Supplier Quality Manual - rexnord.com

RSQ002v4-MAN Printed Copies are Uncontrolled Documents Page 1

Supplier Quality Manual Global Supply Chain Management

Rexnord PMC RSQ 002 Version 4

Released June 2018


Global Supplier Quality & Development Supplier Quality Manual

Contents 0.0 Purpose ...................................................................................................................... 4

1.0 Scope .......................................................................................................................... 4

2.0 Acronyms and Definitions ........................................................................................... 4

3.0 Supplier Relationship Management Responsibilities .................................................... 6

4.0 Supplier Quality Philosophy and Expectations ............................................................. 6

4.1 Total customer satisfaction means that we expect: ...................................................................... 7

4.2 Supplier Product and Process Safety Policy Statement: ................................................................ 7

5.0 Supplier Goals ............................................................................................................. 7

5.1 Supplier Performance Metrics ...................................................................................................... 8

6.0 Achieving Quality – Delivery – Cost (QDC) .................................................................... 8

6.1 Rexnord expects the following from our suppliers: .................................................................... 8

7.0 Communications ......................................................................................................... 9

8.0 Becoming a Supplier to Rexnord .................................................................................. 9

8.1 New Suppliers ............................................................................................................................... 9

9.0 Supplier’s Responsibility regarding the Manual ......................................................... 10

10.0 Quality System Requirements .................................................................................... 10

11.0 Supplied Product Qualification ................................................................................... 10

Note: All PPAP submissions must be submitted in English. ............................................................... 10

11.1 PPAP (Production Part Approval Process) ................................................................................ 10

11.2 PPAP Checklist ............................................................................................................................ 12

11.3 Part Qualification Approval ....................................................................................................... 12

11.4 Key Product Characteristic (KPC) ............................................................................................... 13

12.0 Change Management ................................................................................................. 14

12.1 Temporary Change – via a “Temporary Deviation” .................................................................. 15

12.2 Permanent Change –Supplier Change Request (SCR) ............................................................... 16


13.0 Supplier Control of Non-conforming Material and Delivery ........................................ 17

13.1 Supplier Corrective Action Request (SCAR) .............................................................................. 18

13.2 Supplier Delivery Performance ................................................................................................. 19

13.3 Supplier Improvement Plan (SIP) .............................................................................................. 19

14.0 Lot /Material Control and Preservation Requirements ............................................... 19

14.1 Supplier Lot Traceability ............................................................................................................ 19

14.2 Packaging ................................................................................................................................... 20

14.3 Shipping Label and Packing Slip Requirements ........................................................................ 20

14.4 Material Certification/Test Reports .......................................................................................... 20

14.5 Supplier-Furnished Lot Documentation .................................................................................... 21

15.0 Continuous Improvement .......................................................................................... 21

16.0 Supplier Assessment .................................................................................................. 22

16.1 Assessments Performed by Rexnord ........................................................................................ 22

16.2 Suppliers Periodical Evaluation ................................................................................................. 22

17.0 Disaster Recovery Plan ............................................................................................... 23

18.0 Control of Sub-tier Suppliers ...................................................................................... 23

19.0 Agency Approvals and Compatibility Reports ............................................................. 24

20.0 Laboratory Requirements .......................................................................................... 24

Appendix A – PPAP Charter ............................................................................................... 25

Appendix B – Material Test Report Example ...................................................................... 26

Appendix C – 8D Template ................................................................................................ 27

Appendix D – Supplier Change Request ............................................................................. 28

Appendix E – Material Composition Report ....................................................................... 29

References ........................................................................................................................ 30

IMPORTANT: If you supply Rexnord’s Aerospace Facilitates there are additional Statutory and

Quality Assurance Requirements for the purchase of products, services and processes. These

requirements are often specific to the Aerospace industry and to comply with contractual,

regulatory and Industry standards. Please contact your Rexnord Aerospace buyer you are doing

business with to ensure you have a full understanding of these requirements.


0.0 Purpose

To define the Technical and Quality requirements expected of Rexnord PT suppliers and

the expectations for those suppliers beyond the purchase order.

1.0 Scope

This document applies to all purchased components, purchased finished goods and

services used in production. The document summarizes quality requirements for all

externally sourced direct material, PPAP and production orders, deviation request

process, return authorization, corrective action, rework, packaging, shipping

requirements and performance measurements. This document serves as a guideline for

conducting business with respect to Quality and Technical requirements but is NOT all

inclusive and in no way attempts to outline commercial requirements.

2.0 Acronyms and Definitions

CI (Continuous improvement) – an ongoing effort to improve products, services,

processes. Processes are constantly evaluated and improved in the light of their

efficiency, effectiveness and flexibility.

DFMEA (Design-Potential Failure Mode and Effects Analysis) - is the application of the

Failure Mode and Effects Analysis (FMEA) method specifically to product/service design.

SCR (Supplier Change Request) – request for permanent change to part, dimension,

tolerance, material, process, method, or standard.

MSA (Measurement System Analysis) – Measurement system analysis (MSA) is an

experimental and mathematical method of determining how much the variation within

the measurement process contributes to overall process variability. There are five

parameters to investigate in an MSA: bias, linearity, stability, repeatability and

reproducibility. An example of MSA is a Gage Repeatability and Reproducibility Study (G,

R&R). According to AIAG (2002), a general rule of thumb for measurement system

acceptability is:

• Under 10 percent error is acceptable.

