SUPPLIER QUALITY MANUAL - Hutchinson Aerospace & … Rev 37 1-16-16.pdf · ISO TS16949 Quality Management Systems ... Hutchinson shall be controlled and included in any process change

SUPPLIER QUALITY

MANUAL

OP-0033 SQM Rev-37

___________SUPPLIER QUALITY MANUAL

OP-0033 Rev-37 2

Table of Contents

Reference Documents ............................................................................................................................... 4

Associated Documents (Available from Hutchinson Buyer) .................................................................. 4

Objective .................................................................................................................................................... 5

Purpose ...................................................................................................................................................... 5

Scope ......................................................................................................................................................... 5

Responsibility ............................................................................................................................................ 5

1 General Quality System Requirements ................................................................................................. 6

1.1 Minimum Internal Documented Systems ............................................................................................ 6

1.2 Sub-Tier Supplier Flow-Down Requirements ...................................................................................... 6

1.3 Special Processes and Certification ................................................................................................... 6

1.4 DFARS Requirements: ....................................................................................................................... 7

1.5 Counterfeit Parts Prevention .............................................................................................................. 7

1.6 Foreign Object Damage / Foreign Object Debris (FOD) ..................................................................... 7

1.7 Shelf Life ............................................................................................................................................ 7

1.8 Management of Non-deliverable Software ......................................................................................... 7

2 Documentation Requirements ............................................................................................................... 8

2.1 Deliverables ....................................................................................................................................... 8

2.2 Hutchinson Documentation .............................................................................................................. 10

3 Ship to Stock Program (STS) ............................................................................................................... 10

3.1 STS Qualification ............................................................................................................................. 10

3.2 STS Requirements ........................................................................................................................... 11

4 First Article (FA) Requirements ........................................................................................................... 11

4.1 First Article Inspection (FAI) Inspection and Approval ...................................................................... 11

4.2 First Article Inspection Reporting (FAIR) .......................................................................................... 11

4.3 Supplier Notification: FAI .................................................................................................................. 11

5 Production Part Approval Process (PPAP) Inspection Reporting .................................................... 11

5.1 PPAP Requirement .......................................................................................................................... 11

5.2 PPAP Documentation Package ........................................................................................................ 12

5.3 Supplier Notification: PPAP .............................................................................................................. 12

6 Production Tooling ............................................................................................................................... 12

6.1 Identification Requirements .............................................................................................................. 12

6.2 Deliverable Requirements ................................................................................................................ 12


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7 Shipping and Packaging Requirements .............................................................................................. 12

7.1 Carton Shipments ............................................................................................................................ 12

7.1.1 Labeling ..................................................................................................................................... 12

7.1.2 Labeling: First Article (FA) and PPAP ........................................................................................ 13

7.1.3 Pallet Shipments & Labeling ...................................................................................................... 13

7.1.3.1 Labeling and Label Placement ............................................................................................ 13

7.1.3.2 Packing List (PL): ................................................................................................................ 13

7.1.3.3 Pallet Size ........................................................................................................................... 13

7.2 Ocean Imports: ................................................................................................................................ 13

8 Supplier Concern Analysis Report (SCAR)......................................................................................... 14

9 Request for Deviation ........................................................................................................................... 14

10 Supplier Evaluation System ............................................................................................................... 14

10.1 Objective: ....................................................................................................................................... 14

10.2 Pre-Rating ...................................................................................................................................... 14

10.3 ASL Status ..................................................................................................................................... 14

10.4 ASL Monitoring .............................................................................................................................. 15

10.5 ASL Disqualification ....................................................................................................................... 15

10.6 Supplier Score Card ....................................................................................................................... 15

11 Cost of Poor Quality ........................................................................................................................... 15

12 Contingency Plans ............................................................................................................................. 15

13 Environment Code of Conduct .......................................................................................................... 16

14 Anti-Terrorism Commitment .............................................................................................................. 16

15 Compliance with Ethics Law .............................................................................................................. 16

16 Conflict Minerals Compliance ............................................................................................................ 17

17 Anti-Corruption Clause…………………………………………..…………………………………………....16


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Reference Documents ISO 9001 Quality Management Systems - Requirements ISO TS16949 Quality Management Systems - Particular Requirements for the Application of ISO 9001 for Automotive

