the Nifco Ohio Supplier Manual

Page 1 of 45 This Document is controlled using Workbench Professional Revision History: Serial No.: 6068 Nifco Ohio Supplier Manual Rev. 3.00

CORP-QAF-68 Rev. 6.0, Effective Date: 10/22/07

Ohio Supplier

Manual

Nifco America Corp. 8015 Dove Parkway

Canal Winchester, Oh 43110 Phone: (614) 920-6800

Fax: (614) 920-6998



I. Introduction Greetings, If you are receiving this document your organization has been identified as an applicable Nifco CNL supplier to which our Supplier Manual requirements apply. It is to be viewed as a minimum requirement that all suppliers are held and is not meant to replace individual specifications or agreements. Nifco Ohio recognizes the critical role that suppliers play in our success and the intent of this manual is to promote a clear understanding of our supplier management system. Nifco America is registered to the TS 16949 Quality Management Standard. Please review, control and communicate its contents to the appropriate individuals within your organization. Thank you,



II. Table of Contents I. Introduction – pg. 2

II. Table of Contents – pg. 3 III. Acronym Definitions - pg. 4 IV. Supplier Selection - pg. 5 V. Supplier Expectations – pg. 6

Ordering – pg. 6 Labeling – pg. 25 Packaging – pg. 30 ASNs – pg. 32 Delivery – pg. 37 Tooling – pg. 37 Compensation – pg. 39

VI. Supplier / Part Development – pg. 41 Supplier Audits – pg.41 Continuous Improvement – pg. 41 Change Point Control – pg. 41 Non-conforming Product – pg. 43 Supplier Designation/Evaluation – pg. 45



III. Acronym Definitions

ASN – Advanced Shipping Notice CNL – Canal Winchester Ohio Facility EDI – Electronic Data Interchange FIFO – First In First Out IPP – Initial Production Part „IPrint‟ – Printing NAM labels „IStore‟ – Ordering Drop Ship components & raw materials „ISupply‟ – Forecasts/Releases NAM – Nifco America NCR – Nonconformance Report PPAP – Production Part Approval Process PQS – Product Quality Standard PSW – Part Submission Warrant (PPAP cover page) SQE – Supplier Quality Engineer QR – Quality Report



IV. Supplier Selection Nifco requires all non-MRO suppliers to be ISO 9001 or TS 16949 registered (or accredited in the case of labs) and to maintain their status as an „Approved Supplier‟. This status is primarily defined but not limited to the following requirements:

a. Current Quality and Alternate contact information on file

b. CORP-PF-26 (New Vendor Request Form) on file

c. CORP-QAF-45 (Supplier Self Assessment Form) on file

d. Current ISO/TS certificate

e. CORP-QAF-105 (TS Conformity Checklist- if applicable)

f. Customer directed evidence (if applicable) g. Compliance to evaluation guidelines set forth in Section VI



V. Supplier Expectations Ordering – NAM CNL primarily employs 3 ordering methods (EDI, ISupply and general PO) to suppliers plus maintains a portal (IStore) for drop ship components and resin needed by the supplier.

1) EDI Any supplier that has a minimum $150,000.00 in sales per year is required

to participate in the Nifco EDI Outbound Project. The supplier will pay any fees associated with the Trading Partnership setups, mapping, and mailbox fees.

Any supplier that does not use EDI, or has a 3rd party EDI, such as J-Comm., may be exempt from EDI, and may use the web-based solution.

Criteria may be set at a later date that may force a supplier to do EDI with Nifco under these 2 conditions, and will be at the discretion of the associates handling the accounts at that time.

Nifco will send 4 different types of transactions via EDI. Some suppliers will receive data daily, while others may receive data one time per week. Forecasts will be sent every Tuesday, no later than 1:00pm eastern time. This will only change, should a holiday fall on a Tuesday.

The 830 Material Release, with Release capability will be sent each Tuesday, unless otherwise specified. These documents are to be used as forecasts. Forecasts will consist of 15 weeks of data, which can be used to plan material, parts, or whatever is needed for the process Nifco depends on. See specifications for further details.

