SUPPLIER QUALITY MANUAL
AFX Industries Supplier Quality Manual is approved for use by Suppliers to AFX
Supplier Quality Manual is a mutual agreement between the AFX Industries
issuing company and the Supplier. Compliance to these requirements will be
audited and reviewed in accordance to the procedures contained herein.
MODIFIED SECTION No.
DESCRIPTION OF THE CHANGE
All revisions to this Manual are
identified per above indicated table of authorization for additions and for
The controlled version of this
manual is located on the supplier internet: www.afxindustries.com . Printed copies
are uncontrolled and are for information purposes only.
This manual is reviewed annually, and updated if necessary,
with numerical designation to identify the current revision level.
SECTION 1 INTRODUCTION
1.1 PURPOSE AND
1.4 SUPPLIER APPROVAL
SECTION 2 GUIDELINES
FOR AFX SPECIFIC REQUIREMENTS
2.2 AFX SUPPLIED
DESIGN CONTROL FOR TOOLING
AFX SUPPLIED TOOLING
2.5 INSPECTION AND
2.7 HANDLING, PACKAGING AND
2.10 ADVANCED PRODUCT QUALITY
2.11 PROCESS FAILURE MODE AND EFFECTS
2.12 PROCESS FLOW DIAGRAM AND PROCESS
2.13 PRODUCTION PART APPROVAL PROCESS (PPAP)
APPEARANCE APPROVAL ACTIVITY
BOUNDARY SAMPLE SUBMISSION AND APPROVAL
2.14 PACKAGING AND HANDLING
2.15 SUPLIER DEVIATION REQUEST
2.16 SUPPLIER PRE-PRODUCTION SAMPLE REQUIREMENTS
2.17 SUPPLIER PROCESS CHANGE REQUEST
2.18 INITIAL PRODUCTION PART
2.19 COMPLAINT NOTIFICATION AND
CORRECTIVE/PREVENTIVE ACTION REPORT
2.20 SUPPLIER PERFORMANCE TRACKING AND
2.22 BALANCE OUT/ CLAIM
S E C T I O
1.1 Purpose and
The purpose of
this manual is to provide and clearly communicate suppliers AFX quality
expectations. This manual has been written to cover the general requirements of
AFX Industries companies all of which shall herein after be referred to as AFX
and it is not intended to replace the AIAG reference manuals or other customer
It is the policy
of AFX to select as sources of parts and material only those suppliers who meet
our performance standards on Quality, Technology, Delivery, Management, and
All AFX suppliers
shall take steps to attain compliance to ISO 9001:2000/TS16949:2002 standard.
Acceptance of a
purchase order after the date of issuance of this standard constitutes
acceptance of all requirements within the body of this document.
supplier have questions, comments or concerns regarding the requirements set
forth in this document, or suggested improvements, AFX encourages open
communications in the interest of continuous improvement and successful
1.2 Definitions [top]
shall be interpreted per the most recent AIAG ISO 9001:2000//TS16949:2002
manuals unless otherwise specified in this document.
1.3 Company Overview [top]
AFX offers a
complete range of leather wrapped products for the automotive industry. Our
main products varies from steering wheels, interior trim components, seating
leather cutting and preparation, injection molding, component assembly and
testing, manufactured to the highest quality, reliability and performance
specifications. Our global resources include facilities, engineering expertise
and manufacturing operations. These permit us to deliver exceptionally
ourselves in our excellence on quality, customer satisfaction and delivery.
behavior is focused on satisfying our customer expectations. This will be
accomplished through conscientious systems and processes which will enable us
to achieve growth and profit.
1.4 Suppliers Approval Review [top]
with AIAG-Quality System Requirements / ISO 9001:2000/TS16949:2002, Suppliers
will be evaluated and selected on their ability to meet AFX quality
requirements and other requirements.
approved, quality performance will be monitored and evaluated. The supplier
approval status shall be based upon complying with quality system requirements
outlined throughout this manual including Production Part Approval Process, and
sustained high quality performance.
