Supplier Performance Manual.pdf

PRO-SUPPLIER PERFORMANCE MANUAL

PROCEDURE – Supplier Performance Manual REVISION N – February 7, 2017

THIS DOCUMENT IS UNCONTROLLED IF PRINTED Page 1 of 26

APPROVAL

Procedure Section Process Owner Approval

1.0 Letter of Introduction

Supply Chain

Manager

2.0 Global Competitiveness

3.0 Supply Chain Contact List

4.0 Quality Policy Statement

5.0 Quality Systems Qualifications

6.0 Process Control, Traceability, and Inspection Results

7.0 Registration, Evaluation, Authorization, and

Restriction of Chemicals (REACH)

8.0 Pricing Changes and Payment Terms

9.0 Discrepant Material

10.0 Charges for Discrepant Material

11.0 Request for Deviation

12.0 Request for Engineering Change

13.0 TopWorx, Inc. Owned Tools

14.0 Delivery Requirements

15.0 Sample Submissions

16.0 Performance Reports

17.0 Calculation of Performance Scores

18.0 Nuclear Component Supplier Requirements

19.0 Revision Record

REFERENCE WEBSITES

Website Document ID

www.topworx.com

http://www.emerson.com/en-us/AboutUs/Pages/materials-compliance.aspx

www.techstreet.com



http://www.techstreet.com/




REFERENCE DOCUMENTS

Document Title Document ID

12 Month Supplier Scorecard Form

Corrective Action Request (C.A.R.)

Certificate of Conformance FRM-COC

Engineering Change Order Form SQM-ECO

First Article Inspection Approval Form

Non-Disclosure Agreement FRM-NDA and/or FPP-001.3

Pre-Production Approval Process Performance Testing Results Form

Purchase Order Form

Sample Submission Tags FRM-SST

Supplier Deviation Request Form SQM-SDR

Supplier Monthly Scorecard Explanation Form

Supplier Request for Engineering Change Form SQM-SREC

Tooling Information Request Form FRM-TIR

Warrant Form FRM-PAW




Definitions/Acronyms

5th 3rd Prox – payment term for 83 days

APQP – Advanced Product Quality Planning

C of C – Certificate of Compliance

C.A.R. – Corrective Action Request

CTQ – Critical to Quality

FMD – Full Material Disclosures

S.D.S. – Safety Data Sheet

NPD – New Product Development

NPI – New Product Innovations

P.O. – Purchase Order

PFEMA – Process – Failure Mode and Effects Analysis

PPAP – Pre-Production Approval Process

PPM – Parts Per Million

R.M.A. – Return Material Authorization

REACH – Registration, Evaluation, Authorization, and Restriction of CHemicals




1.0 LETTER OF INTRODUCTION

Dear Supplier,

This manual is being provided to assist you in understanding and complying with your

responsibilities as a supplier/partner to TopWorx, Inc., an integral part of the Emerson

Process Management Business Platform.

Our company expectations, as they pertain to our supplier base, are addressed in this manual.

The Supplier Performance Manual is intended to be the guiding force that will enable you, as

a supplier to TopWorx, Inc., to assist TopWorx, Inc. in providing a world-class product

and/or service. It is our intention that the result will be future business success and increased

market share for you, TopWorx, Inc., and TopWorx, Inc. customers.

Any deviations from the policies of this manual require the written consent of the TopWorx,

Inc. Supply Chain Manager or their designee.

Sincerely,

Peter Springhetti

TopWorx, Inc.

Supply Chain Manager




2.0 GLOBAL COMPETITVENESS

TopWorx, Inc. strives to be a world-class corporation that consistently provides our

customers with quality and value, speed and excellence, and experience and expertise. In

order for TopWorx, Inc. to accomplish these objectives, we must be aligned with world-class

suppliers that provide the same, while maintaining global cost competitiveness. While our

Supplier Performance Manual and Supplier Scorecards serve as guidance tools for producing

and delivering world class products and services to TopWorx, Inc., they in no way eliminate

the requirement or guarantee the existence of global cost competitiveness. TopWorx, Inc.

customers demand continuous improvement of cost, quality, and delivery. Therefore,

TopWorx, Inc. must also expect its own suppliers to suggest and implement continuous

improvement ideas in an effort to help maintain global cost competitiveness.