Production and Relevant Service Part Organizations ISO 9004 Managing the Sustained Success of an Organization – A Quality Management Approach ISO 10007 Quality Management Systems – Guidelines for Configuration Management SAE AS9100 Aerospace Model for Quality Assurance in Design, Development, Production, Installation, and Servicing SAE AS9102 Aerospace First Article Inspection Requirement NAS 412 National Aerospace Standards – Foreign Object Damage / Foreign Object Debris (FOD) Protection SAE AS5553 Counterfeit Electronic Parts: Avoidance, Detection, Mitigation and Disposition ARP9005 Aerospace Guidance for Non-Deliverable Software

Associated Documents (Available from Hutchinson Buyer) FCD-0372 First Article Inspection Report FCD-0647 Supplier Pre-Rating Report: Section-Purchasing FCD-0648 Supplier Pre-Rating Report: Section-Quality FCD-0649 Supplier Rating Report FCD-0061 Confidentiality and Non-Use Agreement FCD-0673 Supplier Terms and Conditions FCD-0282 Supplier Request for Engineering Approval (SREA) FCD-0038 PPAP Checklist WI-2403 Counterfeit Materials


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Objective Hutchinson is committed to providing products that exceed our Customers’ requirements and expectations. To be successful, we partner with high performing suppliers. We are committed to working together toward our goal of 100% Quality and Delivery Performance. Hutchinson Aerospace & Industry’s Supplier Quality Manual (SQM) outlines our Standards and Requirements for all Suppliers.

Purpose Communicate Hutchinson Supplier Standards and Quality Requirements to Suppliers.

Scope Communicate Supplier Quality System Requirements. Suppliers must demonstrate their capability to provide Products and Services that meet the requirements of Hutchinson specifications, drawings, and Purchase Orders (PO). The PO will include any specific Customer Flow-Down and Regulatory Requirements. Requirements of ISO-9001, TS-16949, and AS-9100 are included in the SQM and are applicable, as directed by the individual Purchase Order.

Responsibility The SQM is provided to all Hutchinson Suppliers. It is available from Supply Chain and / or Quality, or at

http://www.hutchinsonai.com/company/forms.cfm. Suppliers must review each Hutchinson PO to ensure

compliance to the current revision of the SQM. Suppliers are responsible to comply fully with the

Hutchinson PO, all drawings, specifications, reference documents, and the SQM. Concurrence of

understanding and compliance is agreed via Hutchinson PO acceptance.

http://www.hutchinsonai.com/company/forms.cfm


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1 General Quality System Requirements

1.1 Minimum Internal Documented Systems Suppliers must establish and maintain the following minimum, internal, documented systems, according to the standards required of the Hutchinson Drawing and Purchase Order (PO). Upon request, Hutchinson will audit these systems. Suppliers must retain Quality Records for one (1) year after notification that the part is no longer in service.

Organization, Personnel, Job Description, and Training Quality System Contract Review Document and Data Control Purchasing Product Identification and Traceability Process Control, Standardized Work Instructions First Article Inspection and Testing Control of Inspection, Measuring, and Test Equipment Control of Nonconforming Product Corrective and Preventive Action Storage and Packaging System Internal Quality Audits Statistical Techniques Quality Records Sub-Tier Supplier Management SPC (when applicable) Cpk>1.33 for all KCC PPAP Reporting (when applicable)

1.2 Sub-Tier Supplier Flow-Down Requirements All applicable, requirements from Hutchinson’s SQM, Finish List, Drawings, and PO Requirements must be

flowed-down to our Supplier’s suppliers (Tier 2 Suppliers). An approved Hutchinson NDA must be in place

with all Tier 2 Suppliers requiring Hutchinson data.

1.3 Special Processes and Certification The Hutchinson PO specifies, by the Quality Type designation of the part, when Special Processes are to be performed by a NADCAP Approved source. The required Special Process Certification must be issued by the NADCAP Approved Supplier. Any changes to Sub-tier Suppliers, NADCAP Certified or otherwise, must be identified and communicated to the Buyer for approval.

NOTE: NADCAP Certified Suppliers can be researched at https://www.eauditnet.com/eauditnet/ean/user/login.htm

A Special Process is:

- One which modifies or changes the inherent physical, chemical, electrical, or metallurgical properties of an item (ex: Coating, Plating, Phosphate, Heat Treat, etc.)

