Nifco Supplier Quality Manual

Transcription

Ohio Supplier
Manual
Nifco America Corp.
8015 Dove Parkway
Canal Winchester, Oh 43110
Phone: (614) 920-6800
Fax: (614) 920-6998
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This Document is controlled using Workbench Professional
Revision History:
Serial No.: 6068
Nifco Ohio Supplier Manual
Rev. 3.00
CORP-QAF-68 Rev. 6.0, Effective Date: 10/22/07
I.
Introduction
Greetings,
If you are receiving this document your organization has been
identified as an applicable Nifco CNL supplier to which our Supplier
Manual requirements apply. It is to be viewed as a minimum
requirement that all suppliers are held and is not meant to replace
individual specifications or agreements.
Nifco Ohio recognizes the critical role that suppliers play in our
success and the intent of this manual is to promote a clear
understanding of our supplier management system.
Nifco America is registered to the TS 16949 Quality Management
Standard.
Please review, control and communicate its contents to the
appropriate individuals within your organization.
Thank you,
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II.
Table of Contents
I.
Introduction – pg. 2
II. Table of Contents – pg. 3
III. Acronym Definitions - pg. 4
IV. Supplier Selection - pg. 5
V.
Supplier Expectations – pg. 6
Ordering – pg. 6
Labeling – pg. 25
Packaging – pg. 30
ASNs – pg. 32
Delivery – pg. 37
Tooling – pg. 37
Compensation – pg. 39
VI. Supplier / Part Development – pg. 41
Supplier Audits – pg.41
Continuous Improvement – pg. 41
Change Point Control – pg. 41
Non-conforming Product – pg. 43
Supplier Designation/Evaluation – pg. 45
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III.
Acronym Definitions
ASN – Advanced Shipping Notice
CNL – Canal Winchester Ohio Facility
EDI – Electronic Data Interchange
FIFO – First In First Out
IPP – Initial Production Part
„IPrint‟ – Printing NAM labels
„IStore‟ – Ordering Drop Ship components & raw materials
„ISupply‟ – Forecasts/Releases
NAM – Nifco America
NCR – Nonconformance Report
PPAP – Production Part Approval Process
PQS – Product Quality Standard
PSW – Part Submission Warrant (PPAP cover page)
SQE – Supplier Quality Engineer
QR – Quality Report
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IV.
Supplier Selection
Nifco requires all non-MRO suppliers to be ISO 9001 or TS 16949
registered (or accredited in the case of labs) and to maintain their
status as an „Approved Supplier‟. This status is primarily defined but
not limited to the following requirements:
a.
Current Quality and Alternate contact information on file
b.
CORP-PF-26 (New Vendor Request Form) on file
c.
CORP-QAF-45 (Supplier Self Assessment Form) on file
d.
Current ISO/TS certificate
e.
CORP-QAF-105 (TS Conformity Checklist- if applicable)
f.
Customer directed evidence (if applicable)
g. Compliance to evaluation guidelines set forth in Section VI
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V.
Supplier Expectations
Ordering – NAM CNL primarily employs 3 ordering methods (EDI,
ISupply and general PO) to suppliers plus maintains a portal (IStore)
for drop ship components and resin needed by the supplier.
1) EDI
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Any supplier that has a minimum $150,000.00 in sales per year is required
to participate in the Nifco EDI Outbound Project. The supplier will pay any
fees associated with the Trading Partnership setups, mapping, and mailbox
fees.
Any supplier that does not use EDI, or has a 3rd party EDI, such as JComm., may be exempt from EDI, and may use the web-based solution.
Criteria may be set at a later date that may force a supplier to do EDI with
Nifco under these 2 conditions, and will be at the discretion of the
associates handling the accounts at that time.
Nifco will send 4 different types of transactions via EDI. Some suppliers will
receive data daily, while others may receive data one time per week.
Forecasts will be sent every Tuesday, no later than 1:00pm eastern time.
This will only change, should a holiday fall on a Tuesday.
The 830 Material Release, with Release capability will be sent each
Tuesday, unless otherwise specified. These documents are to be used as
forecasts. Forecasts will consist of 15 weeks of data, which can be used to
plan material, parts, or whatever is needed for the process Nifco depends
on. See specifications for further details.
The 862 Shipping Schedule will be sent Monday through Friday for certain
Material suppliers. All other suppliers who do not meet this criteria, will
receive on 862 every Tuesday. These documents are designed to show the
firm orders Nifco is requesting, and the delivery date the material/parts are
required. Shipping Schedules will contain 57 days worth of orders. See
specifications for further details. Failure to ship on time to the Nifco
requirements may result in a QR and/or a vendor debit.
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2) ISupply

