Supplier Partnership Management Handbook

Supplier Partnership Management Handbook

Engineering GREAT Solutions

IMI Precision Engineering

IMI Precision Engineering intends to build a partnership with our supplier base that benefits both suppliers and IMI in terms of quality, cost and delivery. It is our commitment to drive a customer focused zero defect culture that targets the elimination of waste in all facets of our business. IMI Precision Engineering businesses will follow the IMI Precision Engineering Factory Floor Quality System as our common approach to quality. This embraces the IMI Advanced Product Quality Planning process while striving for a lean culture both internally and externally within our supply chain.

Our senior management are 100% committed to this philosophy. Our goal is to reduce variation and exceed our customers’ expectations in all areas of the business.

Our suppliers are the key to ensuring satisfied customers and to enable us to deliver products on time from a competitive cost base.

To this end, we as IMI Precision Engineering are looking to partner with our supplier base to bring about a cultural change. The Supplier Partnership Program is designed to guide us and our suppliers through this shift from compliance to commitment. Through controlled standard operating procedures from supplier selection to product approval and in to serial production, it will provide both IMI and suppliers with a base to achieve all our objectives.

This handbook is a guide to how each of our processes fit together, supporting the company’s long term philosophy from today while building our vision for the future.

Massimo Grassi, Divisional Managing Director, IMI Precision Engineering

2

Supplier Partnership Management Handbook

Index 04

Supplier Quality Policy

06

Supplier Partnership Management

08

Module 1. Supplier Sourcing & Selection

10

Module 2. Supplier Part Approval

12

Module 3. Serial Production

16

Module 4. Supplier Monitoring

18

Module 5. Supplier Development

20

Module 6. Supplier Escalation & Exit

22

Supplier Partnership Management Overview

26

Program Implementation Assessment

27

Glossary

Documentation This Handbook serves as reference and provides an overview for the Supplier Partnership Management Program. It enables all IMI Precision Engineering employees to understand how we improve our supplier quality performance by: • The emphasis on leadership • A consistent approach across supplier management systems • The focus on risk prevention and continuous improvement Each site will incorporate these standard operating procedures and associated forms into its individual Quality Management System. This handbook and all related documentation will be controlled at the global level and accessible via the IMI Precision Engineering Intranet: https://intranet.imi-precision.com

3

IMI Precision Engineering

Supplier Quality Policy Reactive to Proactive Over the years, our customer base has continued to adopt more stringent requirements related to quality, delivery and cost. We acknowledge that having a supply base that is capable of performing at high levels of excellence will be critical to meeting these ever increasing demands, ultimately resulting in success for both parties. Therefore, IMI Precision Engineering is committed to partnering with our supply base to achieve the highest standards in Quality, Delivery and Cost.

Engineering APQP

Advanced Product Quality Planning

Operations FFQS

Quality Systems

Factory Floor Quality System

Procurement SPM

Supplier Partnership Management Program

The Supplier Partnership Program is an integral part of the drive to create a culture needed to be successful in an increasingly competitive environment. It complements the lean journey of continuous improvement that IMI Precision Engineering is on and integrates the Factory Floor Quality System and the Engineering APQP Process at the centre of it.

IMI Precision Engineering will act to create better partnerships with our Suppliers and extend the continuous improvement culture to our Suppliers as per the Quality principles set out below, with the objective of shifting from a Reactive to Proactive process.

4

Supplier Partnership Management Handbook

Four Quality Principles of IMI Precision Engineering Zero Defect acceptance culture to deliver world class quality levels across all business processes.

Engaged Leadership style with a “go see” culture driving our disciplined approached to problem solving.

Responsibility for Quality by all, recognizing our collective strength in meeting our customers’ expectations.

One Solution for standard work practices and use of common tools in all that we do driving a continuous improvement culture.

5

IMI Precision Engineering

Supplier Partnership Management This Handbook serves as reference and provides a framework for the Supplier Partnership Management program and its standard operating procedures and associated tools. To ensure a consistent approach, each site will incorporate this into its individual Quality Management System. We need everybody’s engagement, from supplier, to IMI management to plant level, in order to create a real culture change from Reactive to Proactive.

