suppliers manual - epedal
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SUPPLIER MANUAL
O4-DU-001 Pag. 1 / 14
Suppliers
Manual
Epedal - Indústria de Componentes Metálicos, S.A
Apartado 41 3781-908 Sangalhos
Telephone: +351 234 730 180 E-mail: [email protected]
http: www.epedal.pt
Updated on: 17-04-2019
SUPPLIER MANUAL
O4-DU-001 Pag. 2 / 14
Preface
The high competition in the international market and the consumer’s expectations regarding Quality,
environmental impact and safety of the bought products, have led a large number of companies to think
seriously about this issues.
Epedal, in this context, requires its suppliers to practice certain compatible activities with the normative
references of our Management Systems (IATF 16949, ISO 14001, OHSAS 18001), as a way to guarantee a
full partnership in Commercial activities.
Thus, we forward this Manual as a way to convey the mutual commitment to achieve the proposed goals
of Zero Defects in products and services, as well as some methodologies that we intend to adopt in the
course of supply activities.
We remain at your disposal to provide any clarifications it considers necessary.
Belarmino Canelas Paulo Ferreira
Quality Director Purchasing Director
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INDEX 1. PURPOSE ................................................................................................................................................4
2. GENERAL CONSIDERATIONS ..................................................................................................................4
3. APPLICATION .........................................................................................................................................4
4. SUPPLIERS DEVELOPMENT ....................................................................................................................4
5. PURCHASE REQUESTS ............................................................................................................................5
6. APPROVAL PROCESS OF PARTS .............................................................................................................6
6.1 PPAP - “Production Part Approval Process” ..................................................................................6
6.2 IMDS Registration “International Data System” ...........................................................................7
6.3 Special Features .............................................................................................................................7
7. Annual Requirement of Product / Process “Layout Inspection” ...........................................................8
8. Product and Process modifications / Deviations / Derogations............................................................8
9. Traceability Identification ......................................................................................................................8
10. Delivery and Technical Receipt .............................................................................................................8
11. Product Identification ............................................................................................................................9
12. Packaging ...............................................................................................................................................9
13. Security / Regulation .............................................................................................................................9
14. LIABILITY ................................................................................................................................................9
15. LIABILITY INSURANCE ............................................................................................................................9
16. COMMITMENT OBJECTIVES (Efficiency and Effectiveness – Performance) ..........................................9
17. CONFIDENTIALITY ............................................................................................................................... 10
18. SUPPLY CAPABILITY ............................................................................................................................ 10
19. CONTINGENCY PLAN AND RISK ANALYSIS .......................................................................................... 10
20. SUPPLIER EVALUATION SYSTEM ......................................................................................................... 10
20.1 QUALITY ASSESSMENT ............................................................................................................... 10
20.2 Logistic Evaluation ...................................................................................................................... 11
20.3 Supplier Index ............................................................................................................................. 11
20.4 Supplier Requirement ................................................................................................................ 12
21. Supplier Audits (Manufacturing Processes) ....................................................................................... 12
22. Non-Conformity Treatments .............................................................................................................. 13
22.1 Non-conformities detected after deliveries ............................................................................... 13
22.2 Non-conformities detected in Supplier ...................................................................................... 14
22.3 Costs to Attribute to the Supplier .............................................................................................. 14
22.4 Non-conformity Determined in Supplier from Epedal responsibility - Subcontracting ............. 14
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1. PURPOSE
The purpose of this manual is to establish with Epedal Suppliers the commitment of selection, evaluation,
as well as to make known the requirements of the Quality and Environmental Management System that
must be fulfilled for approval and development of Suppliers that also apply to suppliers imposed by
Epedal Customers.
Acceptance of the order by the Supplier implies acceptance of this manual.
2. GENERAL CONSIDERATIONS
The systematic of continuous improvement are also requirements for the following aspects:
- Compliance with applicable environmental laws and regulations in the jurisdiction where the supplier
carries out his activities, as well as regulations required by customers;
- Where applicable, commitment to continuous improvement of the processes and characteristics of the
product and / or service with reductions of variations and elimination of waste using appropriate
statistical techniques.
