Industrial Solutions

Quality Management System

Supplier Quality Requirements
8.4.2 IS SRC 0002

Table of Contents
1.0 Purpose / Scope / Timing ...................................................................... 2
1.1 Responsible Roles ................................................................................ 2
1.2 Compliance Date .................................................................................. 3

2.0 Procedure/Process/ General requirements ...................................... 3

2.1 Supplier Approval................................................................................. 3
2.2 Qualification of Sourced Direct Material ......................................... 4
2.3 Supplier Performance Management .............................................. 15
2.4 Supplier Responsibility Guidelines (SRG) ....................................... 19
2.5 Further Requirement ......................................................................... 20
2.6 Quality Records (if applicable) ......................................................... 21

3.0 Definitions, Acronyms and References ............................................ 22

3.1 Definitions ........................................................................................... 22
3.2 Supporting Documents ..................................................................... 23

4.0 Document Revisions and Approvals ................................................. 25

5.0 Addendum A .......................................................................................... 26
Qualification Documentation .................................................................. 26

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1.0 Purpose / Scope / Timing

The purpose of this procedure is to establish supplier quality requirements for Industrial Solutions (IS)
purchased direct materials and services.
1.1 Responsible Roles
• Supplier
- Provide all parts and services as outlined in Purchase Order (PO), drawings, and/or
specifications
Note: Unless otherwise specified, refers to the corporation, company, partnership, sole
proprietorship or individual with whom IS places a Purchase Order (PO).
• Supplier Quality Engineer (SQE)
- Communicates qualification and production quality requirements to supplier
- Serves as the key interface with the supplier
- Communicates qualification acceptance to the supplier
- Coordinates process improvements, non-conforming material dispositions, corrective actions,
and surveillance auditing
Note: The roles and responsibilities of the SQE apply to the Product Quality Engineer (PQE),
Quality Process Engineer (QPE) or other business equivalent Global Supply Chain (GSC)
representative.
• Sourcing Representative
- Negotiates price, delivery, terms and conditions
- Places the PO for qualification and production
Note: The roles and responsibilities of the sourcing representative apply to a site commodity
leader (SCL), global commodity leader (GCL), buyer, or other business equivalent sourcing
delegate.
• Responsible Engineer
- Approves nonconformance management, document changes and qualification requirements
- Communication with the Responsible Engineer must be done with the knowledge of the SQE
Note: For the purposes of this document the Responsible Engineer applies to the Design
Engineer, Materials Engineer, Repair Engineer, or other Engineering representative.

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1.2 Compliance Date

Full compliance is expected from all IS organizations two weeks upon publication

2.0 Procedure/Process/ General requirements

2.1 Supplier Approval
2.1.1 Minimum Quality System Requirements
a. Supplier must maintain a documented quality system to ensure control and conformance
to the requirements of IS drawings and specifications.
b. This quality management system must meet current ISO 9001:2015 (Quality Management
Systems – Requirements) standards or equivalent applicable standards as determined by
IS. Any exceptions to this requirement must be reviewed and approved by the IS SQE
during the qualification process.
c. Compliance to this requirement must be demonstrated if requested through a current
certification(s) or successful completion of a quality management systems audit to the
current requirements of ISO 9001:2015. IS reserves the right to require this audit to be
conducted by a third party service designated by IS. The supplier will be responsible for all
costs associated with the audit.
d. In case of modifications of the above mentioned certification, the supplier shall
immediately notify IS SQE responsible. Modifications include, but are not limited to, the
following situations:
Any action by either the supplier or the supplier’s registrar that limits or alters the condition
or duration of the supplier’s certification
Renewal, upgrade, suspension, probation, expiration and termination of the mentioned
certifications

2.1.2 Supplier Approval

a. Supplier approval indicates IS has performed a financial, legal, safety, and overall sourcing
risk assessment of the supplier and agrees to move forward with the qualification process.
b. A supplier must be approved per IS Sourcing QMS procedures prior to receiving a PO.
c. Documents required for approval may include but are not limited to:
• Properly executed Mutual Non-Disclosure Agreement (MNDA)
• Acknowledgement of compliance with IS integrity guidelines
• Completion and passing of required business and technical surveys
• A documented quality system
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• Technical capability
• EHS compliance/employment/security practices
• Financial viability
• Customer service aptitude
• Strategic value
• Regulatory Compliance (e.g. REACH, RoHS, WEEE, etc.)
• Cyber Security
d. Distributors
• If distributor has no ownership nexus with the actual manufacturer, and
part / product supplied as produced by the manufacturer specifications,
then the distributor is considered a Catalog Supplier and approved
accordingly.
• If distributor is also the manufacturer, then they shall be considered a
Direct Material supplier and approved as Direct Material supplier.
• If part or product purchased via distributor is produced by the actual
manufacturer based on IS specifications, then the actual manufacturer
shall be approved as a Direct Material supplier.

