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Yokohama Industries Americas, Inc.

Sealant Division

103 Kuhlman Boulevard

Versailles , Kentucky USA 40383

Telephone (859) 873-2188

Facsimile (859) 879-0574

Quality Control (859) 879-2802

Materials Coordinator (859) 879-2823

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Approved by:

_______________________________________ _______________________________________

Quality Control Purchasing

_______________________________________ _______________________________________

Operations Manager Manufacturing

Date: Revision Level: Pages Affected: Approval:

Initiated by: Checked by: Approved by:

12-Oct-01 Draft All L. Burton/

K. Sutherland

10-Jan-02 Release All L.B./K.S. A.H. Above

24-Oct-06 1.0 All L. Burton K. Perry A. H.

06-Feb-15 3.0 All L. Lacy D. Wade A. H.

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TABLE OF CONTENTS

PAGE SECTION TITLE 4 SUPPLIER ORGANIZATION AND CONTACT LIST

5 QUOTATION PROCESS

6 MATERIALS REQUIREMENTS

15 QUALITY SYSTEMS REQUIREMENTS

17 RMSA APPROVAL PROCESS

22 NON-CONFORMING MATERIAL

25 CORRECTIVE ACTION REPORT

26 SUPPLIER QUALITY RATING SYSTEM

27 CHANGE REQUEST

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SUPPLIER ORGANIZATION AND CONTACT LIST Any questions regarding organization and contact list requirements should be directed to YIA Q.C.

Supervisor.

1.0 ORGANIZATION CHART

All suppliers are required to submit a current organization chart to YIA Q.C. Assistant Manager. The

purpose of the chart is to allow YIA to understand the supplier’s organizational structure and lines of

responsibility. It is the responsibility of the supplier to provide updated organizational charts when

appropriate.

2.0 CONTACT LIST

All suppliers are required to complete the Contact List Form and ISO Sign-off and submit to YIA Q.C.

Supervisor. Whenever there is a change in the information on the Contact List, the supplier is responsible

for re-submitting this form. The completed form must include the name, telephone number, and fax number

of the Quality Manager and Quality Contact (the actual person to be contacted about quality issues - can be

same as Quality Manager). This list must be updated whenever changes in personnel occur. The ISO

section must be signed by the person from the supplier who will have control and possession of YIA’s

Supplier Manual and a copy returned to YIA within two weeks of receipt of the manual. This is the person

that any revisions to the manual will be sent to and will be responsible for updating the supplier’s copy of

the manual. This is a YIA controlled document under ISO guidelines.

QUOTATION PROCESS

Any questions on interpretation of this procedure should be directed to YIA Materials Coordinator.

1.0 REQUEST FOR QUOTE

YIA Materials Coordinator may issue a Request for Quotation (R.F.Q.) to the supplier. The R.F.Q. will

have an assigned Inquiry Number, which must be referenced when the quotation is submitted. The R.F.Q.

will also have a due date. It is imperative the quotation be received by YIA Materials Coordinator on or

before the due date in order to receive consideration. Attached to the R.F.Q. will be the specifications for

each part identified on the R.F.Q.. Supplier is responsible to reference any drawing numbers, part numbers,

material specification, etc., which affect the cost of the product being asked to quote. YIA personnel may

request an informal quote from the supplier verbally or in writing.

2.0 QUOTATION SUBMISSION

Suppliers should review the specifications carefully for any exceptions or Change Requests. When

applicable, the supplier must submit the quotation describing in detail the exception or Change Requested.

All completed quotes must indicate any additional costs for tooling or engineering, and include applicable

lead times. For purposes of quotation, do not amortize any cost into the piece price. All quotes must be

signed, dated, and received by YIA Materials Coordinator on or before the due date indicated on the

R.F.Q.. Each quote must reference the Inquiry Number indicated on the R.F.Q.. YIA reserves the right to

accept or reject any quotation.

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MATERIAL REQUIREMENTS

Any questions regarding interpretation of this procedure should be directed to YIA’s Materials Coordinator.