1.5 Associated Materials [top]
must meet AFX quality standards as outlined in this Supplier Quality Manual, in
compliance with the following manuals:
ü AIAG Automotive Industry Action Group, Quality System
ü International Organization for Standardization ISO 9001:2000.
ü AIAG Measurement System Analysis (MSA).
ü AIAG Quality System Assessment (QSA).
ü AIAG Advanced Product Planning and Control Plan (APQP).
ü AIAG Potential Failure Mode and Effect Analysis (FMEA).
ü AIAG Statistical Process Control (SPC).
ü AIAG PPAP 4th. Edition
ü ISO 14001:2004 Environmental Management System
Note: Copies of Automotive Industry Action Group (AIAG)
manuals are the responsibility of the supplier and may be obtained by
contacting them directly. Suppliers are responsible for maintaining the latest
edition of these documents.
1.6 Confidentiality [top]
AFX recognizes that its suppliers may be exposed to data and/or
knowledge, which is sensitive in nature. The supplier shall treat all data
and/or knowledge in strict confidence and report any intentional or
non-intentional breach of confidentiality to AFX management or executive level
It is the
supplier’s responsibility to maintain control of all drawings and
specifications given by AFX. All drawings and specifications should be treated
as ”propriety” and should only be distributed with written permission from AFX.
S E C T I O
N 2 [top]
GUIDELINES FOR AFX SPECIFIC REQUIREMENTS
2.1 Contract Review [top]
a. The supplier shall have a documented process for ensuring that
systematic, multi-disciplinary activities are carried out by the supplier to
ensure that all customer requirements are clearly defined, documented, and to
ensure that the supplier has the capability to meet said requirements, prior
any formal production build commitment.
b. Amendments to existing contracts shall be documented and
communicated to all affected suppliers personnel.
c. Production changes and/or delivery date changes may occur during
the normal flow of business, and in these cases, AFX shall typically request
these changes in writing.
d. The supplier should avoid verbal change orders, unless in urgent
circumstances, however, in these cases shall summarize and record the nature
of the request, including the time, date, name, title and phone number of the
person making the request.
e. With all good intent implicit of the elements above, there may be
circumstances, which prevent the supplier from meeting the agreed to
requirements. In the event the supplier can not meet any of their
contractual obligations including quality specifications, quantity,
delivery dates or other, the supplier shall notify appropriate AFX
personnel immediately for further direction.
2.2 AFX Supplied Material [top]
a. In the event AFX provides materials to the supplier for any purpose,
the supplier shall provide for adequate care of these materials.
b. Any such product that is lost, damaged or otherwise unsuitable for
use shall be reported to AFX immediately for further direction.
c. The supplier shall be responsible for the out going quality of AFX
2.2.1 Design Control of
supplier shall establish and maintain a documented procedure to control and
verify the design of any tool in order to ensure the characteristics specified
on drawing provided by AFX.
b. All drawing will be associated to such drawing by part
number and rev level. A suitable system must insure that countermeasures taken
during the life of the tool are reflected in the drawing.
2.2.2 AFX Supplied Tooling [top]
a. AFX tools and components are considered proprietary and the supplier
will maintain such control so as to insure that no information or components
are provided to anyone except AFX.
b. AFX tools and fixtures will only be used to manufacture AFX
c. The supplier is responsible for all tools and fixtures used for
manufacturing AFX product.
d. The supplier shall execute routing maintenance that extends the life
of the tool i.e. Lubrication, sharpening, cleaning.
e. General Maintenance will be carried out at the expense of the
supplier i.e. spring replacement, welding.
f. Major Repairs. When major repairs are needed, the supplier will
notify AFX Purchasing and Supplier Quality before a problem with production is
experienced. The supplier must explain in writing what tool, what happened,
where in the tool the problem is, how it was detected, what are the
inventories, and details on the repair that is needed ,as well as the cost
if readily available.
g. AFX can audit a tool, fixture and all related documents without
notice to the supplier. In such a case where this type of inspection is
executed, the supplier will support such review with the appropriate personnel.