The 862 Shipping Schedule will be sent Monday through Friday for certain Material suppliers. All other suppliers who do not meet this criteria, will receive on 862 every Tuesday. These documents are designed to show the firm orders Nifco is requesting, and the delivery date the material/parts are required. Shipping Schedules will contain 57 days worth of orders. See specifications for further details. Failure to ship on time to the Nifco requirements may result in a QR and/or a vendor debit.



2) ISupply ISuppy home page

The Notification section of the page shows the five most recent notifications. Some notifications are for review only and some require action.

The Orders at a glance section shows the five most recent purchase orders.

The Shipments at a glance section shows the five most recent ASN‟s.

To view the full list of any of these sections click the Full list button.

To view the details of any of these documents click on the document number.

Search field

Quick search enables you to quickly find information about Purchase Orders or Shipment Notices. Select what type of document you would like to search, enter the document number and click „Go‟.



Quick links

Click any link to go to the corresponding page.

Viewing Delivery Schedules

Select delivery schedules under the shipments header. This pulls up a search screen. You can run a blind inquiry or narrow your search by entering specific parameters and select the Go button.



Blind inquiry: leave all fields blank. This will pull up everything due (25 lines per page) and will put it in order of due date (latest to oldest).

*You can sort this by any column that is raised and you can change the order of the information.

Request a change or cancellation to an order

Go to the Orders tab and select the PO and hit the Request Changes button.



This pulls up the PO header and lines. Find the line you need to change and select show details.

Type in change needed, reason and choose action type. Hit the submit

button. All change/cancellation requests require approval from your buyer.



View PO changes

Go to the Orders tab, then Purchase history. You can search by blanket and release number, revised date, etc.

This will pull up your PO‟s. Scroll to the right and there are 3 options:

Compare to original, compare to previous PO and show all PO changes.



Example seen here is “show all PO changes”

View Returns

Go to the Shipments tab then select Returns



You can search by any criteria listed or do a blind inquiry (leave all fields blank).

Exporting to excel

Pull up the desired information. The example used here is delivery schedules. Click on the Export button.



A file download prompt pulls up, click open.

A spreadsheet is created with all the information.



Viewing Forecasts

Go to the planning tab. This takes you to the search screen. Please leave all fields blank and click ‘Go’

This pulls up all available forecasts in order of creation date. Choose the

latest for the Ship to Organization that you want to view and hit Summarized view.



This pulls up the first lines 1-10 of your forecast. The Forecasts are consume and derive. If we have inventory and Purchase orders due from you that surpass our customer‟s forecast then you will see zero‟s on your forecast.

3) Purchase Orders Suppliers will review their purchase orders immediately upon receipt for

accuracy of quantities, pricing, ship locations, etc.

If the supplier agrees with all the information please sign in the vendor confirmation of order and return to your contact by the end of the next business day following the day you received the purchase order.

If there are any discrepancies in pricing contact your buyer to resolve the issue and make any changes necessary. At that point, the Nifco buyer will re-issue the supplier an updated purchase order. The supplier is then expected to sign the supplier confirmation and return it to the buyer, for i-Supply suppliers they are to confirm the order on the website.

If the supplier is aware of any line items that cannot ship complete in the same shipment please notify your buyer so she/he can update your release and re-issue you the updated release, for i-Supply suppliers send an update on the website.

Pull Ahead Orders

Nifco is requesting the supplier contact us immediately prior to a shipment leaving their dock if the quantity does not match the purchase order line item.



Once the buyer has been contacted the appropriate changes will be made and the updated purchase release will be sent back to the supplier.

The vendor will then sign the confirmation of order and return it back to the buyer, for i-Supply suppliers confirmations are to be sent via the website.

4) IStore IStore Homepage

Navigate to IStore

Enter User name and Password

Press Login button

This will take you to your list of items.



Placing an order

Select the product(s) by clicking in the select box to the left of the product(s).

Enter quantity of the item(s) you want to purchase.

When finished with your selection, press the Add to Cart button

If you need to change quantity, type in correct quantity and press

recalculate button.