1.0 PURCHASE ORDERS AND REVISED PURCHASE ORDERS

A. PURCHASE ORDERS

This document is the initial notification of firm material requirements from YIA to suppliers. The list

below will provide interpretation of the YIA Purchase Order.

1. YIA shipping address

2. Purchase order numbers are released by the Materials Coordinator of YIA.

3. Ship Via – This give the carrier’s name to be used.

4. FOB: this details whether freight is collect, prepaid, or prepay & add

5. YIA’s Invoice payment terms

6. Vendor Address

7. Vendor Remit to Address – where payment will be sent.

8. The Line # designates the line number of the item on the purchase order. This number should be

referenced on the packing list and invoices of shipments made to YIA on purchase orders with

multiple part numbers and/or due dates.

9. Quantity Ordered

10. YIA’s Item Number

11. Date Due at YIA. This is a firm delivery date. Any item delivering after this date can be counted

as a late delivery against the suppliers delivery performance. Shipments should also not deliver

early. Any change to this date must be approved by YIA’s material Coordinator. If YIA

production shuts down due to a late delivery by a supplier, the supplier will

be charged a minimum of $1500.00 per hour for Sealant raw material

suppliers and $1000.00 per hour for Hotmelt raw material suppliers for loss

of production man hours. 12. The Unit Price – If no change is made to this price and communicated to YIA at the time the

order is placed, this is the amount YIA will pay.

13. Extended Price

14. Item Name, Description

15. Read this note carefully – Order confirmation is required with 24 hours of the order placement. If

no change is made to price and communicated to YIA at the time the order is placed, this is

the amount YIA will pay.

B. REVISED PURCHASE ORDER

In the event that a purchase order is changed for quantity change, due date change, price change etc., a

“Revised” purchase order will be released and sent to the vendor, if so required by the vendor.

2.0 CERTIFICATE OF ANALYSIS (COA’S)

As a tool to provide notification of delivery and conformance to YIA material specification

requirements, YIA will require a “Certificate of Analysis” (COA) to be emailed or faxed to YIA’s QC

Assistant Manager on the day before the material arrives at YIA and that a copy also accompany the actual

shipment. The COA should include the following information:

1. Name of company

2. Contact name, phone and facsimile number

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3. YIA’s Purchase Order number

4. The total quantity shipped to the corresponding purchase order.

5. Lot Number

6. Test results in comparison to YIA material specification requirements.

7. Due date (date material is due at YIA)

Data supplied on the COA may be used as part of YIA’s process to calculate flow rates, etc.

that can critically affect the quality of YIA’s product. Should any data on the COA be

reported incorrectly, the supplier will be held totally responsible for any quality problems

experienced and any costs incurred as a result. Please reference section on NON-

CONFORMING MATERIAL for per hour charges.

Any questions of this section should be directed to YIA’s QC Assistant Manager. COA will be

considered the Advance Notification of Shipment from the supplier to YIA.

3.0 RECEIVING DISCREPANCY REPORT

YIA will closely monitor the accuracy of incoming shipments of material. Any discrepancy pertaining to

the accuracy in comparison to the YIA purchase order number, quantity, etc. will be reported back to the

vendor. The vendor should review this report and adjust the order status of the item in question. This will

also assist in receiving prompt payment.

4.0 VENDOR RETURN

The Vendor Return is used to ship non-conforming material back to the originating source. The vendor

return is used in conjunction with the Defective Material Report (D.M.R) as described in the

Quality Systems Requirements section of this manual.

5.0 RECEIVING DAMAGE NOTIFICATION

This report is used as a notification that the Receiving department has received material from a supplier in

which there is visual damage to the pallets and/or the container in which the material is packed. This report

is filled out by the attending Receiving clerk and submitted along with photos of the existing condition to

the YIA Materials Coordinator. This form will then be faxed to the supplier and subsequent conversations

held to determine responsibility/resolution.

6.0 PACKAGING AND IDENTIFICATION REQUIREMENTS

The following will provide packaging and identification requirements for all production material as

supplied by the vendor to YIA.