3. APPLICATION
The systematic described in this manual applies to all Epedal Suppliers following the criteria defined in the
table below:
It is Epedal supplier’s responsibility to certify their Quality Management Systems (Required) and
Environment and Safety (Desirable), in accordance with the above mentioned requirements (for
calibration laboratories the requirement refers to accreditation for the respective test).
The Supplier must send to Epedal a copy of the valid certificate and resend it whenever it is submitted to
a new certification or renewal of the existing one. In the event of loss or suspension of certification, the
Supplier must inform Epedal immediately.
4. SUPPLIERS DEVELOPMENT
- Epedal will give preference to suppliers that at least have ISO 9001 + MAQMSR certification or are under
development and implementation, with the goal being that the entire supply chain be certified by IATF
16949. To achieve this goal it will encourage suppliers with certification ISO 9001 to migrate to IATF
16949.
- Suppliers must define their objectives, goals, risks and opportunities by strengthening the organization
context as well as the quality policy.
Type of Supplies Requirements
- Raw-material/subsidiaries - Components - Service providers sorting, reworking and subcontracting products
IATF 16949 and/or ISO 9001 + MAQMSR ISO 14001
OHSAS 18001
- Calibration RMM’s and Tests ISO IEC 17025
Service providers (see point 23 of this manual)
Preferably NP EN ISO 9001
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- Environmental, Occupational Health and Safety – Epedal prefers to work with suppliers that has ISO
14001 and OHSAS 18001 certified Management Systems. At the “Regulamento de Ambiente e Segurança
para Empresas e Trabalhadores Externos” (O4-DU-003), that can be downloaded at Epedal website
(www.epedal.pt) ou requested to the Purchasing or Quality Departments from Epedal, are described the
practices and requirements to our suppliers.
- The Supplier must appoint the partners with responsibility and authority to ensure Epedal's needs.
- The Supplier's Quality Management System must be audited in order to verify the compliance of the
requirements set forth in this manual and other additional requirements to the Quality Management
System.
- Components Suppliers that are responsible for the design of their products and/or processes should
adopt the APQP methodology - "Advanced Product quality planning"
- Supplier, where applicable, shall validate all manufacturing, functionality, packaging and labelling
processes if they meet the specified requirements, at a set frequency.
- Epedal monitors Suppliers through the Suppliers Index every six months, which we ask Suppliers to
follow up and analyse the results.
It is the Supplier's responsibility to monitor and control the subcontractors for their performance,
deliveries, quality, claims and returns.
- Epedal researches and selects suppliers for the automotive sector taking into account:
- General information on the potential supplier, in terms of its structure, organization, products,
intellectual (technical, technological and human) capacity, customers and industrial sectors;
- Quality performances, product complexity;
- Risk index
- Financial stability
- Capacity for design and development
In the event that the supplier is imposed by Epedal's customer, all the analysis and monitoring
requirements expressed in this document are executed and transmitted to Epedal's supplier and
customer. This supplier shall allow visits, on-site evaluations and audits by Epedal and the customer
involved.
5. PURCHASE REQUESTS
The Purchase Order sent to suppliers by Epedal clearly describes the materials, such as:
- Epedal Article Code - Item description - Specifications (raw material, the supplier will have to request the technical file from the
purchasing department). - Quantity (where delivery schedules apply, the "F" position is firm and "P" positions are
forecasts) - Delivery date.
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6. APPROVAL PROCESS OF PARTS
6.1 PPAP - “PRODUCTION PART APPROVAL PROCESS”
For the supply of new raw materials and components, Epedal requests the submission of the PPAP and
level 3 is required, however it may be changed according to the requirements of the Client or others. If
the supplier is a reseller you should request all information from your supplier to send to Epedal.