Change Management

Supplier Sourcing & Selection Supplier Escalation &/Or Exit

Supplier Part Approval

Serial Production

Supplier Development

Supplier Monitoring

6

Receiving Inspection & Ship to Stock

Nonconformity Management

Supplier Partnership Management Handbook

Supplier Sourcing & Selection • Preferred Supplier List • Supplier Sourcing and Selection • Supplier Statement of Work • Letter of Nomination

Supplier Part Approval • Supplier Product Approval • Supplier Process Sign Off

Serial Production • Receiving Inspection & Ship to Stock • Change Management • Non-Conformity Management

Supplier Monitoring • Supplier Scorecards • Supplier Assessment Survey • Supplier Risk Analysis • Supplier Performance Manual • Supplier Tooling Management

Supplier Development • Supplier Development • Supplier Workshop • Training Tools

Supplier Escalation & Exit • Supplier Escalation Process • Supplier Exit Management

Legend SOP

Standard Operating Procedure Supplier Involved

FFQS

Factory Floor Quality System

T

Tool Available

T

Tool Available upload

7

IMI Precision Engineering

1

Supplier Sourcing & Selection

8

Supplier Partnership Management Handbook

This module is intended to define and inform how we select suppliers for each sourcing decision.

Procedures are designed to ensure that as an organisation we are developing strategic suppliers and limit our number of active suppliers.

Module Supplier Sourcing & Selection T1

Sourcing approval for direct material and tooling detected START

T5

T2

Is Supplier on Preferred Supplier List?

SOP 2

YES

SOP IPE-P10-002

Sourcing and Selection

SOP IPE-P10-001

SOP 8

1

T9 T8

Module Supplier Part Approval

Module Supplier Monitoring

• Identify potential suppliers (priority for Preferred Suppliers) • Communicate requirements • Evaluate Supply Chain Risk • Perform Supplier Assessment Survey • Select & Approve supplier

SOP

Preferred Supplier List

Developed to ensure that as an organisation we are prioritising preferred suppliers and limit our number of active suppliers. The list provides names and information of suppliers by category, to guide any procurement decisions for both new and resourcing activities.

SOP

Supplier Sourcing and Selection

Process to be adopted for approval of all sourcing decisions. This works together with the Preferred Supplier List, to ensure we source the right suppliers for the parts taking into account all requirements and ensure that the suppliers meet all of IMI Precision Engineering’s expectations.

• Communicate feasibility of parts • Allow and support risk analysis and assessment surveys • Improvement plan if required

Supplier

Main Responsibilities

Supplier Statement of Work This document clarifies all the upfront requirements of the products as well as roles and responsibilities surrounding commercial, technical, functional, quality and logistics. It provides the supplier with the correct information to achieve cost and quality objectives over the product life. It enables transparency between the supplier and IMI, ensures a complete understanding of the requirements and allows the nomination of the supplier.

Letter of Nomination Letter to inform the supplier they have been nominated as the non-exclusive production source for a set of parts/project. It does not constitute an order for goods/ services or investment for production, and does not mean a guarantee of volumes or future business.

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IMI Precision Engineering

2

Supplier Part Approval

10

Supplier Partnership Management Handbook

This module is designed to put in place a supplier parts’ advanced quality plan, which will support the development of a product to enable customer satisfaction.

Module Change Management Module Supplier Part Approval

A

YES

NO

A

T10

Module Supplier Sourcing & Selection

Supplier Product Approval

Need to change supplier?

NO

SOP 10 T11

IPE-P10-006

T13

Final IMI / Customer Validations

Fully Approved?

YES

Notify Approval to Supplier

Supplier Serial Production Release

Module: Supplier Monitoring

• Ensure Product Approval workbook for project is up to date • Perform Audit for Supplier Process Sign Off

SOP

Supplier Product Approval

A planning and communication tool for project stakeholders from both IMI and Supplier, to ensure that all required steps for Part Approval are completed on time, and according to APQP timeline. All major product and process changes within the supplier base will be managed through this process and controlled using the Product Approval Workbook.