- Methods that remove material from, or deposit material onto, an item during or after fabrication. These methods are not able to be fully evaluated by Nondestructive or normal Process Control

https://www.eauditnet.com/eauditnet/ean/user/login.htm


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means; Special Processes may require a demonstration of Operator or Equipment capability and/or proficiency, and special controls be in place for monitoring, per specification. The means for compliance are detailed in the individual specification.

1.4 DFARS Requirements: The Hutchinson PO will specify when the Supplier must comply with DFARS 252.225-7014, Preference for

Domestic Specialty Metals, Alt I. Specialty Metals is defined as including Titanium, Stainless Steel. Raw

material must be melted in the United States (U.S.) or a Qualifying Country. Note that procuring raw

material from a mill in the U.S. or Qualifying Country, does not guarantee its conformance to DFARS

252.225-7014. Supplier is to verify the Sub-tier Supplier’s conformance via their Raw Material C of C and C

of A. For assistance with DFARS 252.225-7014, contact the Buyer.

1.5 Counterfeit Parts Prevention SUPPLIER must ensure that Counterfeit Work is not delivered to Hutchinson.

‘Work’ consists of those parts delivered under any Purchase Order contract that are the lowest level of separately identifiable items (e.g., articles, components, goods and assemblies). “Counterfeit Work” means Work that is, or contains, items misrepresented as having been designed and/or produced under an approved system or other acceptable method. The term also includes approved Work that has reached a design life limit or has been damaged beyond possible repair, but is altered and misrepresented as acceptable.

SUPPLIER will only purchase products to be delivered or incorporated Approved Suppliers Work to Hutchinson directly from the Original Component Manufacturer (OCM), Original Equipment Manufacturer (OEM), or through an OCM/OEM authorized distribution chain. Work will not be acquired from independent distributors or brokers unless approved in advance, in writing, by Hutchinson.

SUPPLIER will immediately notify Hutchinson with all pertinent facts if SUPPLIER becomes aware, or suspects, that it has furnished Counterfeit Work. When requested by Hutchinson, SUPPLIER will provide OCM/OEM documentation that authenticates traceability of the affected items to the applicable OCM/OEM.

Compliance to Counterfeit Material requires the flow down to suppliers of Section 3, AS6174 Aerospace Standard. Suppliers are required to adhere to this Section of the AS6174 standard

1.6 Foreign Object Damage / Foreign Object Debris (FOD) SUPPLIER will review NAS 412 and maintain part cleanliness requirements as specified on all

Hutchinson purchased parts coded as ‘AS9100 Requirements Apply’ on the PO.

SUPPLIER will handle parts through production and packing such that FOD cannot enter into any cavities or remain embedded in a part or assembly.

SUPPLIER will ensure that all tooling, fixtures, jigs, test equipment and handling equipment are maintained in a state of cleanliness and repair sufficient to prevent FOD.

1.7 Shelf Life All materials requiring a Shelf Life must be delivered with a minimum of 80% of the total specified Shelf Life. This remaining Shelf Life is to be documented on the Supplier’s Packing Slip and C of C.

1.8 Management of Non-deliverable Software

Supplier will control each non-deliverable Software item used in the automated manufacturing of deliverable Hardware.


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Change of programming or updating of Software used to control the production of parts manufactured for Hutchinson shall be controlled and included in any process change notification First Article Inspection or a PPAP update for TS Quality type to Hutchinson.

Change of the controlling Software in automated, or semi-automated, equipment constitutes a process change and therefore requires process re-validation.

2 Documentation Requirements

2.1 Deliverables The table below summarizes the requirements for each shipment based on the Part Number ‘Quality Type’.

The ‘Quality Type’ of each part is stated on the PO.

Part Number ‘Quality Type’

AS9100 REQUIREMENTS

APPLY

ISO9001 REQUIREMENTS

APPLY None

TS16949 REQUIREMENTS

APPLY

COTS (Commercial off the Shelf)

Inspection Requirements

In accordance with ANSI Z1.4 1.0% AQL1 Level II

C=0, inspection results for 100% of all dimensions and SPC DATA for KCC characteristics when applicable, unless an alternate Control Plan is

approved by Hutchinson. If sample lot size is not adequate for SPC, KCC dimensions must be

measured on the entire lot.