ISuppy home page
 The Notification section of the page shows the five most recent
notifications. Some notifications are for review only and some require
action.
 The Orders at a glance section shows the five most recent purchase
orders.
 The Shipments at a glance section shows the five most recent ASN‟s.
 To view the full list of any of these sections click the Full list button.
 To view the details of any of these documents click on the document
number.

Search field
 Quick search enables you to quickly find information about Purchase
Orders or Shipment Notices. Select what type of document you would
like to search, enter the document number and click „Go‟.
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
Quick links
 Click any link to go to the corresponding page.

Viewing Delivery Schedules
 Select delivery schedules under the shipments header. This pulls up a
search screen. You can run a blind inquiry or narrow your search by
entering specific parameters and select the Go button.
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 Blind inquiry: leave all fields blank. This will pull up everything due (25
lines per page) and will put it in order of due date (latest to oldest).
 *You can sort this by any column that is raised and you can change the
order of the information.

Request a change or cancellation to an order
 Go to the Orders tab and select the PO and hit the Request Changes
button.
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 This pulls up the PO header and lines. Find the line you need to change
and select show details.
 Type in change needed, reason and choose action type. Hit the submit
button. All change/cancellation requests require approval from your
buyer.
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View PO changes
 Go to the Orders tab, then Purchase history. You can search by blanket
and release number, revised date, etc.
 This will pull up your PO‟s. Scroll to the right and there are 3 options:
Compare to original, compare to previous PO and show all PO changes.
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 Example seen here is “show all PO changes”

View Returns
 Go to the Shipments tab then select Returns
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 You can search by any criteria listed or do a blind inquiry (leave all fields
blank).

Exporting to excel
 Pull up the desired information. The example used here is delivery
schedules. Click on the Export button.
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 A file download prompt pulls up, click open.
 A spreadsheet is created with all the information.
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Viewing Forecasts
 Go to the planning tab. This takes you to the search screen. Please leave
all fields blank and click ‘Go’
 This pulls up all available forecasts in order of creation date. Choose the
latest for the Ship to Organization that you want to view and hit
Summarized view.
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 This pulls up the first lines 1-10 of your forecast. The Forecasts are
consume and derive. If we have inventory and Purchase orders due from
you that surpass our customer‟s forecast then you will see zero‟s on your
forecast.
3) Purchase Orders
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Suppliers will review their purchase orders immediately upon receipt for
accuracy of quantities, pricing, ship locations, etc.
If the supplier agrees with all the information please sign in the vendor
confirmation of order and return to your contact by the end of the next
business day following the day you received the purchase order.
If there are any discrepancies in pricing contact your buyer to resolve the
issue and make any changes necessary. At that point, the Nifco buyer will
re-issue the supplier an updated purchase order. The supplier is then
expected to sign the supplier confirmation and return it to the buyer, for iSupply suppliers they are to confirm the order on the website.
If the supplier is aware of any line items that cannot ship complete in the
same shipment please notify your buyer so she/he can update your release
and re-issue you the updated release, for i-Supply suppliers send an update
on the website.
Pull Ahead Orders
 Nifco is requesting the supplier contact us immediately prior to a
shipment leaving their dock if the quantity does not match the purchase
order line item.
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 Once the buyer has been contacted the appropriate changes will be
made and the updated purchase release will be sent back to the
supplier.
 The vendor will then sign the confirmation of order and return it back to
the buyer, for i-Supply suppliers confirmations are to be sent via the
website.
4) IStore