• Maintain Product Approval workbook (supplier section) • Allow and support audit for process sign off • Implement improvement program if required

Supplier

Main Responsibilities

Supplier Process Sign Off It verifies the effective implementation of quality systems and evaluates suppliers’ manufacturing readiness. It is a Product Process Approval Audit to ensure that product expectations are fully complied with. It is mandatory before releasing serial production.

This document is also part of Supplier Monitoring Module.

11

2

IMI Precision Engineering

3

Serial Production

12

Supplier Partnership Management Handbook

Receiving Goods Factory Floor Quality System Non-Conformance Management Module Receiving Goods NO

SOP 17

Supplier Serial Production Release

Receiving Inspection

SOP IPE-P10-011

Conforming material?

YES

IMI Standard Production

3

• Identify parts eligible for Part Certification & manage process • Follow up with Suppliers to regain certification status after a change or non conformity.

SOP

Receiving Inspection & Ship to Stock

Defines a process by which the suitability of incoming material will be evaluated for conformance to requirements prior to being accepted into inventory and enable eligibility for ship to stock receipts.

• Support IMI Receiving Inspection process & documentation • Ship goods in full conformance to requirements

Supplier

Main Responsibilities

Part Certification process Part of Receiving Inspection SOP, it defines criteria and process for parts with consistently good receiving inspection results to be subject to lighter inspection procedures. Parts will be decertified if a defect is found downstream or a new drawing revision level is released.

13

IMI Precision Engineering

Change Management Module Change Management

VAVE, Engineering, Process, or Tooling change at current supplier START

T15

IMI Change Request and Notification

Supplier submits Change Request Form

FFQS T15

SOP IPE-E2-002

Initial approval?

3

NO

Reject Change END

YES

Module Supplier Part Approval

• Initial evaluation of change request coming from Suppliers • Initiate IMI internal Change Request process • Communicate final decision

Supplier Change Request Form All change requests to a product or process proposed by the supplier will be managed and communicated through this document. This should interface with Internal IMI Change Request process defined in the Factory Floor Quality System.

14

• Submit requests for Change to IMI, in order to get approval

FFQS

Supplier

Main Responsibilities

IMI Change Request Form

Once the Supplier Change Request Form is received from the Supplier, then internal IMI Change Request process should be triggered, as defined in the Factory Floor Quality System.

All change requests to a product or process, and the resulting notifications, will be managed and controlled through this procedure.

Supplier Partnership Management Handbook

Non-Conformance Management Factory Floor Quality System Non-Conformance Management FFQS

Supplier Non-Conformity Detected (Line/Customer) START

Control of Nonconforming Product

FFQS

T14

Need Deviation Authorisation?

SOP IPE-Q13-005

NO

Corrective and Preventive Actions

T14

SOP IPE-Q13-001

YES

Module Supplier Escalation & Exit

FFQS

Deviation Authorisation

T16

SOP IPE-E2-004

Execute Disposition & Save Record

3

Module Serial Production

• Quarantine non-conforming products.

• Run Return to Vendor action • Communicate and manage nonconformances with Suppliers until resolution.

• Control concerns using 3C/8D or other applicable tool

FFQS

Control of Non-Conforming Product

This procedure outlines the method for the identification, segregation, and disposition of nonconforming material. Disposition is determined by a cross-functional material review board.

• Fast replacement of parts and containment action plan • Root cause analysis, corrective and preventive action plan within IMI timings and expectations • Share Cost of Poor Quality • Communicate any non-conformances found at suppliers’ and impact to deliveries/quality

Supplier

Main Responsibilities

The 8D methodology will be used for all confirmed supplier rejects for which the root cause is unknown and the appropriate corrective actions are not evident.

Procedure coming from the Factory Floor Quality System.

Procedure coming from the Factory Floor Quality System.

FFQS

FFQS

This procedure defines the steps required to request and authorise the deviation of a product or process compared to its specification.

