Purchasing Terms and Conditions

Title: Purchase Order Requirements & Clauses

 

Number: PU-SOP-001

Revision:  G

Date Issued: 2/14/18

Approved by:  Purchasing Manager

Approved by: Quality Manager 

 

 

 

1.         PURPOSE

This procedure describes the process/requirements for communicating to suppliers/vendors the requirements of MMi via PO documentation.  

2.         SCOPE

To ensure that     MMi purchased products and the requirements of those purchased products conform to the customers defined requirements. 

3.         GENERAL REQUIREMENTS

The general requirements as listed in Section 1 are applicable to all MMi purchase orders as they pertain to the product being purchased.  (example:  A First Article Report (D) would not be required for a chemical component)

Purchase Order Specific or unique Quality Requirements imposed will be specifically coded and will be located on the face of the purchase order.  These are described in detail in Section 2.

In any case where P.O. specific clauses (POQC’s in Section 2) are in conflict with the General Requirements in Section 1, The Section 2 requirements shall take precedence.

4.         SUB TIER CONTROL

The supplier shall be responsible for flow down of all the requirements and provisions of the MMi purchase order applicable to the supplier’s sub-contractors. Additionally, the supplier shall comply with special processor requirements and regulations when imposed (e.g. – NADCAP, AMS, ITAR, Customer approvals, etc.).

5.         NOTIFICATION OF CHANGES

Suppliers chosen to be awarded purchase contracts by MMi have been approved to receive such contracts based upon meeting MMi Quality System requirements and also based upon their capability to provide the product being purchased.  Approved Suppliers are required to notify MMi of any changes to the product (including material changes), the process(es) utilized to manufacture the product, and/or to their organization’s Quality Management System that may differ from the original conditions of approval.

6.         RIGHT OF ACCESS

During the performance of this purchase order, your Quality Assurance or Inspection and Manufacturing process are subject to review, verification and analysis by MMi, MMi customers, and/or Government/Regulatory Agency representative(s).  This requirement is applicable to your facilities where MMi products and services are processed as well as your sub-tier’s facilities.  This ‘Right of Access’ must be flowed down to all of the sub-tiers that you utilize in performance of the contract.

7.         REWORKED/REPLACED MATERIAL

When returning previously rejected material to MMi, the supplier shall reference the Return Material Authorization (RMA) number on the shipping document, and shall state if the items have been replaced or reworked to conform to requirements.

8.         PRODUCTION FIRST ARTICLE REPORT

Compliance to requirements must be demonstrated by submitting a First Article Inspection Report with the first lot shipment of product and with the first lot shipment of each subsequent revision.

A new First Article Inspection shall be performed when:
8.1.     A dimensional change incorporated by a new drawing revision occurs.
(When a drawing revision has occurred that involves partial dimensional changes in the product, and no change as described in 8.2 – 8.5 is involved, a ‘Delta’ First Article Inspection Report will fulfill this requirement.)
8.2.     Either new manufacturing processes or new methods are used that could affect compliance to drawing requirements.
8.3.     New or reworked tooling is used.
8.4.     A drawing revision has occurred that affects the operations/processes performed by the supplier and/or sub tier.
8.5.     The location of the supplier/sub tier or the supplier sub/tier has changed.

It is the supplier’s responsibility to maintain the necessary records to assure that First Article Inspection requirements remain current.

9.         SUPPLIER NON-CONFORMANCE APPROVAL REQUESTS

The supplier shall notify MMi of non-conforming material.  Requests for any departures from drawings, specifications, or other purchase order requirements must be submitted for consideration by MMi in writing.  MMi will in turn either approve or deny approval of the request in writing.  Non-conforming material may NOT be shipped to MMi without such prior written approval.  Non-conforming material shipped on an approved deviation must be accompanied by a copy of the signed MMi approval document/deviation.

10.         NON-CONFORMING MATERIALS CORRECTIVE ACTION REQUESTS

Upon notification from the buyer that material furnished by the supplier is found to be discrepant and MMi requests Corrective Action, the supplier shall notify the buyer within the allotted time frame.  This shall be in writing and detailing the adequate and acceptable corrective action taken to eliminate the cause of the discrepancy. The 
Suppliers response shall include: 
10.1.     Containment Actions taken.
10.2.     Root Cause of Defect.
10.3.     Corrective Action Taken.
10.4.     Action to Prevent Recurrence.
10.5.     Point at which the Corrective Action is effective.

