ISO 9001 Or AS9100 STAGE-1 Readiness Evaluation Data

February 2, 2016

Rich Ashton

FARO Logistics Solutions

7070 Pontius Rd

Groveport, OH 43125

Project Number: 4035-Q-2505

The Stage-1 audit for FARO Logistics is scheduled for March 11, 2016. The duration of the Stage-1 audit will be 1-audit day/8hrs and will include a formal document and readiness review. The require additional 1-audit day/8hrs will be allocated between Groveport, OH (6hrs) & Jacksonville, FL (2hrs) on April 7th & April 8th 2016.

WE will update the Comprehensive Requirements Workbook form in during the March 11, 2016 audit.

This Stage-1 audit will be performed to:

• Conduct a review of your management system documentation.
• Evaluate the site-specific conditions and undertake discussions to determine the preparedness for the Stage-2 audit.
• Review the status and overall understanding regarding requirements of the standard, in particular the identification of key performance or significant aspects, processes, objectives and operations of the management system.
• Collect necessary information regarding the scope of the management system, processes and location(s) of your organization, and related statutory, regulatory aspects and compliance, e.g. quality, environmental, legal aspects of the operation, associated risks, etc.
• Review the allocation of resources for Stage-2 and agree on the detail of the Stage-2 audit.
• Provide a focus for planning the Stage-2 audit by gaining a sufficient understanding of the management system, site operations in the context of possible significant aspects of the management system.
• Evaluate if the internal audits (i.e., QMS processes, manufacturing processes and applicable products) and management review have been completed, are being planned and performed effectively and that the level of implementation of the management system substantiates that your organization is ready for the Stage-2 audit.
• Confirm the information provided by the organization used in application review (See #9 or #10 of Stage 1 report below)
• For ISO/TS 16949 to verify that both you and design subcontractors have appropriate capability to meet ISO/TS clause 7.3 requirements in its totality, including interfaces between client and subcontractors.

To prepare for this assessment, please review the audit plan and associated information contained on the following page. This information will be the basis of this assessment and must be completed satisfactorily in order to proceed to Stage 2.

Please notify me if there are any specific safety/PPE requirements necessary to perform assessments in your facility or any other specific requirements. (EX. Specialized ID Requirements, Cell Phone requirements, etc.)

I plan to arrive at your facility at approximately _7:30______a.m./p.m. If you have any questions, please contact me at 330-388-2875. I look forward to working with you.

Sincerely,

John Cook

Lead Auditor

Smithers Quality Assessments, Inc. | 121 S Main Street – Suite 300 | Akron, Ohio 44308 | 330.762.4231 |

SQA-90 (Stage-1 Report) Revision: 1/11/2016 Page 1 of 15

Smithers Quality Assessments, Inc. – Confidential – ISO 9001:2008 w/o design

Client: FARO Logistics Solutions Project No: 4035-Q-2505Date: March 11, 2016

Site: Groveport, OH Stage 1SQA Auditor: John Cook

OPENING & CLOSING MEETING ATTENDEES

Name (please print clearly)OpeningClosingTitle

John Cook X X SQA Lead Auditor

OPENING MEETING AGENDA

 Introduce SQA Team including any other participants (e.g. AB, OP assessors, Authorities) - names, purpose and roles (e.g. Lead Auditor - including the lead auditor as the formal communication channel between the audit team and the auditee), Auditor and/or observer). Explain that an observer cannot influence or interfere in the audit process or outcome of the audit.

 Pass around Attendance Sheet.

 Ask for Introduction of Client Team.

 Describe standard/criteria; type of assessment (e.g. Stage 1, Stage 2, Surveillance, or Recertification); confirm scope of certification (i.e., the scope statement), review processes, number of shifts and pattern, organizational structure and current number of employees. Are there any off-site buildings? (If yes, record on the top of the matrix at the end of this report. Must be included in certain audits).

 Ask the client if there any outstanding issues related to their management system. If “no,” proceed with audit. If “yes,” note the issues.

 Explain objective (to assess continuing suitability and effectiveness of the supplier’s approved management system, compliance to the standard and continual improvement (ISO9001:2008) and maintaining effectiveness (ISO 13485:2003). These audits are an ongoing process – not a pass/fail exercise).

