Supplier Manual · 2018-05-22 · version of this manual is published on the AIXTRON website ... This is especially so if requirements are made regarding corrosion ... The monitoring

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Supplier Manual


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Table of Contents

1 Introduction ........................................................................................................ 4

2 Fundamental prerequisites ................................................................................ 5

Supplier requirements ............................................................................. 5

Security of information, data protection ................................................... 5

Certifications .......................................................................................... 7

Availability of information ........................................................................ 7

Continual improvement ........................................................................... 8

Communication ...................................................................................... 8

Continuous supply stream / crises planning .............................................. 8

Material separation ................................................................................. 9

3 Social responsibility......................................................................................... 10

Compliance .......................................................................................... 10

Sustainability and environment .............................................................. 11

Work safety ......................................................................................... 11

Guideline, regulation, law ...................................................................... 12

4 Qualification- and monitoring process ........................................................... 14

Qualification documentation .................................................................. 14

Audits .................................................................................................. 15

Evaluation of suppliers .......................................................................... 17

5 Sampling ........................................................................................................... 18

6 Additional requirements .................................................................................. 19

Test measurement marking ................................................................... 19

Traceability .......................................................................................... 19

Special release ..................................................................................... 19

Process change notification (PCN) ......................................................... 20

Product- and process-FMEA (Failure mode and effects analysis) .............. 20

Process sign off (PSO) .......................................................................... 20

Parts handling review (PHR) .................................................................. 21

7 Complaints management ................................................................................. 22

General information .............................................................................. 22

8D-Report ............................................................................................ 22

8 Documents and the exchange of information ................................................ 23

Communications platform/EDE-directory ................................................ 23

AIXTRON standards and norms ............................................................. 23


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Inspection documents ........................................................................... 23

9 Logistics ............................................................................................................ 24

General information .............................................................................. 24

Packaging ............................................................................................ 25

Empty containers .................................................................................. 26

Labeling ............................................................................................... 27

Heavy loads ......................................................................................... 27

Conservation ........................................................................................ 27

Unloading ............................................................................................ 28

Inspection of shipment ......................................................................... 29

Statements of fact and tracking damage ................................................ 29

Address and business hours for receiving goods ..................................... 29

10 Appendix ........................................................................................................... 29

The provisions, requirements and standards listed in this manual apply in their entirety to all suppliers, including sub-suppliers

(referred to as suppliers in the following), who supply materials, products and services to AIXTRON SE (referred to in the

following as AIXTRON.

The specified descriptions serve as a supplement to the contractual agreements. They do not replace or change the

components of the purchasing conditions, the quality assurance agreement or other contractual documents. The most recent

version of this manual is published on the AIXTRON website (www.aixtron.com).


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1 Introduction

Ever changing customer expectations and global competition require continual

improvement in products, services and procedures. Customer satisfaction with a view

to quality in all respects is the decisive factor in AIXTRON’s success and thus also for

you as a supplier whose products are interconnected with AIXTRON systems.

The urgent necessity of a “zero-error strategy“ for all suppliers can be achieved

and ensured only if AIXTRON strives toward this goal together with its suppliers.

Avoiding errors and continual improvement throughout the entire supply chain are

unavoidable requirements that AIXTRON must and will fulfill entirely.

AIXTRON considers itself obligated to maintain its role as a leading global

manufacturer of coating equipment for the semiconductor market. Our goal is to

cultivate strategic, long-term relationships with our suppliers.

AIXTRON business partners:

o are interested in long-term partnerships,

o effectively support our goals,

o fulfill AIXTRON basic principles of health and environmental protection, work

safety, quality assurance, and appreciation for entrepreneurial responsibility,

o provide top delivery service that quickly and flexibly fulfills the requests of our

customers,

o guarantee continually high product quality that satisfies us and our customers,

and

o offer market-conforming prices that are comparable on the global market.


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2 Basic Requirements

Supplier requirements

All suppliers make required data available according to the standards of the

procuring group or the factory. This includes the business systems that are used,

product portfolios, and contact data for main contact persons. Suppliers of AIXTRON

must additionally fulfill specific operational financial and quality criteria that, in total,

define the supplier status. These key figures are examined at regular intervals and

support AIXTRON in the development of general purchasing strategies.

Security of information, data protection

While working together, it may be necessary for a mutual exchange of documents

and information that is worthy of protection.

AIXTRON expects its suppliers to have implemented fundamental measures to

protect confidentiality and to ensure the availability and security of information, to

prevent unintentional disclosure and to make possible limited access according to the

so-called “need to know“ principle. The regulations of the currently valid agreement

on confidentiality between AIXTRON and its suppliers should be fulfilled in their

entirety. The required measures also include the physical and logical protection from

access on the IT infrastructure and in applications that process and store AIXTRON

information. This also applies to infrastructure and applications that are outsourced

to a third party provider (e.g. cloud providers or software hosters).