• 10 percent to 30 percent error suggests that the system is acceptable depending

on the importance of application, cost of measurement device, cost of repair,

and other factors.

• Over 30 percent error is considered unacceptable, and you should improve the

measurement system. AIAG also states that the number of distinct categories


the measurement systems divides a process into should be greater than or equal

to 5.

In addition to percent error and the number of distinct categories, you should also

review graphical analyses over time to decide on the acceptability of a measurement

system.

SIP (Supplier Improvement Plan) – sometimes referred to as Supplier Development Plan

(SDP), a structured approach to driving improvement in performance that includes

escalation for leadership involvement supplemented by defined targets and follow-up

activities.

PFMEA (Process-Potential Failure Mode and Effects Analysis) – is the application of the

Failure Mode and Effects Analysis (FMEA) method specifically to manufacturing and

transactional processes.

PFD (Process Flow Diagram) – A process flow is a way of visualizing and documenting

the steps in a business process. Flow charts document inputs or requests for

information, products or any other deliverable; the procedural steps to satisfy that

request; and the output, or deliverable, that is generated by the input.

PPAP (Production Part Approval Process) – PPAP defines the approval process for new

or revised parts, or parts produced from new or significantly revised production

methods. The PPAP process consists of 18 elements that may be required for approval

of production level parts. Not all 18 elements may be required for every submission.

There are five generally accepted PPAP submission levels. The resulting PPAP

submission provides the evidence that the supplier has met or exceeded the customer’s

requirements and the process is capable of consistently reproducing quality parts.

PSW (Part Submission Warrant) – This is the form that summarizes the whole PPAP

package. This form shows the reason for submission (design change, annual

revalidation, etc.) and the level of documents submitted to the customer. There is a

section that asks for "results meeting all drawing and specification requirements:

yes/no" refers to the whole package. If there are any deviations, the supplier should

note them on the warrant or inform Rexnord that the PPAP cannot be submitted. Key

element of the document is the signature from the submitter.

QMS (Quality Management System) – A quality management system (QMS) is a

formalized system that documents processes, procedures, and responsibilities for

achieving quality policies and objectives. A QMS helps coordinate and direct an

organization’s activities to meet customer and regulatory requirements and improve its

effectiveness and efficiency on a continuous basis.


SPC (Statistical Process Control) – Statistical Process Control is a scientific visual method

used to monitor, control and improve processes by eliminating special cause variation

from manufacturing, service and financial processes. SPC is a key continuous

improvement tool.

SCAR (Supplier Corrective Action Request) – A Supplier Corrective Action Request (SCAR)

is sent to a supplier where an item or process is in nonconformity and a remedy is

required. This format may follow the 8D problem Solving methodology. The SCAR will

contain information to support the resolution of an issue including the specific non-

conformance that the customer experienced. The SCAR form is intended to guide a team

through the process and capture critical information including root cause, actions to

correct the issue and plans for avoiding recurrences.

NCM (Non-conforming material) – A product, component, or raw material which

deviates from the specification, standard, or expectation. Failure of the product,

component, or raw material to meet intended state or fitness for use//normal usage

requirements.

3.0 Supplier Relationship Management Responsibilities

Global Supply Chain Management and local plant purchasing teams are responsible for

maintenance and communication of the commercial portions of the document. Global

Supplier Quality and Development for Rexnord PMC is the owner of this document and

with local quality teams are responsible for the communication of the quality

requirements of this document.

4.0 Supplier Quality Philosophy and Expectations

Total customer satisfaction is achieved through partnership and cooperation to have a

positive impact on the performance and development of our suppliers, delivering

competitive products and services on time. The expectation is suppliers will establish

and maintain efficient processes and tools to deliver zero defects.

Rexnord will provide suppliers with data, information, and feedback to effectively

develop, implement, and maintain a robust quality plan. The supplier must accept

ultimate responsibility for the quality of their products and services. Rexnord will

support the supplier’s efforts but will not be responsible for implementation of cost and

quality improvement programs such as scrap reduction, Lean Manufacturing, etc. This

manual shall provide the basis for establishing and maintaining a mutually beneficial

relationship between Rexnord and its suppliers.


4.1 Total customer satisfaction means that we expect:

• Quality products that fully meet specifications

• On-time delivery

• Best in class costs

• Effective inventory management system

• Technical innovation

• High quality service

• Continuous improvement

• Shared goals, and commitment to the business relationship

All of the sections in this manual describe the specific requirements and minimum level

of expectations for doing business with Rexnord. Each supplier to Rexnord is fully

responsible for the performance of their suppliers. Rexnord reserves the right to audit

second tier suppliers.