Corrective and Preventive Actions

When products and services do not meet expected requirements, actions will be taken to correct the non-conformance with a goal of preventing its recurrence.

Deviation Authorisation

Procedure coming from the Factory Floor Quality System.

15

IMI Precision Engineering

4

Supplier Monitoring

16

Supplier Partnership Management Handbook

This module outlines the monitoring standards, to ensure that suppliers meet IMI Precision Engineering’s requirements and targets at all key areas of business.

Module Supplier Sourcing & Selection

IMI Standard Production

Module Supplier Part Approval

Module Supplier Monitoring T6

T3

Supply Chain Risk Analysis

T4

SOP 3

SOP IPE-P10-003

T6

Supplier AssessmentSOP 19 Survey (SAS), from

IPE-P10-008-F001

Module Supplier Monitoring

Supplier Performance Manual IPE-P10-005

T7

T12

Supplier Loan Tooling Management

SOP 18 T18

SOP IPE-P10-007

Supplier Process Sign Off (SPSO)

T13 SOP 19

IPE-P10-008-F002

T20

Supplier Performance Monitoring

T13

SOP 19

SOP IPE-P10-008

Module Supplier Development Module Supplier Escalation & Exit

Procedures to be Regularly updated

• Circulate Supplier Scorecards • Regular risk evaluations • Regular Supplier Assessments • Maintain Loan Tooling database • Apply Supplier Performance Manual & Tooling contracts

SOP

Supplier Performance Monitoring

Defines the minimum standards and means for IMI to monitor suppliers’ performance. The different tools associated enable promotion of supplier-led improvements through performance information feedback and establish a baseline for supplier development and corrective actions.

• React to received Scorecards • Allow and support risk analysis and assessment surveys • Plan & run improvement actions • Acknowledge receipt of Supplier Performance Manual

SOP

Supplier Assessment Survey Audit of the Supplier Quality Systems. Suitable for all IMI Suppliers, to support sourcing decisions and continuous improvement as it reviews all aspects of a supplier including systems and its application, to enable a gap analysis within the business. This absorbs the responsible business and IMI code of conduct audits.

4

Supply Chain Risk Analysis

All suppliers pose some level of risk to IMI. This provides a tool to evaluate and monitor risks, considering various factors such as past performance and key company financials. Each supplier is plotted on a matrix of probability against impact. A Risk Mitigation action plan should be created and followed when high risks are identified.

Supplier Scorecards Visual tool to measure, monitor and communicate the supplier’s performance and its evolution.

This dashboard displays a rating according to the different indicators defined on the Supplier Performance Manual, including quality, delivery and cost aspects. It allows easy identification of high performing and low performing suppliers.

Supplier

Main Responsibilities

Supplier Performance Manual The purpose of this manual is to clearly define expectations regarding supplier performance. The objectives are for IMI Precision Engineering and its suppliers to mutually benefit from adopting the principles within this manual and provide the foundation for continuous improvement within the supply chain.

SOP

Supplier Tooling Management

Developed to ensure all stakeholders, including the supplier, understand their roles and responsibilities when dealing with tooling. Supplier Tooling Management Database allows monitoring of Loan Agreements, assets tags, tool conditions and tool life expectancy, also highlights risks to the business so to take appropriate actions.

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IMI Precision Engineering

5

Supplier Development

18

Supplier Partnership Management Handbook

Development of tools to support continuous improvement and training at the supplier, also allowing a more structured report with better management review process.

Module Supplier Development Module Supplier Monitoring

T21 SOP 21

Supplier Development

SOP IPE-P10-010

Module Supplier Escalation & Exit

• Support Zero defects policy internally and externally • Lead Supplier Development Strategy • Lead Supplier Development workshops • Maintain Supplier Development Board

SOP

Supplier Development

Outlines critical steps to implement site based Supplier Development Groups, a standard methodology to improve supplier performance and develop strategic partnerships. Following identification and site alignment, a development plan shall be completed for the selected suppliers.

Supplier Development Visual Board Regroups key information from strategy definition to performance monitoring of the Key Suppliers.