Documents and information that AIXTRON classifies and marks as “CONFIDENTIAL“

or “STRICTLY CONFIDENTIAL“ must be handled at least with the AIXTRON security

standards as follow:

o electronic information must be stored encrypted, insofar as this is not being

actively processed.

o the IT systems used to store the information must be multi-client capable.

There must be technical data- and organizational separation of information

implemented for different clients.

o passwords must include at least eight characters, comprising special

characters, upper- and lower case letters and numbers. They may be valid for

only 90 days. The five most recent passwords may not be reused.

o on demand, the suppliers must verify those persons who have had permission

to access AIXTRON information.


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o printouts, materials or other information not available electronically must be

protected from unauthorized access by having it securely stored (e.g. in a

closed cabinet or room).

All confidential information and its executions, including reports, notices, printouts,

description, copies and summaries, are and remain at all points in time the property

of AIXTRON and are to be destroyed by the supplier if requested by AIXTRON, to the

extent this is reasonably possible, (except for e.g. copies that are automatically

generated in the context of an internal backup).

Distributing AIXTRON information to third parties in the course of processing a

contract outside of the regulations of the currently valid confidentiality agreement

requires written approval from AIXTRON. According to the German Federal Data

Protection Law (Bundesdatenschutzgesetz (BDSG) and/or other jurisprudence, data

related to persons must be treated with particular care.

AIXTRON is to be informed within 48 hours in the event of a security incident that

impacts confidentiality, availability or the security of AIXTRON information by means

of an E-Mail to [email protected].


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Certifications

2.3.1 Company certifications

AIXTRON requires verification from its suppliers of adherence to the current version

of ISO 9001 (or higher order).

AIXTRON additionally holds suppliers to attaining the following certifications:

o OHSAS 18001

o ISO 50001

o ISO 14001

The expiration, revocation, temporary cancellation, or probation regarding a valid

certification requires that the supplier inform all AIXTRON factories being supplied

without delay regarding the change in its certification status. All impacted AIXTRON

locations are to be informed about a cancellation of any certification within five days.

2.3.2 Product certifications

In certain cases AIXTRON is required to have products certified according to specific

guidelines and standards by independent third parties (third party certification). On

request, this obligation is transferred to suppliers and represents a component of the

scope of delivery. AIXTRON asks for information as to the type and scope of testing

by using AIXTRON internal templates:

o Request documents, electrical components

o Request documents, mechanical components

Furthermore, it may be necessary for AIXTRON to require a test certificate according to DIN EN 10204. This is especially so if requirements are made regarding corrosion resistance.

Availability of information

On request by AIXTRON the supplier is obligated to provide information related to

the economic-, quality-, environmental-, safety- or the protection of health status of

the company. The request for information can be repeated regularly by AIXTRON in

order to ensure the continual stability and functionality of the suppliers.

AIXTRON will do all possible to keep operational and financial information

confidential.


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Continual improvement

The supplier is obligated to implement a structured procedure to continually improve

all products, processes (also those of sub-suppliers), operational procedures and

services. The supplier is obligated to continually improve quality, delivery schedule

accuracy, flexibility as well as cooperation with AIXTRON. AIXTRON can ask for

relevant improvement programs and measurement results.

Communication

It is very important that the relationship between AIXTRON and its suppliers rest on

open, proactive communication. Non-fulfilled requests, non-authorized changes or

similar problems in the supply chain represent high risk for AIXTRON and its

customers if they are not communicated early-on in a targeted fashion and worked

on. This is true, for example, for:

1. all current or potential problems identified by the supplier 2. all material- and/or process changes (see Chapter 6.4) 3. changes in sub-suppliers 4. changes in IT systems and supporting systems 5. organizational changes (e.g. changes in ownership structure, fundamental

reorganizations)

Suppliers support all tests, validations, approvals and requests that result from

changes in products or processes.

Continuous supply stream / crises planning

Suppliers must have a plan available for crises in order to also provide a continuous

stream of supplies in the case of a failure in the operating procedure and/or for

problems with material deliveries resulting from person-caused incidents, natural

catastrophes, loss of power, work stoppages, device malfunctions or failures in

logistics. This plan for handling crises must be examined at regular intervals.

If a supplier determines that bottlenecks in supply could arise, he must inform the

purchasing department of AIXTRON without delay.

Every supplier must stipulate a contact person and a representative who has the

corresponding decision-making authority at each of its production locations in case of

problems related to the quality and/or the supply of products. The contact person


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must be available anytime if such problems arise. The contact information should be

made available to the AIXTRON location that is to be supplied.

Material separation

The manufacture of components for the semi-conductor industry requires the use of

various measures to, on the one hand, maintain the corrosion resistance of stainless

steels (definition accd. to DIN EN 10088) and, on the other hand, to minimize or

entirely prevent contamination resulting from processing residues.