4.2 Supplier Product and Process Safety Policy Statement:

The safety of Rexnord’s associates, customers, and suppliers is paramount. The

expectation for our suppliers is to meet or exceed Rexnord’s requirements for safety

regardless of local norms. These requirements include the availability of appropriate

personal protective equipment (PPE) such as safety glasses, earplugs, etc. for visitors

as well as associates of the supplier’s organization. At no time should any customer, or

person at a Rexnord facility, be exposed to hazardous material or situations that are

not inherent in a component’s structure. Residues, films, out-gassing products and

packaging materials should comply with industry best practices and standards. For

items with inherent hazards, safety notices must be clearly observable. Business

systems that are registered to ISO45001:2018 and ISO14001:2015 are encouraged and

preferred.

5.0 Supplier Goals

Suppliers for Rexnord should strive to accomplish the following:

• Less than 1,000 defective Parts Per Million (ppm)

• 95% or greater On Time Delivery (OTD)

• Conformance to requirements to eliminate sorting, scrap, and rework (cost)

• Continuous improvement initiatives to improve quality, delivery, and cost


5.1 Supplier Performance Metrics

• The Supplier Performance Scorecard is a tool used by Rexnord to review and

monitor monthly supplier performance. The Supplier Performance “ranking” is

based on monthly OTD and PPM results and is divided into three categories;

“Meets Expectations”, “Approaches Expectations” and “Needs Improvement”.

• In the event the supplier falls into the “Needs Improvement” category reference

section 13.0 – Supplier Control of Nonconforming Material and Delivery.

6.0 Achieving Quality – Delivery – Cost (QDC)

6.1 Rexnord expects the following from our suppliers:

• Products and services shall comply with all Rexnord specifications and process

requirements.

• Suppliers shall review, understand, and communicate any questions concerning

specification and process requirements to the appropriate Rexnord point of

contact (see Communications).

• Suppliers shall comply with all Rexnord design, process control, and process

capability requirements.

• Suppliers shall comply with all Supplier Corrective Action Requests and assist

Rexnord with efficient and effective problem resolution.

• Suppliers shall control their sub tier suppliers to ensure compliance with all

Rexnord specifications and process requirements (see 18.0 Control of sub-tier

suppliers).

• Suppliers shall have a quality system in place and be able to demonstrate

compliance with Rexnord specification and process requirements (see 10.0

Quality System Requirements).

• Suppliers shall have the ability to manage changes to Rexnord specifications and

process requirements (see 12.0 Change Management).

Type Min Max

OTD 95.00% 100.00%

OTD 90.00% 94.99%

OTD 0.00% 89.99%

PPM 0 1,000

PPM 1,001 5,000

PPM 5,001 1,000,000

AE = Approaches Expectations

NI = Needs Improvement

Status

ME = Meets Expectations

AE = Approaches Expectations

NI = Needs Improvement

ME = Meets Expectations


• Suppliers are required to communicate the proper use of their product or service

to Rexnord.

• Suppliers shall not implement changes to form/fit/function of their products or

processes without written approval by Rexnord. This also applies to changes

relative to manufacturability or cost savings initiatives.

• Suppliers shall notify Rexnord of any situation with a known or perceived

negative impact to product quality, reliability and, or safety.

7.0 Communications

Buyer: Primary point of contact for all purchasing and related issues. The buyer must

be informed of any issue that impacts quality, delivery, and or cost.

8.0 Becoming a Supplier to Rexnord

8.1 New Suppliers

New potential suppliers are considered for improved quality, value and/or where

technical advantages may be offered.

New Supplier Approval: The following steps must be executed to approve a new direct

material supplier to do business with Rexnord.

8.1.1 Signed Non-Disclosure Agreement (NDA) to regulate the protection of

business information before engaging in detailed discussions.

8.1.2 Supplier Profile

8.1.3 Supplier Assessment

8.1.3.1 Supplier Self-Assessment (performed by supplier)

8.1.3.2 On-Site Assessment (performed by Rexnord Supplier Quality)

8.1.4 Supplier Quality Manual (SQM) A copy of this manual will be provided.

8.1.5 Request for Proposal (RFP) A supplier may then be asked to complete a

Request for Proposal to gauge future potential.

Note: A review of the self-assessment submission and risk assessment will

determine the need for an on-site assessment of the supplier’s facility(ies). Rexnord

reserves the right to request this assessment at any time in the future.

Provided the steps above are successful, purchase orders may be placed for PPAP

samples (See 11.0 Supplied Product Qualification).


9.0 Supplier’s Responsibility regarding the Manual

All suppliers are required to read and fully understand the content within this manual.

The supplier will be expected to adhere to all of the requirements as specified within

Rexnord’s Supplier Quality Manual.

10.0 Quality System Requirements

Suppliers are expected to implement a robust Quality Management System (QMS) that

promotes defect free products through prevention, monitoring, and continuous

improvement.

Suppliers providing products to Rexnord are expected to maintain a formal Quality

Management System (QMS) that is either registered to ISO9001 or is compliant with this

standard Suppliers are requested to provide Rexnord with a copy of the registration

certificate. It is preferred that your business is registered to a formal Quality System

Standard such as ISO9001, IATF16949 or AS9100 in order to do business with Rexnord. It

is required that your business is registered to one of these standards or like standards to

be considered a “Strategic” supplier at Rexnord.

11.0 Supplied Product Qualification

Note: All PPAP submissions must be submitted in English.