2.2 Qualification of Sourced Direct Material

2.2.1 Minimum Quality System Requirements
a. PO is the governing document, which transmits IS requirements to the
supplier. Changes to PO requirements shall not be accepted by the
supplier without a formal PO change or an approved Supplier Deviation
Request (SDR). In the event of a conflict between documents, order of
precedence from highest to lowest is:
• Purchase Order
• Part Drawing (unless by note, drawing specifically defers to a
specification as the overriding document)
• Part Acceptance Specification
• Part Process Specification
• Material Specification
• General Requirements Specifications

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b. Any additional business, customer, or product specifications will be

communicated to supplier by the IS SQE or designated representative.
Unless otherwise indicated, the latest document revision shall apply.

2.2.2 Control of Special Process

a. A special process is any process where the resulting output cannot be verified by
subsequent monitoring and measurement and deficiencies become apparent only
after the product is in use or the service has been delivered.
b. Suppliers must have specific, documented, and controlled procedures for each
special process performed.
c. The supplier shall establish and monitor process CTPs/CTQs.
d. Only qualified/certified personnel shall be assigned to perform a special process.
e. The supplier must develop a specific training plan and check the performance of
the individual associate on a regular basis.
f. IS reserves the right to request, review, and approve all special process procedures,
training documents, and certification records.
g. Processes identified with asterisks (**) are always considered special processes.
Others listed should be considered as a special process when specified in product
specifications.

1. Babbitting of Bearings
2. Brazing**
3. Coating
a) Conformal**
b) Diffusion**
c) High Velocity Oxygen Fuel (HVOF)**
d) Painting
e) Plasma Spray – Air**
f) Plasma Spray – Vacuum**
g) Thermal Barrier (TBC)**
h) Thermal Spray**
i) Vacuum Plasma Spray(VPS)**
4. Electroplating**
5. Heat treatment**
a. Quench Tempered
b. Annealing
c. Nitriding
d. Stress Relief
6. Laser Drilling, Cutting, and Marking
7. Non-Destructive Testing/Examination (NDT/NDE)**
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a) Eddy Current Testing

b) Fluorescent Penetrant Inspection (FPI)
c) Hydrostatic testing
d) Liquid Penetrant (Red Dye)
e) Magnetic Particle Inspection (MPI)
f) Pulsed Array Ultrasonic
g) Thermal Infrared
h) Thermoelectric Potential (not per ASNT)
i) Ultrasonic
j) X-Ray
8. PCBA (Printed Circuit Board) assembly and manufacturing **
9. Soldering
10. Welding**
a) Flux Cored Arc (FCAW)
b) Gas Tungsten Arc (GTAW)
c) Shielded Metal Arc (SMAW)
d) Plasma Arc (PAW)
e) Gas Metal Arc (GMAW)
f) Fusion
11. Die Casting
12. Forging and Hor Forming
13. Plating and Surface Preparation
14. Thermoset Molding and Compounding

2.2.3 Process Specific Requirement

a. Non-Destructive Testing/Examination (NDT/NDE)
Suppliers and subtier suppliers performing NDT/NDE as a primary value-
added process shall be qualified in accordance with IS-SRC-0003, when
applicable.
b. Welding
Suppliers and subtier suppliers performing welding as a primary value-
added process can be certified by an approved third party to include but
not limited to:
• AWS (American Welding Society) Certified Fabricator
• ASME (American Society of Mechanical Engineers) boiler and
pressure Vessel Fabrication Stamp Holder
• CWB Certification
• Major proof of qualification (Class E) in accordance with EN 1090
part 2 “Steel structures, execution and manufacturer
qualification”
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• PED (Pressure Equipment Directive) Certification

• AISC (American Institute of Steel Construction) Certification
• Other suitable certifying bodies as determined by industry and
regional standards
c. PCBA
• All contract manufacturers producing PCBAs for IS must meet
minimum requirements as outlined in 105X1009. Additional
requirements can be defined by each IS site or business in the
form of IS Engineering technical specifications or as notes on
drawings.
• Product and process quality standards must meet all
requirements specified in 105X1009 for product performance per
IPC610 Class 2, unless other specific by site or drawing.