Inspection requirements per

Hutchinson approved Control

Plan

Not Required

C of C Signed, dated containing part number, part Rev and PO#, and as applicable, Lot Number,

Serial Number

Material Verification

Metals- A legible, reproducible Mill Certification documenting the Country of Origin, together with a Certificate of Analysis only when additional material testing or processing is required. Traceability from the Mill is required.

Plastics- Certificate of Conformance from the raw material manufacturer to the required specification Rubber- Certificate of Analysis to the required specification

Not Required

Special Process Certs

1. From all suppliers performing any ‘Special Process’: a signed, dated, C of C containing the PO number, part number with revision, and a reference to the applicable Process Standard used. 2. For parts designated Quality Type TS16949, in addition to #1 above: all Special Processes require a completed AIAG CQI Assessment to be submitted together with the PPAP, and updated as required. 3. For parts designated Quality Type AS9100, in addition #1 above: any/all Special Processes must be performed by a NADCAP Certified Process Supplier whose C of C is marked with their NADCAP Certified status.

Not Required


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Initial Production or Revision

Changes First Article/Delta First Article

PPAP/ Delta PPAP

Not Required

Lapse in Production

Complete First Article if the part has not been manufactured for 24 months

Quality System Requirements

Hutchinson Approved Supplier

CERTIFICATES OF CONFORMANCE: As depicted in the above table, a Certificate of Conformance (C of C) is required for all shipments. C of C’s from original manufacturers are preferred. C of C’s from Hutchinson ‘Customer Approved Sources’, identified by drawing number or Hutchinson PO requirements, must be provided by the identified source. Certificates of Conformance will: a. Certify conformity to the Hutchinson drawing or purchase order line item extended description, material and physical requirements. b. Be approved and dated by an appropriate company representative c. Indicate the successful completion of any testing required by the part drawing or specification d. Reference any Hutchinson approved SREAs for the applicable part e. Contain the Supplier Name, Address, Hutchinson Purchase Order Number, Hutchinson Part Number, and Line Item Quantity f. Reference the Batch or Lot Number and the Expiration Date for age sensitive items such as Rubber Compounds, Adhesives, Sealants, and Chemicals g. Not be password protected unless the password is provided EMAIL REQUIREMENTS Subject to US Export Requirements, Suppliers must email documentation at the time of shipment to [email protected]. Buyers may be copied. Refer to the PO Notes for the email address and required email Subject Line information. All documentation must be legible and of reproducible quality. No hard copy certifications are required. Supplier email, with attached files, needs to be less than 5 Mb in size (due to Hutchinson system limitations).

1AQL Sampling Plan

In accordance with ANSI Z1.4 1.0% AQL Level II C=0

Lot Size Sample Size

2 to 8 2

9 to 15 3

16 to 25 5

26 to 50 8


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2.2 Hutchinson Documentation This SQM is available online at: http://www.hutchinsonai.com/company/forms.cfm

Hutchinson drawings, data sheets, finish lists, etc. are obtained from the Hutchinson Buyer or attached to the PO.

Many Hutchinson drawings specify the part’s required finish using a numeric code. Our ‘Finish List’ defines these codes. The Hutchinson ‘Finish List’ is available online at: http://www.hutchinsonai.com/company/forms.cfm

3 Ship to Stock Program (STS)

3.1 STS Qualification Suppliers qualify for STS with the following criteria and exceptions:

A minimum of three consecutive Accepted production lots

Exceptions: a. Any Supplier with a poor overall Quality Rating b. First Article Submittals

51 to 90 13

91 to 150 20

151 to 280 32

281 to 500 50

501 to 1200 80

1201 to 3200 125

3201 to 10000 200

10001 to 35000 315

35001 to 150000 500




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c. Any part with an open SCAR d. Any part with a known quality issues

3.2 STS Requirements

All Quality records from Section 2.1 will be stored, and available, at the Supplier’s facility

All Quality records are to be made available within one (1) Business Day of request

Any rejected part will be disqualified from STS program until production stability is proven reestablished

4 First Article (FA) Requirements

4.1 First Article Inspection (FAI) Inspection and Approval

FAI is required:

a. Upon initial production of a part b. Upon a process, design, or tooling change that could affect form, fit, or interchangeability of the

product or its components c. Upon a change in Supplier’s Manufacturing Location d. Upon a change in Supplier’s Sub-tier Supplier e. When requested on the Hutchinson PO f. When a part has not been manufactured within 24 months

4.2 First Article Inspection Reporting (FAIR) NOTE: SAE AS 9102, Revision B, section 5.5.1 (Form # FCD-0372) is recommended for FA Inspection Reporting

Supplier performs all inspections and tests ensuring compliance to the drawing, chemical and physical specifications, and all other requirements specified and /or referenced on the drawing and PO.

