General
Standards for Suppliers
Formed Fiber Technologies, Inc.
PO Box 1300
Auburn, ME 04211-1300
Phone (207) 784.1118
Fax (207) 784.1137
www.formedfiber.com
Last
revised 8 February 2010
FFT
Operating Policy Statement:
At Formed
Fiber Technologies, everyone, in every function, is involved, empowered and
committed to Customer Satisfaction, Continuous Operational Improvement, and
Environmental Stewardship, using systematic approaches and processes.
Scope and Objective
The intent
of this manual is to give FFT's suppliers a general overview of
requirements for conducting business with FFT. FFT includes: Formed Fiber
Technologies, Auburn, Maine; Formed Fiber Technologies, Sidney, Ohio; and
Color-Fi, Sumter, South Carolina. This manual is not intended to be a
binding business agreement. In all cases, Purchase Orders, PPAPs, Supplier
Agreements, Contracts and any other business agreements shall prevail.
Table
of Contents
Basic Supplier Requirements
- All
Suppliers must be third-party registered to the latest issues of
either ISO/TS or other appropriate standard based on their supplier
classification:
- Direct
ship suppliers - TS 16949
- Primary
component suppliers - TS 16949 or ISO 9001:2000
- Primary
Material Suppliers - TS 16949 or ISO 9001:2000
- Laboratory
or Calibration Services - ISO 17025
- Brokers
and distributors shall supply a letter stating they are a
non-manufacturer
- All
Suppliers MUST comply with requirements in Section 4.2 of this
document pertaining to Chemical Content Declaration.
- All
Suppliers MUST comply with FFT's request to enter part component data
into the IMDS data system: http://www.mdsystem.com/.
** Note: Any deviation from these requirements requires
approval by FFT's Customer.
- Supplier
PPM performance goal is Zero
- Supplier
delivery performance shall be 100% on time
- Supplier
shall support the APQP process
- Supplier
shall notify FFT of any customer special status notifications related
to quality or delivery issues
- Supplier shall
provide competitive market pricing
- Supplier
shall be able to provide evidence of Continuous Improvement, including
Lean Manufacturing, Kaizen or Six Sigma initiatives
- Suppliers
shall respond to requests for corrective action: initial response within
24 hours and a final response within 14 days
- Suppliers
shall comply to requests to audit suppliers' financial documents for
tooling and piece price
- Suppliers
shall maintain manufacturing and material records for three (3) years
and supply same on request.
1.0
Sourcing
1.1 RFQ
FFT officially notifies a supplier to quote when a Request for Quotation is
sent. See appendix for example of RFQ form. To be considered for business,
the supplier must complete breakdown attachments. Reference the FFT- RFQ
number on all attached paperwork. Note: FFT's Buyers can waive this
requirement.
1.2 Accounting Practices /
Payment Terms
The items listed below are guidelines only. For actual payment terms, refer
to the Purchase Order or the actual Contract.
1.2.1 Purchase Order
- FFT
awards business via a Purchase Order that clearly describes the
product in terms of
- Type,
class, grade or other identifying factor
- Description
and means of identification
- Requirements
for approval
- Requirements
for 100% on time delivery
- Payment
terms are as specified on the Purchase Order or actual contract unless
otherwise agreed upon.
- All
material, parts and/or tooling must be received through our Receiving
Department and must have a proper packing slip firmly attached to the
outside of the container as described in the Shipping/ Materials
Manage section of this manual. The packing slip must reference the
appropriate Purchase Order number and Part /Tool number and have the
appropriate signature(s) from the FFT Receiving Department to serve as
proof of delivery to ensure payment.
- Each
invoice must reference FFT Part/Tool number and Purchase Order number
exactly as it appears on Purchase Orders, or the invoices will be
returned to the appropriate supplier, delaying payment.
1.3
Payment Disputes
FFT has a ninety (90) day dispute policy regarding issues or problems, past
due invoices and/or short payments. All notifications shall be in writing
and followed up by a telephone call within seven (7) days of submission to
our Accounts Payable Department. Any and all issues brought to FFT's
attention after the ninety (90) day dispute period has expired will not be
honored.
1.4 Obsolescence
FFT extends an offer of compensation to all suppliers for all product
produced to the limit of fabrication and material authorizations extended
but not consumed as of the completion of the original equipment assembly
build schedule. This guarantee applies only to all discount materials. All
claims are to be sent to your Formed Fiber Technologies Buyer.
- All
claims for obsolescence compensation must be submitted to FFT within
14 days of product discontinuation.
- Claims
must be submitted in writing. Contact your FFT buyer to confirm
information required.
- A copy of
your release schedule, which establishes your high points, and
verification of your final accumulation shipped to FFT must accompany
your claim.
- Claims
for raw or work-in-process-material must include the usage per part
sold to FFT, and supporting documentation for the price per unit
claimed.