Objective evidence of all stated corrective actions should be included in the response and may be requested if not provided.  (example:  If Corrective Action included a change in a work instruction, a copy of the revised document should accompany the response)

11.         REPAIR

Under no circumstances shall a Supplier or a Supplier's Sub-tier perform any repair procedures and/or operations without specific written authorization of an approved repair procedure from MMi. Repair requests shall be submitted to the MMi buyer for approval.

12.         DISPOSITION DELEGATION AND MATERIAL REVIEW

MMi does NOT grant nor delegate any disposition or material review authority to any of its suppliers.

13.         CERTIFICATION TRACEABILITY, GENERAL

All certifications shall be legible and traceable to the material submitted and shall contain the signature of the authorized representative of the seller.  Serial numbers shall be listed if the components are serialized. Computer generated facsimile signatures will be accepted.

14.          RECORDS RETENTION

The Supplier shall maintain adequate records of all aspects of the fulfillment of the purchase order for a period of not less than fifteen (15) years from the closing of the purchase order unless stated otherwise on the purchase order.

15.         DRAWINGS SPECIFICATIONS AND QUALITY REQUIREMENTS

The Suppliers Quality System shall assure that the latest applicable drawings, specifications, and quality requirements are compatible with current purchase order agreements and are available and in use by the Supplier's manufacturing and inspection areas.  Military Standards and Specifications utilized shall be to the latest revision in effect on the date of the purchase order, unless otherwise specified.

16.          PACKAGING, HANDLING AND MARKING

In performance of the contract, the Supplier shall assure that all articles are packaged in a manner and with materials necessary to prevent deterioration, corrosion, or damage.

17.          SHELF-LIFE MATERIAL

Unless otherwise specified on Purchase Order, all shelf-life materials shall be delivered to MMi with a minimum of 80% shelf life remaining.  The date of manufacture and expiration dates are required to be on the certification and the packaging. 

18.          RoHS COMPLIANCE

All materials and products delivered to MMi must be in compliance to RoHS requirements unless authorized in writing otherwise.  Information on RoHS compliance is available on the internet.

19.          HAZARDOUS MATERIAL COMMUNICATION REQUIREMENTS

All materials and products delivered to MMi must be accompanied by the appropriate MSDS sheet as applicable in accordance with all current State and Federal codes.

20.          INSPECTION SAMPLING
20.1.     Unless otherwise specified in the Purchase Order and Quality Codes, the Supplier may use sampling procedures.
20.2.    Sampling plans shall be in accordance ANSI Z1.4, with the exception that lot acceptance will always be: “accept on zero, reject on one”.  Sampling plans other than ANSI Z1.4 must be approved in writing by MMi for usage on MMi products. MMi will not approve any sampling plan which permits lot acceptance with known defectives in the population sample.

21.          CALIBRATION SYSTEM

Supplier shall maintain a calibration system in compliance with either; Mil-STD-45662, ANSI/NCSL Z540-1, or ISO10012-1 latest revision.

22.          FOREIGN OBJECT PREVENTION, DETECTION AND REMOVAL

The supplier shall assure that work is accomplished in a manner preventing foreign objects or material from entering and remaining in deliverable items. 

23.        SPECIAL PROCESS APPROVALS

Special Process sub-tiers such as welding, heat treating, plating, coating, passivation etc. must be performed by sub-tiers that have been approved by MMi, directed by MMi’s Customer, or hold NADCAP approval.

Special Process (especially passivation) validation records shall be maintained and provided upon request. 

24.        QUALITY ASSURANCE SYSTEM REQUIREMENTS
(Should 24.2 or 24.3 not be specified, 24.1 is the default requirement)
24.1.     Suppliers shall maintain a Quality System program as approved by MMi.
24.2.     Supplier shall maintain a Quality Program in compliance with ISO9001 or ISO13485 or AS9100 requirements.
24.3.     Suppliers shall be Third Party Registered to ISO9001 or ISO13485 or AS9100.

25.         SOURCE INSPECTION BY MMI 

MMi may request a source inspection. A Quality Representative will perform evaluation/acceptance of product at the supplier’s facility. Notify the MMi buyer prior to shipment of this order to coordinate this inspection.

26.         SOURCE INSPECTION BY GOVERNMENT AGENCY OR MMI CUSTOMER

26.1.     Mandatory GSI – If Government inspection is required prior to shipment from your plant.  Promptly notify the Government Representative who normally services your plant so that appropriate planning for Government Inspection can be accomplished. On receipt of this order, promptly furnish a copy to the Government Representative who normally services your plant. In the event the representative or office cannot be located contact the MMi buyer immediately.
26.2.     MMi’s Customer Source Inspection may be required at your facility – At least 48 hours prior to completion of the order, notify the MMi buyer so that arrangements can be made for a Customer Quality Source Inspector to visit your facility and perform a source inspection.