Chemical and Physical Data must be actual data; the C of C from a Sub-Tier Supplier performing a special process, is acceptable. Please complete Form 2 completely with information pertaining to the certificate.

If the production tool used to produce the FA part contains duplicate fixtures or multiple cavities, a FA part must be submitted from each fixture / cavity.

A ballooned print must be provided with Form 3 of the FAI.

FAI’s must be signed and dated.

4.3 Supplier Notification: FAI Hutchinson will review FAI submittal for acceptance. The Buyer will notify the supplier of FA Acceptance. A Hutchinson Non-conformance Report (NCR) will be created, and issued, for any submittal that is not approved.

5 Production Part Approval Process (PPAP) Inspection Reporting

5.1 PPAP Requirement


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An approved PPAP is required when:

Part Number is coded as: "Quality Type: TS16949 REQUIREMENTS APPLY”

There is any change in the Supplier’s existing Approved PPAP Process

5.2 PPAP Documentation Package Must contain:

PSW (Part Submission Warrant)

Dimensional Layout (Inspection results for all requirements)

Control Plan

Process Flow

Process Capability Study for part properties with call out on Hutchinson prints

Gauge R & R (for a part with )

All Certifications (C of C, C of A, and C of F, etc.)

Test Data (when applicable)

PPAP Labeling per SQM Section 7.1.2

NOTE: Refer to the Hutchinson PPAP Checklist # FCD-0038 for compliance to PPAP requirements.

5.3 Supplier Notification: PPAP Hutchinson will review PPAP submittal for acceptance. The Buyer will notify the supplier of PPAP Acceptance. A Hutchinson Non-conformance Report (NCR) will be created, and issued, for any submittal that is not approved.

6 Production Tooling

6.1 Identification Requirements Engrave on metal tag and affix to the tool, or engrave onto the tool itself:

‘Hutchinson Proprietary Tool’

‘PO XXXX’ (XXXX = the Hutchinson PO # issued for the tool)

‘Item NTXXXX’ (NTXXXX = the Hutchinson Part # located on the PO for the tool)

6.2 Deliverable Requirements

FAI (Part and associated documentation)

Tool Design (CAD Model preferred)

Photo of the tool, clearly depicting identification detail of 6.1 (above)

7 Shipping and Packaging Requirements

7.1 Carton Shipments Any carton greater than 40 pounds, must be marked with the Gross, Tare, and Net Weight.

7.1.1 Labeling All cartons / containers (including UPS Shipments) must be labeled on two sides with:


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a. PO Number b. Hutchinson Part Number c. Part Revision d. Quantity Per Box e. Individual Box Number (1 of 1, etc.)

7.1.2 Labeling: First Article (FA) and PPAP In addition to the requirement of 7.1.1 above:

Packaging must be labeled on two sides with: “First Article” or “PPAP”

The sample(s) and report(s) are to be packaged and shipped: ATTN TO: Receiving Department. The outside of this container must contain a ‘PPAP/FA Sample’ label. (Hutchinson does not provide this label.) This label must contain the following information:

a. PPAP / FA Sample b. PO Number c. Hutchinson Part Number & Revision d. Date Shipped e. Supplier Name

7.1.3 Pallet Shipments & Labeling All pallets must be marked with the Gross, Tare, and Net Weight.

7.1.3.1 Labeling and Label Placement

Two labels are required: one on the side facing fork-lift and the second on the opposite side. Labels are to be affixed to the outside of the shipping container via a permanent method.

All pallets must be marked with the Gross, Tare, and Net Weight.

7.1.3.2 Packing List (PL):

An envelope containing the PL must be secured to the top of the skid PL must include the total quantity, and the total number of boxes, shipped for each part number

7.1.3.3 Pallet Size

Half Pallets (open for forks) 24" Length X 40" Width X 34" High;1,500 lb. max weight limit

Standard Pallets 44" Length X 44" Width X 34" High

Tare Weight (in lbs) written on the sides of each pallet and / or shipping container

Boxes are not to exceed 40 lbs each, even if palletized (Gaylords are excluded)

No steel banding is to be used

Suppliers shall package items to prevent damage to the part(s) during transit

All palletized items must be securely strapped to the pallet sufficient to prevent shifting of material during handling and transit

Strapping must be tensile rated for the load being secured to the pallet

7.2 Ocean Imports: Per U.S. Customs, each Ocean Import must have a corresponding International Shipper Filing Form (12 required completion fields). This form must be submitted to the Buyer 48 hours prior to the shipping container’s scheduled departure date.