- All claim
material will be audited and must be held in storage until an FFT
representative verifies its existence and the claim is settled.
- Claim
settlement monies are paid once FFT receives funds from its Customer.
- Claims
received after 14 days of product discontinuation will be returned,
and FFT will not accept responsibility for the claimed amount.
1.5
Service Parts
Service part requirements vary greatly across FFT Customers. The FFT Buyer
will notify and define the service requirements to suppliers.
2.0 Approved Suppliers
List
FFT selects its suppliers based on their ability to meet our requirements. The
selection process is performed by the Supply Chain Director, through the
Purchasing Department. The FFT Purchasing Department maintains the Approved
Supplier List. The following are factors that may be used in determining
whether or not to add a supplier to the Approved Supplier List:
- Certification
- Directed
by FFT Customer
- Successful
New Supplier Assessment
- Supplier
Profile Questionnaire
- Capacity
- Competitiveness
- Technology
- IMDS compliant
- Support
Capabilities
- Risk
Assessment
- Location
2.1 Supplier
Profile
All suppliers are required to complete a Supplier Evaluation Form. See
Appendix for sample form. Suppliers are required to submit an updated form
to FFT when major changes take place.
2.2 Quality System
Certification
Suppliers required to have a quality system certification must forward a
copy of their certification to FFT Purchasing Department. Suppliers are
required to keep updated certifications on file with FFT Purchasing
Department.
2.3 New Supplier
Assessment
During the review process, the FFT Purchasing Department will decide which
potential suppliers will require a Supplier Assessment Audit.
2.4 Specific Requirements
Each potential supplier's review is unique; therefore, the FFT Purchasing
Department will communicate to the Supplier the specific requirements
needed for that supplier to be placed on the Approved Supplier List.
2.5 Maintaining Approved
Supplier List Status
Suppliers currently on the Approved Supplier List remain in good standing
by:
- Maintain
high levels of quality
- Continuous
high level delivery performance
- Rapid
responses to FFT inquiries for information
- Maintain
competitive with price and quality within the supplier community.
Suppliers not meeting expectations are in jeopardy of
being de-sourced. See Supplier Problem Communication for further details.
3.0 APQP
3.1 General APQP
Requirements
FFT follows the Five Phases of the product quality planning cycle, and the
methodology outlined in the AIAG APQP Manual.
3.2 Customer Specific APQP
Requirements
FFT Customers may cascade their requirements down to our suppliers. FFT
Purchasing and Quality Departments will communicate these requirements to
the supplier, and the supplier will add the requirements to the project
timeline. NOTE: Customer requirements for FFT's suppliers may not always be
known at the time of business award.
4.0 PPAP
4.1 General PPAP
Requirements
The purpose of the supplier production part/material approval is to
determine if all customer engineering design records and specification
requirements are properly understood by the supplier and that the process
has the potential to produce product meeting those requirements during an
actual production run at the quoted production rate. Suppliers must comply
with the requirements identified in the AIAG PPAP Manual current edition.
Additionally, suppliers must notify FFT
and submit for Part Approval prior to the first production shipment in the
situations identified in Table 3.1 and Table 3.3 of the AIAG PPAP Manual
4th Edition, unless FFT has specifically waived this requirement for the
subject part/material. FFT requires early notification and consent prior to
any part of material changes. If FFT waives a formal submission, the
supplier must review all items in the PPAP file and update them as
necessary to reflect the current process.
4.2 Chemical Content
Declaration
Suppliers must supply MSDS for all materials. Suppliers must be
registered users of IMDS or provide all data required for IMDS system to
Formed Fiber Technologies prior to PPAP. In addition they must
provide certification of compliance to:
- FMVSS30
- GMW3059
Restricted and Reportable Substances for Parts
- TSZ0001G
Control Rules for Substances of Concern
- M0301
Substance Use Restrictions
- Ford's
RSMS Restricted Substances Management Standard
- Other
applicable OEM Standards as requested by FFT
4.3
Annual PPAP's
FFT requires annual PPAPs from suppliers whose parts / materials are used
in an end customer component where that end customer requires a form of
annual PPAP. The supplier is required to submit the same level of PPAP as
the original PPAP within one year from the approval date of the original
PPAP.
4.4 New Product
Containment
FFT requires that for a defined quantity or number of shipments, suppliers
shipping a new product put in place an enhanced inspection process. The
requirement is similar to GM's GP 12 requirements. The enhanced inspection
plan is to be submitted with the PPAP. FFT Purchasing Department will
communicate PPAP requirements to the supplier on the Purchase Order. The plan
will be reviewed and approved as part of the PPAP process. Note: FFT's end
customer may require the use of their containment process. In such cases,
FFT's Purchasing Department will notify the supplier of the requirement.