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2.2.4 Supplier Part / Product Qualification

a. The IS qualification team is established upfront and consists of a cross-
function representative of key stakeholders in the qualification process
which may include, but is not limited to, the SQE, design engineer, and
materials engineer. This team determines qualification requirements,
qualification timelines, and has final authority for qualification sign-off as
appropriate.
b. The qualification process demonstrates the supplier’s ability to provide
high quality parts in accordance with IS drawings, specifications, and
other applicable standards.
c. Qualifications are required for, but are not limited to, the following:
• A new or existing supplier is manufacturing production material for
the first time
• An existing supplier where a design or process change impacts the
processing, and/or form, fit, or function of the product
• An existing supplier changes its manufacturing location
• An existing supplier has quality issues which bring current or previous
qualifications into question
• As required by IS
d. A product or service must be qualified per IS Sourcing QMS guidelines
prior to the supplier shipping products or providing services.
e. Distributors
• If distributor has no ownership nexus with the actual manufacturer,
and part / product supplied as produced by the manufacturer
specifications, then the distributor is considered a Catalog Supplier
and qualified accordingly.
• If distributor is also the manufacturer, then they shall be considered
a Direct Material supplier and qualified as Direct Material supplier.
• If part or product purchased via distributor is produced by the actual
manufacturer based on IS specifications, then the actual
manufacturer shall be qualified as a Direct Material supplier.

2.2.5 Subtier Suppliers

a. If a supplier outsources a product or process, they are responsible to
qualify and continuously monitor all subtier suppliers to IS supplier quality

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requirements. The same requirements apply to suppliers serving as sales

representatives or distributors.
b. The planned use and manufacturing location of any subtier supplier must
be identified in writing to the IS qualification team during the qualification
process.
c. Upon successful qualification of the primary supplier, the subtier supplier
identified as part of that qualification must not be changed without prior
approval from IS. This requirement shall also be applicable to IS-directed
subtier suppliers.
d. IS reserves the right to:
• Review supplier’s process for approval, qualification, and surveillance
of subtier suppliers
• Approve or disapprove subtier supplier qualifications
• Audit and monitor the subtier supplier’s processes and facilities

2.2.6 Manufacturing Process Plan (MPP)

a. When required by the IS qualification team, the supplier must provide a
MPP or equivalent documentation. After the item is qualified, the MPP is
considered part of the production PO requirements - even if not explicitly
referenced on the PO. The MPP is a quality document which requires
revision control by the supplier.
b. Unless otherwise directed by the IS SQE, the MPP must, at a minimum,
contain the following information:
• List of all applicable IS drawings/specifications, ordering sheets,
outline drawings, along with the latest revision letter/number. For
build to specification items, the supplier shall provide a list of all
supplier drawings and revisions
• Process specifications, set up instructions, and control plans.
• List of Weld Procedure Specifications (WPS) and Process Qualification
Records (PQR) used in the manufacture of the item
• Identification of all component parts and sources
• Identification of all subtier suppliers and their manufacturing
locations to include, but not limited to, raw material and any special
process suppliers
• Sequence plan of all major manufacturing and inspection steps with
appropriate sign-off documentation. IS reserves the right to view and
inspect all supplier proprietary processes and documentation.
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• Manufacturing location
• Visual weld inspection procedure according to IS-SRC-0004 (when
applicable)
• Revision history

2.2.7 Product Quality Plan (PQP)/Inspection Test Plan (ITP)

a. When required by the IS qualification team, the supplier must provide
PQP/ITP or equivalent documentation. The PQP/ITP may be included as
part of the MPP or submitted as a separate document. The PQP/ITP is a
quality document which requires revision control by the supplier.
b. Unless otherwise directed by the IS SQE, the PQP must, at a minimum,
contain the following information:
• Clear identification of item, component, or system to which PQP is
applicable
• Listing of all technical documents that govern the inspection or test
activity (i.e. supplier documents, IS specifications, industry
codes/standards)
• Identification of the test or inspection criteria in an itemized listing.
Each line item must include:
- What is to be inspected (to the characteristic level)
- How it is to be inspected
- What frequency it is to be inspected
- When the inspection or test is to be performed (in manufacturing
process)
- Who is to perform the inspection (e.g., Operator, Inspector, etc.)
- Acceptance criteria
- Provision for sign off by the party performing the inspection
• Identification of project specific inspections and tests
• Sign-off documentation signifying completion of each inspection and
test
• Clear definition of IS and customer involvement in the inspection and
test activities (i.e. in–process inspections, customer witness and hold
points, document reviews and IS and/or customer release
inspections, etc.)
• Identification and verification of CTQs and inspection methods.

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• Detailed planning of packaging and preservation for shipment and

storage (refer to IS-SRC-0005 as appropriate)

2.2.8 First Piece Qualification (FPQ) and Pilot Lot Qualification (PLQ)
a. When required by the IS qualification team, FPQ must be performed. This
requires the supplier to manufacture a first piece of the item using the
same process, people, parts, and systems as the planned production
environment FPQ documentation must be submitted to IS qualification
team for review and approval.
b. PLQ must be performed if requested by the IS qualification team to verify
control of the supplier’s processes.
c. Upon successful completion of the qualification, a supplier may request
release of the material for shipment to IS. Written confirmation of this
release must be retained for the supplier’s record.
• If the qualification program has not been completed, this release
must be received from the SQE in the form of an approved SDR or
other business specific document for accepting material
noncompliant with IS specifications and/or procedures prior to
shipment.
• Materials shipped without written authorization from the qualification
team will be considered non-conforming material and may be
shipped back to the supplier at their expense or incur additional labor
back charges to the supplier.