The submission will be made through the sending of initial samples, under the following conditions:
- New suppliers;
- New products and / or modified;
- Change in the manufacturing process;
- When requested by Epedal Customer;
- Sub-contractor change
- Modification of test methods and measurements / equipment
- Production shift
- Displacement of on-site production equipment
When changes in the manufacturing process occur at the initiative of the supplier, the supplier must
notify Epedal and request formal approval for the new situation before any product resulting from the
modified process is sent.
The Initial Samples (IS) must be manufactured with definitive means and result from the process
representative of the serial supply conditions. The supplier must send the complete initial submission file
accompanied by test pieces (eg 5 pieces, sample of sheet / tube / rod, etc.) and must be sent on the date
scheduled to the attention of the Epedal Purchasing Department. Their wrapping shall be in conformity
with the specifications and shall be identified by a specific label "Initial Samples" indicating at least:
quantity, plan number and index.
Note: In case the product is made with several identical tools or with a multi-cavity tool, the IS
presentation should be for each tool and / or cavity.
The IAs should always be accompanied by the submission file containing the PPAP. It is up to the
responsible for the follow-up and development of suppliers to adapt the requirements to each reality.
Epedal analyses the samples by performing the tests to verify their compliance with the specification.
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The result of the evaluation is reported by the Purchasing Department / Quality Department to the
supplier with the following codification:
USE Product
Qualification Status
Comments on the Samples Responsibility/ Actions
Series A - Product according to specifications Epedal: Sending approval to supplier
Derogated (limited in
time or quantity)
AC
- Non-conformities without influence on product quality, but requiring improvements; - Incomplete AI file
Supplier: send missing documentation and / or compliant parts
Rejected R
- Non Conforming Product - Security or regulatory aspects not respected - Rejected part by Epedal or Epedal customer
Supplier: send new initial samples
In case the IS do not obtain the acceptance status A, new samples must be presented by the supplier until
the status A is reached.
For strategic and / or non-certified suppliers, a specific plan will be used that fits the Epedal development
strategy.
6.2 IMDS REGISTRATION “INTERNATIONAL DATA SYSTEM”
Epedal, within its production chain, wants its suppliers to register the chemical elements and quantitative
data of each product provided on the site: www.mdsystem.com
For new products, the supplier must send a copy of the material register in the IMDS attached to the
PPAP documentation, which will be approved by registration in this system.
Every time the supplier is not a producer, he should ask his supplier to register with the product's IMDS
database (Epedal user: 24642).
Regarding the matter expressed in this section, Epedal asks the supplier for a contact for a better
identification and active understanding of this topic.
6.3 SPECIAL FEATURES
The special features will be informed to the supplier through the drawings and / or standards. Other
special characteristics may be identified by the supplier himself during the production of the product or in
its planning.
These special features should be included and indicated as such in the control plan for statistical
evaluation (where applicable).
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7. ANNUAL REQUIREMENT OF PRODUCT / PROCESS “LAYOUT INSPECTION”
It is required by Epedal to do the requalification of the product/process every year. Thus the supplier is
obliged to carry out the "Layout Inspection" of the supplied product, keeping the results available to
Epedal.
In addition, for special processes the suppliers must carry out an annual self-assessment of the process,
based on AIAG standards (CQI’s).
The "Layout Inspection" shall consider the complete requalification of the product / process unless
otherwise agreed by the parties prior to the submission of PPAP level 3.
8. PRODUCT AND PROCESS MODIFICATIONS / DEVIATIONS / DEROGATIONS
Any alteration of the product and process to the requirements requested in the Epedal purchase
requisitions, the Supplier must make a request for a derogation or request for a deviation (with date and
production batch executed according to the changes made) to Epedal’s Quality and Purchasing
Department. You may only ship the product after this order has been accepted by Epedal.
The form to be used to formalize the application is "S1_Q-IP-001 - Request for Derogation".