4.5 Run@Rates / Capacity
Declaration
The purpose of Run@Rate is to verify that the supplier's actual
manufacturing process, while operating under normal conditions, is capable
of producing product as documented on the Request for Quotation and PPAP.
FFT does not perform Ran@Rate on all products, but will identify key
components, material and/or suppliers where Run@Rate confirmation is
needed. If a particular product is identified for Run@Rate, then Corporate
Supplier Quality will note this on the Statement of PPAP Requirements. The
Run@Rate form (GM 1960) will be used unless an FFT customer requires use of
another form. Suppliers that are not required to perform Run@Rate will be
required to provide Supplier Capacity Statement as a requirement for PPAP
approval. NOTE: FFT may elect to perform Run@Rate on a current product due
to quality or delivery concerns. In such cases, the supplier will be
notified in writing by FFT.
5.0 Shipping / Materials
Management
5.1 Delivery
It is a FFT requirement that all suppliers provide 100% on time delivery
using the FIFO system.
5.2 Packaging
Packaging is to be identified during the APQP process, and supplier will
submit their packaging instructions which must identify, as necessary, the
container, pack count, orientation of parts, and number of layers for PPAP.
All suppliers using returnable packaging must have an expendable packaging
back up plan submitted at PPAP.
5.3 EDI / Releases
EDI requirements/method of releases will be determined during the APQP
process. Note: Direct-ship supplier EDI requirements are determined by
FFT's Customers.
5.4 Freight Transportation
Freight terms and requirements are defined on the Purchase Order.
5.5 Shipping Windows
Shipping windows are determined by Formed Fiber Technologies and will be
defined during the APQP process. NOTE: Direct-ship supplier shipping
windows are determined by FFT's customer.
5.6 Identification Labels
Labeling requirements will be defined during the APQP process as the
requirements may differ between Formed Fiber Technologies Plant(s) and end
customer.
6.0 Supplier Performance
Supplier performance is tracked semi-annually on supplier scorecards. Suppliers
are rated on 6 categories and given an overall rating based on these
scores:
- Cost
Competitiveness
- IMDS
Compliant
- On-Time
Delivery
- Quality
of Delivered Product
- PPM
- Debit
Memos Issued for Non-Conforming Events
7.0
Supplier Quality Control
7.1 Supplier Product
Quality Expectations
Formed Fiber Technologies Approved Suppliers must be able to demonstrate
the existence of a Quality Control System that encompasses receipt,
inspection, verification, storage and shipment of all parts supplied to
FFT.
7.2 Corrective Action
Requests
Formed Fiber Technologies communicates issues to suppliers using the 8D, 5
Why or similar problem solving format. The 8D request is emailed or faxed
to the supplier. The supplier has 24 hours to make an initial response, and
the supplier has 14 business days to implement corrective and preventive
action.
7.2.1 8 D Response
Suppliers may use their own corrective action forms, but the supplier's
response to each 8D must address the following items:
- Immediate
Containment Action, including: product at the supplier, product in
transit, product at FFT locations and product at FFT's customer
location
- Identification
and verification of Root Cause and Escape Point
- Identification
of Permanent Corrective Action(s)
- Implementation
and validation of Permanent Corrective Action(s)
- Prevention
of recurrence
- FFT
requires suppliers to implement immediate containment action as part
of the response to an 8D request.
7.2.2
Charge-backs
Suppliers will be charged back for all expenses incurred by FFT as
a result of delivery or quality problems attributed to that supplier.
Charge-backs are typically transacted as a debit against open invoices.
7.2.2.1 Charge-back
Guidelines
7.2.2.2 Administration
Fees
A $150 (one hundred fifty dollars) per hour charge administration
fee will be charged for clerical activities performed by FFT personnel.
7.2.2.3 Sorting and / or
Re-working
A $100 (one hundred dollars) per hour charge on behalf of FFT personnel
spent sorting and/or re-working supplier product is to be charged to the
supplier. If FFT uses temporary or contracted services to sort and/or re-work
supplier product, then the fee charged by the service will be charged back
to the supplier. NOTE: Suppliers sorting and/or re-working at
an FFT location using their own services will be charged back for
administration time spent by FFT personnel related to the sort.
7.2.2.4 Downtime
Any and all line stoppages based on both man hour and machine idle time
will be determined through FFT's accounting department.
7.3 Audits
FFT may elect to perform audits at the supplier's site. FFT will notify the
supplier of an audit and provide the supplier a copy of the audit to be
performed. NOTE: FFT's Customers may request an audit to be performed at a
supplier using their audit format. The Customer may elect to attend the
audit.
7.4 Notification
Suppliers shall notify FFT Purchasing Department Head, in writing, within 5
(five) working days, when a Customer changes the status of a site serving
any FFT facility to any of the following:
- General
Motors "New Business Hold - Quality"
- Ford
Q-1 Revocation
- Chrysler
"Needs Improvement"
Appendix - Sample Forms </a
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