11.1 PPAP (Production Part Approval Process)

The purpose of the PPAP (Production Part Approval Process) submission is to

demonstrate whether all designs and specification requirements are properly

understood by the supplier and that the supplier’s process has both the capability and

capacity to produce products meeting these requirements through a limited production

run. This PPAP run must be conducted using production parts, processes and tooling. In

addition, the PPAP will be used to establish a high confidence level that Suppliers’

processes are capable of producing materials, components and finished products that

meet requirements on an on-going basis. The supplier should follow the PPAP process

submission requirements of Rexnord and work with Rexnord’s Quality representative to

obtain a full PPAP approval on time.

Change Management: Any Permanent changes or modifications to an existing mass

production component or part must receive prior written approval from Rexnord, via

the Rexnord Supplier Change Request (SCR) process.


All suppliers are responsible for completing the PPAP package provided by Rexnord prior

to shipping PPAP product. Suppliers are also expected to manage a sub-supplier part

approval process.

A PPAP Submission is required for the following circumstances:

• Initial production of a new or revised component and/or material.

• Correction of any discrepancy on a previous submission (resubmission of an interim

or rejected PPAP).

• Any change in process, tooling or product.

• Any change in the supplier’s manufacturing location or movement of any or all of

the production processes used to manufacture the component.

• Any change to sub-supplier (new sub-supplier).

• Any change in the sub-supplier’s process, tooling or product.

• Change in form, fit or function.

• Modifications required by an engineering change order.

• Use of an optional process or material that was not included in the original

qualification.

• Change of source for subcontracted parts, materials or services (e.g. heat-treating,

plating).

• Product re-released after the tooling has been inactive from volume production for

twelve (12) months or more.

Any Permanent change, as depicted in the above conditions, must be communicated to

Rexnord, via the Rexnord Supplier Change Request (SCR) process (appendix E).

Specific qualification requirements for any part, component, or assembly will be

communicated to the supplier via the Supplier PPAP Charter (Appendix A). The Supplier

PPAP Charter will be prepared by Rexnord and provided to the supplier early in the

procurement process. Suppliers should review the Supplier PPAP Charter, ensure that

all specific requirements are understood (both part and process requirements). The

Supplier PPAP Charter depicts and communicates all Rexnord requirements for both

part and process qualification. The supplier must work with Rexnord to provide all

requested information so that production parts and processes can be verified. Unless

specified by Rexnord, all Supplier PPAP Charter requirements shall be met with

production specific tooling, equipment, line, factory and sub-tier production processes.

Data submitted MUST be representative of the serial production process. The supplier

must strive to meet all conditions and requirements as set forth in the Supplier PPAP


Charter. If any condition or requirement cannot be met, the supplier must notify their

Rexnord representative and initiate the Supplier Deviation Request form as directed.

11.2 PPAP Checklist

The Supplier PPAP checklist is used by Rexnord to communicate submission

requirements to suppliers and must be included in the package. Suppliers should use

this checklist to ensure a complete PPAP package is assembled prior to shipping

documentation and parts. Submission level will be sent to supplier to indicate which

document should be communicated to Rexnord. Upon receipt, Rexnord will evaluate the

package and determine if approval can be granted. The PSW (Part Submission Warrant)

will then be updated with the appropriate approval status and forwarded to the supplier

for their records. Initial Process Studies (Element 11 in PPAP) must have a minimum

capability of Cpk/Ppk of 1.33 with evidence of a normal distribution. Measurement

system analysis needs to be validated by providing a gauge R&R report with result of

30% or less.

The PPAP checklist includes some or all of the following items based on PPAP level.

1. Part Submission Warrant (PSW)

2. Design Records

3. Approved Engineering Change Documentation

4. Customer Engineering Approvals

5. DFMEA

6. Process Flow Diagram

7. PFMEA

8. Control Plan

9. MSA Studies

10. Dimensional Report

11. Material and Performance Report

12. Initial Process Studies

13. Qualified Laboratory Documentation

14. Appearance Approval Report (AAR)

15. PPAP Sample Parts

16. Master Sample

17. Checking Aids

18. Customer Specific Requirements

18a. Rexnord Tooling Form

18b Rexnord Packaging Form

11.3 Part Qualification Approval

Rexnord is responsible for communicating part qualification status to the supplier. Part

qualification status is defined as:


Approved status

The supplier has been granted full production approval and can begin shipping parts to

Rexnord.

Rejected status

The PPAP package may be rejected for the following reasons:

• Documentation does not match Rexnord requirements as stated on the PPAP

checklist.

• Parts do not meet print specifications (dimensional and/or test failures with NO

corrective/preventive action plan documented).

• Material and/or performance test failures.

11.3.1 Shipment of Engineering Samples There may also be occasions where

Rexnord will order parts for sample purposes. These parts must be labeled

as samples. (See PPAP submission package tab #15 PPAP Sample Parts-

LABELING) Sample quantities are specified in the Supplier PPAP Charter.

Where multiple production molds, cavities, dies or machines are utilized,

samples must be submitted from each. Samples shall be from actual

production tooling or processes unless otherwise approved in writing.