Sincerely,

James McDill

TopWorx, Inc.

Director of Operations




3.0 TOPWORX, INC. SUPPLY CHAIN CONTACT LIST

Global Sourcing Manager: Tim Nelson

502-873-4609

[email protected]

Supply Chain Manager: Peter Springhetti

502-212-8339

[email protected]

Materials Management Team: Kevin Macherione – Supply Chain Sourcing Coordinator

502-873-4608

[email protected]

Gary Brumley – Purchasing Coordinator

502-873-4603

[email protected]

Jay Tewell – Purchasing Coordinator

502-212-8311

[email protected]

Aaron Carroll – Senior Inventory Analyst

502-873-4621

[email protected]

Lauren Caillouet – Supply Chain Assistant

502-873-4601

[email protected]

mailto:[email protected]










4.0 QUALITY POLICY STATEMENT

Quality Policy Statement

TopWorx, Inc. will gain customer loyalty with continuous improvement and best-in-class

quality, service, and responsiveness.




5.0 QUALITY SYSTEMS QUALIFICATIONS

5.1 Scope of Applicability

5.1.1 All new vendors being considered for use at TopWorx, Inc. must meet at least one

of the specific approval criteria as outlined below in order to be qualified as an

approved supplier.

5.2 Criteria for Approval

5.2.1 Supplier has a third party quality system certification in compliance with EN

45012 or ISO/IEC 17021:2006. Copies of either one of these documents may be

obtained through the following website. www.techstreet.com

5.2.2 Results from the TopWorx, Inc. Supplier Surveillance Assessment and/or audit

show that a structured quality system is effectively in place.

5.2.3 There is a documented action plan, which is shared with TopWorx, Inc. that

shows evidence with timing that the potential supplier is putting a structured

quality system in place.

5.2.4 One of TopWorx, Inc.’s customers dictates a specific supplier to use

5.2.5 A supplier is purchased by TopWorx, Inc. or a sub-supplier is already in the

purchase supply chain and must be used to sustain business.

5.2.6 A supplier is currently approved through another Emerson/Fisher business unit.

5.3 Criteria for Rejection

5.3.1 Supplier is not able to, or refuses to; provide any objective evidence for any of the

documented approval criteria.

5.4 Supplier Audits:

5.4.1 Suppliers must be aware that upon written notice from TopWorx, Inc. we

may request a Quality System audit to confirm that the necessary processes

are in place to support our material and quality requirements. Additionally,

and again with written notice, suppliers may also be subject to audits by

(TopWorx, Inc.) associated third parties for similar reasons.

http://www.techstreet.com/




6.0 Process Control, Traceability, and Inspection Results

6.1 TopWorx, Inc. urges all of its suppliers to implement the usage of control plans for

process control. Process control plans should be maintained through the life of the

specific part being supplied and made available to TopWorx, Inc., if needed. Critical to

Quality (CTQ) dimensions noted on TopWorx, Inc. product drawings should always be

included on the supplier process control plans.

6.2 Suppliers must insure traceability of all parts or material shipped to TopWorx, Inc.

Packing slips must include at least one of the following: the supplier’s lot number,

manufacturing date, job number, or invoice number. All package labels must indicate

the supplier’s lot number or manufacturing date, quantity, current revision level, and the

applicable TopWorx, Inc. part number.

6.3 For our certification requirements, all shipments to TopWorx, Inc. must include a

Certificate of Conformance (C of C), Form FRM-COC. The C of C should be

enclosed with the packing slip in a packing slip envelope attached to the outside of

the package. If required, the material certifications and/or the certificates of

conformance (for nuclear products) must also contain the part description and part

number along with the supplier’s lot number and/or manufacturing date

6.4 TopWorx, Inc. requires that all suppliers complete and sign a Non-Disclosure

Agreement.




7.0 Registration, Evaluation, Authorization, and Restriction of CHemicals

7.1 (REACH) compliance data must be provided through the Emerson Compliance Web

Portal – http://www.emerson.com/en-us/AboutUs/Pages/materials-compliance.aspx. Full

material disclosures (FMD) are required to include, but are not limited to, all substance

levels and total weight of the item(s) of purchase. This excludes protective packing, but

includes any value added substances adhering to the item(s). To monitor suppliers who

participate in the program, it is required that the following information be provided to

this e-mail address: [email protected]. You must provide your

company name, contact name, phone number, and e-mail address.