If you need to delete some of your selections, press the Trash can to the left of the item. If you need to add to your order, press the Continue Shopping button.

If you‟re satisfied with your order, press the Checkout button.



Enter Ship To details by pressing the change button.

Select Ship To



Enter request date and any shipping or packing instructions. The date you enter here will apply to all items ordered.

If a different ship date is needed for an item, select yes below „Shipping Details for Items‟, then press continue check out.

Select item you‟d like a different date for, press Update Item Shipping

Details.



Enter desired ship date, press continue checkout.

Enter „Bill To‟ address by pressing the change button and selecting

address.

Press Continue Checkout



Verify all information is correct and press the Place Order button.

Confirmation page comes up with an order number.



Viewing orders – item scheduled ship date.

Click on orders

This will pull up all orders placed or you can search by date placed or

by order number.

Click on the specific order number.



This will bring up every part ordered for that particular order Click on Item details.

This will bring up shipping details for that particular item.

*Note that all parts have a minimum lead time of 5 days. If you request a delivery date in less than that time

5 days will be added to the date the order is placed. Note that some parts have more than a 5 day lead time.

For example, if a part has a 14 day lead time and you request a delivery date that is less than 14 days, then

14 days will be added to the date the order was placed. If you need the item sooner, please contact your

planner.



Labeling (General Requirements) – All products must be labeled with an approved Nifco label containing the following format information:

NO handwritten information on the label (excluding associates initials).

All totes must use Vinyl labels

Any labels added to a container other than the required Nifco label, MUST not cover any information on the Nifco label.

Any container that is packed less than the approved container quantity must contain a “Partial Box” label.

Any containers that contain multiple manufacturing dates must contain a “Multiple Lot Dates” label.

Each container label will contain a serial number that is unique to that container. This serial number ties all information on the label together.

Vendors that print labels from the Nifco website –

When labels are not available on the website, complete the Supplier/Vendor Deviation Request (CORP-QAF76) and submit it to.

When the deviation is approved attach a copy to each skid containing the deviation for each shipment.

A deviation form must be filled out for each shipment that does not contain bar coded labels and attached to each skid.

Field Name Characters Font Size Barcode Required Qualifier Format

PART NO. 5

The bar height should be 0.5 in (13 mm) as well as the human readable Y (P) N/A

QUANTITY 8

The bar height should be 0.5 in (13 mm) as well as the human readable Y (Q) N/A

DESCRIPTION 50 N N/A N/A

AUDITOR 15 N N/A N/A

REV 2

The bar height should be 0.5 in (13 mm) as well as the human readable Y N/A N/A

MFG DATE 7

The bar height should be 0.5 in (13 mm) as well as the human readable Y (M) 53002

PO# 16

The bar height should be 0.5 in (13 mm) as well as the human readable Y (K) N/A

Serial # N/A

The bar height should be 0.5 in (13 mm) as well as the human readable - This data should be sent on ASN to activate serial # in our system. Y (S) Numeric



Labeling (Nifco website) – NAM CNLs primary method for supplier labeling is within a web based system referred to as „Clear Orbit‟. Log In: https://isupply.nifconet.com

Choose On-Demand Print

https://isupply.nifconet.com/



Choose the Label Type and Printer Name then click OK

Enter the requested information needed to generate the labels then click Print

The Lot is to be entered in the format of MMDDYY with no other characters.

The Container will not default, ensure the correct container is chosen based on the Product Quality Standard (PQS)

With Revision, if printing the latest revision, choose “Latest”, this will automatically print the latest revision. If printing an older revision, choose “Previous” and enter the revision needed.



If the print job was completed successfully, the labels will print and a message will appear at the bottom.

If the print job had an error, then an error message will appear, however, this

message will not define what the issue is. All data entered will need to be rechecked. If all information appears to be accurate then contact Nifco HelpDesk.



This is how the message will appear:

Labeling (Bar Code Printer Maintenance) – For Intermec 4440 thermal label printer (Applicable at supplier‟s discretion for localized problems). No similar steps available for the PX4i model other than the console obtained factory default setting. To flush the memory on an Intermec 4440 thermal label printer refer to the

following steps:

Turn off printer via on/off switch.