Basically, the manufacturing areas in which stainless steels are machined or

processed must be separated from such areas in which carbon steels (that is

unalloyed quality- and stainless steels) are processed. In this way there is assurance

that dust, aerosols, etc. will not settle on stainless steel and later lead to corrosion

on high-grade steel (bimetal corrosion, galvanic corrosion or contact corrosion). This

also applies to the use of cooling and lubricating emulsions (referred to as KSS in the

following), which need to be tested for heavy metal content. This often pertains

essentially to cobalt. (Remark: from the environmental perspective and the

protection of personnel alone, there are strict regulations on any contained

substances as well as possible impurities in KSS). The content of heavy metals

results from ions from the materials involved in the machining operations, such as

e.g. hard metals with Co- or NiCo binders and machined materials, which transfer to

the KSS (see VDI 3397).

The avoidance of metallic abrasion also pertains to e.g. the storage/intermediate

storage of components. Thus, for example, shelves must be designed free of heavy

metals. Abrasion during loading and unloading procedures should be avoided.

Further considerations include cleaning of components is aqueous-, alkali media,

drying, bake-out in a vacuum (UHV components), surface treatments (radiation,

electro-polishing, pickling and passivation, etc.) and possibly the packaging under

cleanroom conditions.


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3 Social responsibility

Compliance

AIXTRON is fully aware that adhering to external and internal regulations

(compliance) is an essential component of sustainable, successful company

management. The AIXTRON compliance principle includes verified adherence to all

legal, regulatory and internal company requirements in relation to all business

transactions.

Every AIXTRON supplier is obligated to comply with all applicable national and

international legal requirements and, in particular, not to engage in and to refrain

from activities that could lead to criminal liability due to corrupt conduct, fraud,

breach of trust or causation of insolvency or to violation of legal regulations

pertaining to competition, export, and import limitations, customs and tax regulations

or provisions to protect the environment. The supplier is obligated to adhere to the

general purchasing conditions, the AIXTRON compliance code of conduct as well as

all related compliance guidelines to the extent that these guidelines contain pertinent

requirements related to conduct.

AIXTRON prohibits money and other contributions from being awarded, promised, or

demanded or accepted. Exceptions to this are socially acceptable contributions that

meet the needs of politeness or accommodation and that are also socially common

and meet with general approval. Suppliers must implement suitable guidelines and

procedures to recognize and prevent corrupt activities. AIXTRON requires that its

suppliers participate in all compliance-relevant examinations, investigations,

requests, certifications or screening processes. Being aware that the supply chain

includes different parts of the world, AIXTRON considers itself to be obligated to

adhere to global work conditions and regulations that lead all workers at all locations

worldwide being treated with dignity and respect. Therefore, AIXTRON requires that

its suppliers be responsible, in the context of their entrepreneurial concerns, for

seeing that the applicable work norms (ILO core work norms) are adhered to in the

manufacture of products or the provision of services, and that forced- or child labor

is not tolerated, the rights of workers to unionize are respected, that discrimination

based on gender, ethnic background, skin color, religion, sexual orientation,

disabilities or age do not occur, and that the supplier’s activities avoid

disadvantageous effects on people and the environment. Contact via Compl-

[email protected]


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Sustainability and environment

AIXTRON’s goal is to be an industry leader in the areas of health, safety and the

environment. That is why AIXTRON demands that its suppliers demonstrate the

same engagement with regard to minimizing environmental impact as well as safe

and healthful working conditions. Suppliers must adhere to or exceed all valid health,

safety and environmental regulations. All activities that influence these areas must be

monitored regularly. Suppliers must thereby work toward the continual reduction of

the impact of their product on the environment.

AIXTRON recommends certification according to environmental management norm

ISO 14001 and would like to suggest that suppliers support sustainability initiatives

by effectively administering an energy management strategy to reduce energy

consumption (ISO 50001).

Work safety

The supply of technically defect-free goods and services at AIXTRON takes place

based on the principle of “Safety First.“ In order to be able to ensure a high degree

of safety- and work-, environmental- and health-related protection, it is of great

significance that managers be aware of their responsibilities. Therefore, AIXTRON

postulates great commitment and flawless role modeling from supplier management

and managers. Because safety and work-, environmental- and health protection can

be achieved only by advanced planning, product and service commitments are to be

developed and planned according to the current state of the art. Of course, this also

includes comprehensive analyses of hazards, the evaluation of hazards and risk

assessments.

Equally, it is indispensable that personnel always act in awareness of the

environment, safety and health, formulate opportunities for improvement and thus

cooperate actively in continual further development.

AIXTRON expects expert employees and qualified management, just as it does

sufficient resources in the manufacture of the products and the implementation of

services.

Suppliers are obligated to fulfill their social responsibility in work-, environmental-

and health protection and to react flexibly to social developments. Correspondingly,

legal provisions are to be understood as only obvious minimum requirements.


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In the event that near accidents, incidents or accidents arise, AIXTRON requires a

systematic analysis and the derivation of effective, sustainable corrective measures.