7.2 Suppliers are required to package all products being shipped to TopWorx, Inc. in such a

manner that the product being shipped will arrive in a useable condition.

7.3 All material received at TopWorx, Inc. without proper identification and

documentation will be considered discrepant material and will be reflected as such

on the Supplier Scorecard.

7.4 TopWorx, Inc. requires all suppliers to keep evidence of all inspection results at the

disposal of TopWorx, Inc. for the life of the specific part being supplied.

7.5 Safety Data Sheets (SDS) must be included with each shipment of raw materials

that require this type of documentation. (e.g., chemicals, solders, glues, potting

compounds, etc.) This means with each shipment no matter how frequent.






8.0 Pricing Changes and Payment Terms

8.1 TopWorx, Inc. requires that all suppliers report to the Purchasing Coordinator and the

Supply Chain Sourcing Coordinator, at minimum, the underlying cause(s) of a price

increase or decrease from the last purchase when a change in value is realized bases

upon request for quote or purchase. Any advanced notice prior to a request or purchase

is encouraged.

8.2 TopWorx, Inc. requests that all suppliers ship in full quantities within

standardized packaging and not exceed a weight limit of 35 pounds. Once

packaging standardization is realized, we require that it is not changed unless authorized

by TopWorx, Inc.

8.3 As a part of Emerson, TopWorx, Inc. adopted policy is to move all minimum payment

terms to 5th 3rd prox in an effort to maintain competiveness of our global supply chain.

We expect our suppliers to offer TopWorx, Inc. a competitive advantage in quality,

technology, speed to market, and total value.




9.0 Discrepant Material

9.1 All material found to be out of print specification or received into TopWorx, Inc.

facility without proper documentation/identification is considered discrepant and may

result in a Corrective Action Request (C.A.R.).

9.1.1 A Representative of the TopWorx, Inc. quality organization will contact the

supplier concerning any material discrepancies and/or C.A.R.’s. Quality will

provide information and samples to the supplier to aid in their investigation of

these issues.

9.1.2 All C.A.R. responses from suppliers require written documentation of

containment activity, root cause determination, and corrective action

implemented. Failure to respond to a C.A.R. within the time frame specified on

the C.A.R. form will result in lowering the supplier’s monthly performance score.

9.2 Non-Conforming Nuclear Components

9.2.1 Absolutely no known non-conforming nuclear components are allowed to be

shipped to TopWorx, Inc. under any circumstances. TopWorx, Inc. suppliers that

supply nuclear components shall have methods for control and disposition for

items that do not meet TopWorx, Inc. part specifications. This definition includes

any deviation from the current part print (e.g. material, dimensional, visual, etc.).

These methods will include an evaluation process of the non-conformances and

communicated to the supplier, who will then provide a submittal of notice to

TopWorx, Inc. of any non-conformance’s produced with a recommendation of

disposition (e.g. use as is, repair, or scrap at supplier’s site). This requirement is

in addition to the “Request for Deviation” requirement. (See Section 11.0)

9.3 Notification of Non-Conformance

9.3.1 In the event that the supplier becomes aware of non-conforming or suspect non-

conforming product that has already been shipped to TopWorx, Inc., that supplier

MUST notify the TopWorx, Inc. Supply Chain Manager in writing within 2 days

from the date the shipment was discovered.

9.4 A copy of the Corrective Action Request (C.A.R.) form can be obtained upon request to

the TopWorx, Inc. Supply Chain Team.




10.0 Charges for Discrepant Material

10.1 In the event that discrepant material is found, all costs incurred by TopWorx, Inc. due to

the discrepant material are the responsibility of that supplier.

10.2 If the discrepant material is unusable to TopWorx, Inc. then the supplier must issue a

Return Material Authorization (RMA) within two (2) business days of notification by a

TopWorx, Inc. Quality Technician. Once the RMA is received, a debit memo will be

issued against the supplier to cover the costs of the discrepant parts. Failure by the

supplier to issue a RMA will still result in a debit memo against the supplier’s account

for the value of the discrepant parts. If the supplier wishes to have the discrepant

material returned via a RMA, then the supplier is required to provide the account

number of their preferred shipping company so that associated freight costs are paid by

the supplier. In the event that the supplier does not want the discrepant material, it will

be scrapped out at TopWorx, Inc.