It displays contents such as: Top Performing and Under Performing Suppliers, Current Year Goals and Objectives, Supplier KPIs and Scorecard results, Non-conforming material dispositions, etc.

• Support Zero defects initiative • Input and implement Supplier Development plan • Support Development and Productivity workshops

Supplier

Main Responsibilities

5

Supplier Productivity Workshops Collaborative multiple day workshops held at the Supplier’s manufacturing facility. These deep dive workshops identify opportunities in efficiency, defect detection and prevention, process, tool design, APQP and error proofing. Workshops can be utilized to drive cost downs or mitigate cost increases through quality and productivity improvements.

Supplier Training Tools Different set of trainings are available, to either support workshop or run separate trainings if gaps are detected during any stage of supplier monitoring and development. Examples: Zero defect, 8D, Poka-yoke, etc.

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IMI Precision Engineering

6

Supplier Escalation & Exit

20

Supplier Partnership Management Handbook

Module Supplier Sourcing & Selection

Module Supplier Escalation & Exit

T23

Supplier Exit Process YES

NO

Module Supplier Development Module Supplier Monitoring

NO SOP 22

Supplier Escalation

IPE-P10-009

New business hold required?

Successful?

Supplier Exit Potential?

YES

NO

Factory Floor Quality System Non-Conformance Management

• Inform supplier of escalation process and ramifications • Implement appropriate level of Supplier Management Review • Evaluate Supplier for new business hold • Establish Exit Management Governance & Transition plan

• Provide a documented improvement plan (SMR1) • Daily/ weekly updates to plant manager as required (SMR2) • Support Exit Management Governance

Supplier

Main Responsibilities

6 SOP

Supplier Escalation Process

Defines a Supplier Management Review process (SMR), a process for escalation of supplier’s issues affecting IMI Precision Engineering if normal controls are failing to achieve acceptable performance with the final step resulting in potential de-sourcing of the supplier. This involves both IMI Precision Engineering and the Supplier at various management levels.

Supplier Exit Process The multiple stages of escalation process can ultimately result in exiting a supplier if improvement and alignment of targets is not achieved. This document provides guidelines to support Supplier Exit process and ensure correct management.

21

IMI Precision Engineering

Supplier Partnership Management Overview Supplier Partnership Management Full Flowchart Overview LEGEND T

SOP

Tool Available

FFQS

SOP Available

SOP From Factory Floor Quality System Procedures to be Regularly updated

3

Module Change Management T15

VAVE, Engineering, Process, or Tooling change at current supplier START

IMI Change Request and Notification

Supplier submits Change Request Form

FFQS T15

SOP IPE-E2-002

Initial approval?

NO

Reject Change END

YES

2

Module Supplier Part Approval

A

1

Module Supplier Sourcing & Selection

YES

NO

Sourcing approval for direct material and tooling detected START

A

T1 T5

T2

Is Supplier on Preferred Supplier List?

SOP 2

SOP IPE-P10-002

T9

SOP 8

Sourcing and Selection

YES

T11

Supplier Product Approval

SOP IPE-P10-001

NO

SOP 10

T10

T8

Need to change supplier?

IPE-P10-006

Final IMI / Customer Validations

T13

Fully Approved?

YES

NO T3

Supply Chain Risk Analysis

SOP IPE-P10-003

Module Supplier Monitoring

22

T4

SOP 3

T6

Supplier Assessmen tSOP 19 Survey (SAS)

IPE-P10-008-F001

T7

Supplier Performance Manual IPE-P10-005

T12

Supplier Loan Tooling Management

SOP IPE-P10-007

SOP 18 T18

Supplier Process Sign Off (SPSO)

T13 SOP 19

SOP IPE-P10-008-F002

Supplier Partnership Management Handbook

6

Module Supplier Escalation & Exit

A

Supplier Exit Process

T23

YES

NO

New business hold required?

NO SOP 22

Supplier Escalation

B

Factory Floor Quality System Non-Conformance Management

Control of Non conform ing Product

NO

Need Escalation?