This is true not only for a case that has occurred, but rather also for the future. To

achieve this, meaningful management systems are implemented and AIXTRON trusts

that it will be well served by these. These systems are continually further developed

and always adapted to the state of the art and to changing conditions.

The target to aim for is always “0 accidents“. In individual cases accident figures

must be reported on the part of the supplier and must be able to be checked by

AIXTRON.

Adhering to these principles represents an indispensable foundation for all business

relationships, and AIXTRON reserves the right to undertake inspections through

auditing. Suppliers support AIXTRON employees at inspections at the factory or in

joint activities.

Depending on the assignment, AIXTRON will carry out inspections or monitoring of

construction at the location of the supplier. The supplier is responsible for seeing that

all hazards are ruled out. Suppliers must instruct and support/look after AIXTRON

employees in regard to risks that may arise in the course of the work. Suppliers must

inform AIXTRON immediately about incidents related to work-, environmental-, or

health protection.

Guideline, regulation, law

3.4.1 RoHS

RoHS (Restriction of the use of certain hazardous substances in electronic

equipment, 2011/65/EU) is assumed by AIXTRON to apply in the version at the time

of any delivery.

3.4.2 REACH

AIXTRON supports the standards, registration, evaluation, authorization and

restriction of chemicals (REACH). Suppliers must adhere to the valid norms for the

classification, packaging and labeling of hazardous substances and mixtures,

including the respective national implementations of the globally harmonized system

(GHS) developed by the United Nations to classify and label chemicals.

The supplier must be aware of the legal obligation to provide information and to

fulfill this with respect to AIXTRON. Further information on this can be found on the

website of the European Chemicals Agency (ECHA) (www.echa.europa.eu ).


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3.4.3 Conflict minerals

In 2010 the U.S. Congress adopted the “Dodd-Frank Wall Street Reform and

Consumer Protection Act“ as law and thereby established publication obligations for

all companies that submitted reports to the US Securities and Exchange Commission

(SEC). These regulations include the establishment and publication of whether so-

called conflict minerals (gold, tantalum, tungsten, and tin) from the Democratic

Republic of the Congo and neighboring nations are used in products and are

necessary for their functioning as well as their manufacture.

In 2021 the European Union will also introduce a regulation for the trade of conflict

substances. This regulation obligates EU companies to identify risks in their supply

chains, publish them and take action against them.

In order to assure that the legal requirements are followed, AIXTRON has

established a procedure that regularly makes the use of and origin of conflict

minerals transparent.

AIXTRON uses the “Conflict Minerals Reporting Template (CMRT),“ a freely available,

questionnaire standardized worldwide to determine the origin of conflict minerals.

Once per year, direct AIXTRON suppliers are contacted per e-mail and asked for

information on the origin of conflict minerals. AIXTRON expects that its suppliers also

make use of these measures for their own suppliers, because only in this way can

transparency be assured regarding conflict minerals in the supply chain.

It is a declared AIXTRON goal that all conflict minerals be derived either from

recycling or are processed by a conflict-free, certified mineral smelter according to

the “EICC/GeSI Conflict-Free Smelter (CFS) Program.”

Further information on conflict minerals can be found on the AIXTRON homepage or

e.g. the homepage of the CFSI.

http://www.conflict-minerals.com

Contact via [email protected]


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4 Qualification- and monitoring process

A supplier is put through an internal release procedure at the start of the business

relationship with AIXTRON.

For this, a variety of information such as e.g. supplier self-disclosure, visit reports,

etc. are compiled and evaluated by AIXTRON. In the event of a positive evaluation,

the supplier is released without limitation. The supplier is obligated to indicate to

AIXTRON any changes that significantly influence the evaluation. The exact

evaluation criteria can be seen in the following chapters.

Qualification documentation

4.1.1 Supplier self-disclosure

The supplier makes available to AIXTRON a detailed supplier self-disclosure (accd. to

AIXTRON template). This makes it possible for AIXTRON to evaluate the

organization, profitability and quality of the supplier. It forms the basis for all further

activities.

4.1.2 Exclusivity agreement

Products that are produced by the supplier using AIXTRON know-how may be

delivered only exclusively to AIXTRON and not sold to third parties.

4.1.3 Confidentiality agreement

The supplier must assure confidentiality in the development of products and projects

that are on contract to AIXTRON as well as to ensure the security of associated

product information. This is contractually regulated by means of a confidentiality

agreement (NDA, non-disclosure agreement).

Any disclosure related to AIXTRON requires written approval on the part of

AIXTRON.

4.1.4 Feasibility analysis/declaration

The feasibility declaration indicates that the supplier certifies that he recognizes the

assignment on a company-wide basis and has examined and evaluated all

specifications (all features). The supplier must be in a position to produce the

product while taking into consideration all requirements and specifications from

AIXTRON for the quality and quantity required. This will be verified by signature on

the feasibility declaration.