9. TRACEABILITY IDENTIFICATION
The Supplier shall apply a methodology of identification and traceability of products throughout its
production process, so that in case of some eventual non-conformity, it is possible to identify the lot and
block it before being sent to Epedal.
10. DELIVERY AND TECHNICAL RECEIPT
When applicable, Epedal requests that the first three shipments after PPAP validation (as described in
section 6.1 of this manual), must be identified with "Submissions after Approval" accompanied by the
respective dimensional report of the significant quotas and according to the control agreement.
The reception of the materials at Epedal will only be accepted if accompanied by the following
documents:
- Delivery note or invoice, mentioning Epedal's code / reference or purchase order number
- Certificate of conformity of the product where applicable
Failure to submit the above mentioned documents may originate alerts and / or complaints, production
stops with its associated costs.
It is of the supplier’s responsibility, the quality of the materials supplied to Epedal at any time in the
production process as well as to the end of the product life. The supplier is also responsible for
considering records of product conformity for a period of 10 years and for regulatory and safety
materials, it should be considered 20 years.
Epedal's acceptance of the initial samples does not exclude the responsibility of the supplier to assume
responsibility as well as all the costs inherent in the lack of quality of the material supplied nor to carry
out the necessary checks to ensure the quality of the production process and the product.
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11. PRODUCT IDENTIFICATION
The Supplier shall identify the products supplied in order to allow the traceability of control records made
in the production process and inspection of the product, including the raw material used and to keep the
records.
In the identification of the product on the packaging it must be mentioned:
- Supplier's business name
- Addressee
- Product description
- Quantity of parts that contain the packaging
- Lot
- Epedal product code (Epedal reference)
12. PACKAGING
All supplied products must be packed in an appropriate manner to ensure:
- Adequate protection against damage, loss, deterioration or contamination of the product;
- Optimization of handling, movement, storage and transport of loads.
Suppliers of raw materials, sheet metal reels, should request the purchasing department the respective
data sheet upon receipt of the first order.
13. SECURITY / REGULATION
The supplier commits to comply with all applicable governmental and international regulations and safety
regulations in the country of manufacturing and destination (if provided) for all materials used in the
manufacture of the products, as well as to guarantee its liability. This situation will be informed by Epedal,
when applicable, at the consultation and award stage.
The supplier shall keep all records relating to the quality of safety or regulatory products as indicated in
point 10 of this manual.
14. LIABILITY
The supplier must indicate to Epedal, which is the element of its directive structure, which is the
Responsible for Product Safety (PSB).
15. LIABILITY INSURANCE
The Supplier must have civil liability insurance that includes costs related to "recall" and send to Epedal
the policy number as well as inform the covered amount.
16. COMMITMENT OBJECTIVES (EFFICIENCY AND EFFECTIVENESS – PERFORMANCE)
The supplier shall establish a system to monitor the performance of the entire production process in
order to ensure its PPM (parts per million) in quality and delivery, the results should be analysed and
controlled to achieve the zero defect target.
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17. CONFIDENTIALITY
The Confidentiality Agreement (04-DU-004) must be signed by all suppliers who have access to relevant
information.
18. SUPPLY CAPABILITY
It is the Supplier's responsibility to notify Epedal's purchasing department, in good time, of any problems
related to non-compliance with delivery schedules on the agreed dates and quantities.
Any change / adjustment to the purchase order (quantity, delivery date, etc.) must be agreed with the
Epedal purchasing department.
It is the Supplier's responsibility to maintain an adequate security stock to meet Epedal's regular
purchase orders and any variations thereof.
19. CONTINGENCY PLAN AND RISK ANALYSIS
In order to meet the needs of Clients, namely Epedal, the Supplier must prepare the contingency plan to
deal with emergency situations, such as: Lack of energy; Lack of manpower; Inoperability of key
equipment in the organization; Lack of raw materials, components and subsidiaries; returns; among
others.
Supplier shall provide and maintain facilities, equipment, work area, information systems that meet the
specifications and delivery deadlines of products supplied to Epedal.