AFX will try and give appropriate notice to the supplier prior to any
h. All AFX tools and fixtures are to be identified as
“AFX”. Each tool is to have the part number identified on the tool.
supplier will maintain proper documentation related to the maintenance history
and repair of the tool.
a. The supplier shall have system in place to ensure
consistent and proper identification of components, subassemblies, or products
through all process phases and activities.
b. In some cases, detailed product identification
requirements will be communicated via other official means such as product
specifications, drawings, purchase orders or AFX correspondence.
c. The supplier shall ship material to AFX on a First-In-First-Out
a. The supplier shall establish and maintain a documented
quality system for floor operations. These documented operation procedures
shall specify the objectives and requirements of the various activities having
an impact on quality and be available for use by employees in the work area.
f. Supplier shall maintain or exceed process
capability/performance characteristics as included in the AFX approved PPAP.
2.5 Inspection and Testing [top]
shall ensure that systematic processes are established and documented to ensure
effective implementation of material and product inspection and approval. This
shall cover from material receipt to final product shipment to AFX.
2.6 Metrology [top]
The supplier is required to have an adequate means to test and measure
and perform accurate analysis of dimensions. In any case where the
perform such measurement; an accredited measurement facility must be on
execute the requirements of the supplier at the supplier’s expense.
2.7 Handling, Packaging and Delivery [top]
a. The supplier shall define, document and
implement effective handling and packaging procedures which provide for
satisfactory protection of products against damage, deterioration or
contamination during storage, transportation or any later period until
the supplier’s responsibility ceases.
b. Products with limited shelf-life or
requiring special protection during transportation or storage shall be
identified, and procedures shall be maintained to ensure that out-dated
products are not utilized.
2.8 Training [top]
The suppliers training program is essential for the achievement of
quality objectives. This includes specific training necessary for performing
assigned task and general training both to build incentives and to heighten
2.9 Statistical Methods [top]
a. The supplier is to use statistical methods
including data collection and analysis. Evidence of statistical conformance may
be required per individual AFX drawing or specification.
b. Quality improvement decisions should be
based on numerical data.
c. Statistical methods should be used for
product, service and process design, in-process control, non-conformity
evidence, problem analysis, risk determination, finding root causes,
establishing product and process limits, forecasting, verification and
measurement or assessment of quality characteristics. The supplier shall
utilize all statistical methods mandated by AFX.
documentation resulting from the application of statistical methods
shall be used to demonstrate conformance to the requirements of AFX.
2.10 Advanced Product Quality Planning (APQP) [top]
AFX is committed to flawless launches 100% on time,
for this reason suppliers are expected to use systematic planning for new
Advanced Product Quality Planning (APQP) has become
the industry standard by which new products are introduced into the automotive
market. APQP will be the tool used to monitor launch activities for all
AFX utilizes a Product Quality Planning activity as
described in the Automotive Industry Action Group (AIAG) and Control Plan
Manual. The manual provides general guidelines for preparing plans and
checklists for ensuring that proper planning is being utilized. The supplier
must demonstrate progress and the current status of all projects through the
application of Advanced Quality Planning techniques. This is achieved by using
the above mentioned manual or similar approved format.
APQP meetings are held for all new products, this is
considered by AFX to be critical to the success of any product launch.
Meetings consist of AFX and when required supplier representative who meet to
review and assess the progress of the product quality planning process for the
subject product and to address any open issues, preventing successful and
timely product launch.
It is still possible that we may require some unique
customer specific processes or documents. If this is the case you will be
Your Quality Engineer and or/Sales representative will be the main
contact throughout the launch.