2.2.9 Characteristic Accountability and Verification (CAV)

a. CAV forms must be completed during the FPQ and PLQ, and maintained
by the supplier.
b. Product acceptance criteria must be established during the qualification
process review of the CAV form. Once the level of inspection and product
acceptance requirement has been determined and specified on the CAV
form, it must be applied to all production components hereafter to ensure
controlled processes for maintaining drawing features and
characteristics.
c. The CAV form must include, at a minimum, the following items:
• Identification of components
• Characteristics and feature accountability
• Inspection and test results

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• Manufacturing planning
• Production product acceptance criteria

2.2.10 Process Risk Assessment

When required by the IS qualification team, the supplier will perform a risk
assessment of its manufacturing and quality assurance processes to evaluate the
effectiveness of these processes to consistently produce the component or provide
the qualified service. Failure Modes & Effects Analysis (FMEA) is one example of an
accepted process risk assessment format.

2.2.11 Product Safety Risk Assessment

When required by the IS qualification team the supplier must perform a safety risk
assessment for any supplier designed product in accordance with the principles
defined by ISO 12100, Safety of machinery - General principles for design - Risk
assessment and risk reduction, and provide residual risk information.

2.2.12 Detailed Drawing, Manufacturing, and Producibility Review

a. When required by the IS qualification team for IS build-to-print items, the
supplier will participate in a detailed drawing review with the IS
qualification team to ensure suppliers’ thorough understanding of
drawing requirements and specifications.
b. When required by the IS qualification team for supplier designed (non-
build-to-print items), the supplier will participate in an engineering
capabilities assessment and supplier design reviews with the IS
qualification team.

2.2.13 Packaging and Preservation Requirements

a. Preservation and packaging must be approved through the qualification
process, or in accordance with IS drawings and specifications unless
otherwise specified in the PO, or authorized on a SDR.
b. Each package must be labeled with the following information at a
minimum:
• IS part number with revision number
• IS supplier code
• Box quantity

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• Box number
• Manufacturing date (box pack date)
• PO number

2.2.14 Qualification Documentation

a. Qualification documents are identified by the IS qualification team per
Addendum A or equivalent.
b. Qualification records are required to be maintained by the supplier and
are subject to periodic review by IS. Any deviations from these
requirements must be review and approved by the IS qualification team.
c. Qualification documentation must be in English unless an exception is
specifically authorized by the IS qualification team.
d. For material shipped directly to an IS customer site, a supplier compliance
summary may be issued and maintained as the quality document for
each unit shipped. The compliance summary may include but is not
limited to the following:
• Major component nameplate information and serial numbers as
applicable
• Completed MPP and PQP/ITP with appropriate signatures. This should
be on file and need not be shipped with the unit
• Results of all functional test requirements
• Documented results of all CTQ/CTP measurements and verifications
e. If shipment is required prior to completion of the qualification, the
supplier must receive an approved SDR from IS specifically authorizing
the shipment of unqualified material.

2.2.15 Qualification Sign-Off

a. The IS qualification team will notify the supplier once all qualification
requirements have been completed successfully. This notification
indicates the supplier’s manufacturing process used to produce the
component(s) or perform the process complied with IS drawing and
specification requirements.
b. Once notification is received, the supplier is released to fulfill subsequent
IS POs received for the qualified item.
c. Qualification approval does not relieve the supplier of the full
responsibility, on subsequent orders, to assure the manufacturing
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processes remain in control and the product or process supplied meets

all drawing and specification requirements.
d. Once the qualification is approved, any change to the approved MPP and
established process parameters (“frozen processes”) must be
communicated to IS SQE for assessment and potential re-qualification as
applicable.

2.2.16 Supplier Manufacturing Location Change Requirements

a. All suppliers are required to notify their respective Sourcing
representatives and SQEs in the event the supplier or subtier supplier’s
manufacturing location changes from that specified on the approved
MPP for a given item. Supplier must provide written notification prior to
manufacturing product.
b. IS reserves the right to reject any and all products not meeting the
location requirements stated on the qualification form or approved MPP.
The supplier will be responsible for shipping and handling charges
associated with the unauthorized location change.

