Nissan Trading Corp., Usa

NISSAN TRADING CORP., USA

The purpose of this Supplier Quality Manual is to describe NITCO Supplier Quality Assurance (SQA). This manual applies to those companies whose products and/or services affect the quality of our parts and the delivery of goods and services to our customers

Table of Contents:

Quality Management System Authorization Signatures
Signature:
x
Approved by Tom Oyamada
Title: Vice President / Signature:
x

Approved - by Troy Holden
Title: General Manager
Signature:
x
Approved - by Chuck Lister
Title: Purchasing Manager / Signature:
x
Approved by Bill Oglesby
Title: Quality Supervisor
Definitions:
Non-conforming :
Parts or materials not meeting the agreed specifications in the drawings or documents provided and parts not properly packaged or labeled
Lot:
Parts made in a particular manufacturing process
PMR:
(Part Modification Request) Temporary departure from the original specification
PPM:
(Parts Per Million) The process for measuring defects/non-conformances
RDR:
Receiving Discrepancy Report
ASN:
Advance Shipping Notice
RFQ:
Request for quote
1.0 Supplier Pre-qualification Process

PURPOSE:

To describe the steps taken to select suppliers.

RESPONSIBILITIES:

It is the responsibility of the Source Committee to Add, Remove or Change suppliers.

Source Committee consists of the Director or Vice-President, Purchasing Manager, General Manager and Quality Manager.

Purchasing is responsible for sending RFQ's and collecting bid data for all purchased parts and materials for re-sale.

Quality is responsible for sending RFQ's and collecting bids for Gauges & Calibration Services.

Production Control is responsible for sending RFQ's and collecting bids for related materials/services and Transportation Services as well as internal packaging needs.

DESCRIPTION:

The following steps should be taken by each responsible department for ALL potentially new suppliers:

1.Current or past customers of a potential new supplier(s) are to be contacted to confirm quality and delivery performance.

2Process information and/or part samples (physical, picture or brochure) shall be requested. (Transportation Services are excluded from this request)

3.Based on the above information, potential suppliers are selected for competitive bidding.

4.An RFQ packet which includes product/material specifications, estimated annual quantities, customer standards, drawings (where necessary), packaging specs (when necessary) and lead time requirements will be sent to all potential suppliers.

5.The bids of the proposed supplier(s) will be analyzed and submitted to the requestor for review and approval. (Production Control is responsible for this step when sourcing Packaging and Transportation Services)

6.For transportation companies, Production Control will take the following steps:

a. request a copy of insurance certificates, claims history, delivery performance, and list of types of equipment.

b. send routing information, requirements, and requests bids.

c. analyze bids and select proposed supplier.

7.For packaging and transportation, Production Control analyzes bids and selects proposed supplier.

REFERENCE DOCUMENTATION:

2.0 Adding Suppliers to the Approved Supplier List

PURPOSE:

To describe the criteria for adding a supplier to the Approved Supplier List.

RESPONSIBILITIES:

It is the responsibility of the Source Committee to approve the addition of supplier(s) to the approved suppliers list.

DESCRIPTION:

The following items are required to be added to the NITCO "Approved Supplier List."

Suppliers providing materials for re-sale must be ISO 9000 certified, QS 9000 certified, TS16949 Certified or achieve an average score of a 80 or higher on a the NTC Supplier Audit which is conducted at the supplier's facility, or pass a third party QS audit. An average score of 80 or higher must be achieved on every section of the audit. Sections with an average score below 80 will require a written corrective and preventive action plan and documentation to prove that the deficiencies have been corrected.

All suppliers must meet the following requirements;

• Maintain 98% On Time Delivery
• Maintain a PPM of 50 or less
• Maintain 98% Shipping Accuracy
• Maintain a score of 80 on the Nitco Internal Supplier Survey which is performed Bi-Annually or provide proof of a Certified QMS (ISO/QS/TS)

The Source Committee must approve the addition and deletion of suppliers to the Approved Supplier List.