Refer to two banks of switches on rear of printer (each bank has eight individual switches).

Move all switches in both banks to right (off) positions(s).

On top bank of eight switches, move switches 3,4,5,6 to left (on) position.

Push front panel yellow Feed/Pause button while powering printer on.

Hold button until 2.5 labels eject from the printer.

While still holding yellow Feed/Pause button, power printer off the back on (repeat of above step).

Another 2.5 labels will eject from printer. When memory has successfully cleared the counters for Mileage

(Inches Processed, Inches Burned, and Labels Cut) will all equal 0.

Turn off printer as memory has been successfully cleared.

To confirm proper darkness/quality of labels when printing refer to the following steps:

Turn off printer via on/off switch.

Refer to two banks of switches on rear of printer (each bank has eight individual switches).



Move all switches in both banks to right (off) positions(s).

On top bank of eight switches, move switch 4 to left (on) position.

On bottom bank of eight switches, move switch 8 to left (on) position.

Push front panel yellow Feed/Pause button while powering printer on.

Hold button until 2.5 labels eject from the printer.

Push the Feed/Pause button once. Labels will begin printing in continuum.

Check for appropriate darkness/quality of printed labels. Turn blue button on back of printer clockwise to darken and/or

counter-clockwise to lighten darkness of print. Continue adjusting until desired printing darkness/quality is met.

Turn off printer.

Return switch 4 on top bank to off position. Leave switch 8 in bottom bank in on position.

Turn printer on returning to normal operation.

Packaging Expectations The supplier must develop and propose packaging that ensures all parts are

received free from damage. Exceptions to this development will be when Nifco designates packaging.

Packaging for each product must be agreed upon at the time of part submission.

Any changes to the packaging must be approved by Nifco prior to being implemented.

Packaging must conform to the Nifco PQS, government and transportation rules and regulations.

Returnable Packaging

Supplier is responsible for cleaning or replacing any lost or damaged returnable packaging

When alternative packaging is not available, complete the Supplier/Vendor Deviation Request (CORP-QAF76) and submit to NAM.

When the deviation is approved attach a copy to each skid containing the deviation for each shipment.

A deviation form must be filled out for each shipment that exhibits alternative pack and attached to each skid.



Skid dimensions and heat treated skids

Heat treated skids: Skids that have no slats and/or have the international symbol on the side and will be used for international shipments only.

Tier-One-Only

Only 48” X 45” in size No gaps larger than 4” No broken boards

Misc. Customers: Usable skid (other than tier one) No larger than 49” X 46” and no smaller than 47” X 44” No broken boards No gaps larger than 4”; at least 4 slats on a skid Heat treated skids are used for international shipments including

Nifco Mexico.

Stacking Instructions



Max number of containers per skid and skid height should not exceed the recommended set in the part quality standard.

For 14x14x14 boxes, pallet should be three by three (3x3) (9 per layer) square and four layers high (72 inches).

Face labels outward. Boxes in the middle should have all labels facing the same direction as shown in the pictures below.

Heavier corrugated boxes should go on bottom.

Stack small boxes and partials on top.

Containers should fit pallet with NO overhang

All pallets MUST be stretch-wrapped. See OPL XXXX for certain exceptions.

ASNs - NAM CNL accepts 2 ASN methods (EDI & ISupply) from suppliers as detailed below. 1) EDI ASNs

The 856 Advanced Shipping Notice will be expected to be sent by the suppliers no later than 30 minutes from the departure of the shipment from the supplier‟s dock. Since these are called Advanced Shipping Notices, they are expected to arrive prior to the material/parts arriving at Nifco. See specifications for further details. Failure to complete the ASN process in this timeframe and not contact the appropriate Nifco associate may result in a vendor debit of $300.00 per occurrence.

The 997 Functional Acknowledgements are expected for all documents that are sent from Nifco. These acknowledgements that the data was received. In-turn, a 997 will be sent back for any ASN that was sent by the suppliers, which will also show the document has been received by Nifco.