11.3.2 Shipment of PPAP Samples and Communication of completed PPAP

Documentation The PPAP package must be submitted electronically. A

single PDF file is an acceptable format for submission. Rexnord reserves the

right to request source files for the purpose of performing data analysis. The

PPAP parts must be packaged with sufficient care and planning in order to

prevent damage to the contents. Packages must be clearly identified/labeled

as “PPAP Samples” (see tab #15 PPAP sample Parts-LABELING in the PPAP

submission package). The label or identification should be affixed to the

specific container holding the sample parts. PPAP documentation should be

communicated electronically to the appropriate supplier quality

representative.

11.4 Key Product Characteristic (KPC)

KPC Designation – A KPC will be designated on a part drawing with a "diamond" ( ◊ ),

immediately adjacent to the dimension to which it is applicable. Legacy Rexnord

drawings may contain designations other than a "diamond" ( ◊ ) for identification of

KPC’s. They include but are not limited to an asterisk, an inverted delta or the term

CTQ. The supplier must contact the appropriate Rexnord Supplier Quality

representative regarding questions on KPC’s.

Key Product Characteristic (KPC) is a product or part characteristic which requires

additional control because variation outside or potentially inside of the tolerance

would significantly impact:


• Customer Satisfaction

• Safety

• Regulatory Compliance

• Primary Functionality

Although no additional control is required on Standard Product Characteristics, all

product characteristics, (Standard or Key) on all drawings are required to be within

specification or within the stated tolerance as prescribed in the quality system

documentation unless a fully approved deviation has been granted by product

engineering.

Additional control may be implemented with different techniques including, but not

limited to:

• Error Proofing • In-Process Checks

• 100% Inspection • Statistical Process Control

• Sampling Inspection • Automated Testing

KPC Guideline - FMEA

A design or process that has FMEA "Severity" ratings outlined below may have KPC

callouts and require extra process control during product or part manufacturing.

D/P- FMEA

Severity Ranking

Severity

Description

10 Hazardous Operation or compliance, failure mode occurs

WITHOUT warning.

9 Hazardous Operation or regulatory compliance, failure

mode occurs WITH warning.

8 "Very High" Severity - Product/item is INOPERABLE with

loss of primary function.

7 "High" Severity - Product/item is OPERABLE with high

customer dissatisfaction.

12.0 Change Management

Supplier changes must be formally reviewed and approved by Rexnord. Changes that

are regulated by the change management process include, dimension, fit, form, and

function, performance, process, raw material, location and sub-supplier. Changes are

classified as either a permanent change or a temporary change.

Temporary Changes require a “Temporary Deviation” Approved by the Manufacturing

Site that will utilize the supplied parts or product.


Permanent Changes require use of “Rexnord’s Supplier Change Request” Process which

often requires the supplier to submit the change ahead of time in order to have the

change approved prior to implementing any activity with the change.

12.1 Temporary Change – via a “Temporary Deviation”

A temporary deviation constitutes limited and temporary permission to supply

materials, products or components that do not fully comply with the drawings,

specifications or standards. IMPORTANT: Non-conforming material must never

knowingly be shipped to Rexnord WITHOUT prior approval via a deviation.

However, suppliers can contact Rexnord to request a deviation in specific cases.

Deviations will not be accepted for any non-conforming Key Product Characteristics (as

identified on the drawing) under any circumstances. This includes CTQs, Key Product

Characteristics or other Special Characteristic designations. Examples of issues that

require a deviation request includes (but not limited to) the following:

• Non-conforming material

• Any deviation from specified requirements

• A substitution of material

• Change in process

• Change in supplier

• Change in manufacturing location

• New or modified tools (except perishable tools), dies, molds, patterns, including

additional or replacement tooling

• Tooling and equipment transferred to/from a different plant location

The Temporary Deviation must be granted by the Rexnord Manufacturing site that

receives the product. It must include approvals from Operations, Quality and Product

Engineering. Suppliers must provide to Rexnord all required and pertinent information

concerning the requested deviation. If non-conforming material is associated with the

deviation, the supplier is responsible for the segregation of the non-conforming material

until deviation approval is granted and corrective action has been implemented at the

request of Rexnord. Any discrepant material received at Rexnord without an approved

deviation will be rejected and returned to the supplier at the supplier’s expense with all

additional handling and shipping costs incurred by the supplier. Non-conforming or

suspect material should not be processed or delivered until a temporary deviation is

formally approved by Rexnord.


Once approved, all material shipped to Rexnord must be accompanied by a copy of the

signed and approved Temporary Deviation. For process deviations, the supplier must

make the necessary changes to update process documentation such as the Control Plan,

Process FMEA, and Work Instructions. Rexnord views the excessive use of deviations for

non-conforming material as abusive and an indicator that a supplier may have a serious

breakdown in their quality system.

If the request is denied after consultation with the affected plant, the supplier will

receive a communication from Rexnord to that effect and the supplier will not be

allowed to send the non-conforming material. If the request is approved by the affected

plant, the Rexnord representative will send a copy of the signed deviation form to the

supplier. Note: The supplier must include a copy of the signed temporary deviation

form with the shipment. Failure to comply with the deviation process may cause the

material to be rejected.