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Audits

AIXTRON reserves the right to carry out a system-, process-, or product audit at any

time and also on short notice after advance notification, in order to determine

whether the supplier quality assurance measures correspond to the supplier

requirements of AIXTRON.

If quality problems arise as caused by sub-supplier performance and / or deliveries,

the supplier (possibly together with AIXTRON) must carry out a sub-supplier audit at

the request of AIXTRON and make the results available to AIXTRON.

4.2.1 System audit

A system audit takes place as needed or at regular intervals. It is carried out by an

AIXTRON auditor. Moreover, AIXTRON reserves the right to contract outside

auditors. Additionally, specialists from other areas (e.g. purchasing, development,

production) can participate in a supportive role.

There are three particular system audit types: the pre-audit, the first audit, and the

monitoring audit.

The pre-audit is carried out to prepare the selection decision on (unknown)

suppliers, in particular for awarding technically challenging products. The core task of

the pre-audit is to assess quality capability and technical know-how, and the

potential of the supplier. This means that an evaluation of the supplier takes place in

relation to the various possibilities for production, the product and the process as

well as the establishment of robust quality procedures.

The first audit is the basis for the partnership between the supplier and AIXTRON.

Thereby, previously selected processes are monitored in detail at the supplier. The

audit result is provided and explained to the supplier in the form of an audit report.

Subsequently, within one week the supplier defines corrective measures, including a

schedule for implementation, and provides this information to the respective audit

leader in written form.

The monitoring audit applies the identical procedure and evaluation as with the

first audit. The goal is to check the implementation of the measures from the

previous audit, as well as possibly other selected processes.


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4.2.2 Audit evaluation

The awarding of points, or the evaluation, takes place according to the following

system:

Points Evaluation of fulfillment of requirements

10 Requirements fully fulfilled

8 Requirements mostly fulfilled*; slight discrepancies

6 Requirements partially fulfilled; greater discrepancies

4 Requirements inadequately fulfilled; serious discrepancies

0 Requirements not fulfilled

*) Mostly in this case means that all applicable requirements are effectively verified in more than

approx. ¾ of all relevant cases of application and no particular risk is at hand.

Audit evaluation scheme and supplier classification: Degree of fulfillment

[in %]

Evaluation Classification Explanation

90 to 100 Quality capable A Released without limitation for a specified parts spectrum, requirements fully fulfilled

80 to below

90

Conditionally

quality capable

B Released conditionally for a specified parts

spectrum, requirements mostly fulfilled

75 to below

80

Not quality

capable

C Supplier not released, requirements not

fulfilled, end of process

The supplier obtains a supplier release as of an auditing result > 80%. Results

between 80% and 90% require that the supplier rise to > 90% within one year.

4.2.3 Product- and process audit

The supplier must carry out product audits at regular intervals in order to verify the

fulfillment of all specific requirements, such as e.g. product dimensions, functionality,

packaging and labeling.

The supplier regularly carries out process audits for all products delivered to

AIXTRON and for the processes associated with their development and production-

related processes in internal process audits that are planned in advance. The basis

for this is the established product specifications and properties as well as further

agreements related to deliveries, e.g. for logistics and packaging. For possible

discrepancies, the supplier immediately carries out all required corrective measures

and guarantees their permanent efficacy.


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Evaluation of suppliers

The supplier evaluation serves to monitor and differentiate varying quality

performances of suppliers.

Illustration 1: Criteria to evaluate suppliers

These key figures in turn are aggregated into an overall performance per supplier by

the AIXTRON purchasing department. The overall performance serves AIXTRON in

the evaluation and classification of its suppliers.

Illustration 2: Detailed criteria in the evaluation of suppliers


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5 Sampling

The responsible developer stipulates the type of sampling for each new system and

each change in a product. The first production by a supplier is also subject to this

sampling. AIXTRON differentiates the following types of sampling:

Type of sampling

No sample Pre sample First sample Re sample

AIXTRON will inform the supplier regarding the type of sampling that will apply to

the delivered product in the request for proposal and in the order, so that the

supplier can plan and consider the corresponding tests and documentation.

The goal of sampling is to verify, review and document the capabilities required by

AIXTRON. In the AIXTRON template for the first sample test report (first sample

report), the supplier is to comprehensibly list all features fixed in drawings,

specifications and other associated documents and their tolerances.

Comprehensibility is fulfilled if copies of the drawings etc. are attached to the first

sample test report, in which the sequential numbers of the features are registered

according to the first sample test report.

For series deliveries, the supplier must take into consideration the duration of

development for the first sampling when agreeing to a schedule. Because the release

process is product-dependent, the supplier has to inquire about the respectively

required time needed for the release of the first sample.