27.         CERTIFICATE OF CONFORMANCE

When requested, the supplier shall furnish a Certificate of Conformance (C of C) with each shipment of each item listed on this purchase order.  The C of C shall be legible and, as a minimum, include the following information:

27.1.     For suppliers of metallic raw materials and/or suppliers of components produced from metallic raw materials:
27.1.1.    The MMi purchase order number.
27.1.2.    Part number and revision level.
27.1.3.    A reference to all applicable specifications as listed on P.O. or drawings.
27.1.4.    Quantity and U/M of items shipped.
27.1.5.    Name and address of manufacturer/processor.
27.1.6.    Date of Certification.
27.1.7.    The statement: “WE HEREBY CERTIFY THAT ALL MATERIALS FURNISHED CONFORM TO ALL DRAWINGS, SPECIFICATIONS, PROCESSES, AND/OR OTHER REQUIREMENTS AS STATED ON THE ABOVE REFERENCED PURCHASE ORDER.”  (Reasonable variations of this statement are acceptable if the content concurs.)
27.1.8.    The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

27.2.     For suppliers of components produced from synthetic, resin, or polymer based raw materials:
27.2.1.    The MMi purchase order number.
27.2.2.    Part number and revision level.
27.2.3.    A reference to all applicable specification and/or processes as listed on P.O. or drawings.
27.2.4.    Quantity and U/M of items ship
27.2.5.    Name and address of manufacturer.
27.2.6.    Compound number, Batch and/or Lot number and Cure date.
27.2.7.    Date of Certification.
27.2.8.    The statement: “WE HEREBY CERTIFY THAT ALL MATERIALS FURNISHED CONFORM TO ALL DRAWINGS, SPECIFICATIONS, PROCESSES, AND/OR OTHER REQUIREMENTS AS STATED ON THE ABOVE REFERENCED PURCHASE ORDER.”  (Reasonable variations of this statement are acceptable if the content concurs.)
27.2.9.    The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

27.3.     For suppliers of chemicals used as ingredients for compounding, adhesives, primers, fabrics, cleaners, etc., for the processing of MMi manufactured products:
27.3.1.     The MMi purchase order number.
27.3.2.     Material designation, Batch and/or Lot No. 
27.3.3.     A reference to all applicable specifications and/or processes as listed on P.O. or drawings OR if none apply, to the manufacturers published technical data sheets/specifications.
27.3.4.     Quantity and U/M of items shipped.
27.3.5.     Name and address of manufacturer.
27.3.6.     Date of manufacture.
27.3.7.     Shelf life.   (Age controlled materials only.)
27.3.8.     Material expiration date.  (Age controlled materials only.)
27.3.9.     Storage temperature requirements.   (If applicable.)
27.3.10.     Date of Certification.
27.3.11.     The statement; “WE HEREBY CERTIFY THAT ALL MATERIALS FURNISHED CONFORM TO ALL DRAWINGS, SPECIFICATIONS, PROCESSES, AND/OR OTHER REQUIREMENTS AS STATED ON THE ABOVE REFERENCE PURCHASE ORDER.”  (Reasonable variations of this statement are acceptable if the content concurs.)
27.3.12.     The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

27.4.     For suppliers performing or subcontracting manufacturing/inspection processes such as; plating, anodize, chemfilm, x-ray, penetrant, heat treat, welding, painting, etc.:
27.4.1.     The MMi purchase order number.
27.4.2.     Part number and revision level.
27.4.3.     Quantity and U/M of parts shipped.
27.4.4.     Each process/test performed.
27.4.5.     Each process specification and revision level.
27.4.6.     For N.D.T.- each test specification and revision level.
27.4.7.     For N.D.T.- each test acceptance standard, revision level, and acceptance level.
27.4.8.     Process approval number if issued by a certifying agency.
27.4.9.     Name and address of process/test source (if subcontracted).
27.4.10.     Date of certification.
27.4.11.     The statement: “WE HEREBY CERTIFY THAT ALL MATERIALS FURNISHED CONFORM TO ALL SPECIFICATIONS, DRAWINGS, OR OTHER REQUIREMENTS AS STATED ON THE ABOVE REFERENCED PURCHASE ORDER.”  (Reasonable variations of this statement are acceptable if the content concurs.)
27.4.12.     The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

