Methode Electronics Malta Ltdb2b.methode-eur.com/gifs/docs/GENERAL_GUIDE_AND_PROCS/G... · Web...

GLOBAL-STANDARD OPERATIONAL PROCEDUREIssue No: 00 G-SOP 7-

03Date : JULY ‘13

SUPPLIER QUALITY MANAGEMENTPROCEDURE

Prepared By: Reviewed By: Reviewed By: Approved By: Approved By: Approved By:

Noel BriffaMEM – Quality Management

Representative

Cindy JiMES – Quality Management

Representative

Clemente GutierrezNAA – Quality Management

Representative

Michael Brotherton

NAA – General Manager

Sadek El Idrissi

MES – Managing Director

Stephen RizzoSenior Operations

Manager

G-MQ 01 Printed Copies are UncontrolledRetention period: Superseded Versions for 3 years

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Methode Electronics Inc.

SUPPLIER QUALITY MANAGEMENT PROCEDURE

Issue No: 00 G-SOP 7-03Date : JUNE ‘13

1 PurposeThe purpose of this procedure is to provide guidelines in selecting, releasing, monitoring and rating of Methode Electronics supply base.

2 ScopeThis procedure applies to:- Awarding business and management of new suppliers.- Awarding new business to existing suppliers.- Supplier monitoring and development.

3 ResponsibilitiesNew supplier selection and approval:

The Purchasing function is responsible to:- Identify potential suppliers.- Set ‘Non disclosure agreement’ - Instigate preliminary assessment / evaluation process- Liaise with suppliers in accepting Methode contracts.

The STA function is responsible to: - Audit new potential suppliers- Develop new potential suppliers

Awarding of new business to existing suppliers: The Purchasing function is responsible to:

- Obtain quotations from suppliers, as per Methode and Customer Specific Requirements

- Receive and Evaluate Cost Breakdown Sheets - Negotiate terms and prices to meet and exceed set targets- Request and receive Supplier Technical Feasibility Commitment [STFC]- Request and receive proposed Supplier Packaging Data Sheet [SPDS]- Order PPAP parts

The STA function is responsible to:- Review and approve Supplier Technical Feasibility Commitment [STFC]- Together with the Packaging Engineer, review and approve Supplier Packaging

Data Sheet [SPDS]- Manage design review with supplier- Receive PPAP parts and release

Cross Functional Team (Purchasing, STA, Launch Manager and Engineering/Product Development) is responsible for supplier selection.

Supplier Evaluation and Development The STA function is responsible to:

- Continuously monitor supplier performance and calculate supplier scorecards- Communicate Performance review results to suppliers and Cross Functional Team - Manage corrective action plan with negative rated suppliers- Manage Supplier improvement plans with suppliers - Re-evaluate suppliers and carry out audits as need be





Issue No: 00 G-SOP 7-03Date : JUNE ‘13

Incoming product conformity shall be managed as per G-SOP 8-03 Nonconforming Product / Process Control Procedure.

4 Procedure/Flow chart

MANAGEMENT OF SUPPLIER SELECTION, APPROVAL & EVALUATION PROCESS Supplier Approval is a process that is handled by Purchasing and STA.Purchasing submits two copies of the Methode NDA, supplier profile questionnaire and self assessment audit questionnaire to supplier. This documents need to be signed by supplier and hard copies are returned to Methode Purchasing. If no deviations are requested by supplier NDA copies are signed by the Divisional Purchasing Manager. If minor deviations are requested, the NDA is sent to the Methode Electronics corporate advisor and if these are accepted, the modified documents will be submitted to company CEO for approval. A signed copy is provided to corporate for records.If major deviations are requested, Methode Purchasing will not pursue with supplier.

The Functional Safety Representative shall be consulted for projects that are defined as Safety Critical.

Supplier profile is reviewed by Purchasing and STA. This questionnaire provides a details insight of supplier set up and key organisational aspects.

For Key Suppliers, Purchasing shall ask for the company’s financial audit reports and assess the company’s financial strength. This exercise will stop at this point if supplier is deemed as unacceptable.

Purchasing shall then issue an RFQ with a supplier in order to assess his competitiveness.

Methode’s policy is to limit the no. of suppliers and use one common pool between all business units as much as possible. Before proceeding to the final evaluation phase, Purchasing will request approval from either Methode Vice president of Methode NAA or Methode Europe.

If approved, STA will plan an audit at supplier while Purchasing will negotiate contracts such as Vendor Requirements, Consignment Stock and Terms and conditions.

Once above process is ready, Purchasing and STA will include Supplier in the Methode Supplier Approved list.