A. PACKAGING

All items shipped by the supplier to YIA must be received by YIA in good condition, free of damage,

and/or contamination. To insure that this is the rule, the following packaging requirements must be

followed without exception:

1. Pallets must be strong enough to support the load of material and withstand transit via the motor

carrier. The following pallet sizes are recommended:

A. 48” x 48”, 4 way entry

Please see picture of preferred pallets.

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2. The top of the pallet must contain the number of slats that is needed to prevent the containers

falling through the pallet.

4. The bottom of the pallet must contain a minimum of three (3) slats, which must be located at both

entries and in the middle of the pallet.

5. Containers must be secure to the pallet by the use of stretch film and/or strapping. It is important to

note that the material must be secured to the pallet. Failure to do this may result in shifting and/or

sliding of the material off or away from the pallet, which may result in damage to the material.

6. Double stacking may result in damage to the material. It is recommended that the vendor place a

“DO NOT DOUBLE STACK” label on the outside of the pallet of any material, which should not

be double stacked. This will prevent the motor carrier from double stacking during transit to YIA.

7. Mixing of multiple part numbers on a pallet is acceptable. However, a “mixed pallet” label must

be attached to outside of the pallet.

8. YIA Materials Coordinator prior to production startup must approve packaging methods by the

supplier. The YIA Materials Coordinator must also approve any deviation to the packaging

requirements as listed in this manual. Deviation requests must be submitted in writing.

9. Returnable packaging methods, i.e. containers, trays, pallets, will be considered on a case by case

basis with cost justification to be submitted by the supplier.

B. IDENTIFICATION

Each container supplied to YIA should be identified with the product name, lot number, and quantity.

7.0 SHIPPING INSTRUCTIONS

WEIGHT CARRIER COMMENTS

1 – 150 LBS UPS or AGGREGATE WT.

FEDEX GROUND

151-500 LBS UPS-cwt AGGREGATE WT.

501-12000 LBS LTL As Advised

OVER 12000 LBS FTL CONTACT YIA MATERIALS COORDINATOR

YIA may drop ship product from your facility to another outside supplier other than to Versailles, KY. If

3rd

party shipment freight is to be paid by YIA, then BOL issued to carrier must show 3rd

party billing to

YIA.

8.0 DELIVERY

Suppliers are required to maintain a 100% on-time delivery performance. Each month, the suppliers not

maintaining 100% on-time delivery will be issued a Corrective Action Request for Late Delivery from the

Materials Coordinator.

QUALITY SYSTEMS REQUIREMENTS Any questions regarding interpretation of this procedure should be directed to YIA’s Quality Department.

1.0 QUALITY PLANNING

Suppliers must have a documented process for Quality Planning. This process should utilize a team

approach with emphasis on defect prevention and continuous improvement.

Elements that should be included in this process are:

A. Specification review

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B. Preparation of Process Flow Chart

C. Preparation of FMEA’s

D. Preparation of Quality Control Process Chart

E. Preparation of Inspection Standards

2.0 GAGE CONTROL AND CALIBRATION

Suppliers must maintain a documented system for the routine calibration and maintenance of all gages,

measurement devices, and test equipment at sufficiently frequent intervals to assure continued accuracy.

Any production fixture, jig, or tool used for process control or to make product acceptance decisions must

be maintained and documented in the same manner as any other gage. All gages, measurement devices, and

test equipment should be uniquely identified and indicate calibration status. Records including calibration

schedule and actual results should be maintained on file and available for periodic review.

3.0 PRODUCT IDENTIFICATION AND TRACEABILITY

Suppliers must have a documented procedure to provide positive identification of all materials throughout

all stages of the process. Suppliers must maintain a positive system for age control (FIFO).

4.0 PROCESS CONTROL

Suppliers must have a documented system that defines the procedures, methods, and documentation

requirements for control of the manufacturing process. This system should include:

A. Documented work instructions for each operation

B. Procedure for set-up verification

C. Identification and handling of non-conforming material

D. Application of statistical methods for critical characteristics – SPC for all critical specifications

as shown on YIA’s raw material specification agreement must be maintained within the supplier

process and be available to YIA immediately upon request.