**NOTE** An acknowledgement is only that the data was received, if there are issues with the data, this will be communicated via phone, or email, with the exact issue at hand. Timing is crucial in most cases, so the fix must be quick and precise.



Any data issues must be communicated to Nifco. It does not matter if the supplier is sending, or receiving data. Communication is the primary focus in any successful implementation. Failure to keep the communications channel open may result in vendor debits, as well as vendor ratings being affected.

Suppliers that are identified as non-complaint, will be assessed a QR and/or a vendor debit, so it is in the suppliers‟ best interest to complete the setups as quickly as possible. Along with the vendor debit, will be a reduction in the monthly vendor ratings.

Special circumstances may require the delivery be moved up, or pushed back. In all cases, Nifco will send a special file, which may be sent at any time during the normal work week. An email, or call to the customer service group of the supplier will be made so that there is no confusion of when the special file will be available.

Suppliers who do not have at least $150,000.00 in sales per year will be able to view releases, and send ASN‟s to Nifco using the ISupply web application.

2) ISupply ASNs

Submitting an ASN

Select Shipments tab, then Shipment Notices and choose Create Advance Shipment Notices.

This pulls up a search page where you can choose either Shipments Due

This Week or Shipments Due Any Time.



Scroll through and check the lines that you are shipping and click Add to Shipments button.

The Shipment lines page pulls up. Enter information and quantities, if they

are less than what was ordered. Select Shipment Header.



Enter information and click the Submit button. * indicates a required field.

The confirmation page pulls up.



View or Cancel Advance Shipment Notice

This pulls up the last 25 Shipment notices. Click the shipment number to

view it.

To cancel, select the cancel Shipment Notice button.



The ASN confirmation page pulls up.

Delivery Requirements All containers shall be palletized so that the labels are visible from the

outside.

Group part numbers together on one pallet whenever possible.

All products must be shipped using the First In First Out (FIFO) method.

All Nifco purchase orders specify that the following be included on all documentation accompanying deliveries:

o Nifco Part Number, purchase order number, and line shipment number MUST appear on all packing lists, and material certifications.

MSDS MUST accompany all first deliveries.

Material Certifications MUST accompany delivery.

All material certifications should be sent solely via email to [email protected] prior to shipment arrival. The email subject line and/or attached document should also be titled in the following manner. „NAM Part# / Lot #‟ / Supplier Name‟

Nifco also requires confirmation of the terms and conditions presented on all purchase orders via fax or email.

Any deviation from the original requirements, including pricing and delivery dates, are to be altered on the purchase order and returned to Nifco for adjustment prior to any shipment.

Failure to comply to the delivery requirements will result in vendor debits starting at $150.00 for the first non-compliance and escalating per incident thereafter.

Tooling (Outsourced Molds)

General expectations Suppliers are responsible for all preventative maintenance to the mold and

Nifco is responsible for all repairs due to wear and tear.

Nifco will charge the vendors a rate of $300 per tool for any preventative maintenance we must perform on a tool.

Nifco will also charge the suppliers $70 per hour for any repairs caused as a result of failure to perform routine PM

mailto:[email protected]



If molds are sent back to Nifco for repairs and Nifco finds the molds only need a good PM done on them, Nifco will not incur the costs of ensuring the preventative maintenance is being done on the molds.

Suppliers have the responsibility for any costs incurred for mold repairs due to damage caused by neglect or operator carelessness. It is not Nifco‟s responsibility to prove operator carelessness or supplier neglect caused the problem.

Suppliers will be charged a rate of $70 per hour for repairs due to neglect or carelessness.

The age of and overall condition of a mold will be considered in making a determination of responsibility on older molds. Nifco will still be responsible for normal wear and tear on the molds.

A Nifco representative and the supplier will check the condition of the mold and if the supplier agrees the mold is in good condition, the supplier will be asked to sign off on the check sheet.

At that point, the supplier becomes responsible for all repairs outside of normal wear and tear. If problems are found with the condition of the mold, then those issues will be stated on the check sheet.

The mold will either come back to Nifco at that time to address those issues or based on the severity of the condition, the mold may be ran at the supplier until the tool can be scheduled for repair.