NO

SOP IPE-Q13-005

YES

YES

FFQS

Supplier Non-Conformity Detected (Line/Cus omer) START

Successful?

IPE-P10-009

3

Supplier Exit Potential?

FFQS

T14

Need Deviation Authorisation?

NO

Corrective and Preventive Actions

NO

T14

YES

Issue solved?

SOP IPE-Q13-001

YES

FFQS

Deviation Authorisation

SOP IPE-E2-004

T16

YES

Execute Disposition & Save Record

3

Notify Approval to Supplier

Module Incoming Goods

Concern Resolved END NO

Supplier Serial Production Release

SOP 17

Receiving Inspection

SOP IPE-P10-011

Conforming material?

YES

IMI Standard Production

4

5

Module Supplier Monitoring T6 T20

Supplier Performance Monitoring

Module Supplier Development

T13

T21 SOP 21

SOP 19

Supplier Development

SOP IPE-P10-010

SOP IPE-P10-008

B

Procedures to be Regularly updated

23

IMI Precision Engineering

Overview of Tools & SOP TY P E

R ES P

0 Supplier Partnership Management Handbook

ACTIVITY / TOOL

-

Al l

Ongoing

1 Non-Disclosure Agreement (NDA)

T ool

Buyer

Every Supplier Change

2 Preferred Suppliers

SOP + Tool

Buyer

Ongoing

3 Supply Chain Risk Management

SOP + Tool

Buyer

Update Annually (min.)

4 Supply Chain Risk Mitigation

SOP + Tool

Buyer

5 Supplier Statement of Work (SSOW)

Tool

Buyer

TG1

TG2

TG3

TG4

TG5

TG6

TG7 PR ODU CTION / S E R I AL CON DITION S

Update Every 3 months (min.)

R

R

R

Every Engineering or Supplier Change

6 Supplier Assessment Survey (SAS)

T ool

SD/SQ

Update Every 3 years (min.)

7 Supplier Performance Manual

T ool

Buyer

Ongoing

8 Supplier Sourcing and Selection

SOP + Tool

Bu y e r

Every Engineering or Supplier Change

9 Letter of Nomination (LON)

Tool

Buyer

SOP + Tool

SD/SQ

10 Supplier Product Approval

Every Change at supplier, or Supplier Change

11 Other Supplier Agreements

T ool

Buyer

Ongoing

12 Supplier Loan Tool Agreement

T ool

Buyer

Ongoing

13 Supplier Process Sign Off (SPSO)

Tool

SD/SQ

Every Change at supplier, or Supplier Change + Process Inactivity >1year

14 Non Conformance Management (NCM)

SOP + Tool

SD/SQ

Ongoing

15 Change Management

SOP + Tool

SD/SQ

Every Change at supplier, or Supplier Change

16 Deviation Request

SOP + Tool

SD/SQ

Every Change at supplier

17 Receiving Inspection

SOP

Quality

Ongoing

18 Supplier Loan Tooling Management

SOP + Tool

Buyer

Update Annually (min.)

19 Supplier Performance Monitoring

SOP

SD/SQ

Ongoing

20 Supplier Scorecards

T ool

SD/SQ

Update Monthly

21 Supplier Development Tools

SOP + Tool

SD/SQ

Ongoing

22 Supplier Escalation Process

SOP

SD/SQ

Ongoing

23 Supplier Exit Management

Guidelines

Buyer

Ongoing

24 SDE/SQE Taining Matrix

T ool

SD/SQ

Ongoing

25 Preferred Supplier (List maintenance)

-

IMI Central

Update Monthly

26 Supplier Performance Manual (Maintenance)

-

IMI Central

Update Annually

27 Supply Chain Risk Management (Maintenance)

-

IMI Central

Update Annually

24

Pr efe r St red ra Su te p Co gic plie mm Su rs p Ne erc plie w i a rs Ne Su p l Su w p li pp Ne Prod er liers w uc Ne Prod ti on w uc S Ne Prod t - i te w u Pl a Mo To o c t - tf or di f li ng Mi m P no ro Mo i ca r P je c d t io ro t Mo i fi ca n j ec di f t ion Pri t Mo i ca - m a di f t ion S e ry P c i r Pr ca - on oc oc t i Pr d a es es on od ry s s I na - To uc t Pr oc es c t i o li n s vi t g y( > 1 Ye ar )