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8 Supplier Concern Analysis Report (SCAR) A SCAR will be submitted to a Supplier when the product or process does not conform to the PO requirements. When issued, the supplier:

Must immediately contain all applicable parts and/or material

Initiate a Root Cause investigation, using supporting problem solving tools, as needed (Ex: 8-D, Fishbone, 5 Why, Fault Tree)

Submit a SCAR response containing: the Root Cause of the Escape, the Root Cause of the Problem, the Corrective Action (CA) and Preventive Action (PA) plans with completion dates for Hutchinson’s review

Hutchinson will notify the Supplier of SCAR acceptance. Any Rejected SCAR will contain a full explanation for rejection.

Suppliers are responsible to verify the effectiveness of the completed Corrective Action and Preventive Action plans to ensure that the non-conformance is not repeated.

9 Request for Deviation Suppliers are to deliver product in accordance with all PO requirements. Any deviation from those requirements require a formal request / submittal to the Buyer or Supplier Quality Manager, via Hutchinson FCD-0282: ‘Supplier Request for Engineering Approval’ (SREA), prior to shipment. Hutchinson will review the SREA for acceptance. The Buyer will notify the supplier of SREA Acceptance via FCD-0282, directing the Supplier to ship with the accepted deviation.

10 Supplier Evaluation System

10.1 Objective: Supplier Rating System qualifies potential new suppliers and re-evaluates Approved Suppliers that are not performing to our Quality and OTD requirements. A Quarterly Supplier Score Card is issued to assess, monitor, and report Approved Suppliers’ ongoing performance.

10.2 Pre-Rating Potential Non-Direct Material Suppliers must:

a. Complete FCD-0647 for Hutchinson approval b. Provide current W-9 Form

Potential Production suppliers must: a. Sign a Hutchinson Confidentiality and Non-Use Agreement (FCD-0061) b. Submit the Purchasing Pre-Qualification Form (FCD-0647) for approval c. Submit the Quality Pre-Qualification Form (FCD-0648) for approval d. Provide current W-9 Form

10.3 ASL Status Based upon acceptance of the data above, Purchasing and Quality can add the supplier to the ASL


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Approved Supplier status requires demonstration of a required level of Quality; Approved Suppliers may be selected, and must pass, an on-site audit per FDC-0649

Hutchinson’s minimum Quality expectations are: Continuous Improvement toward defect-free production On-Time Delivery (OTD) Cpk>1.33 on KCC (1.67 short term &1.33 long term)

10.4 ASL Monitoring Areas for review:

Certification Status and Type

PPM

Complaints per year

% OTD

Ability to fulfill Commercial, Technical and Logistic Demand

Code of Conduct

10.5 ASL Disqualification Supplier Performance is reviewed. Disqualification is based upon their Quarterly Supplier Scorecard Rating.

10.6 Supplier Score Card Supplier Performance will be reported quarterly based upon Key Process Indicators of OTD and Quality, and other key factors as appropriate.

11 Cost of Poor Quality Hutchinson will charge back to the Supplier any / all expenses incurred as result of a poor supplier

quality (ex: late delivery, missing, incorrect / incomplete documentation, dimensional discrepancies, etc.). Any charge back will result in a minimum processing charge of $750.00, per occurrence.

Any expenses generated by scrapped parts, customer and / or in-plant charges, expedited freight, etc. are solely the Supplier’s responsibility. Each will be calculated and added to the minimum internal processing charge of $750.

If Hutchinson labor is required for inspection / sorting in order to maintain production, meet customer requirements, etc., the Supplier will be charged at a $50/hour labor rate.

Any non-compliant material returned to the Supplier, will be returned ‘Freight Collect’. The replacement shipment will be shipped ‘Freight Prepaid’.