Preventative maintenance audits may be requested. Regular preventative maintenance on the molds may prevent not only extensive repair costs in the future, but it may also prevent quality issues from occurring.

Nifco is responsible for any non-conforming dimensional quality issues in which the manufactured products meet all dimensional specifications called out on the PQS.

In the instance where we have a quality issue that meets all dimensional specifications, yet we find the problem is caused by erratic molding conditions which is a direct result of negligence in performing routine preventative maintenance on the mold, then Nifco will not be responsible for the cost of any inventory and/or any costs associated with such a complaint.

Mold Transfer Procedure for Tool Repairs and Design changes

All requests for tool moves, mold repairs and tool modifications should be initiated by using the “O/SToolMove” group email address. The Outsource Supplier will not ship in tools without prior approval from a Nifco designate.

Outsource Supplier will ensure the Outsourcing Design Change Mold Transfer Check Sheet (Form CANAL-OF-18) is completed and emailed to the “O/SToolMove” email address prior to shipment of all tools.

NAM designate will discuss repair timing with all parties involved and will schedule bank build if needed.

Outsource Supplier notifies all when the bank build is complete or when tool is ready using the “O/S ToolMove” email address.



Outsource Supplier will tape a copy of the completed Outsourcing Design Change Mold Transfer Check Sheet (Form CANAL-OF-18) to the mold prior to shipment.

Outsource Supplier will notify NAM via “O/SToolMove” email address that the returned tool has arrived in their shop with a tentative sample date. Sampling to happen within 4 weeks of return of the tool to Outsource Supplier. Sampling results are to be documented on the Supplier Initial Sample Approval Form (CORP-OF-02) and the Tool Check Off Sheet (CORP-OF-07) and submitted back to Nifco via “O/S ToolMove” email address.

NAM will provide final approval according to PPAP requirements. See section VI.

Compensation (Outsourced) - Obsolete Raw Materials and Molded Inventory On I-Supply a listing of buildout parts per supplier is maintained as Nifco

customers publish buildout notices.

Suppliers are required to complete the quantity they have in stock on a monthly basis. All updates are required by 5PM on the first Monday of each month.

On this form there is a section for comments that the suppliers can use to provide any additional information to the planner about missing parts or justification for the on hand quantities.

NO buildout compensation request will be considered without having submitted the information on the website, this includes raw material, purchased components & finished goods.

Finished Goods

Nifco will purchase one week of inventory on any part in which the supplier had no notification the part was going obsolete.

Nifco will purchase one week of inventory on any part in which there was a design change without prior notification.

Nifco will purchase one week of inventory on any purchased component a supplier must purchase in order to complete a finished good. For any product where minimum quantity buys exceed the one week inventory limit the supplier must seek prior approval from Nifco before any consideration on compensation will be given. Nifco requires that the supplier show that they tried to reduce the min buy for the buildout purchase by discussing with Nifco Purchasing, if no communication occurred then compensation will not be given. The supplier must submit a letter to Nifco from the component supplier stating the minimum buy quantities, as well as the supplier excess inventory approval form.

Molding supplier is responsible for scheduling shipments of components from those suppliers who have lengthy lead times on deliveries in a manner which keeps inventory levels to a minimum.



The one week inventory level will be based on the average monthly volumes of sales over the last three months prior to the last order of any part.

Raw Materials

Nifco will purchase one week of raw material of any part that becomes obsolete without prior notification.

For raw material with a minimum quantity buy, Nifco will be responsible for any raw material up to a minimum buy quantity in the event the material becomes obsolete without prior notification. However, Nifco requires that the supplier show that they tried to reduce the min buy for the buildout purchase, if no communication occurred then compensation will not be given.

Nifco will not purchase regrind materials.

Nifco will not purchase blends.

Suppliers must submit a request for compensation form CANAL-OF-22, within 30 days of notification of a part build-out but not later then 7 days after the specified buildout date. No request will be considered that is not made within this timeframe.

Suppliers will be responsible for contacting Nifco to request the status of any part the supplier has not shipped to Nifco in the last two months, where there has been no prior build out notification. Once Nifco confirms the status of the part as build out, the vendor will have 30 days to submit a request for compensation. Nifco will not consider any request after the deadline has passed.

