sub-tier suppliers).

Source Inspection is not required for critical piece parts and inseparable assemblies as of 3-1-05 with the release of revision K of 2-60.1.

Standard or Configurable Assemblies which contain CAs

Primary Supplier is required to ensure 3rd Party Source Inspection is conducted on each CA

3rd Party SI may be conducted at Primary Suppliers site if all source inspection requirements can be met and it is prohibitive to complete SI at the site of manufacture.

FAIs on Critical Parts/Assemblies are to be submitted directly to Applied for Approvals, copy submitted to Primary for records. If CP or CA at a sub-tier supplier, FAIR to include the original Sub-Assembly part number and PO #

For Reference only



Completing and submitting FAI reports electronically to Applied Materials’ ACA FAI System via GMOX. (refer to Applied Materials procedure 2-60.4 and required online training package)

Shipping purchased parts to AMAT only after FAI approval is given by the Supplier Quality at Applied Materials.

Any part shipped without FAI approval may be returned at suppliers expense.

Enforcing FAI requirements defined in Applied Materials 2-60.1 to sub-tier suppliers, and maintain FAI evidence files

For Reference only


Supplier FAI (SPS/ESW)

The Supplier is responsible to review the Applied Materials drawing / specification and if any conflicts or drawing errors exist that make the part un-manufacturable, the SPS process will be followed to correct the problem.

Currently, there are two classes of SPS responses. They are identified as:

• Class 1 SPS responses requiring an ESW

• Class 2 SPS responses not requiring an ESW

For Reference only


SPS Database Changes - Definition

Class 1 SPS Is any issue that affects form, fit, and function.

The supplier can not produce the product with the information on the drawing or specification. This type of error will require an approved ESW / ECO for the supplier to move forward with delivery or first article.

For Reference only



Examples of a class 1 SPS include:

• Material Change *

• Incorrect special process call out

• Dimensional change or missing dimensions

• Firmware or software changes

• Part obsolescence.

For Reference only


The Class 1 SPS and need for ESW

The ESW must be included in the FAI submittal so that Applied can ESW Validate to authorize shipment.

ESW validation is sent to the supplier; ESW validation is not FAI approval.

ESW validation is temporary approval only and expires with the ESW.

When the drawing is corrected, the supplier will submit an FAI report in full for FAI approval.

For Reference only



Class 2 SPS Is an issue that reflects an “as built” condition. Documentation that does not reflect the part requirements, and the solution is known. No part qualification is required. • A class 2 SPS will be verified and responded by the Action Owner (clarification provided) authorizing continued progress of the part production, including first article inspection. • An ESW is not required. Copy of accepted SPS required with FAI. Class 2 SPS’s shall be collected and resolved through the ECO process periodically.

For Reference only



Examples of a class 2 SPS include:

• Surface finish call out on cable assembly,

• Nonsensical process call out (anodize stainless or plastic)

• Floor stock quantity (tie wraps, washers, polyline length, etc),

• Company of Component name changed (part unchanged),

• Obsolete specification when the superseding specification is known (ANSI Y145.5 superseded by ASME Y14.5).

For Reference only


Requirements for FAI Report Content for Modified OEM parts

Applied Materials procedure 2-60.1 defines modified OEM parts as, "Modified OEM are parts that were originally an off the shelf item, but are being modified to meet Applied Materials requirements. ACA FAI is required only for the modifications made to the item by the Supplier. Usually these parts are jointly developed with the Supplier and with Applied Materials’ PBG design engineering, and are delineated in either an Applied Materials drawing or specification.

In the event of 0190 specification disagreement, supplier shall submit SPS to resolve specification discrepancies. Specification discrepancies SHOULD be resolved prior to FAI submission. 0190 specification should only list the difference/modification to the original OEM unit and NOT standard OEM specifications.

Please refer to the 2-60.1 tables for modified OEM FAI requirements.

For Reference only


FAIs Requirements – 2-60.1 Tables

FAI requirement details are specified in 2-60.1, Table Attachments: • Table A – FAI requirements for Critical Parts Build to Print• Table B1 – FAI requirements for Standard & Critical Sub

Assemblies• Table B2 – FAI requirements for Configurable Sub Assemblies• Table C – FAI requirements for Non-Critical Parts• Table D – FAI requirements for Kits• Table E – FAI requirements for Critical Modified and Non-

Modified OEM Parts

Table detail shown in 2-60.1

For Reference only


Required FAI Report Content

FAI requirement tables are now included in the FAI requirements procedure, in Tables A, B1&B2, C, D, E

FAI reports must at a minimum include those documents as defined in the requirement tables. Additional documentation may be required to ensure all drawing requirements are being met.