IStore Homepage
 Navigate to IStore
 Enter User name and Password
 Press Login button
 This will take you to your list of items.
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
Placing an order
 Select the product(s) by clicking in the select box to the left of the
product(s).
 Enter quantity of the item(s) you want to purchase.
 When finished with your selection, press the Add to Cart button
 If you need to change quantity, type in correct quantity and press
recalculate button.
 If you need to delete some of your selections, press the Trash can to the
left of the item. If you need to add to your order, press the Continue
Shopping button.
 If you‟re satisfied with your order, press the Checkout button.
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 Enter Ship To details by pressing the change button.
 Select Ship To
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 Enter request date and any shipping or packing instructions. The date
you enter here will apply to all items ordered.
 If a different ship date is needed for an item, select yes below
„Shipping Details for Items‟, then press continue check out.
 Select item you‟d like a different date for, press Update Item Shipping
Details.
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 Enter desired ship date, press continue checkout.
 Enter „Bill To‟ address by pressing the change button and selecting
address.
 Press Continue Checkout
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 Verify all information is correct and press the Place Order button.
 Confirmation page comes up with an order number.
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
Viewing orders – item scheduled ship date.
 Click on orders
 This will pull up all orders placed or you can search by date placed or
by order number.
 Click on the specific order number.
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 This will bring up every part ordered for that particular order Click on
Item details.

This will bring up shipping details for that particular item.
*Note that all parts have a minimum lead time of 5 days. If you request a delivery date in less than that time
5 days will be added to the date the order is placed. Note that some parts have more than a 5 day lead time.
For example, if a part has a 14 day lead time and you request a delivery date that is less than 14 days, then
14 days will be added to the date the order was placed. If you need the item sooner, please contact your
planner.
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Labeling (General Requirements) – All products must be labeled
with an approved Nifco label containing the following format
information:
Field Name
Characters
PART NO.
5
QUANTITY
DESCRIPTION
AUDITOR
8
50
15
REV
2
MFG DATE
7
PO#
16
Serial #
N/A
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Font Size
The bar height should be 0.5 in (13
mm) as well as the human
readable
readable
Barcode
Required
Qualifier
Y
(P)
N/A
Y
N
N
(Q)
N/A
N/A
N/A
N/A
N/A
Y
N/A
N/A
Y
(M)
53002
Y
(K)
N/A
Y
(S)
readable
readable
readable
readable - This data should be
sent on ASN to activate serial # in
our system.
Format
Numeric
NO handwritten information on the label (excluding associates initials).
All totes must use Vinyl labels
Any labels added to a container other than the required Nifco label,
MUST not cover any information on the Nifco label.
Any container that is packed less than the approved container quantity
must contain a “Partial Box” label.
Any containers that contain multiple manufacturing dates must contain
a “Multiple Lot Dates” label.
Each container label will contain a serial number that is unique to that
container. This serial number ties all information on the label together.
Vendors that print labels from the Nifco website –
When labels are not available on the website, complete the
Supplier/Vendor Deviation Request (CORP-QAF76) and submit it to.
 When the deviation is approved attach a copy to each skid
containing the deviation for each shipment.
 A deviation form must be filled out for each shipment that does
not contain bar coded labels and attached to each skid.
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Labeling (Nifco website) – NAM CNLs primary method for supplier
labeling is within a web based system referred to as „Clear Orbit‟.

Log In:

Choose On-Demand Print
https://isupply.nifconet.com
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
Choose the Label Type and Printer Name then click OK

Enter the requested information needed to generate the labels then click Print
 The Lot is to be entered in the format of MMDDYY with no other
characters.
 The Container will not default, ensure the correct container is chosen
based on the Product Quality Standard (PQS)
 With Revision, if printing the latest revision, choose “Latest”, this will
automatically print the latest revision. If printing an older revision, choose
“Previous” and enter the revision needed.
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If the print job was completed successfully, the labels will print and a
message will appear at the bottom.