REFERENCE DOCUMENTATION:

NTC-SOP-

3.0 Outsourcing Quality Sorting/Inspection and Temporary Labor

PURPOSE:

To describe the requirements for outsource labor. (Including 3rd party Quality Inspection/Sort companies)

RESPONSIBILITIES:

When deemed as a needed service, labor and certain services may be outsourced to an Approved Source. Outsourcing must be approved by the Quality Supervisor for Quality related issues. The Operations Manager (Department Manager Level or Higher) may approve any third party labor use.

DESCRIPTION:

The following items are required:

The labor or service provider must provide to NITCO Administration/HR Department Supervisor prior to consideration the following:

1)Proof of liability insurance for any employee in the facility (may include workers comp if using temp labor for daily operations)

2)If a Quality Sorting Firm, must provide a contract accepting liability for releasing or approving parts deemed by the customer as unfit for use or defective.

3)Must sign a waiver to accept any charge-backs from the customer if the sort company approves parts and releases parts to ship that are later found defective, including further sorting charges.

REFERENCE DOCUMENTATION:

4.0 Production Part Approval Process (PPAP/ANPQP)

PURPOSE:

To define the process for approval of production parts

RESPONSIBILITIES:

It is the responsibility of the Quality Assurance and Purchasing group to ensure all qualifications are met prior to awarding new business to any supplier.

DESCRIPTION:

Fasteners and Tier/SCM Parts

• A supplier meeting is held in person or by phone to review the drawing, testing, PPAP/ANPQP requirements, and the inspection standard.
• The supplier conducts a sample production run necessary to meet requirements for functional parts

• Nitco place a PO for the functional parts through their Production Control Dept..
• If the ANPQP/PPAP and process review is not complete then NITCO prepares Interim Approval and submits it to the supplier. The supplier takes corrective actions and resubmits PPAP.
• If the PPAP and process review are complete then the QA Dept. determines whether the part passed the functional trial. (PSW approval)
• If the part does not pass, the supplier takes corrective actions to fix the part problems and the process reverts
• If the part did pass, the Engineering Dept. determines if the PPAP is complete. The supplier completes open items if not complete.
• Failed functional trials and PPAP packages must be immediately addressed by the supplier to meet Nitco’s needs to close the open issues as soon as possible as to not interrupt production.

.

SUBMISSION LEVELS

PPAP/ANPQP submissions shall be submitted using the customer specific documents that will be provided to the supplier through the NITCO Purchasing and/or Quality/Engineering Department.

REFERENCE DOCUMENTATION:

5.0 Supplier Non-Conformances

PURPOSE:

To describe the process for handling supplier non-conformances.

RESPONSIBILITIES:

It is the responsibility of the Quality Assurance, Production Control, and the Purchasing Departments to determine non-conformances and the actions that are necessary for resolution.

DESCRIPTION:

Products/services which do not meet specified requirements will be considered nonconforming. Examples of non-conformances include but are not limited to damaged material, mis-labeled material, out-of-specification material, incorrect SNP, etc.

1. Supplier will be notified of the nonconformance by phone, fax and/or e-mail.

2. Supplier will be required to do one or more of the following:

a. replace product

b. sort, rework or repair product to meet specified requirements at supplier cost

c. pay for damages to product incurred during shipping

3. If NITCO has to sort or repair a supplier's product for any reason, the supplier will be charged for labor, materials used, and/or engineering time required to correct the nonconformance at the rate of $40 per man hour, plus an administration fee for clerical work created because of the nonconformance. The current administrative fee is $250 per occurrence.

4. For each nonconformance detected, the supplier will be required to take corrective actions and submit an 8-D or Corrective Action in the NITCO format or customer specific format.

REFERENCE DOCUMENTATION:

6.0 Approved Supplier Continuous Monitoring

PURPOSE:

To describe the process of continuously monitoring suppliers.

RESPONSIBILITIES:

It is the responsibility of the Quality Assurance, Production Control, and the Purchasing Departments to monitor supplier performance.

DESCRIPTION:

Continuous monitoring requirements are defined below. The table below shows each supplier and the items that NITCO will monitor. The Supplier Quality Performance Reporting System is described in section 7.0 . The items listed below with an asterisk beside them are included in the Supplier Performance Reporting System.