For Reference only


Table A – FAI for Critical Parts (BTP)

1 2 3 4 5 6 7 8

Changes That require FAI Approval from AMAT

1 New Part/Part Number Change R R R R R R* R R

2Process improvement (combining operations, separating operations, sequence of operations

R R R* R* R R* R R*

3Machine/Jigs/Fixtures Change (FAI not required for identical machine/jigs/fixtures with in same facility)

R R R* R* R R* R R*

4 Change of Material Manufacturer R NR R R R R* R R*

5 Change of Special Process Supplier R R* NR R R R* R R*

6 Change of Sub-tier Supplier R R R* R* R R* R R*

7 Test Fixture and/or Software Changes R R NR NR R R* R R*

8 CNC Program Changes R R NR NR R R* R R*

9Mfg Site location (consolidation, new division,

different division)R R R R R R* R R

R REQUIRED S Supplier Performs & Approves FAI Internally

R* REQUIRED - IF APPLICABLE/AFFECTED NR NOT REQUIRED

Table A -- FAI for Critical Parts (Build to Print)

Refer t

o 2-6

0.1 fo

r Tab

les

For Reference only


Table B1 – FAI for Standard & Critical Sub-Assemblies

1 2 3 4 5 6 7 8 9 10 11

Changes which require FAI

1 New Part/Part Number Change R R* R* R* R R* R R R R* R

2Sub-Assembly Top Level Revision

Changes OnlyR R* R* R* R R* R R R R* R*

3Machine/Assembly Fixture Change (FAI not

required for identical machine/assembly fixture with in same facility)

R R* R* R* R R* NR R NR R* R*

4Component obsolescence, component

change for OEM PartsR R* NR R* R R* R R R R* R*

5Change of Material Manufacturer

(if specified on Top Level)R R* R R R R* NR R R R* R*

6Change of Special Process Supplier

(if specified on Top Level)R R* NR R R R* NR R R R* R*

7 Change of Sub-tier Supplier R R* R* R* R R* R R R R* R*

8 Test Fixture and/or Software Changes R R* NR NR R R* NR R R* R* R*

9Mfg Site location (consolidation, new

division, different division)R R* NR NR R R* R* R R* R* R

R REQUIRED S Supplier performs and Approves FAI InternallyR* REQUIRED - IF APPLICABLE/AFFECTED NR NOT REQUIRED

Table B1 -- FAI Requirements for Standard & Critical Sub-Assemblies

Refer t

o 2-60.1 for T

ables

For Reference only


Table B2 – FAI for Configurable Sub-Assemblies

1 2 3 4 5 6


1New Part (For First Configurable Sub

Assembly)R R R R R R*

2Future Sub-Assembly

(New Configured Options)S S S S S R*



S S S* NR NR R*


change for OEM PartsS S S* S S R*

5Change of Material Manufacturer

(if specified on Top Level)S S S* NR S R*

6Change of Special Process Supplier

(if specified on Top Level)S S S* NR S R*

7 Change of Sub-tier Supplier S S S* S S R*

8 Test Fixture and/or Software Changes S S S* NR S* R*

9Mfg Site location change (consolidation,

new division, different division)S S S* S* S* R*

R REQUIRED R* REQUIRED - IF Critical Parts or SPE RequiredS REQUIRED - SUPPLIER NR NOT REQUIREDS* REQUIRED - IF APPLICABLE/AFFECTED

Table B2 -- FAI Requirements for Configurable Sub-Assemblies

Ref

er to

2-6

0.1

for T

able

s

For Reference only


Table C – FAI for Non-Critical BTP & Modified OEM Parts

1 2 3 4 5 6 7


1 New Part/Part Number Change R R R R R* R R*

2Machine/Jigs/Fixtures Change (FAI not required

for identical machine/jig/fixture with in same facility)

R R* R* R* R* R R*

3 Change of Special Process Supplier R R* NR R R* R R*

4 Change of Sub-tier Supplier R R R* R* R* R R*

5 CNC Program Changes S S S S R* S S

6Mfg Site location (consolidation, new division,

different division)R R R R R* R R*

R REQUIRED S Supplier performs and Approves FAI InternallyR* REQUIRED - IF APPLICABLE/AFFECTED NR NOT REQUIRED

Table C -- FAI Requirements for Non-Critical Build-To Print & Modified OEM Parts

Refer t

o 2-6

0.1 fo

r Tab

les

For Reference only


Table D – FAI for Kits1 2 3 4


1 New Part/Part Number Change R R R R*

2Sub-Assembly Top Level Revision Changes

OnlyR R R R*



R NR R R*


change for OEM PartsR R R R*

5 Change of Sub-tier Supplier R NR R R*

6 Test Fixture and/or Software Changes R NR R* R*

7Mfg Site location change (consolidation, new

division, different division)R R* R* R*

R REQUIRED S Supplier performs and Approves FAI Internally

R* REQUIRED - IF APPLICABLE/AFFECTED NR NOT REQUIRED

Table D -- FAI Requirements for Kits

Refer t

o 2-6

0.1 fo

r Tab

les

For Reference only


Table E – FAI for Critical Modified & Non-Modified OEM Parts

Refer t

o 2-6

0.1 fo

r Tab

les

For Reference only


Process of Supplier FAI Creation & Report

Supplier will review new part orders and determine if FAI is required.