12.2 Permanent Change –Supplier Change Request (SCR)

Rexnord communicates engineering change requests to the supplier by providing new

specifications, drawings and applicable directives in writing. Suppliers are required to

provide Rexnord with notification of substantial changes including but not limited to:

• Engineering Changes

• Change to construction, material or component

• New, additional or modified tools

• Tooling, production or equipment transferred to different site

• Change of supplier or non-equivalent materials/services

• Product when tooling has been inactive for 12 months

• Product/process changes on components of the product

• Change in test or inspection method

• Bulk Material: New source of raw material

• Change in product appearance attributes

• Change of Sub Supplier or material source

Reference: Section 3 Table 3.1 on Page 13 of AIAG PPAP 4th edition (May 2006)

The supplier is required to submit a the Supplier Change Request Form shown in

Appendix E no less than 3 months prior to the planned change. The form is to be

submitted to a member of the Global Supply Chain Management team. This allows

Rexnord the proper time:

1. Review the request

2. Determine any required qualification

3. Approve the change

4. Communicate the change to Operations and the Supplier.


Once approved the supplier is expected to comply with any requests for documentation,

qualification or logistics to make the change successful. The supplier must also update

in a timely manner standard documents such as:

• PPAP documents

• Work instructions

• Inspection requirements

• Bill of material

Rexnord will provide the supplier with drawings and/or specifications for all Rexnord

driven revision changes. The supplier must inform Rexnord of the date these changes

are incorporated. The expected way to do this is to submit a Supplier Change Request

form. The supplier must ensure all related changes are implemented and all supporting

documents are updated. The supplier must be able to provide evidence of all related

changes upon request from Rexnord. Non-conforming products, components, or

materials must not be shipped to Rexnord unless formally approved through Rexnord’s

change management process such as a temporary deviation. The supplier is expected to

isolate and contain non-conformances until such time as formal approval has been

granted.

13.0 Supplier Control of Non-conforming Material and Delivery

Non-conforming material may be identified during Rexnord’s incoming inspection, or at

any point in the manufacturing process. Suppliers are notified of non-conforming

material when identified as not meeting product specifications. The supplier must have

a procedure and process to take necessary preventive actions for all rejects or non-

conforming products received by Rexnord.

In the event that non-conformances escape the supplier’s control, the supplier must

initiate actions to locate, identify and contain the non-conforming escapes. The actions

may include the planning and execution of inspecting and sorting at Rexnord

manufacturing and/or distribution facilities. 3rd party sorting may be used only with

Rexnord’s consent.

Non-conformances identified by a Rexnord facility will be reported to the supplier. The

supplier is expected to provide Disposition Recommendations as follows:

• Return to Vendor (RTV)

• Scrap on site

• Sort on site

• Rework on site


Containment Action Plan reported to Rexnord receiving Plant Within 48 hours of NCM

notification

RMA provided to Rexnord Within 24 hours of NCM

notification

Root Cause on 8D Corrective Action (SCAR) Within 10 business days of

NCM notification

Completed 8D Corrective Action (SCAR) (all sections) Within 30 business days of

NCM notification

13.1 Supplier Corrective Action Request (SCAR)

Rexnord will evaluate the non-conformance situation and determine the necessary

actions required to contain and disposition the affected parts. As needed, Rexnord will

issue a supplier corrective action request (SCAR) to the supplier.

Rexnord may require a supplier to submit a formal written corrective action to address

a non-conformance. The need for a SCAR will be evaluated in terms of the potential

impact to production costs, quality costs, performance, delivery, reliability, safety, and

customer satisfaction. Suppliers must fully comply with the SCAR and work with Rexnord

to develop and implement all required corrective actions. Rexnord uses the Supplier

Corrective Action Request form (SCAR - 8D format) for problem management.

• The supplier is required to submit all corrective Actions (SCAR) requests on

Rexnord’s 8D Supplier Corrective Action Report Format. No other format will be

accepted.

• The supplier is required to communicate Immediate Containment Actions,

including the identification of ALL parts/components in question, to Rexnord and

acknowledge receipt of the SCAR within 48 hours from the date of notification.

• A Return Material Authorization (RMA) is expected within 24 hours of

acceptance.

• A proposed 8D corrective action, (SCAR) is due within 10 business days of

notification.

• The supplier is required to complete failure analysis leading to the determination

of root cause. Permanent corrective action and full 8D SCAR response is required

within 30 days.

• If Rexnord rejects any part of the SCAR response, supplier correction and return

is expected within 5 business days.

NCM and SCAR Timeline


13.2 Supplier Delivery Performance

In the event of poor delivery performance Rexnord will determine required actions

which may include:

• Validation and clean-up of the data.

• Reviewing, correcting, and returning open order, past due, rescheduling, or

other reports.

• Participation in meetings/conference calls to review and address performance.

• Participation in supplier assessments.

• Development and execution of SCARs.

• Request the Supplier to Initiate a Supplier Improvement Plan (SIP).

Shipments made after an agreed containment plan is in place and prior to verification of

corrective action must be inspected and clearly identified on all packaging.

Identification labels are required until permanent corrective action is implemented and

verified. Additional containment may be required based on the nature and severity of

the problem. Any arrangements with third party sources for the purpose of containment

ill be the responsibility of the supplier.