If the print job had an error, then an error message will appear, however, this
message will not define what the issue is. All data entered will need to be
rechecked. If all information appears to be accurate then contact Nifco
HelpDesk.
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
This is how the message will appear:
Labeling (Bar Code Printer Maintenance) – For Intermec 4440
thermal label printer (Applicable at supplier‟s discretion for localized
problems). No similar steps available for the PX4i model other than
the console obtained factory default setting.
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To flush the memory on an Intermec 4440 thermal label printer refer to the
following steps:
 Turn off printer via on/off switch.
 Refer to two banks of switches on rear of printer (each bank has eight
individual switches).
 Move all switches in both banks to right (off) positions(s).
 On top bank of eight switches, move switches 3,4,5,6 to left (on) position.
 Push front panel yellow Feed/Pause button while powering printer on.
 Hold button until 2.5 labels eject from the printer.
 While still holding yellow Feed/Pause button, power printer off the back on
(repeat of above step).
 Another 2.5 labels will eject from printer.
 When memory has successfully cleared the counters for Mileage
(Inches Processed, Inches Burned, and Labels Cut) will all equal 0.
 Turn off printer as memory has been successfully cleared.
To confirm proper darkness/quality of labels when printing refer to the
following steps:
 Turn off printer via on/off switch.
 Refer to two banks of switches on rear of printer (each bank has eight
individual switches).
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Move all switches in both banks to right (off) positions(s).
On top bank of eight switches, move switch 4 to left (on) position.
On bottom bank of eight switches, move switch 8 to left (on) position.
Push front panel yellow Feed/Pause button while powering printer on.
Hold button until 2.5 labels eject from the printer.
Push the Feed/Pause button once. Labels will begin printing in
continuum.
Check for appropriate darkness/quality of printed labels.
 Turn blue button on back of printer clockwise to darken and/or
counter-clockwise to lighten darkness of print.
 Continue adjusting until desired printing darkness/quality is met.
Turn off printer.
Return switch 4 on top bank to off position. Leave switch 8 in bottom bank
in on position.
Turn printer on returning to normal operation.
Packaging Expectations
 The supplier must develop and propose packaging that ensures all parts are
received free from damage. Exceptions to this development will be when
Nifco designates packaging.
 Packaging for each product must be agreed upon at the time of part
submission.
 Any changes to the packaging must be approved by Nifco prior to being
implemented.
 Packaging must conform to the Nifco PQS, government and transportation
rules and regulations.

Returnable Packaging
 Supplier is responsible for cleaning or replacing any lost or damaged
returnable packaging
 When alternative packaging is not available, complete the
Supplier/Vendor Deviation Request (CORP-QAF76) and submit to
NAM.
 When the deviation is approved attach a copy to each skid containing
the deviation for each shipment.
 A deviation form must be filled out for each shipment that exhibits
alternative pack and attached to each skid.
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Skid dimensions and heat treated skids
 Heat treated skids: Skids that have no slats and/or have the
international symbol on the side and will be used for international
shipments only.
 Tier-One-Only
 Only 48” X 45” in size
 No gaps larger than 4”
 No broken boards
 Misc. Customers: Usable skid (other than tier one)
 No larger than 49” X 46” and no smaller than 47” X 44”
 No broken boards
 No gaps larger than 4”; at least 4 slats on a skid
 Heat treated skids are used for international shipments including
Nifco Mexico.