The supplier will be notified by the Applied Materials buyer/planner on purchase order that a FAI is required.

If the supplier knows that a part requires FAI and no previously approved

FAI is on file, the supplier will initiate the FAI for review.

Supplier determines what Table will be utilized to determine FAI requirements by determining type commodity code to be submitted for review

No one has the authority to waive FAI or Third Party Inspection

For Reference only


Special Process Suppliers

Suppliers can access through GMOX at http://gmox.amat.com

Approved Special Process Supplier listing

For Reference only


Supplier FAI (Components Compliance Report)

Components Compliance Report (CCR) is used to report FAI acceptance completed by the supplier for Sub-Assemblies including all BOM piece parts, beginning with P/N <0500- xxxxx. The supplier maintains on file all FAI referenced in the CCR. (*Random Audits requests of Component FAIs will sent to primary suppliers by FAI Reviewers and evidence of compliance must be provided by COB that same day. Lack of compliance will result in corrective action steps being taken)

!REMINDER: Critical parts can only be purchased from approved Applied Materials Suppliers!

For Reference only


SSRD Requirements for First Article submissions

Use of SSRDs are allowed when the supplier is finalizing the First Article submission and product needs to ship to Applied Materials for integration purposes. The following attributes need to be used when this occurs:

– An SSRD can be written against a part number to allow shipment of parts pending FAI approval.

– The SSRD is logged into FRACAS to prevent the system containing the unapproved parts from shipping.

– The approved SSRD with Fracas number must be presented to the FAI Review Team for receipt control adjustment. (Expense PO is not necessary)

– Once the FAI is submitted and approved, the SSRD is closed along with the FRACAS entry.

NOTE: Per Applied Materials Corporate Policies First Article Inspections cannot be waived.

For Reference only


Executive Level ESW

Can an ESW be used to Waive FAI requirements?– NO, complete FAI waiver is not allowed. However, if the part

must ship and the FAI is not complete then an executive per Corp 0117.

In the event that an ESW or PFF is originated to delay FAI and allow shipment of non-compliant material until an ECO is issued, the following approvals are mandatory:

– General Manager (GM) – ESW/PFF originating Division– General Manager (GM) – AGS– General Manager (GM) – GOMO– Vice President (VP) – Corporate Quality and Reliability

The ESW/PFF originator is responsible for obtaining the above-referenced approvals.

For Reference only


ACA FAI submissions

Supplier electronically submits the completed FAIR, Attribute data, drawing(s), applicable Special Process Analysis Test & Inspection Reports, Material Analysis Report and/or Test Specifications to Applied Materials via GMOX for disposition (Approved, ESW Validated, etc.).

For Reference only


Converting FAI report to Adobe Acrobat

Once all FAI required documents are completed (drawings, attribute sheets, etc.) convert into one Adobe® Acrobat® Portable Document Format (PDF) document for FAI submittal. The individual FAI attachments must be limited to 500K

For Reference only


Supplier will receive notification of FAI approval or rejection in ACA.

Approved FAIs allow parts to ship to Applied by adjusting the P2i Controls to allow receipt at Applied Materials.

Rejected FAIs will include reasons for rejection, and the part is not allowed to ship to Applied

Supplier will receive an electronic notification of an ESW (or PFF) validation.

A validated ESW authorizes the vendor to ship the part for the time period stated on the ESW.

Supplier FAI (e-Notification) For Reference only


Key Contacts / Problem Resolution

For questions or resolution to problems with FAIs, contact:

Lynwood Lawson-Primary Contact between 8 AM and 5 PM

(512-272-0106)

Larry Hillman-Secondary Contact

for after 5 PM and before 9 PM on weekdays

(512-272-0105)

Brian Neibauer -ACA FAI Database Owner for Applied Materials.

(512-272-0992)

For Reference only


List of Acronyms Applied /AMAT - Applied Materials ACA- Automated Comparative Analysis BOM - Bill Of Material BTP - Build To Print CCR – Components Compliance

Report CE - Copy Exact CP – Critical Part CA -Critical Assembly ECO - Engineering Change Order ESW – Engineering Spec. Waiver FAI - First Article Inspection FAIR – First Article Inspection Report FFF – Form, Fit, Function GMOX – Global Material Operations,

External GMRM - Global Material Requirements

Manual

GSA – Global Supply Agreement OEM - Original Equipment

Manufacturer NSR-Non Standard Request PO – Purchase Order PSD – Part Support Document (3D

Model support document) SI – Source Inspection SQRE - Supplier Performance

Reliability Engineer SNF - Supplier Notification Form SPS - Supplier Problem Sheet SSRD -Supplier Shipping

Requirements Deviation SL-Supplier Lock SC-Service Contract

For Reference only


Documents

R 0 G 0 B 0 R 127 G 127 B 127 R 1 G 104 B 138 R 208 G 91 B 0 R 59 G 47 B 109 R 235 G 169 B 0 R 125 G 12 B 0 R 74 G 133 B 24 Applied Materials Confidential