Failure Mode and Effects Analysis ( PFMEA) [top]
AFX requires format and development as per the FMEA AIAG manual last
Flow Diagram (PFD) and Process Control Plan [top]
AFX requires format and development as per the APQP and Control Plan
AIAG manual last edition
Part Approval Process ( PPAP) [top]
a. All Suppliers are required to submit Level
Three (3) Production Part Approval process package per the latest
revision AIAG/PPAP manual or per the “Vendor PPAP Notification email” unless
written direction is received from AFX stating otherwise. Refer to AIAG PPAP
Manual for further reference. Supplier must ensure that all PPAP
documentation is submitted and conforms to standards outlined in AIAG manuals, unless exceptions have been outlined in Purchase
b. The PPAP package shall be submitted to AFX
Quality department for approval. Supplier Quality Engineer is responsible for
reviewing supplier PPAP package and providing approval once is in conformance
with AFX requirements.
c. Interim PPAP may be granted only in special
cases to support mass production. Interim PPAP will be granted only with
corrective actions and due dates listed. PPAP will be revoked if corrective
actions are not completed by the due dates agreed upon. Refer to PPAP AIAG
Manual for the appropriate format.
d. Starting mass production, the PPAP shall be submitted
on a yearly basis unless waived by AFX. If no changes have occurred from the
last PPAP submission, the annual submission may be the Part Submission Warrant
only with reference to the previous submission.
2.13.1 Appearance Approval Activity [top]
Color / Grain / Gloss appearance reviews typically
used by AFX’s customers to be used as an initial target reference. These may
also be used as color standards once properly approved. The following shall be
considered by the supplier:
a. The supplier shall submit the
Appearance Approval Report properly filled out
along with color readings and any other important
reference information, with any appearance submission.
b. AFX requires 3 pieces for
appearance review. Material or parts must be identified individually with
supplier name, lot number and submission date.
c. Approval is based on visual
and numerical evaluation of component parts. Emphasis is on visual evaluation
to the master and mating components. Since AFX customer approval is required
for final component approval, supplier appearance approval will be given after
material has been processed by AFX and approved by AFX’s customer.
must document all processing parameters used to create the color/ Grain Sample,
as well as visual and numerical data(e.g., L, a, b readings).The parameters
must be tightly controlled and reproduced. Supplier must request AFX approved
master sample for production reference as well as AAR document
2.13.2 Boundary Sample Submission and Approval [top]
Boundary samples must be prepared for items stated “as
per boundary sample” as noted on the control plan or operation instructions.
Boundary samples may be created to define problems
discovered in pre-production and /or mass production stages. This may include
things such as color limits, product
physical property limits such as density or performance limits.
Boundary sample submission
requirements shall be negotiated between the suppliers
and AFX and shall meet
AFX’s requirements. The number of submission samples is
the following for boundary sample submission:
1. Collect the necessary number
of samples with similar levels of quality.
2. Complete and attach the Boundary Sample
Tag to each sample (Boundary
Sample Label QF-8-008-4 Rev. 2)
the samples according to the requirements agreed to by AFX.
b. Upon submittal of temporary boundary samples, a
countermeasure plan detailing the root cause, countermeasure and recurrence
prevention activities should be included when so directed by AFX.
2.14 Packaging and Handling Requirements [top]
The supplier shall comply with AFX packaging and
labeling specifications and shall submit examples and / or recommendations with
the initial sample submission. It is the supplier’s responsibility to obtain
The outer packaging shall provide a clear description
of the contents. Labels shall include AFX part numbers. A lot number must be
present on packaging and should comply with AFX requirements. Bar coding is a
requirement for our labels must comply with AIAG B-10 Standard and code 39
2.15 Supplier Deviation Request [top]
Deviation Authorization Request (Deviation
Form QF-8-007-1) is used for
temporary approval to build and / or ship product that does not conform to the
AFX drawing, process and /or Inspection Standard. The following must be
a. Whenever the product or process is different
from which is currently approved, the supplier shall submit the “Deviation
Authorization Requests (DAR)” and obtain written approval from AFX
prior to proceed to produce or ship any product.
b. The deviation must have a signed approval by
AFX Supplier Quality Engineer to be accepted. Approval may be granted ONLY if
the deviated product does not jeopardize AFX customer requirements.