2.2.17 Supplier Engineering Change Control

a. Suppliers must notify IS SQE of their intent to change any supplier-owned
design, material, or process which affects the product functionality or
performance.
b. The supplier is required to:
• Implement a configuration management system to ensure the control
of the engineering definition of the product being developed,
manufactured and supported in the field.
• Submit a Bill of Materials (BOM) as part of the qualification that will
represent the product delivered with each subsequent order.
• Submit a request for design change to IS for approval prior to
implementing any changes to the qualified product.
• Ensure all subtier suppliers maintain configuration control on
components and design changes.
• Maintain the qualified BOM and all subsequent requests for design
changes on file for review and audit by IS.
c. Bill of Material (BOM) Identification

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• The baseline BOM is defined as the Bill of Material, down to its

detailed component level, at the time of the supplier design review
during the qualification and prior to entering production.
• If BOM changes occur after production has begun, the baseline BOM
can be used as a snapshot of current production if agreed by IS
Engineering.
d. Supplier Change Control Responsibilities
• Supplier: The design vendor or supplier will submit copies of the
request for design change to the responsible IS representative
through the appropriate SDR process. Supplier will not implement
changes until approved by IS.
• IS SQE: The SQE will forward the supplier request for design change to
the IS Engineer for disposition. The SQE will add the approved BOM
and all subsequent requests for design changes to the qualification
records by IS part number.
• IS Engineer: The responsible IS engineer will request additional data or
a detailed review as needed prior to providing final disposition.
Disposition will be provided via the SDR process or equivalent.
e. Record Retention
The supplier will retain records of the approved BOM, requests for design
changes, and final IS disposition. These records are subject to review by IS
representatives as requested.

2.3 Supplier Performance Management

2.3.1 Supplier Performance Evaluation
a. Suppliers failing to meet established IS performance, quality, or delivery
standards are subject to a supplier performance evaluation.
b. Suppliers are responsible for identifying and driving Performance
Improvement Plans (PIPs) based on IS business requirements. These
requirements can include, but are not limited to, an established
escalation process as dictated by the IS SQE or designated
representative.
c. Suppliers failing to meet IS performance standards must take immediate
steps to address concerns or risk termination of the relationship with IS.

2.3.2 Process Capability Checks

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When required by EC, suppliers must provide process capability for

CTQs/CTPs identified on drawings, specifications, or PO. The supplier must
regularly analyze CTQ/CTP data for process capability and supply periodic
reports to the SQE as requested.

2.3.3 Cost of Failure (COF) and Recovery

a. COF is the direct cost associated with a supplier’s failure to perform to
contractual requirements impacting delivery, quality, performance, or
other contractual elements. IS SQE will communicate defects and
corresponding COF to suppliers based on established IS business
practices.
b. Recovery is the process of assigning responsibility to and recovering cost
incurred from a supplier’s defective products or services. IS SQE or
designated representative will work with suppliers to determine final
recovery value and method based on established IS business practices.

2.3.4 Supplier Deviation Requests (SDR)

a. General supplier requirements with regard to SDRs are:
• When a deviation to a requirement including a drawing, specification,
MPP, packaging, or a material shortage is known or expected to exist,
the supplier must submit a SDR to the SQE or designated
representative using the authorized SDR process. Example deviations
include alternate materials, processes, documentation errors or
omissions, changes to spare part lists, subcomponents or software
even if it does not appear to change fit, form, or function within
assemblies.
• SDRs should be submitted for any deviated items at the supplier, in
transit from the supplier to IS or its customers, or at an IS facility.
• A SDR must be submitted and approved prior to shipping deviated
parts. IS has the right to request additional inspections and tests
beyond applied drawing and specifications to prove deviated part’s
form, fit and function prior to SDR disposition.
• The SDR must contain detailed description, containment, probable
source and proposed remedial action information as part of the initial
submittal. Failure to supply all of the information may result in the
SDR being returned to the supplier. If SDR negatively impacts IS
fulfillment, the supplier may be charged for all related costs per PO
agreement.

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• SDRs are limited exceptions to IS requirements. The approved SDR

applies only to PO’s listed on the SDR.
• Unless the SDR involves a drawing change, IS expects the
nonconformance(s) to be eliminated on subsequent deliveries.
• No rework or repair shall be performed on a deviation prior to
disposition by IS.
• SDRs must be submitted by the primary supplier (the seller on the PO),
including deviations related to a subtier supplier’s scope.
b. When submitting the SDR, supplier should provide a complete deviation
description to include as appropriate:
• Drawing/item number with zone of referenced area
• Material specification
• Special processes
• Inspection results
• Samples or photographs where applicable
• Number of defects for the lot(s) of material
• Specific purchase order numbers by part grouping
• Serial numbers of the components
• Estimated time to make correction(s)
• Cost related issues
• For serialized parts, the serial number(s) must be identified; for non-
serialized parts, the specific purchase order(s) must be identified on
the SDR.
c. Containment is expected to be immediate when nonconformances are
discovered. Containment plans are expected to be communicated to IS
and implemented within 24 hours depending on the severity of the issue.
Deviations from this timeline must be approved by the IS SQE.
Containment actions apply to products, process and materials in which
the nonconformance was detected as well as similar products or product
families in which the nonconformance may occur. Containment will also
apply when a formal RCA/CAPA is initiated. Containment at the supplier is
expected to:
• Isolate (separate from normal production)
• Insulate (inspect products to sort for defects at the supplier, in transit
for shipment and at the customer site)
• Aid in control of risk related to the nonconformance
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• Document the supplier’s efforts to verify control of its processes.

