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Doc # SOP - P01 Quality System Documentation Release # rel A Revision # rev 1

PURCHASING

Being a Standard Operating Procedure level documentation of the Wacom Quartz implementation of the ANSI/ISO/ASQ Q9001-2008

Standard, paragraph 7.4.

Process Owner:

Tracy Rieth Senior Buyer / Planner

Approved By: James Roeger John H. Smalling VP - Phoenix Quality Manager Tony Corteses Terry Scott Buyer / Planner Plant Engineer

Released: 1/6/2015

JohnS

Placed Image

Doc # SOP - P01 Release # rel A Revision # rev 1

Red Text on Electronic view is a Controlled Copy. Printed copies are non-controlled; for information purposes only, and will NOT be updated with new revisions.

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Table of Contents

Changes in This Revision: ________________________________________________________ 3

1.0 Purpose and Scope __________________________________________________________ 4

2.0 Definitions _________________________________________________________________ 4

3.0 Procedure _________________________________________________________________ 5

3.1 Purchasing Approval Levels ________________________________________________ 5

3.2 Purchase Suggestions/Time Phase ____________________________________________ 5

3.3 Request for Quote _________________________________________________________ 6

3.4 Bid Evaluation Guidelines __________________________________________________ 6

3.5 PO Creation and Approval _________________________________________________ 8

3.6 Buyer Workbench _________________________________________________________ 8

4.0 Quality Records & References _________________________________________________ 9

4.1 Quality Records ___________________________________________________________ 9 Non-Disclosure Agreements ___________________________________________________ 9

Purchase Orders ____________________________________________________________ 9 Approved Suppliers by Part Class ______________________________________________ 9

4.2 References _______________________________________________________________ 9 SOP –IM01 ________________________________________________________________ 9 Form # PRF01 ______________________________________________________________ 9

WI-EPOSTP01 _____________________________________________________________ 9

SOP – SSMO1 _____________________________________________________________ 9 WI-ERFQ01 _______________________________________________________________ 9 Form # NDA01 _____________________________________________________________ 9



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Changes in This Revision:

Paragraph Prior Text or Intent

All Release A, Revision 1, 11/25/2014, Initial Release



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1.0 Purpose and Scope This procedure provides clarification and the process for purchasing approval levels, RFQs, bid evaluation guidelines, Buyer Workbench, Purchase Suggestions/Time Phase, PO creation and approval. This procedure can only be performed by Purchasing, or other personnel with an Epicor account and password having the correct rights assigned within the system.

2.0 Definitions

Epicor Vista Enterprise Resource Planning software and database used at Wacom Quartz to control Sales, Purchasing, Production and Inventory data.

Key Suppliers Usually top 10 suppliers in terms of spend, but suppliers may be added or removed per MRT recommendation.

Management Review Team (MRT)

Wacom Corp Management Review Team

Purchase Order (PO) Contract commitment to buy that is released in Epicor

Procurement Agents / Buyers

Personnel with title of Buyer / Agent of Wacom Quartz with procurement authority; terms are used interchangeably

Supplier Scorecard Supplier performance tool used internally at Wacom Quartz to rate suppliers and help identify opportunities for improvement.

Vendor Supplier to Wacom Quartz. This term is used interchangeably with supplier.



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3.0 Procedure

3.1 Purchasing Approval Levels

3.1.1 Buyer is given full authority to place purchase orders for items that have Jobs in Epicor given they also follow section “3.4 Bid Evaluation Guidelines”. 3.1.2 Buyer is given full authority to place purchase orders to keep inventory levels between approved min/max levels that are maintained in Epicor given they also follow section “3.4 Bid Evaluation Guidelines”. See SOP –IM01 “Inventory Management” for further information on min/max levels. 3.1.3 Buyer is given full authority to place purchase orders for part numbers 00550 and 00551 following the Wire Purchase Process Map. See Appendix A for the “Wire Purchase Process Map”. 3.1.4 Buyer is given purchasing authority up to $50 on items needed but not tracked in Epicor (I.E. maintenance, repair, and operations (MRO) type of items and items requested via the Purchase Request Form (Form # PRF01)).

3.1.4.1 $50.01 and up requires the Buyer’s Manager Approval 3.1.4.2 $1,000 and up requires Multiple Manager Approval

3.1.4.2.1 Buyer’s Manager has the discretion to decide what other Manager’s should approve prior to PO award

3.1.4.3 Maintenance service contracts need to be review by the Plant Engineer for their approval

Note: Any employee can make a request for purchase by filling out the Purchase Request Form (Form # PRF01). The form must be filled out the best of the requestor’s ability and reviewed by that employee’s Manager prior to giving to the Buyer. 3.1.5 Buyer is given full authority to place purchase orders for calibration service items per the calibration schedule that is uploaded every month in the Quality server <(\\wq-srv1)(Q:)>. Price is to be within 5% of the last price paid; otherwise, Buyer’s Manager must approve the cost prior to PO placement. 3.1.6 All miscellaneous fees such as expedite fees, surcharges, and etc. require the Buyer’s Manager Approval prior to PO placement.