10.3 If the discrepant material is deemed usable by TopWorx, Inc. by reworking then the

supplier has the choice of (1) incurring all costs for the rework labor and materials

(rework labor will be charged at $35.00 per labor hour), (2) to authorize the return of the

discrepant material via a RMA and replace it with good stock in such a manner that the

TopWorx, Inc. production and/or shipping schedules are not jeopardized, or (3) send a

supplier representative to TopWorx, Inc. facility to rework the product in such a manner

that the TopWorx, Inc. production and/or shipping schedules are not jeopardized.

10.4 If the discrepant material is deemed usable by TopWorx, Inc. by sorting, then the

supplier has the choice of (1) coming to the TopWorx, Inc. facility and sorting the

product themselves (as long as they can keep pace with the TopWorx, Inc. product

schedule), (2) authorize TopWorx, Inc. to sort the product and the supplier incur all

associated costs (sorting labor will be charged at $35.00 per sorting hour), or (3)

authorize the return of the discrepant material via a RMA and replace it with good stock

in such a manner that the TopWorx, Inc. production and/or shipping schedules are not

jeopardized.




11.0 Request for Deviation

11.1 Discrepant/deviated material MUST NOT ship without receiving formal permission

from TopWorx, Inc.

11.2 As a temporary corrective action for material supplied with an out of specification

condition, suppliers must submit a Supplier Deviation Request Form (SQM-SDR) for

the material that does not conform to the agreed upon print specifications. TopWorx,

Inc. will either grant or deny each deviation request received.

11.3 A SQM-SDR must be requested by the supplier, completed, returned to the TopWorx,

Inc. Supply Chain Manager or Supply Chain Sourcing Coordinator and have approval

granted before the deviated material may be shipped.

11.4 If the deviation is approved, the product must be labeled with the TopWorx, Inc.

deviation number that was assigned to the approved deviation request. Product that has

been approved via the deviation process, but not labeled properly prior to shipment will

be considered discrepant material.

11.5 If the deviation is denied, the supplier must segregate the nonconforming material and

ensure that it is contained properly.




12.0 Request for Engineering Change

12.1 Engineering Change Initiated by TopWorx, Inc. – Should there be a need for an

engineering change by TopWorx, Inc., the supplier will be notified via the TopWorx,

Inc. Engineering Change Order Form (SQM-ECO). The supplier may be required to

attend an Advance Product Quality Planning (APQP) meeting either in person, or

possibly via teleconference or videoconference, to “kick-off” the change.

12.2 Supplier Request for Engineering Change – If the supplier feels there is a need for an

engineering change then the supplier must contact the TopWorx, Inc. Purchasing

Department using the Supplier Request for Engineering Change Form (SQM-SREC),

prior to making any changes. The TopWorx, Inc. Purchasing Department will follow-

up by returning a copy of this document to the supplier that will either grant or deny the

proposed engineering change.

12.3 A copy of the Engineering Change Order Form and the Supplier Request for

Engineering Change Form can be obtained upon request to the TopWorx, Inc. Supply

Chain Team.




13.0 TopWorx, Inc. Owned Tooling

13.1 Suppliers that are using tools that are owned by TopWorx, Inc. are required to monitor

and maintain the tool through routine inspections to prevent the manufacture of non-

conforming product. The supplier shall inform TopWorx, Inc. at the first sign of any

tooling that is inconsistent so repairs can be made. TopWorx, Inc. requires the suppliers

to maintain records of all tooling inspections. Suppliers must make this information

available to the TopWorx, Inc. Supply Chain Team, upon request.

13.2 A Tooling Information Request Form (FRM-TIR) is required to be completed in full

after a new tool has been purchased and may be used to assess tool details prior to

purchase.




14.0 Delivery Requirements

14.1 On-Time Delivery - TopWorx, Inc. expects 100% on-time delivery from all of our

suppliers. Upon receipt of a Purchase Order the supplier is required to acknowledge

delivery and pricing within 24 hours. It is mandatory that suppliers who know they

will ship late notify the TopWorx, Inc. Purchasing Coordinator prior to the due date.