Suppliers will not receive compensation for any buildout product where prior notification to the buildout was given (excluding minimum buys on raw material & components, see Raw Material section).



VI. Supplier / Part Development

Supplier Audits Nifco will perform on-site quality audits to assess the ability of the supplier

to meet NAM expectations, verify countermeasures, and participate in improvement activities with the intent of cultivating a mutually beneficial business relationship.

The particular audit activity will be documented on CORP-QAF-104 and be provided to the supplier.

Continuous Improvement All suppliers shall employ a Continuous Improvement program

This plan should be available for review by NAM upon request.

Change Point Control – As we all know, any time a change occurs, or something different is introduced to a part or process, risk is inherently increased. Additional tools and procedures must be in place both at the supplier and NAM to mitigate this risk.

PPAPs (Production Part Approval Process)

See AIAG PPAP manual for complete requirements. NAM PPAPs should be in accordance to the NAM PPAP checklist (CORP-QAF-

110) and IMDS information submitted to www.mdsystem.com under

Nifco Company ID# 19899.

1st run (initial submission) Purchased parts: NAM requires a Level 3 PPAP along with

production level parts submitted to the assigned NAM Purchasing contact.

Outsourced parts: NAM requires a Level 2 PPAP (PSW, PQS, data to support PQS compliance and Material Certification) submitted to the assigned NAM Project Engineer.

Re-submission (examples = Engineering changes, tool repairs / modifications or process changes). See AIAG PPAP manual for complete list. Purchased parts: NAM requires a Level 3 PPAP along with

production level parts submitted to the assigned NAM Supplier Quality Engineer.

Outsourced parts: NAM requires a Level 2 PPAP (PSW, PQS, data to support PQS compliance and Material Certification) submitted to the assigned NAM Supplier Quality Engineer.

IPP (Initial Production Part)

A system designed for notification and tracking of initial parts.

„IPP tags‟ must be attached to the initial mass production shipment of parts for each of the following situations:



1. Design Change 2. New Supplier 3. Material Change 4. Manufacturing Method Change 5. Process Order Change 6. Machine Change 7. Jig/Tool Change 8. Die/Mold Change 9. Inspection Method Change 10. Transportation/Packaging Change 11. Sort

These tags should be obtained in one of two ways. 1) For suppliers who do not utilize the Clear Orbit labeling system

IPP tag CORP-QAF-54 (5) must be attached to the first IPP parts shipped. One should be applied to the specific container and the other four applied to the outside of the wrapped skid)

2) For those suppliers who utilize Clear Orbit the tags will be system generated

In the screen shot above you can see that an „Ipptag‟ field is part of the NIFCO_LABEL job screen. In the event you need to IPP a shipment this field should be populated with either the NAM ECO# or other distinguishing verbiage.

Once you enter something into this field the system will in turn print the first part number label (which will be a flagged serial for Nifco receiving) and 5 system generated IPP labels (see ex below - one should be applied to the specific container and the other four applied to



the outside of the wrapped skid). The system will then print out the remaining part # labels if there are any.

System Generated IPP Label Ex =

Standard manufacturing conditions – NAM believes it is imperative that all

suppliers shall have an established and verified part specific Standard Condition (Ex. Master Set-up sheet, pre-programmed, etc).

These Standard Conditions shall also be accompanied by a monitoring system (Ex. Process Audits, Machine Alarms, etc.)

Should the supplier deviate from the Standard Condition please follow PPAP re-submission process

Nonconforming Product - Nifco expects 100% quality product and delivery from all suppliers Nonconforming Product at the Supplier Operation

It is the sole responsibility of the supplier to deliver defect free product.

Any changes to raw material, components or sub-suppliers are considered to be nonconformance infractions unless prior written authorization from Nifco has been received.

NAM requires that any nonconforming product found at a supplier or a sub-supplier‟s location be immediately quarantined (including product in- transit). Nifco must be notified (via phone call & email) in the event that the non conforming product has inadvertently been shipped to Nifco.