d. The supplier is expected to identify all applicable sources of the problem
to include:
• Situations involving the same or similar material, product, equipment
• Instrument or system abnormalities and inconsistencies in the
process
• Environmental conditions (e.g., temperature, humidity, light)
• Trends associated with equipment performance or specifications
e. Where applicable, suppliers should provide a rework or repair concept
plan for all deviating products and services prior to disposition. Repair or
rework recommendations should include:
• Identified risks that would adversely impact the product
• Planned completion date
• Estimated time (labor) required to complete correction
• The supplier shall have a positive identification plan, which ensures
deviations and or corrected and or conforming materials are
appropriately identified.
f. The Supplier must document and show evidence to IS that the remedial
actions have been executed. IS will validate that the remedial actions
eliminated the deviating condition or met the disposition requirements.
g. If requested, the supplier must send a copy of the approved SDR along
with the part(s) at the time of shipment. Additional markings also may be
required.
2.3.5 Root Cause Analysis (RCA)/Corrective Action and Preventive
Action (CAPA)
a. When requested, the supplier performs a formal RCA/CAPA to include
containment, corrective, and preventive actions. Supplier is responsible
for related expenses as per IS contract.
b. Root cause analysis report and corrective actions must be implemented,
documented, and communicated (as CAR, 8D, or other approved method)
to IS within 30 working days after supplier is notified of the issue by IS.
Supplier is responsible for related expenses as allowed per IS contract for
supporting production in parallel to these activities.
c. RCA/CAPA plans should address the following with the specified time
periods after being notified of the quality issue by IS

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• Correction and containment actions with full traceability provided

within 24 hours
• Root causes identified within 5 working days
• Corrective and preventive action plan with action item owners and
target dates for implementation provided within 10 working days
• Corrective actions implemented within 30 working days
• Preventive action implementation will be verified during supplier
surveillance audits.
d. Deviations from the timelines established above must be approved by the
IS SQE.
e. RCA/CAPA requests that remain open longer than the specified time
periods outlined above without SQE authorization may result in
disqualification of the part or process.
f. As requested, corrective action plans need to be approved by IS prior to
execution.
g. The supplier must provide and maintain objective evidence that the
actions have been accomplished.
h. As requested, all supplier related processes, training, specification and
drawing changes shall be documented and made available to IS prior to
closure.
i. As requested, validation of the corrective action plan will be performed
prior to closure.

2.4 Supplier Responsibility Guidelines (SRG)

2.4.1 Supplier Responsibility Guidelines (SRG) assessment
a. IS is required to do business only with suppliers that comply with local
laws and IS expectations in the areas of employment, human rights,
environment, health, safety and security. Assessment criteria include, but
are not limited to:
• Human Rights (i.e. freedom of movement, non-discrimination, dispute
resolution)
• Labor Practices (i.e. child labor, forced labor, wage records, overtime
tracking)
• Working and Living Conditions (i.e. workplace, cafeteria, and dorm
inspections)

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• Environmental (i.e. waste storage/disposal, air emissions, wastewater

treatment)
• Health and Safety (i.e. fire suppression and personal protective
equipment, exits)
• Compliance Status (i.e. permits, fatalities and serious injuries records)
• Potential Off-site Impacts (i.e. soil and groundwater contamination)
• Security (i.e. premises protection, container safeguards, government
certifications)
b. IS will provide impacted suppliers with SRG assessment checklist and any
other SRG-related documentation to include, but not limited to, IS
Integrity Guide for Suppliers.
c. Suppliers are responsible for ensuring that they and their employees,
workers, representatives, and subcontractors comply with the standards
of conduct required of IS suppliers.
d. IS is required to ensure all new suppliers are screened for SRG
requirements as part of the supplier approval process and to ensure any
findings that result from the assessment are resolved prior to goods
shipping from or services provided by suppliers.
e. IS is required to ensure all existing suppliers are screened for SRG risk on
an annual basis. The determined risk level and manufacturing site
location will dictate the frequency of on-site SRG audits at supplier
facilities.
f. Suppliers failing to meet SRG requirements must take immediate steps to
comply or risk termination of the relationship with IS.