Suppliers not achieving the minimum delivery score from their Supplier Scorecard

Performance Rating may be issued a Corrective Action Request (CAR). Suppliers will

then be required to provide the root cause for late deliveries and a corrective action to

ensure that the issue will be resolved. Any additional costs (i.e. expedite charges,

premium freight from the supplier or to our customer, line downtime/overtime charges)

incurred by TopWorx, Inc. as a result of late supplier shipments will be communicated

to the supplier and negotiations could take place from which the supplier could be

deemed liable for the extraordinary costs incurred by TopWorx, Inc.

14.2 On-Time Delivery Definition – The product(s) is received at TopWorx, Inc. on or up to

5 calendar days prior to the agreed upon due date posted on the applicable Purchase

Order and is accompanied by all appropriate documentation. Suppliers will be

responsible for all freight charges associated with late deliveries.

14.3 Quantity Accuracy – All suppliers are required to supply quantities according to the

material release. Quantities received at TopWorx, Inc. will be treated as

conforming if found to be within +/- 0% of the agreed upon quantity specified on

the current purchase order. Partial shipments are discouraged and may negatively

impact the supplier’s delivery performance on-quantity and on-time.

14.4 A copy of the TopWorx, Inc. Purchase Order Form and the TopWorx, Inc. Kanban

Purchase Order can be obtained upon request to the TopWorx, Inc. Supply Chain Team.




15.0 Sample Submissions

15.1 Purpose – The purpose of a sample submission is to determine if the supplier’s product

conforms to all TopWorx, Inc. design specification requirements and is acceptable for

production use. TopWorx, Inc. maintains the option, at our discretion, to waive

submissions under certain circumstances.

15.2 Situations Requiring Sample Submission (see matrix below - Section 15.3)

15.2.1 Pre-Production Approval Process (PPAP) – A new part/product is being

submitted for pre-production approval

15.2.2 Correction of a discrepancy on a previously submitted part/product

15.2.3 Part/product that was modified due to an engineering change

15.2.4 Tooling other than that used for the initial submission is being introduced. This

would include refurbishment of existing tooling.

15.2.5 Manufacturing process change

15.2.6 Change source for supplier parts, materials, or services

15.2.7 NOTE: If you are unsure if or when a sample submission is required, please

contact the TopWorx, Inc. Supply Chain Manager or Supply Chain Sourcing

Coordinator.

15.3 Documentation Requirements by Situation: Situations

Requiring

Sample

Submission

Sample

Parts

Required

(Minimum

of 3 pieces

per

cavity)

Full

Dimensional

Layout

Required

(Minimum

of 3 pieces

per cavity)

Warrant

Form

Required

(FRM-

PAW)

30 Piece

Capability

Studies for

CTQ

Dimensions

Required

Applicable

Performance

Testing

Required

(PFMEA)

Material

Certificate

and

Applicable

M.S.D.S.

Required

Quality

Control

Plan

15.2.1 X X X X X X X

15.2.2 X X X X X

15.2.3 X X X X X X X

15.2.4 X X X X X

15.2.5 X X X X X X X

15.2.6 X X X X X X X

Each sample submission request will be supported by a TopWorx, Inc. “PPAP”

Purchase Order. This Purchase Order will specifically state which forms are needed

when submitting samples. These forms can be found on the TopWorx, Inc. website.

At a minimum, the “Part Approval Warrant Form”, “First Article Inspection Report,

“Certificate of Conformance”, and the “Material Certifications” are needed with each

submission. If checked off on the “PPAP” Purchase Order, a PFMEA, a Capability

Study (30 pieces), or a Quality Control Plan may also be required. For all First

Article Samples, the parts must be labeled with a “sample submission” tag,

which is to be affixed to the outside of the container.

15.4 Sample Submission Evaluation Process – Once TopWorx, Inc. Supply Chain

Department has received the required sample submission documentation and parts, the

dimensional report will be verified and performance testing, when applicable, will be

verified. Using the “Part Approval Warrant” form, the TopWorx, Inc. Supply Chain

Manager, or designate, will inform the supplier of the results of the sample submission.




15.4.1 Fully Approved – The part and/or product is approved for production. All

dimensional, material, and performance aspects inspected have passed inspection.

This approval level would permit the supplier to ship parts for production with no

limitations.