E. Handling, storage, and packaging

5.0 INSPECTION AND TESTING

Suppliers must have a documented system of inspection and testing throughout all stages of the process.

Suppliers should have procedures for and maintain records of all inspections and tests for the items listed

below:

A. Incoming materials

B. In-process inspection and testing

C. Final inspection and testing

6.0 CONTROL OF NON-CONFORMING PRODUCTS AND MATERIALS

Suppliers must have a documented system for control of non-conforming products and materials.

The system should include:

A. Positive identification of all non-conforming or suspect products or materials

B. Segregation of all non-conforming or suspect material from the normal process flow

C. Defined responsibility for review and disposition of non-conforming

and suspect products or materials

A. Reworked products are re-inspected and/or tested for conformance to

specification

E. Traceability

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7.0 CORRECTIVE ACTION

Suppliers must have a documented corrective action procedure that defines the methods and responsibilities

for developing effective corrective action plans and implementing countermeasures to prevent recurrence.

This system should include:

A. Identification of the root cause

B. Containment action

C. Short-term corrective action

D. Long-term corrective action

E. Verification of effectiveness

8.0 QUALITY RECORDS

Suppliers must maintain a system for control and retention of quality systems records for all products

supplied to YIA for the active life of the product plus one (1) calendar year. The record retention

requirement includes:

A. Process change control

B. Gage and test equipment calibration

C. Quality performance records indicating inspection and test results

for all products shipped to YIA

The records must be made available for review by YIA upon request.

RAW MATERIAL SPECIFICATION APPROVAL Any questions on interpretation of this procedure should be directed to YIA Quality Department

1.0 WHEN SUBMISSION IS REQUIRED

RMSA Approval is always required prior to the first production shipment of product in the following

situations:

1. A new or changed product.

2. Correction of discrepancy on a previously submitted product

3. Following an Engineering change to design, specification, tolerances, or materials.

4. Product is ordered after a 12 month or more inactive period.

Additionally, suppliers must notify YIA and submit RMSA samples for approval prior to the first

production shipment in the following situations unless this requirement is specifically waived in writing by

QC Assistant Manager.

5. Use of an optional construction or material other than was used in the previously approved part.

6. Production following a change in the manufacturing process, method, or plant location.

7. Change of source for subcontracted parts, materials, or services (i.e. raw material, etc.).

8. To re-certify existing product due to a quality concern or re-certification requirement by a YIA

customer.

9. Refurbishment or rearrangement of existing tooling or equipment.

The purpose of these requirements is to identify changes that might affect YIA or YIA customer

requirements. Primary suppliers are responsible for subcontracted material and services.

2.0 RMSA REQUEST PROCEDURE

A RMSA Request/Evaluation will be issued to the supplier when RMSA Sample Approval is required for

Number 1 – 4 as detailed in Section 2.0 “When Submission is Required”. The supplier is responsible for

notifying YIA for any situation as shown in Number 5 – 10 in Section 2.0. The RMSA Request/ Evaluation

will specify the applicable requirements as detailed in Section 4.0 “Sample and Documentation

Requirements”.

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3.0 SAMPLE AND DOCUMENTATION REQUIREMENTS

A. SAMPLE REQUIREMENTS

All products submitted as RMSA samples shall be produced at the production site, using production

equipment, tooling, gauging, process, materials, and operators. Parts submitted for RMSA Approval must

be taken from eight to twenty four hours of production unless otherwise agreed upon in writing by QC

Assistant Manager. Unless otherwise specified on the RMSA Request/Evaluation Form, three (3) samples,

Each sample must be numbered to correspond to the reported data.

B. MATERIAL CERTIFICATION REQUIREMENTS

Material Certifications are required for all materials used to complete the product. The certification must

show the comparison of the specification with the actual test results. Standard Certificates of Compliance

are not acceptable.

C. PROCESS FLOW CHART REQUIREMENTS

A Process Flow chart may be included with each RMSA Sample Submission package. The chart must

identify inspection points and routing for rework operations.