1.Quality System Audit - Specified key suppliers are required to have a quality systems audit performed by NITCO every other year beginning 2004 (unless the supplier is ISO 9000/QS 9000 Certified or NITCO has not purchased products/services from the supplier within the past year).

• NITCO reserves the right to perform a quality systems audit at any given time because of poor quality performance by any supplier. Purchasing and Quality Assurance Departments will review the audit results and provide the necessary feedback to the supplier. (Applies to ALL suppliers)
• Sections with an average score below 80 will require a written corrective action plan and documentation that verify the deficiencies have been corrected. Timing for completion of corrective actions will be determined and agreed upon by NITCO and the supplier on a case by case basis. NITCO reserves the right to verify the audit results at the supplier's facility. Suppliers will be debited for any travel expenses due to return visits to close any open issues.

2.Layout Data - NITCO may request layout data for any concern(s) on an as needed basis.

3.Response Time to Part/Material Quality Concerns - When requested, suppliers are required to respond to a part quality defect/concern using the 8-D form or the NTC Corrective Action Form. If necessary, supplier will provide personnel to rework or re-inspect parts.

8-D

• The 8-D form can be obtained by contacting the NITCO Quality Department.
• Signed PIR should be completed and faxed to the Quality Department within 24 hours of concern notification and containment of subject parts must take place immediately.
• Completed 8-D should be completed and returned to the Quality Engineering Department within 14 days of the concern notification.

Note 1: The above 8-D timing requirements are guidelines to be adhered to by each supplier. Any deviation to the above timing requirements must be agreed upon by NITCO and the supplier on a case by case basis or be subject to additional point deductions from the supplier's quarterly PPM score.

Response Time Scoring for Quarterly Performance Reporting System -

The refusal of any supplier to provide personnel for rework or re-inspection of defects per occurrence.

• If NITCO requests the supplier to provide personnel to rework or re-inspect product at our facility or our customer's facility, and the supplier refuses to adhere to the request, then the Supplier will have (18) points deducted from the overall quarterly supplier rating score and will be charged all rework and sort time. These points will be deducted for each occurrence.

*4.On-Time Delivery - Specified key suppliers are required to meet 98% on-time delivery performance. NITCO monitors on-time delivery and uses this information to apply scoring in the quarterly supplier performance rating. Delivery non-conformances will be tracked by attainment of meeting the weekly/monthly order. Each point will count as an occurrence and will be subject to all monetary charges unless prior arrangements are made with and approved by the Materials Supervisor.

*5.Number of Quality Concerns - Specified suppliers are required to meet product/material quality expectations, measured in parts per million (PPM). Supplier part/material quality is monitored and reported as part of the Quarterly Supplier Performance Reporting System.

• PPM calculations are based on the total number of defective parts or amount of defective material divided by total number of parts or amount of material received, multiplied by 1 million. Parts/materials are counted as defective when NITCO personnel are required to perform rework or re-inspection or if the end-user reports PPM to NITCO. Certified stock is required for the first shipment of product/material after the concern. NITCO will verify the certified stock and if any defect(s) are found in the certified stock, the entire lot will count against the supplier's PPM.

6.NIST Trace ability - Calibration service suppliers are required to have trace-ability to the National Institute of Standards and Trace-ability (NIST) and be Guide 25 certified.

Note 2: If Quality Performance Rating (PPM) score falls below 80% attainment, see 8.0 Supplier Improvement Process.

REFERENCE DOCUMENTATION:

7.0 Supplier Performance Reporting

POLICY:

PURPOSE:

To describe the method for tracking and rating key supplier performance

RESPONSIBILITIES:

It is the responsibility Nitco to evaluate key supplier performance and the Purchasing Department shall forward results to individual suppliers.

DESCRIPTION:

Key supplier performance data is tracked by the above departments for key suppliers. A summary of the key supplier's performance will be sent to each supplier quarterly.

The Quality Department will record any problems with calibration suppliers and the Production Control Department will track response time to problems and on time delivery performance for packaging and transportation suppliers that are purchased by NITCO.