A decision on the sampling is made and this concludes the sampling. The following

test results are used by AIXTRON, noted on the first sampling report, and provided

to the supplier in the form of a result:

Decision Explanation

Release First sampling okay

Release

conditionally First sampling partially okay

Blocked First sampling not okay


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6 Additional requirements

Test measurement marking

Main- and critical features according to AIXTRON factory standards are specially

highlighted in the drawings and the specification. Production discrepancies from

established dimensions, tolerances and other features are fundamentally not

permissible.

Traceability

The supplier is obligated to assure traceability for the product that he delivers. By

labeling the product and being able to trace it, the supplier provides assurance that,

in the case of an established error, all other possibly defective products can be

identified immediately in order to possibly recall the impacted product. Additionally,

these parts are blocked until consequential measures have been coordinated

between the supplier and AIXTRON.

Labeling the products takes place, for example, by attachments made according to

the AIXTRON template. This labeling must allocate all relevant product data. The

recorded data must permit e.g. the following to be guaranteed:

o all manufacturing data, examination and test results (actual values) must be

assignable to the product

o all defective products must be identifiable.

The data that must be recorded to assure that requirements are met are to be

established by the supplier based on his know-how in relation to the product and his

processes. This procedure is to be disclosed upon request by AIXTRON.

Special release

Discrepancies are to be clarified with the quality department of AIXTRON before

delivery. The technical release is to be documented with a statement by the

AIXTRON employee in the remarks area on the dimension check sheet.

Inquiries as to special release should be directed to: [email protected]


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Process change notification (PCN)

Planned changes that influence products delivered to AIXTRON are to be made

known to AIXTRON before their introduction. The recipient of the information is

always, at a minimum, the purchasing department. Any changes must be approved

by AIXTRON in written form.

These regulations are mandatory for all products. These include among others:

o expiration, withdrawal, temporary cancellation or probation of a valid

certification

o change in location of production

o switch or significant change in a manufacturing process (incl. tools)

o switch or significant change in the manufacturing procedure

o significant changes in quality assurance

o discontinuation of products

Product- and process-FMEA (Failure mode and effects analysis)

An FMEA is a systematic approach to failure risk evaluation. Potential failures and

their causes are to be evaluated in terms of their failure potential. In the case of a

critical evaluation, e.g. high potential risk, suitable measures must be defined in

order to prevent these failures. If AIXTRON has explicitly demanded FMEA

documentation as a component of a contract, then the evaluation along with the

product is to be presented to AIXTRON by the supplier, for inspection.

Process sign off (PSO)

The process sign off (PSO) is carried out by AIXTRON only for select parts. The goal

of a PSO is to test and document the capability of the manufacturing process of a

supplier for a respective AIXTRON product. It should be assured that customer

requirements were completely understood by the supplier and implemented

reproducibly. A PSO is a systematic and sequential examination of the supplier’s

series manufacturing process. A review is carried out on the intended, trained

manufacturing personnel, the series manufacturing installations, -equipment, -

procedure, -materials, -methods and production tools.


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Parts handling review (PHR)

The goal of the evaluation is to assure that components in the overall supply chain

(packaging, internal transport, logistics, and assembly) are handled conforming to

the product. Hereby, AIXTRON processes and those of AIXTRON customers are to be

taken into consideration.

The goal is to prevent costs resulting from defects by joint measures. In the context

of a PHR, the PHR takes place jointly with the supplier at AIXTRON, depending on

the criticality of the component/element. This includes an assessment/audit of all

assembly and handling conditions within AIXTRON.

The PHR is carried out at AIXTRON’s wish by the supplier and by AIXTRON. The

supplier hereby assumes a leading role. Subsequently, the knowledge gained is

compiled in a joint summary. A collaborative development of plans for measures that

are to be taken subsequently follows. Possibly identified weak points are to be

corrected through appropriate measures.


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7 Complaints management

General information

A complaints report is sent when a defective product is at hand. Every supplier

receives a failure report for each complaint. It is thus possible for a supplier to judge

his quality performance for himself at any time.

Complaints have significant influence on supplier evaluation. In the individual case,

suppliers must be held responsible for expenses caused (time, costs, materials).

For every complaint, the supplier is obligated to provide AIXTRON with an

opinion/report that includes at least the following points:

o description of failure

o cause of failure

o immediate measure

o preventive measure

8D-Report

If AIXTRON requests such, the supplier is obligated to present to AIXTRON a detailed

8D report. Verification of the entry of the complaint is expected within 24 hours. All

appropriate measures to limit damage must be initiated immediately.

The expected time to respond to the creation of a 3D-report (teambuilding,

problem description, definition of immediate measures) is at most 48 hours as of

receiving the complaint notification.

The 6D-report (teambuilding, problem description, definition of immediate

measures, cause of failure analysis, permanent corrective measures and

documentation review) is expected within 10 work days after obtaining the

complaint. The completion of the entire 8D-report is to be stipulated on a case-by-

case basis.

Review and final evaluation of the complaint is incumbent on the quality department

at AIXTRON.