D. CONTROL PLAN REQUIREMENTS

A Control Plan must be included with each RMSA Sample Submission package unless otherwise noted on

RMSA Request/Evaluation. This plan is used to identify by sequence of operation, what is to be controlled,

by whom, the frequency, the method, and the reaction to discovery of non-compliance. Any changes to the

control plan after RMSA Approval must be submitted to YIA Q.C. SUPERVISOR for approval.

E. INSPECTION STANDARD REQUIREMENTS

An Inspection Standard may be included with each RMSA Sample Submission. The standard must identify

all inspections and tests the supplier will perform on the product, the type of measurement or test equipment

to be used, and the frequency of the inspection or test.

F. PROCESS CAPABILITY REQUIREMENTS

Process Capability Studies are required. All capability studies shall be performed using a minimum of ten

(10) lot samples. Actual data from the ten (10) piece sample must be included with the capability

summary. A CpK of at least 1.33 is required for approval. A PpK of at least 1.67 is required. Conflict

with this requirement due to destructive test or other reasons shall be handled jointly between the supplier

and QC Assistant Manager.

G. ON-SITE AUDIT REQUIREMENTS

YIA may require an on-site quality audit as a part of the RMSA Evaluation an Approval Process.

Whenever possible this audit is performed while the product is actually running. When applicable, this

requirement will be identified on the RMSA Request Form and the appropriate arrangements will be made

between the supplier and YIA QC Assistant Manager.

H. SPECIAL REQUIREMENTS

Certain products or materials may require additional documentation, completion of engineering tests,

qualification through YIA production process trials, or verification by YIA customers. When applicable,

these special requirements will be identified on the RMSA Request Form and the appropriate arrangements

will be made between the supplier and QC Assistant Manager.

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5.0 RMSA SUBMISSION AND REPORTING FORMAT

All RMSA Sample Submissions are to be sent directly to YIA QC Assistant Manager. Each submission

must include the appropriate documentation as required on the RMSA Request/Evaluation Form and the

numbered product samples. The RMSA Submission may be submitted on the forms as shown in the

Production Part Approval Process section of the AIAG manuals or on the sample forms included in this

manual. Suppliers may use their own forms for the items listed below provided the reported information

is the same as required on the YIA forms:

1. Control Plan.

2. Process Capability.

For Material Certification, a copy of the actual mill certification or lab results are acceptable provided the

certification indicates the specification and the actual results.

6.0 RMSA EVALUATION

YIA Quality will evaluate each RMSA Sample Submission to insure it meets the requirements of this

procedure and for conformance to the requirements of this purchase order and applicable specifications.

Results of the evaluation of the RMSA Sample Submission will be reported to the supplier using the RMSA

Request/Evaluation Form.

A. Disposition Criteria:

1. Approval - This disposition is issued when all elements of the RMSA Sample Submission

Procedure, RMSA Request, Purchase Order, and applicable specifications have been satisfied.

2. Rejected - This disposition is issued when one or more elements of the RMSA Sample Submission

procedure, RMSA Request, Purchase Order, , or applicable specifications do not comply with or

are found non-conforming to the applicable requirement.

3. Conditional Approval - This disposition may be issued under the following circumstances:

A. Pending results from Engineering tests or process trials where

all other criteria have been satisfied.

B. Pending YIA Customer Approval where all other criteria has

been satisfied.

C. All criteria has been satisfied except for a minor discrepancy or

element as determined by YIA Q.C. SUPERVISOR.

4. Hold - This disposition may be issued when all information or data is not available to give an

actual disposition.

B. RMSA SAMPLE RE-SUBMISSION Any RMSA Submission, which is Rejected or given Conditional Approval, must be re-submitted in whole

or in part as instructed on the Request/Evaluation Form. Resubmission is generally required within 10

working days unless otherwise specified on the Request/Evaluation Form. Suppliers must contact YIA

Quality to confirm the instructions and make arrangements for re-submission.

NON-CONFORMING MATERIAL Any questions regarding interpretation of this document should be directed to YIA QC Assistant Manager.