Stacking Instructions
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 Max number of containers per skid and skid height should not exceed the
recommended set in the part quality standard.
 For 14x14x14 boxes, pallet should be three by three (3x3) (9 per layer)
square and four layers high (72 inches).
 Face labels outward. Boxes in the middle should have all labels facing the
same direction as shown in the pictures below.
 Heavier corrugated boxes should go on bottom.
 Stack small boxes and partials on top.
 Containers should fit pallet with NO overhang
 All pallets MUST be stretch-wrapped. See OPL XXXX for certain
exceptions.
ASNs - NAM CNL accepts 2 ASN methods (EDI & ISupply) from
suppliers as detailed below.
1) EDI ASNs
 The 856 Advanced Shipping Notice will be expected to be sent by the
suppliers no later than 30 minutes from the departure of the shipment from
the supplier‟s dock. Since these are called Advanced Shipping Notices, they
are expected to arrive prior to the material/parts arriving at Nifco. See
specifications for further details. Failure to complete the ASN process in this
timeframe and not contact the appropriate Nifco associate may result in a
vendor debit of $300.00 per occurrence.
 The 997 Functional Acknowledgements are expected for all documents that
are sent from Nifco. These acknowledgements that the data was received. Inturn, a 997 will be sent back for any ASN that was sent by the suppliers,
which will also show the document has been received by Nifco.
 **NOTE** An acknowledgement is only that the data was received, if there
are issues with the data, this will be communicated via phone, or email,
with the exact issue at hand. Timing is crucial in most cases, so the fix
must be quick and precise.
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Any data issues must be communicated to Nifco. It does not matter if the
supplier is sending, or receiving data. Communication is the primary focus in
any successful implementation. Failure to keep the communications channel
open may result in vendor debits, as well as vendor ratings being affected.
Suppliers that are identified as non-complaint, will be assessed a QR and/or a
vendor debit, so it is in the suppliers‟ best interest to complete the setups as
quickly as possible. Along with the vendor debit, will be a reduction in the
monthly vendor ratings.
Special circumstances may require the delivery be moved up, or pushed
back. In all cases, Nifco will send a special file, which may be sent at any time
during the normal work week. An email, or call to the customer service group
of the supplier will be made so that there is no confusion of when the special
file will be available.
Suppliers who do not have at least $150,000.00 in sales per year will be able
to view releases, and send ASN‟s to Nifco using the ISupply web application.
2) ISupply ASNs
 Submitting an ASN
 Select Shipments tab, then Shipment Notices and choose Create Advance
Shipment Notices.
 This pulls up a search page where you can choose either Shipments Due
This Week or Shipments Due Any Time.
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 Scroll through and check the lines that you are shipping and click Add to
Shipments button.
 The Shipment lines page pulls up. Enter information and quantities, if they
are less than what was ordered. Select Shipment Header.
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 Enter information and click the Submit button. * indicates a required field.
 The confirmation page pulls up.
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
View or Cancel Advance Shipment Notice
 This pulls up the last 25 Shipment notices. Click the shipment number to
view it.
 To cancel, select the cancel Shipment Notice button.
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 The ASN confirmation page pulls up.
Delivery Requirements
 All containers shall be palletized so that the labels are visible from the
outside.
 Group part numbers together on one pallet whenever possible.
 All products must be shipped using the First In First Out (FIFO) method.
 All Nifco purchase orders specify that the following be included on all
documentation accompanying deliveries:
o Nifco Part Number, purchase order number, and line shipment
number MUST appear on all packing lists, and material
certifications.
 MSDS MUST accompany all first deliveries.
 Material Certifications MUST accompany delivery.
 All material certifications should be sent solely via email to
[email protected] prior to shipment arrival. The email
subject line and/or attached document should also be titled in the following
manner. „NAM Part# / Lot #‟ / Supplier Name‟
 Nifco also requires confirmation of the terms and conditions presented on
all purchase orders via fax or email.
 Any deviation from the original requirements, including pricing and delivery
dates, are to be altered on the purchase order and returned to Nifco for
adjustment prior to any shipment.
 Failure to comply to the delivery requirements will result in vendor debits
starting at $150.00 for the first non-compliance and escalating per incident
thereafter.
Tooling (Outsourced Molds)
 General expectations
 Suppliers are responsible for all preventative maintenance to the mold and
Nifco is responsible for all repairs due to wear and tear.
 Nifco will charge the vendors a rate of $300 per tool for any preventative
maintenance we must perform on a tool.
 Nifco will also charge the suppliers $70 per hour for any repairs caused as
a result of failure to perform routine PM
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
 If molds are sent back to Nifco for repairs and Nifco finds the molds only
need a good PM done on them, Nifco will not incur the costs of ensuring
the preventative maintenance is being done on the molds.
 Suppliers have the responsibility for any costs incurred for mold repairs
due to damage caused by neglect or operator carelessness. It is not
Nifco‟s responsibility to prove operator carelessness or supplier neglect
caused the problem.
 Suppliers will be charged a rate of $70 per hour for repairs due to neglect
or carelessness.
 The age of and overall condition of a mold will be considered in making a
determination of responsibility on older molds. Nifco will still be
responsible for normal wear and tear on the molds.
 A Nifco representative and the supplier will check the condition of the mold
and if the supplier agrees the mold is in good condition, the supplier will be
asked to sign off on the check sheet.
 At that point, the supplier becomes responsible for all repairs outside of
normal wear and tear. If problems are found with the condition of the mold,
then those issues will be stated on the check sheet.
 The mold will either come back to Nifco at that time to address those
issues or based on the severity of the condition, the mold may be ran at
the supplier until the tool can be scheduled for repair.
 Preventative maintenance audits may be requested. Regular preventative
maintenance on the molds may prevent not only extensive repair costs in
the future, but it may also prevent quality issues from occurring.
 Nifco is responsible for any non-conforming dimensional quality issues in
which the manufactured products meet all dimensional specifications
called out on the PQS.
 In the instance where we have a quality issue that meets all dimensional
specifications, yet we find the problem is caused by erratic molding
conditions which is a direct result of negligence in performing routine
preventative maintenance on the mold, then Nifco will not be responsible
for the cost of any inventory and/or any costs associated with such a
complaint.
Mold Transfer Procedure for Tool Repairs and Design changes
 All requests for tool moves, mold repairs and tool modifications should be
initiated by using the “O/SToolMove” group email address. The Outsource
Supplier will not ship in tools without prior approval from a Nifco designate.
 Outsource Supplier will ensure the Outsourcing Design Change Mold
Transfer Check Sheet (Form CANAL-OF-18) is completed and emailed to
the “O/SToolMove” email address prior to shipment of all tools.
 NAM designate will discuss repair timing with all parties involved and will
schedule bank build if needed.
 Outsource Supplier notifies all when the bank build is complete or when
tool is ready using the “O/S ToolMove” email address.
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 Outsource Supplier will tape a copy of the completed Outsourcing Design
Change Mold Transfer Check Sheet (Form CANAL-OF-18) to the mold
prior to shipment.