2.5 Further Requirement

2.5.1 Specification Transmittal to Suppliers
a. It is incumbent upon the supplier to review with the Sourcing
Representative and/or SQE the appropriate document retrieval methods
that may be specific to their business. It is also the responsibility of the
supplier to review specification revisions with the Sourcing
Representative and/or SQE on a continuous basis to ensure that the
correct revisions are being worked to. When suppliers receive a PO, it is
the supplier’s responsibility to verify they have the latest revision of the
specification called out on the drawings and purchase order.
b. Unless otherwise notified by IS, suppliers are required to implement the
most recent specification revisions on all existing and future POs except
where parts have already entered the manufacturing process. Any
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exceptions to this policy must be negotiated between the IS sourcing

representative and supplier.

2.5.2 Source Inspection and Test Witness Requirements

a. IS and its customers may elect to inspect parts or witness the assembly
process at the supplier’s facility. All source inspection and test witness
requirements will be identified and coordinated through the SQE or other
designated representative.
b. It is the supplier’s responsibility to notify IS in advance when material will
be ready for inspection. This advance notification must allow time for IS
and its customers to make plans to be available on site.
c. IS and customer acceptance of product does not relieve the supplier of its
obligations to supply components that meet drawing and PO
requirements.

2.5.3 IS Owned Tooling

a. IS owned tooling must be identified in a permanent manner which is
nondestructive to the tool. Identification shall include both a unique tool
identification number and notification that the tool is IS owned.
b. Tooling must be stored in an appropriate environment to ensure
protection from weather, plant traffic, corrosive elements, and other
situations that would be destructive to the fit, form, or function of the
tooling.
c. As required for all product specific (IS funded) tooling, suppliers will
establish and implement a preventive maintenance program to include:
cleaning, inspection, repair, and small refurbishment. Major repairs and
tool replacement are to be handled on a case-by-case basis by IS
sourcing representative.
d. IS reserves the right to request Tool Preventive Maintance (TPM) audits
(on-site or self-assessment) on IS owned assets, and supplier preventive
maintenance program. IS assets may include, but not be limited to,
tooling, equipment, fixtures, test equipment, and quality inspection
equipment.

2.6 Quality Records (if applicable)

2.6.1 Documentation
Quality and product records may include, but are not limited to:
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• Product quality or inspection and test plans and results

• Material specifications
• Qualification documentation
• Certificates of conformance
• Other specific component record requirements specified in POs or
contracts

2.6.2 Record Retention

a. The supplier shall have a written procedure for the documentation and
retention of quality and product records for products supplied to IS
b. Records shall be maintained for a minimum of ten (10) years unless
otherwise specified by IS
c. It is the responsibility of the supplier to determine the appropriate storage
means to meet the retention requirement and allow for timely retrieval of
records.

3.0 Definitions, Acronyms and References

3.1 Definitions
• Containment: Actions taken to minimize the risk to Industrial Solutions (IS) or its
customers associated with a nonconformance. Containment actions can be
focused on the product in which the nonconformance was detected as well as
focused on similar products or product families in which the nonconformance
may occur.
• Correction: Action to eliminate a detected nonconformance, defect or other
undesirable situation.
• Corrective Action: Action taken to eliminate the cause(s) of an existing
nonconformance, defect or other undesirable situation to prevent recurrence.
• Critical to Quality (CTQ) Characteristics: Internal critical to quality parameters
that relate to the wants and needs of the customer. Also called critical to
process (CTP) characteristics.
• Frozen Process: A manufacturing method, process, procedure or control that
was approved by the IS Qualification Team.
• Manufacturing Process Plan (MPP): A detailed, step-by-step list of operations and
requirements by which components or services are manufactured.

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• Non-Destructive Testing (NDT): Analysis techniques used to evaluate properties

of material, component or system without causing damage. Typical methods
would include ultrasonic, magnetic-particle, liquid penetrant, radiography, eddy-
current testing, etc.
• Preventive Action: Action taken to eliminate the cause(s) of a potential
nonconformance or undesirable potential situation to prevent occurrence.
• Product Quality Plan (PQP): A detailed, step-by-step list of operations and
requirements in which a supplier identifies a process of how, what, why, when
and who will perform tests or inspections and the applicable acceptance criteria.
This may also be referred to as an Inspection and Test Plan (ITP).
• Purchaser: IS business, or its business associate.
• Qualification Requirements: All required documentation for qualification as
determined by IS qualification team.
• Repair: A type of correction performed to a nonconformance that reduces but
not completely eliminates the nonconformance(s) such that the product is
determined to be usable for its intended purpose.
• Request for Design Change: A document submitted by the supplier to request IS
engineering approval prior to implementing a change in design.
• Rework: A type of correction performed to a nonconformance that completely
eliminates the nonconformance(s) such that the product conforms to the
specification or requirement.
• Scrap: A disposition for nonconforming product that is not useable for its
intended purpose and that cannot be economically reworked or repaired in an
acceptable manner.
• Special Process: A process by which results cannot be fully verified through
subsequent nondestructive inspection and testing of the product and where
processing deficiencies may become apparent only after the product is in use.
Additionally, processes that require operators of that process to be qualified and
certified to be able to conduct the process and meet technical regulations and
standards are considered special processes.
• Supplier Deviation Request (SDR): A request initiated by the supplier to deviate
from purchase order technical requirements (drawings, specifications,
engineering instructions, etc.) or the approved qualification package.