1.0 NON-CONFORMING MATERIAL DISCOVERED BY THE SUPPLIER

If the supplier discovers non-conforming material has been shipped to YIA, the supplier must notify YIA

QC Assistant Manager immediately and provide the following information:

1. Lot numbers and quantities involved

2. Shipment dates

3. Containment action

4. Temporary countermeasure

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YIA will issue a Defective Material Report (D.M.R.) and disposition the defective material appropriately at

the supplier’s expense. Prompt response to YIA’s need for replacement material is essential.

3.0 NON-CONFORMING MATERIAL DISCOVERED BY YIA

YIA will issue a D.M.R. and appropriately disposition the non-conforming material to the supplier at the

supplier’s expense. YIA will make every effort to exchange the rejected material for certified stock

whenever possible, Prompt response to YIA’s need for replacement material is essential. Suppliers will

receive a copy of all D.M.R.’s and will be contacted to discuss arrangements for return, replacement. The

following is a brief description of the information shown on the D.M.R..

1. Supplier - The name of the company responsible for the non-conformance.

2. Material name - which actually has the non-conformance.

3. Date Received - The date the suspect lot of material was received at YIA.

4. Quantity Received - The actual quantity received in the lot of suspect material.

5. P.O. Number - The Purchase Order Number under which the suspect lot of material was

received at YIA.

6. Lot Number – Actual supplier lot number of material if applicable.

7. Quantity Rejected - The total quantity of material rejected .

8. Problem Location - Where the non-conformance was found - YIA Receiving Inspection, YIA

In-process, or Other (YIA customer complaint, etc.).

9. Problem Classification -

A. Critical - could result in field failure, field complaint, or assembly problem by YIA’s

customer, will affect fit, function, performance, or safety

B. Major - could result in assembly problem at YIA, may affect performance or could

result in rejection at YIA’s customer, may require rework before use

C. Minor - does not affect fit, function, performance, or safety at YIA or YIA’s

customer

10. Points Assessed for D.M.R. - Reference the Supplier Quality Rating System Section of this

manual for explanation of this procedure.

11. Problem Description - Brief description of non-conformance

12. Initial Disposition - This is the disposition of the material with the non-conformance:

A. Use As Is - Quantity determined to be useable without replacement, May require an

Change Request Form to be submitted by the supplier

B. Return to Vendor - Material determined to be unusable to be returned to the supplier

rework or replacement

13. Pending Testing – Certain testing may need to be done by the YIA Q.C. Lab to determine

usability of the product. This testing will be done at the supplier’s expense of $50.00 per

hour to cover the costs of performing the test.

14. Pending Production Trial – An actual production trial may need to be done to determine

usability of the product. This trial will be done at the supplier’s expense of $275 per hour to

cover costs of Production performing the trial and of Quality evaluating the results.

15. Final Disposition after Testing/Trial – This section will report the disposition of the material

after the testing and/or production trial has been completed.

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16. Total Testing Time and Total Trial Time: This reports the total amount of time that YIA

personnel spent performing either the Q.C. Testing or Production Trial.

17. Total Shut-down Time – This section will report any production hours that are lost because of

a supplier defect/discrepancy. The supplier will be responsible for any financial losses

incurred because of a material defect/discrepancy. If YIA production shuts down

due to a supplier material defect/discrepancy, the supplier will be

charged a minimum $1500.00 per hour for Sealant raw material suppliers

and $1000.00 per hour for Hotmelt raw material suppliers for loss of

production man hours. In addition, supplier will be responsible for any disposal

fees, freight fees, etc. that are incurred because of a supplier defect/discrepancy. This

may include, but is not limited to, actual functional defect in the material or data

reported incorrectly on the Certificate of Analysis.

18. Supplier Contact - Name of person at supplier that was contacted by YIA Quality personnel

regarding the non-conformance

19. Q.C. Sign-off - YIA QC Assistant Manager who dispositioned the material and contacted the

supplier.

20. Supplier Corrective Action Required – If a Corrective Action is requested by YIA, this

section will be marked and contain an assigned CAR Number and due date to YIA (Example:

02S001 due by 12/01/02) - Reference the Corrective Action Report Section of this manual for

full procedure.