Outsource Supplier will notify NAM via “O/SToolMove” email address
that the returned tool has arrived in their shop with a tentative sample
date. Sampling to happen within 4 weeks of return of the tool to Outsource
Supplier. Sampling results are to be documented on the Supplier Initial
Sample Approval Form (CORP-OF-02) and the Tool Check Off Sheet
(CORP-OF-07) and submitted back to Nifco via “O/S ToolMove” email
address.
 NAM will provide final approval according to PPAP requirements. See
section VI.
Compensation (Outsourced) - Obsolete Raw Materials and
Molded Inventory


On I-Supply a listing of buildout parts per supplier is maintained as Nifco
customers publish buildout notices.
 Suppliers are required to complete the quantity they have in stock on a
monthly basis. All updates are required by 5PM on the first Monday of
each month.
 On this form there is a section for comments that the suppliers can use
to provide any additional information to the planner about missing parts
or justification for the on hand quantities.
 NO buildout compensation request will be considered without having
submitted the information on the website, this includes raw material,
purchased components & finished goods.
Finished Goods
 Nifco will purchase one week of inventory on any part in which the
supplier had no notification the part was going obsolete.
 Nifco will purchase one week of inventory on any part in which there was
a design change without prior notification.
 Nifco will purchase one week of inventory on any purchased component
a supplier must purchase in order to complete a finished good. For any
product where minimum quantity buys exceed the one week inventory
limit the supplier must seek prior approval from Nifco before any
consideration on compensation will be given. Nifco requires that the
supplier show that they tried to reduce the min buy for the buildout
purchase by discussing with Nifco Purchasing, if no communication
occurred then compensation will not be given. The supplier must submit
a letter to Nifco from the component supplier stating the minimum buy
quantities, as well as the supplier excess inventory approval form.
 Molding supplier is responsible for scheduling shipments of components
from those suppliers who have lengthy lead times on deliveries in a
manner which keeps inventory levels to a minimum.
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




The one week inventory level will be based on the
average monthly volumes of sales over the last three
months prior to the last order of any part.
Raw Materials
 Nifco will purchase one week of raw material of any part that becomes
obsolete without prior notification.
 For raw material with a minimum quantity buy, Nifco will be responsible
for any raw material up to a minimum buy quantity in the event the
material becomes obsolete without prior notification. However, Nifco
requires that the supplier show that they tried to reduce the min buy for
the buildout purchase, if no communication occurred then compensation
will not be given.
 Nifco will not purchase regrind materials.
 Nifco will not purchase blends.
Suppliers must submit a request for compensation form CANAL-OF-22, within
30 days of notification of a part build-out but not later then 7 days after the
specified buildout date. No request will be considered that is not made within
this timeframe.
Suppliers will be responsible for contacting Nifco to request the status of any
part the supplier has not shipped to Nifco in the last two months, where there
has been no prior build out notification. Once Nifco confirms the status of the
part as build out, the vendor will have 30 days to submit a request for
compensation. Nifco will not consider any request after the deadline has
passed.
Suppliers will not receive compensation for any buildout product where prior
notification to the buildout was given (excluding minimum buys on raw
material & components, see Raw Material section).
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VI. Supplier / Part Development
Supplier Audits