 Explain process for conducting audit including keeping the auditee informed of the audit progress, certification process (i.e. interviews, taking notes, reviewing records, objective evidence, clearance of non-conformances, verifying continuing system implementation and effectiveness). Please note, that an audit is based on a sample, and therefore is an element of uncertainty in the process. Consequently, processes could have other nonconformities. In addition, as an auditor you cannot consult, teach or offer solutions in any way! (CQAM-102)

 Explain nonconformities and findings (Major, Minor, OFI). No concerns. (Note: several minors in one requirement could equal a Major n/c). Major requires certificate suspension.

 Confirm the status of non-conformities from the previous review or audit.

 Review schedule (participants, required and selected elements). Ask if there are any required changes. If so, note in audit report or revise plan. Explain that the audit team leader and audit team shall be in control of executing the plan including audit activities and audit trails.

 Note: Surveillances are in 6 or 12 month cycles keyed to the last date of the Stage 2 or re-certification assessment.

 Daily wrap-up meetings: purpose is to discuss issues, no “surprises.”

 Review SQA confidentiality policy (auditors, exec. board, accreditation bodies).

 Review office accommodations, private work area with phone (will need to be in contact with the SQA office and other clients).

 SQA Policy requires that a guide accompany us at all times. Explain that the guide cannot influence or interfere in the audit process or outcome of the audit.

 Ask about safety policies, emergency and any special human resource considerations (i.e. unions, etc.)

 Reconfirm if there are any access restrictions for security reasons.

 Describe expectations of consultant if one is present (if applicable). NOTE: Per ISO/TS 16949 Rules a consultant may not be on-site during the assessment.

 Have there been any material changes at the company which have not been reported to SQA yet (ref Form SQA-51)?

 Conflict resolution steps: a) work with lead auditor/auditor; b) joint phone call between client, lead auditor/auditor and SQA Director of Operations; c) joint phone call between (b) plus SQA VP; d) formal complaint; e) appeal.

 Confirmation of language to be used during this audit activity.

 Conditions under which the audit may be terminated: Excessive number of nonconformities; a major nonconformity, unavailability of key personnel; previously unannounced material condition changes, e.g., sale of the organization or significant changes to labor relations or number of employees.

 Review ANAB Heads Up #61 & #178 (see SQA website for additional information)

 QMS Summary

Heads Up #61- Outputs Matter!- QMS

The consistent application of criteria in auditing an organization’s QMS with regard to achieving customer satisfaction, delivering conforming product, and continually improving the QMS is imperative. This is especially important to the continued reliance of the customer supply chain and other interested parties on the added value of the third-party certification system. To achieve the intended purposes of ISO 9001:2008, certified organizations must be held accountable. Outputs do matter!

Heads Up #178 (IAF/ISO Joint Communique - Expected Outcomes)

Expected Outcomes for Accredited Certification to ISO 9001 (from the perspective of the organization’s customers) “For the defined certification scope, an organization with a certified quality management system consistently provides products that meet customer and applicable statutory and regulatory requirements, and aims to enhance customer satisfaction.”

Heads Up #61- Outputs Matter!-EMS

Criteria and guidance for the certification process emphasize the need for the CB to consider an organization’s compliance with legal and other requirements and its environmental performance as factors essential to demonstrating that an EMS is effectively implemented.

Heads Up #178 (IAF/ISO Joint Communique - Expected Outcomes)

For the defined certification scope, an organization with a certified environmental management system is managing its interactions with the environment and is demonstrating its commitment to:

A.Preventing pollution.

B.Meet applicable legal and other requirements.

C.Continually enhancing its environmental management system in order to achieve improvements in its overall environmental performance.”

 Request a copy of the aspects/impacts to have on file at the SQA office (Recertification Only)

 Ask client if they have any additional questions

Auditor Signature Date

CLOSING MEETING AGENDA

 Pass around Attendance Sheet for closing sign-in.

 Have the management representative acknowledge receipt of the non-conformances (if any), recommendation and report with their signature on the bottom of the attendance sheet.

 Thank client for hospitality.