15.4.2 Approved with Conditions – The part and/or product is approved for production,

but under special circumstances such as limited volumes, deviated specifications,

etc., until “Fully Approved” status has been granted. New samples and

documentation must be submitted and approved for any non-conformance noted

in the “Interim Approval” before the part and/or product can be granted full

approval.

15.4.3 Rejected – New Tryout Required – The part and/or product is not acceptable for

production. New samples and documentation must be submitted for any non-

conformance noted.

15.4.4 Rejected – The part and/or product is rejected and TopWorx, Inc. does not require

another sample submission.

15.5 All forms required for sample submissions are available on the TopWorx, Inc.

Supplier website listed on page 1.




16.0 Performance Reports

16.1 Selected TopWorx, Inc. production material suppliers will receive quality and delivery

performance feedback at one of the following intervals during the course of the rating

year (January to December). Monthly, Quarterly, Bi-Annually, or Yearly. If there are

any questions concerning the scores, please contact the Supply Chain Manager or the

Supply Chain Sourcing Coordinator.

16.2 Rating Definitions

16.2.1 Quality

16.2.1.1 PPAP - number of defective parts found during the testing/qualification

process and determined to be a supplier defect divided by the number of

parts received for the month and multiplied by 1,000,000 (10% of total

Quality Score).

16.2.1.2 Receiving Rejects – number of defective parts found during the receiving

inspection process and determined to be a supplier defect divided by the

number of parts received for the month and multiplied by 1,000,000

(10% of total Quality Score).

16.2.1.3 Internal Rejects - number of defective parts found during the assembly

process and determined to be a supplier defect divided by the number of


Quality Score).

16.2.1.4 End User Rejects - number of defective parts found by a TopWorx, Inc.

customer and determined to be a supplier defect divided by the number of


Quality Score).

16.2.1.5 C.A.R. Response – The number of C.A.R.’s not responded to on time as

described on the C.A.R. (20% of total Quality Score).

16.2.2 Delivery

16.2.2.6 On Time Delivery – The sum of the number of pieces that were received

late or were received more than five (5) calendar days earlier than the

agreed upon delivery date divided by the total number of pieces received

for the month multiplied by 1,000,000 (60% of total Delivery Score).

16.2.2.7 On Quantity Delivery – The sum of the number of pieces that were in

excess of 10% over the agreed upon delivery quantity or were short

shipped divided by the total number of pieces received for the month

multiplied by 1,000,000 (40% of total Delivery Score).




17.0 Calculation of Performance Scores

17.1 While the basic calculation for Test, Receiving Inspection, Build, Customer, On Time

Delivery, and On Quantity Delivery is Parts Per Million (PPM) and the basic calculation

for response to C.A.R.’s is simply the number of late responses, the actual supplier

scores will be monitored using a point system from 0 to 4. The point value can be

directly correlated to the actual calculated value in each section. Each category has been

weighted according to its overall importance to the total score. The weights applied to

each category are posed on the form itself. The point system definitions are below.

17.2 Definitions of PPM’s

17.2.1 Total quantity charged to PPM – The total number of non-conforming parts that

will be charged to the supplier’s PPM as determined by the TopWorx, Inc. Supply

Chain Manager.

17.2.2 PPM – Total quantity charged to PPM divided by the quantity received for the

month X 1,000,000.

17.2.2.8

17.3 A copy of the Supplier Monthly Scorecard Explanation Form and the TopWorx, Inc. 12

Month Supplier Scorecard Form can be obtained upon request to the TopWorx, Inc.

Supply Chain Team.




18.0 Nuclear Component Supplier Requirements

18.1 Any vendor supplying a nuclear component to TopWorx, Inc. must read and become

familiar with the following:

18.1.1 Nuclear Component Definition – Any component supplied to TopWorx, Inc. that

will be used in whole or as a part of a finished nuclear product.

18.1.2 Recognition of Nuclear Component Part Numbers – Any part number requested

via a TopWorx, Inc. Purchase Order for use in the TopWorx, Inc. nuclear program

will be preceded by a “C-“.

18.1.2.9 Example: Part Number S-S70-0625A would be specified on the

TopWorx, Inc. Purchase Order as C-S-S70-0625A if it were being

purchased as a nuclear component.

18.2 Nuclear Supplier Qualification Categories

18.2.1 Commercial Grade Qualification – The supplier will be required to provide

Material Certifications and unique lot control numbers for all shipments.