SUPPLIER QUALITY MANAGEMENT PROCEDUREIssue No: 00 G-SOP 7-03Date : JUNE ‘13

FLOWCHART ‘A’ – Management of New SuppliersRefer also to G-SOP 7-02 Purchasing Management Procedure





Issue No: 00 G-SOP 7-03Date : JULY ‘13

AWARDING NEW / ADDITIONAL BUSINESS TO EXISTING SUPPLIERS Purchasing shall request suppliers to quote for new business as highlighted by G-SOP 7-02 Purchasing Management Procedure. Suppliers may be guided by Purchasing to meet and exceed targets set by finance.

STA shall evaluate STFC and SPDS.Purchasing will present the scenario to the Cross Functional Team (Purchasing, STA, Launch Manager and Engineering) for discussion. Analysis and recommendations shall be presented to the Divisional Purchasing manager for approval.Short listed Supplier shall be informed through a nomination letter as may be required.

The Functional Safety Representative shall be consulted for projects that are defined as Safety Critical.

Design review takes place and design changes are mutually agreed between Methode and Supplier. During this meeting, supplier commits to meet set critical project milestones.Design review meeting minutes are prepared by Supplier. These shall be reviewed and approved by the Cross Functional Team. The STA manages this activity. Final approval and acceptance shall be done by the Engineering / Product Development Manager. Refer to Flowchart ‘C’

Supplier submits FOTs, PPAP parts and documentation as agreed during design review. This is managed through APQP by the STA.

Part release is carried out according to the MANAGEMENT OF PPAP SAMPLES PROCEDURE.


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SUPPLIER QUALITY MANAGEMENT PROCEDUREIssue No:

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FLOWCHART ‘B’ – Awarding New Business to Existing Suppliers






FLOWCHART ‘C’ – SUPPORT TECHNICAL DESIGN REVIEW MEETING






SUPPLIER MONITORING AND DEVELOPMENT The STA shall monitor Supplier performance and calculate evaluation scorecards. This is communicated to suppliers and Cross Functional Team. Supplier Ranking:-‘A’ Ranking – Outstanding Supplier. ‘A’ status gives a Supplier increased opportunity to quote for new business over a ‘B’ rated Suppliers.‘B’ Ranking – Good Supplier, Minor improvement may be requested from B rated suppliers depending on findings/issues.‘C’ Ranking – Unacceptable Supplier. ‘C’ rated Suppliers will be asked to submit a corrective action plan which shall be listing all actions so as to ensure that the deficiencies that leaded to negative rating will not be repeated. This shall be reviewed and accepted by Methode STA. Unless this plan is received and accepted, a ‘C’ rated supplier shall not be allowed to quote for new business.Business on Hold (BOH) rated suppliers are managed through a Supplier Improvement Plan and are not allowed quoting for new business until performance improves to ‘A’ or ‘B’.

If a supplier performance is repeatedly poor escalation procedure shown below is put in place. ‘C’ RATED SUPPLIERS – ESCALATION PROCESS

FLOWCHART ‘D’






INCOMING PRODUCT CONFORMITY TO REQUIREMENTS STA shall release components are per applicable divisional procedures. On release of the components, the SQA shall inspect components as per applicable divisional procedures. If a non-conformance to specification occurs, and these are determined to be significant in nature, SQA will quarantine stock and issue a concern to the Supplier. This is managed through an 8D report by SQA or Quality Engineering depending on Division affected.

5 Associated Documents / Standards

6 Definitions



FormsReference

No.Critical Design Review Checklist G-MD 92Design Review Meeting Minutes G-MD 73Request For Quotation Package G-MB 100Supplier Nomination Letter G-MB 51Supplier Packaging Data Sheet G-MW 133Supplier Profile Document G-MB 17Supplier Request for Design/Process Change Form G-MB 35Supplier Technical Feasibility Commitment G-MQ 54

BOH : Business On Hold

FOT : First Off Tooling Parts

IGD : Incoming Goods Department (Material Management & Logistics)

IGI : Incoming Goods Inspection (Quality Assurance)

ISIR : Initial Sample Inspection Report

ME : Manufacturing Engineering

MM&L : Material Management & Logistics Department

NDA : Non Disclosure Agreement

PPAP : Production Part Approval Process

RASIC : Responsible - Approve - Support – Inform – Consul Chart

RFQ : Request for Quotation

SPDS : Supplier Packaging Data Sheet

STA : Supplier Technical Assistant (Purchasing)

STFC : Supplier Technical Feasibility Commitment

SQA : Supplier Quality Assistant (Quality)

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