Supplier Partnership Management Handbook

Supplier Type

Project Type

SCOPE OF APPLICATION (as minimum)

R elat ed Files

Module

O

O

O

Supplier Partnership Management Handbook

-

M

M

M

Non-disclosure Agreement – User Notes

1

O

a) IPE-P10-002 Preferred Suppliers SOP b) IMI Precision Preferred Suppliers List d) IPE-P10-003 Supply Chain Risk Questionnaire Template a) IPE-P10-003 Supply Chain Risk Management SOP b) IPE-P10-003 Supply Chain RiskManagement Guidelines e) IPE-P10-003 Supply Chain Risk Management Letter Template c) IPE-P10-003 Supply Chain Risk Management Tool a) IPE-P10-003 Supply Chain Risk Management SOP b) IPE-P10-003 Supply Chain Risk Mitigation Actions Template

M

1 4

M

M

M

M

O

M

M

M

IPE-P10-001-F002 Supplier Statement Of Work (SSOW) Template

1

M

M

O

IPE-P10-008-F001 Supplier Assessment Survey (SAS) Template

4

4

M

M

IPE-P10-005 Supplier Performance Manual

4

M

M

a) IPE-P10-001 Supplier Sourcing and Selection SOP b) IPE-P10-001-F001 Sourcing Recommendation Form (SRF) Template

1

O

O

O

IPE-P10-001-F003 Letter of Nomination (LON) Template

1

O

O

O

a) IPE-P10-006 Supplier Product Approval SOP b) IPE-P10-006-F001 Supplier Product Approval Workbook Template

2

O

O

O

-

-

O

O

O

IMI Supplier Tooling Agreement

-

O

O

O

IPE-PE-008-F002 Supplier Process Sign Off (SPSO) Template

2

M

M

M

3

M

M

M

M

M

M

a) IPE-Q13-005 Control of Non-conforming Product c) IPE-Q13-004 8 Discipline (8D) Problem Solving b) IPE-Q13-001 Corrective Action and Preventive Action d) IPE-M3-005 3C Problem Solving a) IPE-E2-002 Change Request and Notification b) IPE-E2-002-F001 Change Request and Notification Form c) Suppler Change Request Form a) IPE-E2-004 Deviation Authorisation b) IPE-E2-004-F001 Deviation Authorisation Form

M

3 3

M

M

M

I PE-P10-011 Receiving Inspection SOP

3

M

M

M

a) IPE-P10-007 Supplier Loan Tooling Management SOP b) IPE-P10-007-F001 Supplier Tooling Management Database

4 4

M

M

M

IPE-P10-008 Supplier Performance monitoring

M

M

O

-

4

O

M

O

a) IPE-P10-010 Supplier Development SOP c) IPE-P10-010-F001 Supplier Development Board Template b) IPE-P10-010-F002 Supplier Development Workshop Planning Tool d) Other training tools

5

M

M

M

a) IPE-P10-009 Supplier Escalation SOP b) IPE-P10-009 F001 Supplier Escalation - SMR Notification letter

6

M

M

M

Supplier Exit Management Guidelines

6

Training Matrix SDE /SQE

-

IPE-P10-002 Preferred Suppliers List Precision

-

IPE-P10-005 IMI PE Supplier Performance Manual

-

IPE-P10-003 Supply Chain Risk Management Tool

-

LEGEND Document should be finished Document in progress or planned R Document review / New revision signed M Mandatory O Optional. Applicable depending on Project Type criteria (columns P-Y) Tool/SOP to be applied on given circumstance (project type) 25

IMI Precision Engineering

Program Implementation Assessment The Procurement Audit has been developed to enable IMI Purchasing teams to review the implementation of all new SOPs launched with the Supplier Partnership Program and ensure they have the support required. The audit will also cover the main drivers and metrics for the department, detail the supporting documentation and suggest standard improvement actions for each section of the audit.