Specific requirements to the Purchase Order for these suppliers will contain, but

not be limited to the following:

18.2.1.10 No substitutions for any material or specification called out on the

part drawing

18.2.1.11 All products must be new (not re-worked) unless prior approval is

given by the TopWorx, Inc. Supply Chain Manager or Supply Chain

Sourcing Coordinator

18.2.1.12 All material shipped will be covered under a Material

Certification (shipped with the parts) that contains, but is not limited to

the following:

18.2.1.12.1 Corresponding TopWorx, Inc. Purchase Order number

18.2.1.12.2 Corresponding TopWorx, Inc. drawing number and current

revision number, if applicable

18.2.1.12.3 Material lot control number

18.2.1.12.4 Suppliers purchase order number corresponding with the

purchase of the raw material

18.2.1.12.5 Authorized signature and date

18.2.2 Standard Qualification – The supplier will be required to provide Material

Certifications, Certificates of Compliance (C of C’s), unique lot control

numbers, and dimensional inspection data, as requested by TopWorx, Inc.

Supply Chain or Quality, for all shipments. These suppliers additionally will

have a formal quality system in place and will be subject to audit of the quality

system by TopWorx, Inc. or a third party auditor. This category of supplier will

also be held responsible for quality record retention and non-conforming

reporting requirements per the TopWorx, Inc. Supplier Performance Manual.

Specific requirements to the Purchase Orders to these suppliers will contain, but

not be limited to the following:

18.2.2.13 No substitutions for any material or specification called out on the

part drawing

18.2.2.14 All products must be new (not re-worked) unless prior approval is

given by the TopWorx, Inc. Supply Chain Manager or Supply Chain

Sourcing Coordinator




18.2.2.15 All material shipped will be covered under a Material

Certification (shipped with the parts) that contains, but is not limited to

the following:





18.2.2.15.4 Suppliers purchase order number corresponding with the

purchase of the raw material


18.2.2.16 All material shipped will be covered under a Certificate of

Compliance (shipped with the parts) that contains, but is not limited to

the following:





18.2.2.16.4 Quantity on the order

18.2.2.16.5 Quantity being delivered

18.2.2.16.6 Brief statement stating that the product was produced in

accordance to the referenced TopWorx, Inc. specifications


18.2.2.17 Control of Non-Conforming Material per Section 9.0 of the

TopWorx, Inc. Supplier Performance Manual.

18.2.2.18 Providing TopWorx, Inc. the right of access to the supplier’s

facility where the nuclear components are being produced and providing

specific hold points where said parts are subjected to in-process

inspection and certain “pass” criteria is required before that part(s) are

allowed to pass to the next step in the production process.

18.2.3 Nuclear Qualification – This supplier will be required to adhere to all above

requirements of the Standard Qualification Supplier, but additionally will be

required to prove compliance with 10 CFR Part 21 and 10 CFR 50 Appendix

B

18.2.4 . Nuclear qualified suppliers are also required to incorporate appropriate QA

program requirements in sub-tier procurement documents.

18.3 Retention of Quality Related Records – All quality related records associated with the

manufacture of nuclear components for TopWorx, Inc., by both Standard Grade

Qualified and Nuclear Qualified Suppliers, must be retained at the supplier site for a

period of 15 years or provided to TopWorx, Inc. with each shipment of parts. Examples

of quality related records would be, but are not limited to the following:

18.3.1 In-process data

18.3.2 Material control lot numbers

18.3.3 Associated equipment calibration records




19.0 REVISION RECORD

Revision Date Revision Description QSM Approval

B 01/14/04 Added page 21

01/14/04 Page 6 of 21, 1st paragraph, 4th line, removed “and existing”,

added (as of 1/2004).

01/14/04 Page 7 of 21, 2nd paragraph, 4th line, changed “boxes” to package

labels.

01/14/04 Page 7 of 21, 2nd paragraph, 5th line, added quantity and current

revision level.

01/14/04 Page 7 of 21, 3rd paragraph, added this paragraph outlining

general packaging requirements.

01/14/04 Page 8 of 21, 3rd paragraph, 4th line, changed “may result” to will

result.

01/14/04 Page 10 of 21, 3rd paragraph, 3rd line, added requirement to send

deviation requests to the Supply Chain Performance Manager.