2.16 Supplier Pre-Production Sample Requirements [top]
Pre-Production Samples have a very important roll in the developing,
inspecting, and approving of materials or parts which feedback will be used to
make decisions in a final product appearance, characteristics, packaging,
dimensions or design. Parts or Materials are not at production level at this
In AFX we have a dedicated process to handle
pre-production samples, reason why we request our suppliers to properly
identify the material and include inspection reports as applicable for each
a. The Supplier sample part container should be
properly identified to insure correct part usage. (Pre-Production
b. Partial verification of pre-production
sample parts to the AFX Standards is typically required for some samples. This
may include verification to drawings, inspection standards or other
2.17 Supplier Process Change Request [top]
In order to have proper control of process and design
changes from suppliers, AFX requires the following be considered:
a. All requests shall be made using the supplier Process
Change Request format (Supplier
Process Change Request QF-7-003-5).
The Supplier Process Change Request shall be submitted in writing to Quality
Engineering. This will be returned by AFX with
approval or rejection notice.
Approval allows supplier to proceed with proposed
change, but not to proceed with production. Production approval is given by
PPAP process, unless waived by AFX.
b. The supplier shall avoid low confidence or
high-risk proposals and provide sufficient data to support the request.
c. Design Changes request shall be negotiated with the
proper AFX Engineering and Supplier Quality Engineering Departments.
d. Any cost changes shall be approved by AFX Purchasing,
in writing, prior to Engineering Change Notification Request submission to AFX
e. The supplier shall not proceed with any
change in production unless that PPAP is approved by AFX.
Supplier shall use the IPP label for the first
production shipment (IPP
2.18 Initial Production Part (IPP) [top]
Initial Production Part Labels are used at AFX to acknowledge
the receipt of new program parts or parts where the design or process has
a. It is absolutely critical that the supplier
and sub-supplier work in tandem to maintain a First-In / First-Out (FIFO)
system, which is combined with an effective method for purging the supply
stream of all material that was produced prior to any change.
b. Once the IPP procedure is initiated and the
new labeling is utilized, the supplier shall not ship any of the original /
older material to AFX, unless approved with deviations. Any original / older
material received by AFX will be classified as non-conforming and counted
against the supplier’s quality rating.
c. The IPP label (IPP
Label Format) or comparable must be submitted by the supplier
shipping new product or making a change. The background color for the label
should be orange or very distinctive. An IPP tag must be affixed to individual
2.19 Complaint Notification and Corrective/Preventive
Action Report [top]
Suppliers are notified of non-conforming material
through a phone call or email from the plant quality group and through a “Corrective
Action Report” (Corrective
Action Format QF-8-005-2). This
document is issued whenever purchased material is identified which does not
conform to quality requirements.
Non-conforming material may be identified during
incoming inspection, assembly, processing, audit, reliability testing or
Customer notification. A Return Material Authorization Number (RMA#) will be
requested from the supplier for debit authorization of on-site scrap, rework,
sort or return of material.
The Rejection document serves for the following
· Accounting Debit Memo
· Quality Record for Generating PPM
· Problem Effective Solving &
· Communication of issues to
· Record to Support Adjustment of
Suppliers Cumulative Shipment History
General guidance notes:
no circumstances shall non-conforming material be shipped to AFX without
approved deviation from AFX.
b. If a supplier discovers or suspects that
non-conforming material has been shipped to AFX facility, the supplier shall
immediately notify that facility’s Quality Engineer.
c. Any non-conforming material found at the
supplier’s facility shall be immediately contained, identified and properly
d. Any suspect material shall be quarantined and sorted.
e. Non-conforming material received at AFX
facility that requires sorting or special handling to support production needs
shall be the responsibility of the supplier. The supplier is expected to
support these activities in an urgent manner.
cost incurred by AFX due to non-conforming parts will be billed back to the
Supplier’s Reply to AFX
When a supplier receives a “Corrective/Preventive
Action Notification”, the supplier must send to AFX Supplier Quality contact a
written interim containment plan within 1 working day of problem notification
using the “Corrective Action Format” (Corrective
Action Format QF-8-005-2) or any other format used by supplier. Within
ten working days, the supplier is expected to communicate in writing the
problem solving results.