12 Contingency Plans Suppliers shall have a prepared plan in place ensuring the continued flow of material to Hutchinson in the event of an emergency, such as:

Utility Interruptions

Labor Shortage

Key Equipment Failure

Field Returns


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13 Environment Code of Conduct Total (Hutchinson’s Parent Company) is a world-class conglomerate of oil, gas, and chemical companies, with operations in more than 130 countries with approximately 100,000 employees from a wide diversity of backgrounds and in a broad range of professions. As a result, our growth and long-term viability depend on all of us embracing the ethical shared values and principles that motivate and guide our day-to-day undertakings. Expressed in our Code of Conduct, these values and principles are critical to the success of an integrated company like ours.

Respect, the source of sustainable, trust-based operations and relations

Responsibility toward others and in our jobs

Exemplary behavior, which underpins the internal and external credibility of our actions and initiatives

For these ethical values to have a meaningful impact, they have to be expressed through a certain number of business principles applied in our sphere of activity—upholding human rights, an ongoing concern with safety and environmental protection, respect for everyone we work with, integrity towards the company and in our business relationships, non-interference in political processes, and support for colleagues, host communities and business partners. Hutchinson Approved Suppliers are expected to share in these same values.

Please refer to the enclosed Code of Conduct document.

Code of Conduct

14 Anti-Terrorism Commitment Approved Suppliers will adhere to the directions of Executive Order (EO) 13224, "Executive Order on Terrorist

Financing- Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or

Support Terrorism", Effective 09/24/2001 and any Subsequent Changes made to it. Approved Suppliers further

agree to include this requirement in lower-tier PO’s or subcontracts hereunder. To view the contents of the EO,

please access: http://www.treasury.gov/resource-center/sanctions/Documents/13224.pdf. This Anti-

Terrorism Clause is documented in our PO Terms and Conditions.

15 Compliance with Ethics Law Seller, and any Products supplied by the Seller, shall comply with all applicable laws, including rules,

regulations, orders, conventions, ordinances and standards that relate to the manufacture, labeling, transport,

import, export, licensing, approval or certification of Products, including laws relating to environmental matters,

hiring, wages, hours and conditions of employment, subcontractor selection, discrimination, occupational

health or safety and motor vehicle safety, NAFTA and any other similar trade agreements. The Order

incorporates by reference all clauses required by these laws. All materials used by Seller in the Products or

Services in their manufacture will satisfy current governmental and safety constraints on restricted, toxic and

hazardous materials, as well as environmental, electrical and electromagnetic considerations that apply to the

country of manufacture, sale or destination. At Hutchinson request, Seller shall certify in writing its compliance

and/or willingness to cooperate with any or all of the foregoing. Seller represents that any Products or Services

http://www.treasury.gov/resource-center/sanctions/Documents/13224.pdf


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purchased by Hutchinson under an Order will not be produced with forced labor either by Seller or Seller’s

Suppliers. Seller shall indemnify Hutchinson against any liability Hutchinson may incur if this representation is

incorrect and Hutchinson has the right to terminate an Order if there is a breach thereof. Also reference and

act in accordance with the TOTAL SA Corporate Social Responsibility which includes (but not limited to)

Ethics and Governance, Code of Conduct and Health, Safety Environment Quality Charter located at

www.total.com.

16 Conflict Minerals Compliance Suppliers will adhere to the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding "conflict

minerals" originating from the Democratic Republic of the Congo (DRC) or adjoining countries. The SEC

published final rules associated with the disclosure of the source of conflict minerals by U.S. publicly traded

companies (see the rules at http://www.sec.gov/rules/final/2012/34-67716.pdf). The rules reference the OECD

Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk

Areas, (http://www.oecd.org/daf/inv/mne/GuidanceEdition2.pdf), which guides suppliers to establish policies,

due diligence frameworks, and management systems. See information on the Conflict-Free Sourcing Initiative

@ www.conflictfreesourcing.org.

17 Anti-Corruption Clause

In recognition of the principles contained in the pertinent National and International Conventions on combating

corruption, and to ensure compliance with the Anti-Corruption laws applicable to the activities under the

Agreement as well as any other Anti-Corruption laws applicable, Approved Suppliers will adhere to the

enclosed Anti-Corruption document.

20160115_

Anti-Corruption Clause.pdf

http://www.total.com/

http://www.sec.gov/rules/final/2012/34-67716.pdf

http://www.oecd.org/daf/inv/mne/GuidanceEdition2.pdf

http://www.conflictfreesourcing.org/


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