Nifco will perform on-site quality audits to assess the ability of the supplier
to meet NAM expectations, verify countermeasures, and participate in
improvement activities with the intent of cultivating a mutually beneficial
business relationship.
The particular audit activity will be documented on CORP-QAF-104 and
be provided to the supplier.
Continuous Improvement


All suppliers shall employ a Continuous Improvement program
This plan should be available for review by NAM upon request.
Change Point Control – As we all know, any time a change occurs,
or something different is introduced to a part or process, risk is
inherently increased. Additional tools and procedures must be in
place both at the supplier and NAM to mitigate this risk.


PPAPs (Production Part Approval Process)
 See AIAG PPAP manual for complete requirements. NAM PPAPs
should be in accordance to the NAM PPAP checklist (CORP-QAF110) and IMDS information submitted to www.mdsystem.com under
Nifco Company ID# 19899.
 1st run (initial submission)
 Purchased parts: NAM requires a Level 3 PPAP along with
production level parts submitted to the assigned NAM
Purchasing contact.
 Outsourced parts: NAM requires a Level 2 PPAP (PSW, PQS,
data to support PQS compliance and Material Certification)
submitted to the assigned NAM Project Engineer.
 Re-submission (examples = Engineering changes, tool repairs /
modifications or process changes). See AIAG PPAP manual for
complete list.
 Purchased parts: NAM requires a Level 3 PPAP along with
production level parts submitted to the assigned NAM Supplier
Quality Engineer.
 Outsourced parts: NAM requires a Level 2 PPAP (PSW, PQS,
data to support PQS compliance and Material Certification)
submitted to the assigned NAM Supplier Quality Engineer.
IPP (Initial Production Part)
 A system designed for notification and tracking of initial parts.
 „IPP tags‟ must be attached to the initial mass production shipment
of parts for each of the following situations:
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1. Design Change
2. New Supplier
3. Material Change
4. Manufacturing Method Change
5. Process Order Change
6. Machine Change
7. Jig/Tool Change
8. Die/Mold Change
9. Inspection Method Change
10. Transportation/Packaging Change
11. Sort
 These tags should be obtained in one of two ways.
1) For suppliers who do not utilize the Clear Orbit labeling system
IPP tag CORP-QAF-54 (5) must be attached to the first IPP
parts shipped. One should be applied to the specific container
and the other four applied to the outside of the wrapped skid)
2) For those suppliers who utilize Clear Orbit the tags will be
system generated
 In the screen shot above you can see that an „Ipptag‟ field is part of the
NIFCO_LABEL job screen. In the event you need to IPP a shipment
this field should be populated with either the NAM ECO# or other
distinguishing verbiage.
 Once you enter something into this field the system will in turn print the
first part number label (which will be a flagged serial for Nifco
receiving) and 5 system generated IPP labels (see ex below - one
should be applied to the specific container and the other four applied to
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the outside of the wrapped skid). The system will then print out the
remaining part # labels if there are any.


System Generated IPP Label Ex =
Standard manufacturing conditions – NAM believes it is imperative that all
suppliers shall have an established and verified part specific Standard
Condition (Ex. Master Set-up sheet, pre-programmed, etc).
 These Standard Conditions shall also be accompanied by a monitoring
system (Ex. Process Audits, Machine Alarms, etc.)
 Should the supplier deviate from the Standard Condition please follow
PPAP re-submission process
Nonconforming Product - Nifco expects 100% quality product and
delivery from all suppliers