Note: Acceptance criteria for ALL suppliers is “0” defects. One nonconforming part requires the entire lot to be 100% re-inspected and/or reworked. PPM calculations will be based on the number of defective parts and the total number of parts shipped per month.

REFERENCE DOCUMENTATION:

8.0 Supplier Improvement Process

POLICY:

PURPOSE:

To describe Nitco’s improvement process for suppliers whose quarterly performance rating drops below 80.

RESPONSIBILITIES:

It is the responsibility of the Quality Assurance, Production Control, and the Purchasing Departments to determine improvement processes to suppliers.

DESCRIPTION:

NITCO evaluates suppliers on a quarterly basis. If the supplier's PPM is not at or below the intended goal or their quarterly performance rating drops below 80 (Fair), then NITCO and the supplier will follow the improvement process explained below. (This section does not apply to packaging, transportation, and calibration service suppliers.)

The Quality Assurance Department and/or Purchasing Department will discuss with the supplier the associated quality, delivery, or response issues and take the necessary corrective and preventive actions to correct the problem(s).

When it is determined, based upon past performance, that a supplier has failed to perform to the expectations of NITCO, according to the SQM, and all efforts to assist the supplier's/sub-contractor's development have been exhausted, they can be removed from the Approved Supplier's List.

Future business will be at the discretion of the Source Committee.

Packaging, Transportation, and Calibration Service Suppliers

The Production Control Manager will review packaging and transportation suppliers' performance semi-annually. If problems exist, a meeting will be held with the supplier to discuss corrective and preventive actions.

Calibration Services

For calibration service suppliers, the Quality Manager will determine when and if a meeting is needed with a supplier to discuss problems and corrective and preventive actions.

REFERENCE DOCUMENTATION:

9.0 Removing Suppliers from the Approved Supplier List

POLICY:

PURPOSE:

To describe the process for removing a supplier from the Approved Supplier List.

RESPONSIBILITIES:

It is the responsibility of the Source Committee to remove suppliers from the approved suppliers list.

DESCRIPTION:

For purchased parts the Source Committee will determine whether the supplier should be removed from the Approved Supplier List and will not be eligible to be added to the list again for a period of 2 years.

For packaging and transportation suppliers, the Production Control Manager will decide when to recommend to the Source Committee that a supplier be removed from the Approved Supplier list.

For calibration service suppliers, the Quality Manager will determine when a recommendation to remove a supplier from the list should be made to the Source Committee.

TEMPORARY SUSPENSION:

A Supplier may be temporarily suspended from receiving RFQ’s from Nitco based on decisions due to poor quarterly ratings or repeat issues that are not being proactively solved at the Suppliers’ site. Nitco reserves the right to limit or deny the right to the supplier to participate in growth activities if the supplier is not meeting the standards set by Nitco for Quality, Delivery, Cost and Customer Service.

REFERENCE DOCUMENTATION:

10.0 Supplier Audit Scoring Criteria

POLICY:

PURPOSE:

To describe the criteria for scoring a supplier audit

RESPONSIBILITIES:

It is the responsibility of the Quality Assurance, Production Control, and the Purchasing Departments to determine audit scoring to the suppliers.

DESCRIPTION:

Sections 1 through 7 of the QSA Manual will be used as the scoring criteria for all suppliers, excluding packaging, transportation services and calibration services.

REFERENCE DOCUMENTATION:

11.0 Supplier Packaging/Labeling

Please refer to the NITCO Packaging Manual by clicking on the below link

Supplier packaging and labeling must adhere to these guidelines and are a part of the supplier ratings as indicated. Any non-conformance will be handled as outlined in the manual in addition to any affect on the quarterly quality score. Please consider the manual a part of the SQA Manual as if copied herein. The manual may be revised so please look for latest revisions on our website.

NITCO SUPPLIER PACKAGINGMANUAL

11.0 Supplier Incoming Part Conformance
POLICY:
PURPOSE:
To ensure supplier conformance in meeting Nitco ISO9001-2000 requirements of NTC-SOP-