The Audits will be carried out regularly with sites auditing each other’s processes, sharing the learnings and best practices across the IMI Precision procurement community.

Supplier Escala;on & Exit

Supplier Development

General 10 9 8 7 6 5 4 3 2 1 0

Supplier Monitoring

Procurement Objec;ves

Supplier Sourcing & Selec;on

Supplier Part Approval Serial Produc;on

A total score above 85% is considered “Fully integrated supplier Partnership program”, a score from 65% - 85% is considered “Supplier Partnership program adopted needs continuous improvement” and a score below 65% will be considered as a “Supplier Partnership program not operational”.

Sharing across sites As part of the drive towards collaboration and knowledge sharing, the Supplier Partnership program tools will be shared and maintained on Workspaces for all IMI Precision Engineering sites. This tool database should allow us all to work towards the same goal of shifting from a Reactive to a Proactive process and prevent any of the sites replicating any work already carried out with any suppliers. This will also allow a better overview of our suppliers, especially interesting for those which are shared across sites. The following tools (shown by the symbol ___ on the flow diagrams) once completed by the individual sites will be shared on Workspaces following the implementation of the program: · Supplier Assessment Survey · Supplier Product Approval & Supplier Process Sign Off · Supplier Workshops · Sourcing Recommendations · Supply Chain Risk Analysis · Tooling Database & Tooling Contracts 26

Supplier Partnership Management Handbook

Glossary Term

Definition

APQP

Advanced Product Quality Planning

PPAP

Production Part Approval Process. A standardized process that helps manufacturers and suppliers communicate and approve production designs and processes before, during, and after manufacture.

Preferred Supplier

A list of the selected preferred suppliers of each category where a site has significant activity, as defined on the Preferred Suppliers standard operating procedure. This list should help guide procurement decisions for both new and resourcing activities.

Return to Vendor (RTV)

Non-conforming material which is returned to vendor, according to IPE-Q13-005 Control of Non-conforming Product. The supplier is responsible for freight and taxes, sorting and any corresponding rework.

Supplier is also responsible to expedite conforming replacement product as soon as possible at his own cost. This is the preferred option.

Strategic Supplier

A list of the selected Strategic Suppliers, result of a Kraljic or other supply positioning matrix used to segment suppliers by financial, supply and quality risk. It defines which suppliers we should focus and strengthen versus suppliers where we only monitor.

Supplier Development Engineer (SDE) / Proactive role*

Responsible for the proactive development of our preferred suppliers, critical and poor performing suppliers. Utilizing training modules and workshops, the SDE develops a strong relationship with the supplier and drives a zero defect and continuous improvement culture with the supply base and internally.

Supplier Management Review (SMR)

Supplier Management Review is a process for escalation of supplier’s issues affecting IMI Precision if normal controls are failing to achieve acceptable performance. This involves both IMI Precision and the Supplier at various management levels.

Supplier Quality Engineer (SQE) / Reactive role*

Responsible for driving supplier corrective actions (SCARS) utilizing the eight discipline (8D) process. Acts as a leader to support resolution of supplier quality issues. Conducts supplier audits and assessments.

Zero Defects

Zero Defects is a quality strategy and culture aimed at the reduction of defects through prevention. A single defect is one too many.

* SQE and SDE roles might be merged into one, depending on each local site needs

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IMI Precision Engineering operates four global centres of technical excellence and a sales and service network in 75 countries, as well as manufacturing capability in the USA, Germany, China, UK, Switzerland, Czech Republic, Mexico and Brazil.

For information on all IMI Precision Engineering companies visit www.imi-precision.com Supported by distributors worldwide.

Norgren, Buschjost, FAS, Herion and Maxseal are registered trademarks of IMI Precision Engineering companies.

Due to our policy of continuous development, IMI Precision Engineering reserve the right to change specifications without prior notice. z8401MS en/12/17 Selected Images used under license from Shutterstock.com

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