The supplier is obligated to identify, record and block all components impacted by

the failure. He must immediately make AIXTRON aware in the event that failure-

prone components have already been delivered to AIXTRON or to one of its

customers.


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8 Documents and the exchange of information

Communications platform/EDE-directory

Every supplier has access to the EDE-drive (external data exchange). This exchange

directory facilitates the exchange of all data (in particular sensitive data and data

worthy of protection such as e.g. drawings, among others). Transmission by e-mail is

not permitted. Based on this technology, AIXTRON and suppliers can exchange

information simply, quickly, error-free and securely. The contact person for this is in

the purchasing department, which organizes such access.

AIXTRON standards and norms

In order to ensure secure document and information exchange between AIXTRON

and suppliers, distribution of the AIXTRON factory norms and specifications is done

via the EDE-directory. The supplier is obligated to check at regular intervals that he is

using the respectively current version of all documents. Furthermore, the supplier

must ensure that he demonstrably uses the information made available by AIXTRON

and applies it to all associated activities.

Inspection documents

All recordings of inspections required by AIXTRON (e.g. checklists/ tightness

protocols/certificates/first sample test reports) must be prepared before delivery.

For this purpose, signed documents are stored on the EDP directory as PDF files (no

compressed files, e.g. *.rar; *.zip etc.) in the ”inspection documents“ folder. This

folder is used only for recordings of inspections. Documents must be manually signed

by the responsible person, including date and signature. When ordering individual

parts, the inspection document is recorded individually. If an assembly is involved, all

associated inspection verifications must be combined in one PDF file. The file name

comprises the SAP order number, the SAP material number, and the identification

number (WN0024) of the material. For inspection documents without an

identification number, the description from the SAP order number and the SAP

material number will suffice.

Example: SAP order no. SAP-material no. Ident- no.

45000…… -100075313

45000…… -100075313 -100057616011-4

45000…… -100075313 -100057616011-8 to 22


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9 Logistics

Logistics have ever-increasingly become a decisive competitive factor today. A well-

functioning supply chain is also a bonding element between the supplier and the

customer. Our goal is therefore that all processes related to goods deliveries proceed

in an orderly fashion and efficiently. Logistical standards help suppliers and AIXTRON

achieve this goal jointly.

The logistics guidelines and standards of AIXTRON are to be clarified in detail with

the expert department. These include for example:

o empty containers management

o transport- and delivery processes

o packaging requirements

o load carriers and packaging

The most significant commandment for AIXTRON is always:

Safety first !!!

The unloading procedure on the part of the transporter must always take place

under the currently valid German safety guidelines.

General information

o The supplier must ensure damage-free transport by means of suitable loading

equipment, packaging, and load-securing.

o Loading units must be transportable using floor-level means of movement.

Pallets may not be loaded beyond basic dimensions.

o Stacking prohibition must be clearly recognizable from outside.

o All goods are to be delivered on/with/in undamaged load carriers.

o Suppliers must design and administer their logistics so as to ensure the quality

of the predetermined quantity at the location stipulated by AIXTRON in

advance at the predetermined time.


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Packaging

o All packaging must be designed based on environmental, economic and

qualitative criteria (to be discussed with AIXTRON).

o The packaging may not be larger and more extensive than absolutely

necessary to protect the goods.

o Fill material is to be reduced to a minimum.

o Use single-origin packaging materials.

o If disposable packaging and reusable packaging are equal economically and

qualitatively, then reusable packaging is to be preferred.

o A specific design or the use of other sizes for particular requirements for

transported materials are only permissible following release by AIXTRON.

o Goods must be packed individually in a packaging unit.

o Packaging units (cartons/bags) are to be delivered as a single item, that is,

items may not be packed intermixed.

o The delivery must be neutral, respectively the packaging must be neutral.

o To unite assemblies, there are defined packagings that have been developed

by AIXTRON to protect parts. These packagings are a constituent of the scope

of delivery for the order and are thus binding on the supplier. Detailed

explanations (photos, specifications, etc.) in case of doubt are available at

AIXTRON on request. Non-observance can lead to repacking work, the

expenses for which can be charged to the supplier.

o When using disposable or reusable packaging, reusable packing material is to

be used and labeled corresponding to the provisions of the recycling economy.

o Poolable reusable packaging (Euro-pallet, VDA-KLT, etc.) is to be preferred to

non- poolable reusable packaging.

o Reusable packaging should be standard sizes.

o Reusable packaging must be designed so that it can be emptied completely,

easily cleaned, and dried.


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9.2.1 Reusable packaging

Standard load carriers

o Before the first delivery, the packaging to be used is to be coordinated with

the responsible AIXTRON employee.

o Euro-pallet up to max. 1000 kg load capacity.

Special load carriers

o The use of special load carriers is permissible only if no standard load carrier

can be used based on product requirements. In each case, the use of special

load carriers must have approval from AIXTRON before delivery.

o An example here is large load carriers such as mesh box pallets with inserts,

racks for the transport of delicate goods, etc.