13.3 Supplier Improvement Plan (SIP)

A Supplier Improvement Plan (SIP) may be initiated to analyze and review the current

performance status (quality, delivery, commercial agreement, technology or other

issues). Supplier accountability and commitment will be the focus of the plan. An SIP

may be called for if a supplier’s performance has resulted in:

• Product non-conformance including safety characteristics

• Recurring part shortages

• Sort or rework at Rexnord and/or customer site due to supplier’s product quality

• Repeat or Chronic quality issues

14.0 Lot /Material Control and Preservation Requirements

14.1 Supplier Lot Traceability

Suppliers are expected to maintain lot traceability of all materials back to the point of

origin in the event that suspicious material would need to be isolated and a recall

required. Each container of material must be physically marked with the following

information.

• Purchase order number

• Part Number

• Lot Number


• Quantity

• Manufacturing Date / Date Code

• Country of Origin and ROHS certificate (if applicable)

14.2 Packaging

Supplier must appropriately package the products so as not to be damaged or destroyed

in transit. In addition, Supplier must comply with any additional packaging requirements

of the Rexnord location that has ordered the Products, including any bar coding

requirements of the Rexnord location. All products shipping to Rexnord facility may be

subject to standardized testing (applicable ISTA standard or equivalent) to evaluate

integrity of packaging and product according to engineering requirements.

Packaging, including alternative packaging (when applicable), must be submitted and

approved by the Rexnord location prior to initial shipment (documented in the PPAP

documentation package under the Packaging tab).

14.3 Shipping Label and Packing Slip Requirements

At a minimum, all Shipping Labels and Packing Slips must include:

• Rexnord Part Number

• Rexnord PO Number

• PO Line Number

• Quantity (Pieces)

• Supplier Name & Manufacturing Location

(Note: As specified in Section 12.1, approved supplier deviation requests must be

included with the packing slip information.)

14.4 Material Certification/Test Reports

When requested, the supplier must provide a material certification/test report. This

report must include the specification number, specified material and/or physical

requirements, and the inspection/test results. A simple statement that the material

meets the requirements is not acceptable. Each report must be traceable to the

supplier’s material, and must be signed by the organization that performed the testing.

14.4.1 Mechanical properties report (See appendix)

This lab report summarizes the results of product or component testing such as

impact, tensile, shear, flex, tear, force, temperature, ductility, etc. These

requirements are defined in product/part specifications or other Rexnord

engineering standards.


14.4.2 Material Composition/Material Cert report(See appendix E)

This document is provided from the certified lab of the material manufacturer

or their certified external lab. It contains the results of chemical composition of

a specified lot and should display the acceptance range and the specification

stated on the Rexnord print or engineering standard.

14.5 Supplier-Furnished Lot Documentation Rexnord may require the supplier to furnish inspection, test, process performance, or other quality data with each shipment to ensure that the product meets Rexnord’s requirements. When data submission is required, the data must accompany each shipment, or be e-mailed to Rexnord at the same time as the lot is shipped. All documentation must be clearly identified with Rexnord’s part number, and the supplier’s lot number. If circumstances, such as, high risk launch or chronic quality issues deem it necessary, the supplier must submit monthly data packages. Data packages typically consist of copies of control charts and process capability calculations for specified characteristics. Once the supplier has completed the defined number of data submissions, the supplier may request elimination of the data submission if records show that the characteristic consistently satisfies Rexnord’s requirements for process performance, and if the characteristic has caused no problems in Rexnord’s production. Rexnord will notify the supplier in writing if the data submission may be discontinued.

15.0 Continuous Improvement

Continuous improvement and lean principles are fundamental to our business and

Rexnord believes are fundamental to suppliers’ long term success. We will expect our

suppliers to manage their quality systems to the same standards that guide Rexnord’s

quality efforts, and to demonstrate continuous improvement in areas that benefit the

customer with regards to quality, price, delivery, service and technology. To aid in

fulfillment of this requirement the supplier’s organization shall establish, monitor,

prioritize, and act upon key performance objectives and targets as defined in the

Supplier Scorecard. Actions taken to regain previously sustained levels of performance

are corrective actions, not continuous improvement. Rexnord may visit any supplier site

to assess its continuous improvement programs and lean manufacturing practices and

make recommendations for improvement.

Some common examples of Continuous Improvement programs are:

• Cost reduction projects

• Waste reduction projects

• Variation reduction projects

• Factory reorganization projects


• Inventory reduction projects

• Yield improvement projects

• Non-manufacturing process Improvement

16.0 Supplier Assessment

16.1 Assessments Performed by Rexnord

Representatives of Rexnord or its customer are entitled to visit the supplier’s processing

and assembly facilities after notification and to conduct assessments on the basis of

ISO9001 standards or for product audits. This may also include assessments of Supplier’s

Sub-Suppliers. The Supplier shall provide the necessary resources for the performance

of this task.

Prior to conducting an On-Site Assessment of a supplier, Rexnord will send a Supplier

Self-Assessment. This assessment gives Rexnord some basic information about the

Supplier and their capabilities, and allows Rexnord auditors some familiarization with

the Supplier before visiting. The Self-Assessment must be returned within 10 business

days of receipt.