2.20 Supplier Performance Tracking and Reporting [top]
The Suppliers performance will be evaluated by AFX on a monthly basis.
Supplier rating is based on the following:
1. Non-Conforming Parts Per Million (PPM) 40 points 40%
time Delivery 30 points 30%
/ Problem Reaction 15 points 15%
4. Documentation 15
Parts per Million (PPM)
The Quality Performance of suppliers will be measured
in defective Parts per Million (PPM), Corrective Actions responses and PPAP
performance. The expectation for supplier performance is ultimately 0 PPM.
The Product received into our facilities, which does
not conform to the drawing, specifications, and agreed standards will be
counted against a partner supplier’s PPM record unless written agreement has
been settle with AFX prior the shipment of such product. Quantities will be
reported in the units that they are purchased. This only applies to production
parts after PPAP approval.
PPM Clarification Notes:
· You may sort parts at the
appropriate location or at your premises. Parts confirmed as unacceptable,
after the sort, stay on your PPM record. PPM will be adjusted after the sort is
complete, unless sampling has predicted a % defective within the isolated lot,
not the entire lot. Partner suppliers have the responsibility to execute a
containment plan to assure manufacturing continuity.
· If the supplier identifies,
communicates, and takes appropriate containment action for a potential problem
before the problem is identified at AFX then parts will not be counted against
PPM. If the problem is identified at AFX prior to contact from the supplier,
then PPM count will be incurred.
· Damage resulting from inadequate
packaging, from which the supplier is responsible, will result in increased
PPM. Packaging standards must not be modified without prior written
Refer to the
following measurable to be used for monthly supplier Quality rating evaluation:
Up to 100 40
101 - 200 30
201 - 300 25
301 - 400 20
401 - 500 15
501 -1000 10
1001 -2000 5
2001 - + 0
communicate in writing when a defective/discrepant product is found through a
format called Return Material Authorization and/or Charge Back to Supplier
and/or Customer containing the reason of the rejection and actions in
consideration needed like sorting/reworking/transportation/scrap etc. Supplier
must provide Authorization immediately.
Charges apply as
a) Sort/Rework $20.00 US dlls. per hr., when performed by AFX
b) Product Identification $5 US dlls. per each label placed
c) Transportation and or Documentation each time supplier requests samples
to be evaluated will be charged at the cost of the product and shipment.
d) All the scrap as results of non conformance material will be charged to
responsibility of the supplier to provide effective support to resolve any
product concerns/defects found by AFX at any time, this must include immediate
documented responses and on site visits for sorting or product review. AFX
requires suppliers to have a representative available at the Manufacturing
plant within 24 hrs of the complaint notification unless otherwise agreed with AFX
calculated based in the ability from the supplier to meet production release
schedules, refer to the following formula used to calculate and measurable to
be used for monthly supplier Delivery rating evaluation:
Number of parts on time*
Number of parts requested
100% 30 GOOD
90% - 99% 15 SATISFACTORY
80% - 89% 7 ACCEPTABLE
Below 80% 0 POOR
Service/Problem Reaction is calculated based in the support, responsiveness,
cost reductions, ability to resolve day to day situations, provided by the
supplier. Refer to the following measurable to be used for monthly supplier
Service rating evaluation:
5 15 GOOD
4 11 SATISFACTORY
3 7 ACEPTABLE performance
2 3 POOR
1 0 UNACEPTABLE
is evaluated based in the ability from the supplier to provide on time and
correct data like PPAP submissions, packing slips, Quality material
certifications, SPC evaluations and 8D reports. Refer to the following
measurable to be used for monthly supplier Documentation rating evaluation:
5 15 GOOD
4 11 SATISFACTORY
3 7 ACEPTABLE performance
2 3 POOR
1 0 UNACEPTABLE
a. An initial and on-going Supplier Quality
Assurance System Survey may be conducted by appropriate AFX representative on
site-at the manufacturing location. The purpose of the survey is to verify that
the minimum requirements of the Supplier Quality Manual are met and assist in
A least one time, every supplier must complete the Supplier Self
Assessment format included in (Self
Assessment Format QF-7-031-8).