3.2 Purchase Suggestions/Time Phase

3.2.1 For instructions on how to navigate “New PO Suggestions” and “Time Phase” see work instructions WI-EPOSTP01 titled “Epicor PO Suggestions and Time Phase”.

3.2.1.1 The Buyer is expected to use these Epicor screens to help make good purchasing / inventory decisions for Wacom Quartz. 3.2.1.2 The Buyer may know something the system does not that makes better sense than what the system is recommending. The Buyer is encouraged to use discretion, but should not exceed the guidelines under section 3.1.



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3.3 Request for Quote

3.3.1 The preferred method for creating RFQ’s is using Epicor. For instructions on how to create a RFQ via Epicor see work instruction WI-ERFQ01 titled “Epicor Request for Quote”.

3.3.1 If Epicor RFQ is not used, the buyer will make sure that the following information is on the RFQ email: Part number, description, quantity, drawing revision, and need by date.

3.3.2 When deciding on which supplier(s) to bid, the Buyer will use the guidelines in SOP - SSMO1 titled “Supplier Selection and Management”.

3.3.2.1 Buyer may bid a new supplier on a part to help validate the market price, but award

to a new supplier would require MRT approval. See for further clarification SOP - SSMO1.

3.3.3 Buyer will use the “PO Suggestions” and “Time Phase” to determine the appropriate quantity and need by date. 3.3.3.1 It is recommend that the Buyer ask for multiple quantity ranges of pricing to see if there are any quantity price breaks to consider. 3.3.4 Buyer will make sure that all suppliers are given the same information to ensure a fair bid. This means, if a supplier asks a question, the Buyer will answer the question to that supplier, but will make sure to let the other bidding supplier(s) receive the same information. 3.3.5 Buyer will make sure that a non-disclosure agreement (see Form – NDA01) is set up prior to any request for quote or any other sensitive information such as drawings being sent. If no NDA is in place, the Buyer will have to set one up before bidding that particular supplier. 3.3.5.1 Non-disclosure agreements will be stored on the “Vendor Material” server under V:\NDA. These will be stored without deletion for at least 5 years after the NDA expiration date. 3.3.6 If bidding out a new part number or biding a part number for the first time with a specific supplier, the Buyer needs to add the below note to the RFQ regarding first article inspection to that line item.

3.3.6.1 RFQ Note: First Article Inspection will be required. Wacom Quartz will require a

hard copy of the First Article Inspection Report to be sent with delivery of the part(s) and a soft copy via email. Please price accordingly. 3.3.6.2 Any deviation requires written approval from the Quality Manager. 3.3.7 Buyer will write a comment for anything else that is relevant to the RFQ so that the pricing and lead time that is quoted is as accurate as possible.

3.4 Bid Evaluation Guidelines

3.4.1 Disclaimer: This section assumes that the source selection guidelines of SOP – SSM01 titled “Supplier Selection and Management” have been followed. 3.4.2 A lot of the parts that Wacom Quartz buys are purchased from the last approved and/or historical supplier of record (see SOP – SSM01 section 3.1.1.4.1).



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3.4.2.1 The Buyer may continue purchasing from the last approved supplier(s) assuming the new price is within 5% or $25.00 per unit of the last part purchased.

3.4.2.1.1 If the new price is higher than 5% or $25.00 more per unit, the buyer needs to go back to the supplier to ask about the price increase; and ask, if there are any price breaks the Buyer should know about that can help keep costs down.

3.4.2.1.1.1 If the supplier is not able to work to get the price lower, the buyer should talk with their manager about the price increase to determine what steps are appropriate going forward.

3.4.3 New part numbers that are competitively bided will be awarded based on price, lead time, and supplier history with that type of part.

3.4.3.1 Buyer is to use their best judgment in these situations but they should talk with their manager in the below situations prior to PO award.

3.4.3.1.1 If the Buyer recommends awarding to the supplier that had a significantly higher price than the other bidders. The general rule is 5% higher or $25.00 more per unit than the other bidders.

3.4.3.1.1 If both Buyer and Buyer’s Manager recommend awarding to the highest bidder, the buyer will inform the Sales Representative prior to PO award in case it affects the customer’s pricing.

3.4.3.1.2 If the Buyer recommends awarding to a supplier that cannot meet lead time.

3.4.3.1.2.1 If both Buyer and Buyer’s Manager recommend awarding to a supplier that cannot meet lead time, the buyer will inform the Sales Representative prior to PO award since it will impact the customer’s schedule.

3.4.3.1.3 If the Buyer recommends awarding to a supplier where the part number would be a new part class for that supplier.

3.4.3.1.3.1 Per SOP – SSM01, this situation would require MRT review prior to PO award. 3.4.3.1.3.2 The list of approved suppliers by part class is stored electrically in Epicor under Material Management / Purchase Management / Setup / Part Class.