 Disclaimer (don’t read, just explain): This assessment was based on a sample only. Consequently, processes could have other nonconformities. The client must utilize the management system (especially their internal audit process) to maintain vigilance and assure the continued suitability, effectiveness and improvements of the system.

 Let the customer know, or remind the customer, that the level of integration, which affects the number of audit days, is subject to adjustment at future audits.

 Explain expectation to notify SQA if there are material changes at the organization.

 Positive comments regarding company.

 Summarize and re-emphasize highlights.

 Discuss any audit team activities taking place after the audit (e.g. submittal of audit report)

 Invite comments or questions from both sides; document unresolved issues.

 Ask client to comment on technical aspects of report, correct spelling errors, names, etc. Emphasize the client’s required adherence to SQA Agreement for Services (Client is responsible to control the SQA AFS).

 Remind client that they must maintain SQA-78, Comprehensive Requirements Workbook sections for the documented management system and processes and notify SQA if there are any material changes to the organization.

 Are there additional or remote sites affiliated with this one, which may need certification?

 Complaints and Appeals: To submit complaints, go to our website, click Problem resolution, fill out a Complaint form and submit. To process appeals, clients require submitting formal documentation to SQA Executive Certification Panel (ECP).

 Schedule next assessment.

 Review ANAB Heads Up #61 & #178 (see SQA website for additional information)

 QMS Summary

Heads Up #61- Outputs Matter!- QMS

The consistent application of criteria in auditing an organization’s QMS with regard to achieving customer satisfaction, delivering conforming product, and continually improving the QMS is imperative. This is especially important to the continued reliance of the customer supply chain and other interested parties on the added value of the third-party certification system. To achieve the intended purposes of ISO 9001:2008, certified organizations must be held accountable. Outputs do matter!

Heads Up #178 (IAF/ISO Joint Communique - Expected Outcomes)

Expected Outcomes for Accredited Certification to ISO 9001 (from the perspective of the organization’s customers) “For the defined certification scope, an organization with a certified quality management system consistently provides products that meet customer and applicable statutory and regulatory requirements, and aims to enhance customer satisfaction.”

Heads Up #61- Outputs Matter!- EMS

Criteria and guidance for the certification process emphasize the need for the CB to consider an organization’s compliance with legal and other requirements and its environmental performance as factors essential to demonstrating that an EMS is effectively implemented.

Heads Up #178 (IAF/ISO Joint Communique - Expected Outcomes)

For the defined certification scope, an organization with a certified environmental management system is managing its interactions with the environment and is demonstrating its commitment to:

A.Preventing pollution.

B.Meet applicable legal and other requirements.

C.Continually enhancing its environmental management system in order to achieve improvements in its overall environmental performance.”

 Request a copy of the aspects/impacts to have on file at the SQA office (Recertification Only)

 Ask client if they have any additional questions

Auditor Signature Date

CONFIDENTIAL

Stage 1

ASSESSMENT REPORT

Dates of Assessment:

March 11, 2016

for

FARO Logistics Solutions

7070 Pontius Rd

Groveport, OH 43125

Prepared by:

John Cook

Smithers Quality Assessments, Inc.

121 S. Main Street – Suite 300

Akron, Ohio 44308

Project No: 4035-Q-2505

ISO 9001:2008 w/o design

Note: This report is the property of Smithers Quality Assessments, Inc. (SQA). Parties are permitted to examine the contents only with the approval of the assessed client.

Smithers Quality Assessments, Inc. | 121 S Main Street – Suite 300 | Akron, Ohio 44308 | 330.762.4231 |

SQA-90 (Stage-1 Report) Revision: 1/11/2016 Page 1 of 15

ISO 9001 Stage 1 Readiness Evaluation Data

Company Name & Site: FARO Logistics SolutionsProject Number: 4035-Q-2505Date of Stage 1: March 11, 2106

Note 1: Based on what is learned throughout the Stage-1 assessment, determine the number of audit-days required for Stage-2. This may be an increase or decrease from the audit-days quoted. It is up to the judgment of the auditor, and may only be determined after Stage-1 is complete. If there is an increase, be sure the client agrees; document the reasons for the increase in the Stage-1 report. Must justify per MD-5. If there is a decrease, the auditor must first gain approval of SQA management and then document in the Stage-1 report the justification for the reduction in audit-days.