The organization must conduct risk analysis and communicate or share risks with other stakeholders.
20. SUPPLIER EVALUATION SYSTEM
The Purchasing department continuously evaluates the Supplier's performance based on the quality,
service and logistic chain analysis of the material supplied, and is carried out in the reception of materials
or at any stage of the process including the final Customer, whenever non-conformities are detected and
are attributed to the supply.
20.1 QUALITY ASSESSMENT
For the quality index, the degree of defects is taken into account, and these are divided into 4
classifications.
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Each non-compliance (incident) gives rise to an "incident demerit" calculated according to the following
table:
Defect Classification
Batch Classification Examples Demerit
Coefficient
4-Severe Rejected Defect or deviation to the specification that causes nonconformities in the product or malfunctions in the manufacturing process (including Customer);
100
3-Significant
Accepted under condition (can be
accepted for derogation)
Defect that allows the use of material with or without repair or recovery intervention;
25
2–Minor Accepted under
condition (without derogation)
Missing Certificate of Conformity for materials; 10
1-Conformed Approved --------------- 1
A Supply Quality Index (IQ) is calculated by the expression:
𝐼𝑄 = 101 −∑(𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 × 𝑛𝑏𝑟 𝑜𝑓 𝑏𝑎𝑡𝑐ℎ𝑒𝑠)
∑ 𝑛𝑏𝑟 𝑜𝑓 𝑏𝑎𝑡𝑐ℎ𝑒𝑠
20.2 LOGISTIC EVALUATION
The assessment of the timeliness of delivery is carried out by the Logistic Index (IL); the evaluation
method of the delivery times takes into account the compliance of dates, punctuated as follows:
Anticipated Delivery
Punctuation Demerit Days in advance
1 0 >3
2 10 >6
3 20 >10
4 40 ≥ 15
Delay in Delivery
Punctuation Demerit Days late
1 0 >1
2 10 >3
3 20 >6
4 40 ≥ 10
Each delivery is punctuated according to the type of delay / advance found, automatically assigning the
demerits. Time Index (IP), this index being calculated through the expression:
𝑇𝑖𝑚𝑒 𝐼𝑛𝑑𝑒𝑥 (𝐼𝑃) = ∑ 𝑃𝑜𝑖𝑛𝑡𝑠 𝑜𝑏𝑡𝑎𝑖𝑛𝑒𝑑
∑ 𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑙𝑖𝑣𝑒𝑟𝑖𝑒𝑠
20.3 SUPPLIER INDEX
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Based on the Quality Index (IQ) and the Logistic Index (IL) a classification is assigned - Supplier Index (IF).
On a semi-annual basis, the evaluations that will be consolidated annually are issued.
The classification levels, based on the values of the Supplier index, and their meaning are as follows:
LEVEL CONDITION ACTIONS ACTION OF RECEIPT
90 Level A 100
Apt Unrestricted Access “Free Inspection”
(every 20 lots)
80 Level B 90 Acceptable Apt with lack of improvement,
requiring follow-up “skip lot” control
(every 5 lots)
70 Level C 80 Does not satisfy Develop actions to change to an
acceptable / suitable supplier Systematic Control
0 Level D 70 Inapt Inapt Systematic Control
The supplier index is calculated using the following formula: IF = IQ - IL
20.4 SUPPLIER REQUIREMENT
Suppliers that are not certified by the Quality System are reclassified as C.
Any batch rejected, via receipt control or in the process of production, from a qualified Supplier A or B
results in the immediate loss of the control scheme in which such reference was made. Receipt control
shall be conducted in the next 3 deliveries and if approved, the supplier goes back to the control system
as it was.
21. SUPPLIER AUDITS (MANUFACTURING PROCESSES)
Epedal Suppliers have their processes evaluated periodically according to the history of supplies and
quality problems.
Second party vendor audits will be triggered after recurrence of complaints and / or absence of action
plans for problems as well as for Vendor selection.
Second part audits and / or visits to Suppliers by Epedal Customers may also be carried out.