3.2 Supporting Documents

The specifications identified in the preceding paragraphs may not be applicable to
all IS businesses. Confirmation with the SQE is required for applicability. These
include but are not limited to:

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• IS-SRC-0003 Nondestructive Testing Process Qualification and Approval (

• IS-SRC-0004 Visual Inspection Requirements for Weldments
• IS-SRC-0005 General Requirements – Marking, Preservation, Packaging and
Shipping
• 105X1009 Electronic Supplier Quality Requirements

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4.0 Document Revisions and Approvals

The following chart lists the revisions made to this document tracked by version. Use this to
describe the changes and additions each time this document is re-published. The description should
include as many details of the changes as possible.
Records of Reviewers and Approvers may be found within the Windchill QMS

Datendchill
Rev. Section Modified and Revision Description Author
QMS

1.0 New Issue. Replaces P28A-AL-0002 Rev K 11/8/2013 Tiffany Shomo

2.0 Added section 2.2.2 a. defining special process 11/11/2013 Tiffany Shomo
2.1 Corrected error in table of content 01/09/2014 Arianto Lawardi
Add Section 2.2.2 special process – 6,a, b, c, d; 17,
2.2 06/22/2015 Arianto Lawardi
18, 19, 20, 21
2.3 Add section 2.1.2. C – Cyber Security 09/02/2015 Arianto Lawardi
Replace Energy Management as Energy
3.0 07/08/2016 Arianto Lawardi
Connection
4.0 Updated for IS Business 6/27/2018 Mike Csernik

Title: Supplier Quality Requirements

Reference: 8.4.2 IS SRC 002
Revision: 4.0
Owner : IS Global Supplier Quality Management
Application Date: 6/27/2018
Expiration Date: -
Co-Authors : Marlena Urbaczka

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5.0 Addendum A
Qualification Documentation
This addendum defines the requirements for preparing and submitting qualification documents.
Section # Quality Document Quality Document Description
N/A Cover Sheet None
N/A Table of Contents None
1 Technical and Regulatory Provide a listing of all applicable TRS
Standards documentation showing product meets
requirements for the country of end use.
2 Supplier Drawings Provide copy of all supplier generated drawings,
including revision level
3 Supplier Product Quality Provide a copy of the supplier PQP signed and
Plan dated by the Supplier Quality Representative
4 Supplier Manufacturing Provide a copy of the supplier MPP, signed and
Process Plan dated by the Supplier Manufacturing
Representative and/or subtier suppliers used
5 Bill of Materials (BOM) List to include item #, description, model, etc.
6 Characteristic Provide a copy of the CAV report
Accountability &
Verification Forms (CAV)
7 Component Include a certificate of conformance (COC) for all
Conformance major components: e.g., pump curves, testing
certifications, calibration certificates, and relevant
data sheets
8 Design Calculations/ Provide a copy of all design calculations for
Code Compliance applicable components/systems (Pipe stresses,
pipe supports, pressure vessels, lifting lugs) per
Domestic and International codes and documents
to validate this commodity meets all Domestic and
International Code Compliances for the following
but not limited to: CSA,CRN,IEC,CE,PED,ATEX,NEC
9 Special Process Extended performed procedures for
Procedures manufacturing processes
10 Nondestructive Testing Provide copy of all Nondestructive Testing
procedures. Provide copy of NDT Personnel list
qualified to perform NDT on this project. Suppliers
written NDE practice Per. ASNT SNT – TC – 1A

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11 Mechanical Testing and Provide copy of all Hardness testing, Heat

Heat Treating Treatment, stress Relieving, Metallography, and
Grain Etch procedures and results

12 Surface Preparation and Include all Metal Preparation, Prep for paint, paint
Painting procedures along with QA Paint data, signoffs, and
paint specifications
13 Calibration Provide copy of all calibration procedures and
certification for all devices that were used and
calibrated on this
14 Functional Provide a copy of all Mechanical, Electrical, and
Tests Functional Tests performed. This should include
testing procedures, documented data of all testing
performed and signoffs that equipment passed
testing
15 Special Tests Extended routine tests that need to be performed
16 Flush and Checklist of procedures related flush and
Cleanliness cleanliness
17 Preservation and Appropriate preservation and packaging is
Packaging required for each part
18 Supplier Inspection Supplier Report of Inspection
Report
19 Photographs Photos of IS products or deviations
20 Supplier Deviation request from supplier
Deviation
Request

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