The Self Assessment must be sent back by fax to Supplier Quality
Engineer in AFX for review. Once the revision of Self Assessment has been
completed, a visit to the supplier’s facility may be scheduled to review the
2.21 Environmental Requirements [top]
AFX is committed to minimizing any negative impact of
our products on the environment. All AFX suppliers should work proactively with AFX
to reduce the environmental impact of AFX’s products by complying with the
environmental requirements of our customers. Materials, substances, recyclables,
life cycle assessment data, etc. are to be reported according to legal
IMDS Reporting Requirements: As part of the PPAP
submission, the supplier shall be required to declare all substances and
materials in components or raw materials supplied to AFX using IMDS
(International Material Data System). IMDS is the required location for
reporting material composition.
Declarable / reportable substances – chemical
elements or chemical compounds as they exist naturally or are produced. This
includes stabilizing agents and production-related impurities (with exception
of solvents) which can be separated without any effects or stability or change
Prohibited substances – substances which are
prohibited for certain application purposes by law. They can not be contained
in amounts which exceed the set limitations.
Post-Consumer Recycled – recycled material
originating from products or materials that have served their intended end use,
and have been recovered or otherwise diverted from the waste stream for the
purpose of recycling.
Substances of Concern (SOC) - Special attention must
be paid to the elimination of SOC’s as defined by the ELV (End of Life Vehicle
requirements) directive that has been implemented by the European Union. These
substances include lead, cadmium, mercury, and hexavalent chromium. Suppliers
hall complete the Declaration of Conformance.
Environmental/ Safety Information Requirements: A
completed Material Safety Data Sheet (MSDS) is required with any raw material
submission or when a new submission is required due to a change in the material
2.22 Balance out policy and Claim process [top]
AFX will notify supplier following AFX’s receipt of
preliminary information regarding a change in the balance-out status of a
component or raw materials. The notification may be in the form of a comment on
the weekly supplier schedule detailing “Watch schedules carefully, part is
phasing out”. This notification will be supplemented by the issuance of a
balance-out memo from AFX.
Supplier is required to strictly monitor AFX’s schedules as provided to
supplier, particularly after receiving notification of phase-out status, to
minimize any potential obsolescence. If supplier needs to produce/ purchase
finished goods, material or parts in excess of authorizations, it must first
receive written approval from its AFX materials contact.
Final shipments of balance-out components may require partial
containers, smaller than normal lot sizes, and/or shorter lead-times with no
Supplier is encouraged to request information
regarding the potential of future service/replacement orders for its components
from its AFX Materials contact. AFX is required to supply to its customers
service requirements at production prices after program phase-out.
In the event that obsolescence occurs due to the discontinuation of a part,
the following procedure applies:
§ Supplier should submit any claim
regarding obsolescence costs to the AFX Materials contact including cost
breakdowns for component material.
§ The claim must be delivered one
week after last shipment is made at the latest.
§ The claim supporting documents
should contain (but not limited to): cum authorized release, cum shipments,
copy of release authorizations.
§ AFX Materials contact will review
and advise Supplier as the validity of the claim.
§ All material claimed to be obsolete
must be segregated and stored at Supplier’s facility pending a possible AFX
§ No material may be disposed of
until after final settlement is achieved
§ A purchase order will be issued
for all valid claims to trigger the payment process when AFX customer has