16.2 Suppliers Periodical Evaluation

Rexnord suppliers are subjected to periodical evaluation in terms of Service, on time

delivery and respect of quantity ordered as well as Quality, measured in ppm [part per

million] of defective items referred to the total items delivered. After PSW approval,

additional requirements for managing quality, delivery, and cost during production may

be specified by Rexnord. Sustainability requirements may include periodic verification

of process capability, verification of material properties, or any requirement specified


and agreed to. The supplier will be responsible for submitting required data,

information, or deliverables.

Persistent deviation of the requested target may lead to Supplier Improvement Plan

(SIP) and in case of no reaction or improvement to supplier disposal.

17.0 Disaster Recovery Plan

Rexnord suppliers are expected to prepare a contingency plan (e.g. utility interruptions,

fire, flood, storm damage, temporary or limited data loss, chemical spills, air/water

contamination, earthquakes, tornados, hurricanes, and storm surges, complete data

loss) to reasonably protect Rexnord’s supply of product in the event that a supplier’s

facility cannot continue to operate. Disaster Recovery Plans should not be confused with

internal Health and Safety plans. This plan must be shared / reviewed with Rexnord if

requested. In addition, all electronic records (e.g. design file, manufacturing test

measurements) need backup on site routinely and as well as 3rd party storage outside

company property.

18.0 Control of Sub-tier Suppliers

Suppliers are responsible for the quality of materials and components provided by their

sub-tier suppliers and sub-contractors. Rexnord suppliers must impose controls on their

sub-tier suppliers that provide quality results and documentation comparable to the

controls applied to suppliers by Rexnord. The extent of the controls may vary, depending

on the nature and complexity of the product and processes, but should normally

include:

• Evaluation and qualification of sub-tier supplier facilities.

• Control to ensure that raw materials used meet Rexnord’s requirements.

• Controls to ensure that the sub-tier suppliers of components used are those

approved by Rexnord, where applicable.

• Ensure that sub-tier suppliers have an ESD control program that meets or

exceeds the needs of Rexnord if the parts or materials are ESD sensitive.

• Part qualification, including first article inspection and process capability

studies of as applicable.

• Control of drawings/revisions.

• Control of nonconforming material.

• Corrective action and preventive action programs.

• A continuous quality improvement program.


Where appropriate, Rexnord may specify the sub-tier suppliers that may be used,

evaluate and qualify the sub-tier supplier’s facilities, and assist the supplier in

controlling the sub-tier supplier. Typically, this occurs when the sub-tier supplier is an

essential component of the supply-chain process. Rexnord reserves the prerogative to

evaluate the quality system and records of such sub-tier suppliers as necessary. In the

event of Rexnord’s involvement, it does not absolve suppliers of the ultimate

responsibility for the quality performance of their sub-tier suppliers.

19.0 Agency Approvals and Compatibility Reports

The supplier is responsible to provide the proper agency approval test reports per

Rexnord requirement. Examples are UL, CE, FCC, TUV, etc. The supplier is also

responsible for agency test reports from their sub-supplier or other outside test

agencies.

The supplier is responsible to submit test results that verify compatibility as required.

Testing may be done by the supplier or by a test facility certified by the supplier.

20.0 Laboratory Requirements

Internal Lab – The supplier must have the facilities, equipment and qualified staff to

perform tests, inspection and calibration as necessary to qualify and validate

applicable product, process and equipment. It is preferred that the supplier’s lab is

certified to the requirements defined with ISO17025.A

External Lab – Suppliers to Rexnord that utilize external labs for material evaluation,

failure analysis, etc. must use labs that are compliant with ISO17025, A2LA, or other

appropriate standards.

Rexnord reserves the right to secure evidence of proper lab certification and, in some

cases, to specify an alternate external lab to provide material or other validations.

Certified external labs are expected to provide initial PPAP validation. Appropriately

certified internal labs are acceptable for on-going production validation outlined

within the supplier’s control plan(s).


Appendix A – PPAP Charter


Appendix B – Material Test Report Example


Appendix C – 8D Template


Appendix D – Supplier Change Request


Appendix E – Material Composition Report


References

ISO 9001 Quality Management System Requirements, available from ANSI.org

ISO9004 Quality Management Systems – Guidelines for Performance Improvements

APQP Advanced Product Quality Planning and Control Plan Manual, available from

aiag.org

PPAP Production Part Approval Process Manual, available from aiag.org

SPC Statistical Process Control Manual, available from aiag.org

MSA Measurement System Analysis Manual, available from aiag.com

FMEA Potential Failure Mode & Effects Analysis Manual, available from aiag.com

CQI-9 AIAG Heat Treat Standard, available from aiag.com

CQI-10 Effective Problem Solving Guideline, available from aiag.com

CQIA-19 Readiness Checklist for Subtier Supplier Management, available from aiag.com

ASQ American Society for Quality

ISO17025 Lab Management System Requirements, available from ANSI.org

MANUAL REVISION HISTORY

Number Name Release Date Version Comments

2.1 SQ Manual 6/3/2015 1 Initial Release

2.2 SQ Manual 5/9/2016 2 Several Updates including goals,

Supplier agreement and

Performance.

2.3 SQ Manual 8/15/2017 3 Minor Updates

2.4 SQ Manual – Global CSM 6/10/2018 4 Updated to 20 sections.