9.2.2 Disposable packaging

Permissible packing materials are: ABS, PS, PE, PP, EPP, wood (only for

pallets)

Non-permissible materials are: PVC, fillers based on foodstuffs,

plastic composites

Empty containers

To achieve and ensure joint quality-, supply-, and inventory targets, the following

regulations apply to empty container handling between AIXTRON and its suppliers.

Standard load carriers: Euro-pallets

These are exchanged upon delivery, so that there is no

claim for replacement of these pallets.

For Euro-pallets and Euro-mesh box pallets, the regulations of the European Pallet

Association apply: http://www.epal-pallets.org/de/system/system.php

9.3.1 Empty containers administration

AIXTRON conducts empty container accounts for at least AIXTRON-specific empty

containers as well as poolable VDA KLT. The account statuses can be queried at

AIXTRON.


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Complaints must be registered within 14 calendar days with the responsible empty

containers administration upon the presentation of a copy of the receipt (delivery

slip). Otherwise, the stock as verified by the supplier applies.

In this context, after determining a deficiency (e.g. quantity difference, soiling and

damage) in empties upon goods entry, the supplier must immediately report this to

AIXTRON with the presentation of the delivery slip, photo verification and a brief

description thereof. If the deficiency is already evident at the time of transfer to the

shipper, then the shipper’s driver must confirm this deficiency on the delivery papers.

For poolable Euro-pallets and Euro-mesh box pallets, the typical local and industry

regulations apply.

If in doubt, the regulations of the European Pallet Association apply:

http://www.epal-pallets.org/de/system/system.php

Differences in quantity or shrinkage are to be settled without delay at the repurchase

value according to the cost-by-cause principle.

9.3.2 Cleaning empty containers

Empty containers must correspond to the required degree of cleaning of the product

or the provisions of AIXTRON. The supplier is responsible for cleaning.

Labeling

o Goods must be identifiable externally. Every packing unit (carton, bag) must

be marked with a label for unequivocal identification and an indication of the

quantity contained.

o Other- or a manufacturer’s own labels are not permissible.

Heavy loads

Heavy loads are considered by AIXTRON to be: Units > 50 kg. These are subject to

further conditions:

o center of gravity and weight must be clearly labeled on the outside.

o attachment points for crane or transport means must be labeled.

Conservation

Conservation must be coordinated in the context of the overall concept (selected

packaging, transport means and condition of goods). Here also, the issue can involve

the requirements made in the order and customer-specific requirements.


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Unloading

AIXTRON will refuse delivery if orderly unloading is not possible.

9.7.1 Deliveries with small vehicles (no unloading using the drive-over ramp)

o The unloading must be done by the driver.

o Pallet deliveries must be able to be unloaded on the vehicle with an electric lift

truck.

o If unloading using an electric lift truck is not possible, all packages are to be

transferred by the driver to a pallet available on the loading ramp.

o Unloading outside of the building (e.g. fork lift at the depot) can only be

carried out after previous discussion and application.

9.7.2 Unloading on the loading ramp

Loading surface minimum dimensions for the delivery vehicle:

Width: 2.2 m wide drive-over ramp must be able to be put

down on the loading surface.

Height of loading dock: min. 1.10 m

Height of cargo space: min. 1.90 m

The unloading of pallets must be possible free of impediments.

Direct unloading may not be impeded by previous pallets or by goods that are not

intended for AIXTRON.

9.7.3 Delivery on Euro-pallets

The delivery of goods on pallets is exclusively permissible on undamaged Euro-pallets

according to DIN 14156-3. The goods may not project laterally from the pallets.

Damaged or non-original Euro-pallets count as disposable pallets and are not

exchanged. Pallet height (incl. pallet) may not exceed 1.6 m. The permissible total

weight per pallet may not exceed 1000 kg. Goods are to be provided with edge

protection and bound with stretch film.


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Inspection of shipment

AIXTRON will verify the shipment for the head of transport. The quantity and

condition of individual items are not inspected at the time of transfer. AIXTRON

reserves the right to set damage replacement claims due to non-obvious damage or

deficient quantities at a later time. AIXTRON conducts no quality or function testing

upon the acceptance of goods.

Statements of fact and tracking damage

A statement of fact for obvious transport damage in the event of damage will be

instigated and documented immediately on our part. It is incumbent on the owner of

the goods to independently pursue claims of transport damage or differences in

quantity to third parties.

Address and business hours for receiving goods

AIXTRON SE

c/o Spedition Robertz KG

Industriestraße 19

52134 Herzogenrath

Business hours:

Mon.- Fri.

8:00 – 16:00

10 Appendix

OHSAS 18001

ISO 50001

ISO 14001

ISO 9001

VDI 3397

DIN EN 10088, DIN 14156-3

REACH

RoHS

http://www.conflict-minerals.com

http://www.echa.europa.eu

http://www.epal-pallets.org/de/system/system.php