01/14/04 Page 14 of 21, 1st paragraph, 4th line, changed “digression” to

discretion.

01/14/04 Page 17 of 21, item “B” under Delivery, changed 5% to 10%

C 03/15/04 Appendix 1, revised weighting of Quality and Delivery categories

03/15/04 Page 13 of 21, 2nd paragraph, added “Suppliers will be

responsible for all freight charges associated with late deliveries.”

03/15/04 Page 13 of 21, 3rd paragraph, added “partial shipments are not

acceptable and will be counted as Off Quantity”.

03/15/04

Appendix J, Scorecard layout and verbiage revised as follows:

“Receiving Inspection – 20% of Quality Score is now Receiving;

Rejects – 10% of Quality Score; Build – 20% of Quality Score is

now Internal Rejects – 20% of Quality Score; Test – 20% of

Quality Score is now PPAP – 10% of Quality Score; Customer –

20% of Quality Score is now End User Rejects – 40% of Quality

Score; Response to SCAR’s – 20% of Quality Score is now CAR

Response – 20% of Quality Score; On Time Delivery was

weighted at 70% now it is weighted at 60%; Quantity Reliability –

30% of Delivery Score is now On Quantity Delivery – 40% of

Delivery Score.





03/15/04 Page 13 of 21, 3rd paragraph, 5th line, changed to say 50 pieces or

less.

D 05/11/06 Page 7 of 21, added item number 4 and 5 under Criteria for

Approval.

E 03/04/09 Added website cover page

03/04/09 Page 3, changed e-mail address

03/04/09 Page 5, updated Quality Policy Statement

03/04/09 Page 7 of 21, paragraph 2, line 2, changed packing slip “should”

to “must”.

03/04/09 Page 8 of 21, added NCR for nuclear components

03/04/09 Page 20-22, added Nuclear Components Requirement Section

F 07/12/10 Page 4, updated contact list

07/12/10 Page 6, updated Quality Policy

G 01/12/11 Page 22, added inspection data as requested by Supply Chain or

Quality.

H 01/16/12 Page 4, changed TopWorx, Inc. contact list

01/16/12 Page 17, clarified frequency of when Supplier Performance Data

is provided to suppliers

I 05/25/12 Page 1, changed link to website

05/25/12 Page 4, changed TopWorx, Inc. contact list

05/25/12 Page 5, removed “Appendices Section”

05/25/12 Page 7, amended Scope of Applicability/Supplier Approval

Process





05/25/12 Page 8, added maximum package weight, D of C requirement,

and REACH information

05/25/12 Page 9, added information on supplier price changes and

TopWorx, Inc. payment terms

05/25/12 Page 10, revised RMS process

05/25/12 Page 14, changed days late/early, over ship allowance

05/25/12 Page 15, added comment on Purchase Order Acknowledgments

05/25/12 Page 16, added comment on TopWorx, Inc. First Article Approval

Form

J 10/12/12

Rewrote SPM to standard TopWorx, Inc. procedure format.

Added definitions for supplier ratings. Revised Sample

Submission matrix.

10/12/12 Page 18, Modify Section 15.0 Sample Submission Process

10/12/12 Page 6, updated the Supply Chain contact list

K 4/7/15 Page 8, added section 5.4, Supplier Audits. Revised Supply Chain

list contact information

L 12/7/15

Page 2, change Declaration of Conformance to Certificate of

Conformance. Page 3, change Declaration of Conformance to

Certificate of Conformance and change MSDS to SDS. Page 6,

change contact list. Page 9, change reference in 6.3 to Certificate

of Conformance. Page 18, change Declaration of Conformance to

Certificate of Conformance.

M 2/9/16

Page 1, change TopWorx website address and update website for

REACH information. Page 2, remove Kanban Purchase Order

from list. Page 6, added Sean Lawler as new Supply Chain

Assistant. Page 10, section 7.1, modified REACH compliance

web address; added section 7.5 regarding Safety Data Sheets.

Page 17, eliminate section 14.4. Page 18, change section 15.3.

Page 21, 22, eliminated section 17.3. Page 24, added 10CFR50

Appendix B to 18.2.3. Also added 18.2.4.

N 2/7/17 Page 6, updated Section 3.0, TopWorx Supply Chain Contact List

Documents

Supplier Performance Manual.pdf