3.4.4 Guidelines for new part numbers that are only bided to one supplier:

3.4.4.1 Please note that competition is encouraged per see SOP – SSM01. But, there may be situations where competition may not be best. In these situations, the Buyer should review the bid with their manager prior to award for a second opinion. 3.4.4.1.1 Buyer’s Manager has discretion to have other managers or MRT review for input.



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3.5 PO Creation and Approval

3.5.1 Epicor is the only approved method for creating purchase orders for Wacom Quartz. For instructions on how to create a PO or how to generate from “New PO Suggestion” see work instructions WI-ECPO01 titled “Epicor Creating PO’s”. 3.5.2 Buyer is only to place PO’s with approved suppliers. See SOP – SSMO1 titled “Supplier Selection and Management”.

3.4.2.1 Any deviation requires MRT approval per SOP – SSMO1. 3.5.3 Buyer may be required to get approval prior to the release of their PO, see section “Purchasing Approval Levels” in this SOP section 3.1 for guidelines on when PO approval is required.

3.4.3.1 Buyer is not to send a supplier a copy of a PO without the proper approvals.

3.5.4 If placing a PO for a new part number or placing a part number for the first time with a specific supplier, the Buyer needs to add the below note to the PO regarding first article inspection to that line item.

3.5.4.1 PO Note: First Article Inspection is required. Please send a hard copy of the First Article Inspection Report with delivery of the part(s) and a soft copy to [email protected]. 3.5.4.2 Any deviation requires written approval from the Quality Manager.

3.5.5 Purchase Orders are store electrically in the Epicor system indefinitely.

3.6 Buyer Workbench

3.6.1 The Buyer Workbench in Epicor is a useful tool to help the Buyer identify what is due or potentially past due in regards to RFQs and POs. 3.6.2 The Buyer will use the guidelines as outlined in SOP – SSM01 “Supplier Selection and Management” to help manage suppliers. 3.5.2.1 The Buyer may contact suppliers more frequently as needed. 3.6.3 To navigate to the Buyer Workbench go to Material Management > Supplier Relationship Management > General Operations > Buyer Workbench



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4.0 Quality Records & References

4.1 Quality Records

The following table lists records generated and maintained during the Procedures section of this controlled document. Next to each record is show the paragraph number of this or other controlled document where the specific procedures for Identification (I), Collection (C), Indexing (X), Access (A), Filing (F), Storage (S), Maintenance (M), and Disposition (D) of said record can be found.

Record Name I C X A F S M D

Non-Disclosure Agreements

3.3.5.1

3.3.5.1

3.3.5.1

3.3.5.1

3.3.5.1

3.3.5.1

3.3.5.1

3.3.5.1

Purchase Orders 3.5.5 3.5.5 3.5.5 3.5.5 3.5.5 3.5.5 3.5.5 3.5.5

Approved Suppliers by Part Class

3.4.3.1.3.2

3.4.3.1.3.2

3.4.3.1.3.2

3.4.3.1.3.2

3.4.3.1.3.2

3.4.3.1.3.2

3.4.3.1.3.2

3.4.3.1.3.2

4.2 References

The following table lists reference materials mentioned in this controlled document along with their probable accessibility. Unless otherwise noted, these are documents NOT controlled by Wacom Quartz. Note* All references listed with the name in the format “FORM #xxx” are controlled forms; a complete list of which can be found in the Control of Quality Records Procedure, document # SOP #CQR01.

Name Description Accessibility

SOP –IM01 “Inventory Management” a controlled Standard Operating Procedure

Intranet Kiosk or Epicor report “Wacom Controlled Document List.”

Form # PRF01 “Purchase Request Form” a controlled Form


WI-EPOSTP01 “Epicor PO Suggestions and Time Phase” a controlled Work Instruction


SOP – SSMO1 “Supplier Selection and Management” a controlled Standard Operating Procedure


WI-ERFQ01 “Epicor Request for Quote” a controlled Work Instruction


Form # NDA01 “Non-Disclosure Agreement” a controlled Form




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Appendix A

Wire Purchase Process Map:

PUCHASINGUsing Time Phase in

Epicor review demands weekly

PRODUCTIONCreate 2 jobs for

desired Qty reviewed with Purchasing

1. 005502. 00551

PURCHASINGCreate 2 PO's

1. For Chunk "Platinum PT"ect. to inventory CB04

2. Wire Fabrication " 00550/00551"

sub contract jobs

RECIEVINGRecieve Chunk PO

after we get invoice via. email. Recieve to CB04

RECIEVINGRecieve Wire

Fabrication PO to jobs

enter lot # for wire spool

PRODUCTIONRelease Jobs & issue

material 4 WEEK TIME LINE

Wire Lot EntryDo for both part #'s 00550/00551

1. Part tracker / Lots tab2. Find missing Blank last Ref

3. Right click on the lot #4. Lot entry go to list tab

5. Look for the lot just recieved.6. Click on hand button and save.

Close out

PRODUCTIONRecieve jobs to inventory

"Select proper lot #

PRODUCTIONClose Jobs

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