27.5.     For suppliers that have processed or manufactured product from MMi supplied materials:
27.5.1.     The MMi purchase order number.
27.5.2.     Part number and revision level.
27.5.3.     Quantity and U/M of parts shipped. 
27.5.4.     Name and address of manufacturer.
27.5.5.     Date of Certification.
27.5.6.     The statement:” WE HEREBY CERTIFY THAT ALL PRODUCTS FURNISHED UNDER THIS PURCHASE ORDER WERE MANUFACTURED FROM MMI SUPPLIED MATERIAL.”   (Reasonable variations of this statement are acceptable as long as the material no. and batch/lot no. appear.)
27.5.7.     MATERIAL NO: __________________.
27.5.8.     BATCH/LOT NO: _________________.
27.5.9.     The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

28.         CHEMICAL AND PHYSICAL TEST REPORTS REQUIRED

As requested, the supplier shall furnish a copy of a certified test report with each shipment for each item listed on this purchase order.  As a minimum, the test report shall include the following information:

28.1.    For suppliers of metallic raw materials and/or suppliers of components produced from metallic raw materials:
28.1.1.    The MMi purchase order number.
28.1.2.    Part number and revision level.
28.1.3.    A reference to all applicable specifications as listed on P.O. or drawings.
28.1.4.    Quantity and U/M of items shipped.
28.1.5.    Name and address of manufacturer/processor.
28.1.6.    Date of Certification.
28.1.7.    The statement: “WE HEREBY CERTIFY THAT ALL MATERIALS FURNISHED CONFORM TO ALL DRAWINGS, SPECIFICATIONS, PROCESSES, AND/OR OTHER REQUIREMENTS AS STATED ON THE ABOVE REFERENCED PURCHASE ORDER.”  (Reasonable variations of this statement are acceptable if the content concurs.)
28.1.8.    The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

28.2.     For suppliers of components produced from synthetic, resin, or polymer based raw materials:
28.2.1.    The MMi purchase order number.
28.2.2.    Part number and revision level.
28.2.3.    A reference to all applicable specification and/or processes as listed on P.O. or drawings.
28.2.4.    Quantity and U/M of items ship
28.2.5.    Name and address of manufacturer.
28.2.6.    Compound number, Batch and/or Lot number and Cure date.
28.2.7.    Date of Certification.
28.2.8.    The statement: “WE HEREBY CERTIFY THAT ALL MATERIALS FURNISHED CONFORM TO ALL DRAWINGS, SPECIFICATIONS, PROCESSES, AND/OR OTHER REQUIREMENTS AS STATED ON THE ABOVE REFERENCED PURCHASE ORDER.”  (Reasonable variations of this statement are acceptable if the content concurs.)
28.2.9.    The ORIGINAL signature (Electronic signatures are acceptable) of an authorized company representative.

 


29.     MMi FURNISHED MATERIALS

If MMi furnishes material: the supplier shall not substitute, rework, or dispose of MMi furnished material in any way, except as allowed for or instructed to do so in writing. Unused material must remain properly identified and returned with the last shipment of fabricated parts, unless instructed otherwise.
Any non-conforming product resulting from this outside processing must be clearly identified as non-conforming and separately packaged for return and disposition at MMi.

30.     DOMESTIC SPECIALTY METALS REQUIREMENT

If specified on the PO: Any specialty metals as defined in DFARS 252.225-7000 inclusive of all articles incorporated therein by reference or otherwise.

31.     DOMESTIC MATERIAL REQUIREMENT

If requested on the PO: All material used for fulfilling this purchase order must be from domestic stock and wholly manufactured and processed within the borders of the UNITED STATES OF AMERICA.  The BUY AMERICAN ACT, FAR 252.225-3, dated January 1989 (In accordance with FAR 25.109[d], applies.

32.    COUNTERFEIT PART PREVENTION 

All MMi suppliers shall have a plan to prevent the purchase of counterfeit parts. If counterfeit parts are introduced into the MMi supply chain, the supplier will ensure the parts are removed from the supply chain and reported at http://www.gidep.org/products/database.htm 

33.    ETHICAL DEALINGS 

MMi expects all Suppliers to conduct their business ethically and compete fairly. MMi expects Suppliers to use fair trade practices and ethical sourcing without bribery, kickbacks and fraud. All transactions and communications between MMi and Suppliers are to be conducted fairly, honestly and with integrity. We expect Suppliers to safeguard MMi’s confidential information by keeping it secure and limiting access to it, even after the busin