Nonconforming Product at the Supplier Operation
 It is the sole responsibility of the supplier to deliver defect free product.
 Any changes to raw material, components or sub-suppliers are
considered to be nonconformance infractions unless prior written
authorization from Nifco has been received.
 NAM requires that any nonconforming product found at a supplier or a
sub-supplier‟s location be immediately quarantined (including product
in- transit). Nifco must be notified (via phone call & email) in the event
that the non conforming product has inadvertently been shipped to
Nifco.
 All „Certified‟ product shipped to NAM must be clearly identified as to
what the product is certified for. In other words a sticker simply stating
“100% inspected” is not acceptable. Please also reference either the
QR number or specific certified characteristic.
 In the event a supplier requests relief of NAM requirements a „Supplier
Deviation Request‟ (CORP-QAF-76) should be submitted to the
appropriate CQE for disposition.
Nonconforming Product at Nifco
 Should purchased product be considered non-conforming it will be the
supplier‟s responsibility to fully facilitate immediate containment activity
throughout the supply chain.
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

 Should a 3rd party resource be required to complete that containment
activity the supplier will be responsible for contacting, contracting and
supervising.
 It is recommended the supplier use a Nifco preferred 3rd party (per
assigned SQE).
 Should nonconforming product be found at a Nifco‟s customer location
the supplier would assume full responsibility for all costs associated
with correcting the problem.
 Nifco reserves the right to request corrective action on all material
rejects. The supplier shall complete the Nifco Corrective Action Report
or other approved format.
 Nifco retains the right to use additional “resource” on the supplier‟s
behalf for any specific quality issues that may be identified at Nifco or
Nifco‟s customer if needed.
Supplier Charge Backs
 If nonconforming material is received, quarantined, sorted and/or
reworked at our facility, the following charges will be applied at
management discretion and a corrective action required.
1. NCR Processing Charge:
$175.00 per occurrence
2. Sort by Nifco Personnel:
$60.00/hr per person
3. Recurring Issues after containment:
4. Returns from Customer per Item:
5. Over / Under /Late Shipments:
6. Overtime to Prevent Production Interruption:
7. Line Down Time:
8. Packing slip discrepancy / missing
9. Material Certification discrepancy/missing
10. Certificate of Compliance discrepancy/missing $175.00 per occurrence
11. ASN discrepancy/missing
Corrective Action Process
 Nifco reserves the right to request corrective action on all material
rejects and/or delivery problems.
 This activity shall be documented in Nifco format (QAF-29 or QAF-80)
 Corrective Action requests must be answered in a timely manner. We
require initial response within 24 hours of notification and permanent
corrective action within 5 working days.
 Failure to respond within the 5 days will result in a fine of
$150.00 per day
 If a due date cannot be met, the supplier is responsible for
contacting the originator in writing with justification for approval
of an extension.
 Suppliers shall conduct a root cause analysis including the use of
disciplined problem solving techniques.
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 Closure for any complaint will only be issued after Nifco has agreed
that the actual root cause was identified and that permanent corrective
action has been verified and is in place.
 Nifco expects its suppliers to be proactive and institute any
preventative actions or procedures that will aid in the detection or
elimination of any potential cause of nonconformity.
 Nifco expects its suppliers to identify any opportunities to further apply
any Corrective actions to other like processes or products (Lateral
Evolution).
Supplier Designation/Evaluation – Suppliers are designated to 3
categories and evaluated regularly to requirements set forth by NAM
as detailed below

Supplier Categories:
1) Outsourced – Certain suppliers to which Nifco/Customer owned
Injection Molding tooling has been sourced.
2) Focus – Those suppliers to which a past negative quality history
has been exhibited and additional supplier development is
required. Performance of these suppliers will also be tracked
and presented to Executive Management within Nifco.
3) All other suppliers
 Focus/Outsourced Suppliers are evaluated each month by using the
criteria listed on the Monthly Suppliers Performance Report Card (CORPPF-037)
 If the supplier maintains a score of 80% or better, they are
deemed acceptable. If the score drops below 80% for two
consecutive months, the supplier is placed on probation and
cannot receive any new business until two consecutive months
of a rating above 80%.
 All other suppliers are evaluated on a quarterly (3 month) basis using
quality and delivery QR history.
 If the supplier maintains a score of 80% or better, they are
deemed acceptable. If the score drops below 80% for one
quarter, the supplier is placed on probation and cannot receive
any new business until they receive a new quarterly rating
above 80%.
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Revision History:
Serial No.: 6068
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Nifco Supplier Quality Manual

Transcription

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