CORRECTIVE ACTION REPORT Any questions on interpretation of this procedure should be directed to YIA Q.C. Assistant Manager.

1.0 REQUEST FOR CORRECTIVE ACTION

Suppliers will be required to submit a C.A.R. when so indicated on the Defective Material Report (D.M.R.)

or when requested by YIA QC Assistant Manager.

A. CONTENT REQUIREMENTS

All C.A.R.’s must identify the root cause of the problem, containment action taken, temporary corrective

action, permanent corrective action, and verification of effectiveness.

B. SUBMISSION REQUIREMENTS

Unless otherwise specified, all C.A.R.’s must be submitted to YIA QC Assistant Manager within ten (10)

working days. All C.A.R.’s must be attached to a copy of the D.M.R. and/or reference the C.A.R. control

number indicated on the D.M.R.. In some cases, the supplier may be asked to present their corrective action

at YIA to all for more in-depth discussion and understanding of the problem. In such cases, appropriate

arrangements will be made by YIA QC Assistant Manager and the supplier.

SUPPLIER QUALITY RATING SYSTEM Any questions on interpretation of this procedure should be addressed to YIA’s Quality and Customer

service departments.

1.0 QUALITY PERFORMANCE - POINTS ASSESSED SYSTEM

Penalties are assessed when any D.M.R. is written for a defect against a supplier according to severity of the

defect and the location the defectives were found (YIA, YIA’s Customer, or Field Failure). The chart

below is a summary of how points are assigned for D.M.R.’s:

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A. Product failure in field due to raw material defect -30

B. Product failure at YIA’s customer due to raw material defect -15

C. Unusable raw material defect at YIA - 7

D. Usable raw material defect at YIA - 5

E. Packaging/paperwork issue resulting in unusable material - 5

F. Packaging/paperwork issue resulting in usable material - 3

Each supplier will begin the month with a 100 rating. Each incident during the month will result in the

above points being deducted from the 100 rating. A corrective action will be required whenever a

supplier’s quality performance rating falls below 85.

2.0 DELIVERY PERFORMANCE – PERCENTAGE AND RATING

Delivery performance will be monitored in two different ways. The actual on-time delivery percentage will

be monitored as well as a delivery performance rating. The on-time delivery percentage will be calculated

by dividing the number of on-time deliveries by the total number of deliveries for that month. Whenever

the individual suppliers on-time delivery percentage falls below 100%, corrective action will be required

from that supplier. The delivery performance rating will monitor the severity of any late or mis-deliveries.

Each month the supplier will start with a 100 rating with penalties deducted for any late delivery. Penalties

will be deducted as follows:

A. Late/mis-delivery resulting in production shutdown -15

B. Late/mis-delivery not resulting in interruption to production - 5

If YIA production shuts down due to a late delivery by a supplier, the supplier will

be charged a minimum of $1500.00 per hour for Sealant raw material suppliers and

$1000.00 per hour for Hotmelt raw material suppliers for loss of production man

hours.

CHANGE REQUEST FORM Any questions on interpretation of this procedure should be addressed to YIA’s Quality department.

1.0 WHEN SUBMISSION IS REQUIRED

When a supplier is requesting a change to a specification, material, production process, or sub-supplier or

any deviation from the normal process either for a new product or a part that have been previously approved

through the RMSA process must be complete and submit a Change Request Form.

2.0 SUBMISSION ROUTE

All completed Change Requests should be submitted through YIA Quality. All Change Requests will be

reviewed by the appropriate department manager at YIA including Material Coordinating, Technical

Service, Manufacturing, Customer Service, and Quality Control. YIA will review each request and render a

decision as quickly as possible. YIA may also request physical samples prior to making a final decision.

3.0 SUBMISSION DISPOSITION

Upon disposition, the Change Request will be returned to the supplier indicating disposition, with any

special instructions that may apply, and signed by personnel from each department in Section 3.0 above.

4.0 IMPLEMENTATION

YIA Materials Coordinator will develop and coordinate implementation of a change request with the

supplier.