The Supplier accepts the visit to its facilities by the teams defined by Epedal and also by Epedal customers
who receive parts or components that incorporate materials produced by this Epedal supplier.
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22. NON-CONFORMITY TREATMENTS
22.1 NON-CONFORMITIES DETECTED AFTER DELIVERIES
In case of non-compliance detected at the reception, production or customer, the Quality Department
sends a notification (Complaint / Alert) to the Supplier. Along with the notification and whenever possible
photos are sent and samples representative of the defect are made available to the Supplier.
Given the content of the notification (Complaint / Alert), the following actions may be required:
Products in stock and under production (consumption/assembly) at Epedal must be verified or reworked
by the Supplier if required by Epedal. The Supplier is responsible for the definition of the sorting/
reworking method and, after Epedal validation, for it’s application. In the case that the Supplier doesn’t
apply the required containment actions, Epedal reserves the right to implement them and to invoice the
expenses to Supplier. After the implementation of containment actions by the Supplier, the non-
conforming parts detected will not be considered for the PPM’s calculation.
The pasts under production or at Supplier’s stock should be object of the same containment actions
defined at the previous point. The first 3 deliveries after the complaint/alert should be submitted to the
same containment actions and each packaging unit should be identified with a label that evidences the
application of such containment actions.
If the claim origin is at Epedal’s Customer, the products under production or at customer’s stock should
be object of containment actions, according customer rules/definition.
Staying below the agreed targets, frees the supplier neither from its obligation to process all complaints
(containment actions, root cause analysis, …) nor from the responsibility to guarantee all suspicious
batches, based on sorting operations or other. In the same way, the supplier must assume all costs
related to there, created at Epedal and/or in its clients.
Non-conforming products shall be kept at the disposal of the Supplier for 10 business days after the date
the notification was dispatched. Their collection must be arranged by the Supplier. After the deadline,
they will be scrapped and charged by the Supplier.
In case of a Complaint, the Supplier must send a response to Epedal within the deadlines defined below,
using the 8D nonconformity treatment form, or equivalent, duly completed, indicating the containment
actions implemented, the analysis of causes and actions corrective measures implemented to prevent
recurrences.
Point of Complaint Delay
Immediate actions / Containment measures (step 3)
1 business day
Identification of root causes and definition of corrective actions (step 5)
15 days
Closure of complaint (step 8) 60 days
For the Alerts, the deadlines are maintained, being possible the use of reduced response formalism (Ex:
via email).
Any unanswered notification shall be subject to a new notification with the costs incurred. If the defect
recurs, an official complaint will be issued.
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22.2 NON-CONFORMITIES DETECTED IN SUPPLIER
Any deviation from the specification must be subject to Epedal's analysis and agreement. The supplier
should sent to the Epedal’s Quality Department a derogation, mentioning the batch, the quantity of
products involved, the corrective actions implemented and collecting a representative sample of the non-
compliance if applicable.
If the derogation is accepted, the Supplier shall follow Epedal's instructions and identify each packing unit
by a specific label with the number of the derogation request.
22.3 COSTS TO ATTRIBUTE TO THE SUPPLIER
Penalties charged to the Supplier shall be:
Criteria Dysfunctions Penalties
Quality complaint
Dossier costs 50€
Recurrence of a failure 150€
Costs of sorting and rework 12€/hour
Visit / Process Audit Visit / Audit triggered at the supplier after recurrence of complaint and inexistence of an action plan
500€ per Visit / Audit
22.4 NON-CONFORMITY DETERMINED IN SUPPLIER FROM EPEDAL RESPONSIBILITY -
SUBCONTRACTING
Whenever Epedal's nonconforming material arrives at Supplier's premises, Supplier shall not process it
without the customer's authorization.
Supplier shall submit to Epedal's Quality Department a notice indicating the delivery note number, non-
conforming parts and if possible send a sample or photographs and wait for the customer's decision on
nonconforming material.