All „Certified‟ product shipped to NAM must be clearly identified as to what the product is certified for. In other words a sticker simply stating “100% inspected” is not acceptable. Please also reference either the QR number or specific certified characteristic.

In the event a supplier requests relief of NAM requirements a „Supplier Deviation Request‟ (CORP-QAF-76) should be submitted to the appropriate CQE for disposition.

Nonconforming Product at Nifco

Should purchased product be considered non-conforming it will be the supplier‟s responsibility to fully facilitate immediate containment activity throughout the supply chain.



Should a 3rd party resource be required to complete that containment activity the supplier will be responsible for contacting, contracting and supervising.

It is recommended the supplier use a Nifco preferred 3rd party (per assigned SQE).

Should nonconforming product be found at a Nifco‟s customer location the supplier would assume full responsibility for all costs associated with correcting the problem.

Nifco reserves the right to request corrective action on all material rejects. The supplier shall complete the Nifco Corrective Action Report or other approved format.

Nifco retains the right to use additional “resource” on the supplier‟s behalf for any specific quality issues that may be identified at Nifco or Nifco‟s customer if needed.

Supplier Charge Backs

If nonconforming material is received, quarantined, sorted and/or reworked at our facility, the following charges will be applied at management discretion and a corrective action required.

1. NCR Processing Charge: $175.00 per occurrence 2. Sort by Nifco Personnel: $60.00/hr per person 3. Recurring Issues after containment: $300.00 per occurrence 4. Returns from Customer per Item: $500.00 per occurrence 5. Over / Under /Late Shipments: $150.00 per occurrence 6. Overtime to Prevent Production Interruption: $82.50/hr per person 7. Line Down Time: $60.00/hr per person 8. Packing slip discrepancy / missing $175.00 per occurrence 9. Material Certification discrepancy/missing $175.00 per occurrence 10. Certificate of Compliance discrepancy/missing $175.00 per occurrence 11. ASN discrepancy/missing $175.00 per occurrence

Corrective Action Process

Nifco reserves the right to request corrective action on all material rejects and/or delivery problems.

This activity shall be documented in Nifco format (QAF-29 or QAF-80)

Corrective Action requests must be answered in a timely manner. We require initial response within 24 hours of notification and permanent corrective action within 5 working days.

Failure to respond within the 5 days will result in a fine of $150.00 per day

If a due date cannot be met, the supplier is responsible for contacting the originator in writing with justification for approval of an extension.

Suppliers shall conduct a root cause analysis including the use of disciplined problem solving techniques.



Closure for any complaint will only be issued after Nifco has agreed that the actual root cause was identified and that permanent corrective action has been verified and is in place.

Nifco expects its suppliers to be proactive and institute any preventative actions or procedures that will aid in the detection or elimination of any potential cause of nonconformity.

Nifco expects its suppliers to identify any opportunities to further apply any Corrective actions to other like processes or products (Lateral Evolution).

Supplier Designation/Evaluation – Suppliers are designated to 3 categories and evaluated regularly to requirements set forth by NAM as detailed below

Supplier Categories: 1) Outsourced – Certain suppliers to which Nifco/Customer owned

Injection Molding tooling has been sourced. 2) Focus – Those suppliers to which a past negative quality history

has been exhibited and additional supplier development is required. Performance of these suppliers will also be tracked and presented to Executive Management within Nifco.

3) All other suppliers

Focus/Outsourced Suppliers are evaluated each month by using the criteria listed on the Monthly Suppliers Performance Report Card (CORP-PF-037)

If the supplier maintains a score of 80% or better, they are deemed acceptable. If the score drops below 80% for two consecutive months, the supplier is placed on probation and cannot receive any new business until two consecutive months of a rating above 80%.

All other suppliers are evaluated on a quarterly (3 month) basis using quality and delivery QR history.

If the supplier maintains a score of 80% or better, they are deemed acceptable. If the score drops below 80% for one quarter, the supplier is placed on probation and cannot receive any new business until they receive a new quarterly rating above 80%.

Documents

the Nifco Ohio Supplier Manual