REVISION RECORD SHEET

TITLE : PROCEDURE FOR SELECTION AND ENLISTMENT OF

REV.NO 00 SUBCONTRACTOR. DESC. OF AMENDMENT PROCEDURE RE STATED AS PER THE REQUIREMENT OF QS 9000 : 1995 DATE OF AMENDMENT 16.03.1997

PR.NO :QP-06-02 PAGE NO : 1 OF 4 ISSUE NO : 01 REV NO : 00 DATE : 16.03.1997 REASON FOR AMENDMENT QS 9000 ; 1995 UPDATION

DISTRIBUTED TO :
SL.NO DESIGNATION NAME & SIGNATURE OF THE RECEIVER

PREPARED BY:

APPROVED & REVIEWED AND RELEASE CONTROLLED BY: .

QUALITY ASSURANCE PROCEDURE

TITLE : PROCEDURE FOR SELECTION, APPROVAL AND
ENLISTMENT OF SUBCONTRACTOR.

PR.NO : QP-06-02 PAGE NO : 2 OF4 ISSUE NO: 01 REV NO : 00 DATE : 16-03-1997

PURPOSE SCOPE :

To ensure that the sub-contractor has the capability to meet the product / process requirement.( Vendor/Sub contractor is analogous) Applicable to sub-contractors supplying Category A & Category B types of materials in the organisation. GM - COMMERCIAL - for selection & approval Dy - Mgr - Materials - for periodic evaluation & control INITIAL SUB-CONTRACTORS EVALUATION 01. The prospective sub-contractors are identified keeping the nature of product in mind from trade directory, newspaper advertisement, knowledge of trade or information from customer by Dy. Mgr - Materials. 02 Sub-Contractors are selected on the basis of manufacturing / processing facility available with them or on the basis of recommendation from the customer, as well as from the customers list of approved sub-contractors for the items being procured. 03. Vendor registration form no. FM-06-05 are sent to the prospective vendors and shall be received duly filled in with all details. 04. The vendor registration form shall be reviewed by Dy. Mgr. Materials for adequate informations and if found suitable shall request the party to submit a sample or a trial supply. The P.O. released for such purposes shall be clearly indicated as TRIAL ORDER. Or, alternatively, a joint visit by representatives from Purchase, Development, QA & Production shall be organised to the vendors premises. The approval shall be done on any of the following basis: On the successful evaluation of the sample or trial supply by QA, the inspection report shall be reviewed by QA/ Prod./ Purchase & Devp., and subsequently approved. Visit report shall be prepared jointly by QA /Development/Production & Purchase and submit for review & approval to GM-Commercial and based on his comments for recommendations shall be approved.

RESPONSIBILITY: PROCEDURE:

QUALITY ASSURANCE PROCEDURE

PR.NO :QP-06-02 PAGE NO : 3 OF 4 ISSUE NO : 01

TITLE : PROCEDURE FOR SELECTION, APPROVAL AND

ENLISTMENT OF SUBCONTRACTOR.

REV NO DATE

: 00 : 16.03.1997

Or based on : Past History with similar supplies Reliable trade marks of product/materials Third party assessed - ISO 9000 CERTIFIED Published experienced of other uses Market Leaders Monopoly Suppliers

If found not suitable, report is kept in the closed file of assessment FL-06-78 05. Approved Vendors shall be registered in the approved vendor list maintained by Dy Mgr. Materials & Record of capability assessment is maintained. Vendor codification shall be done as per work instruction. WI-06-07. 06. The Sub-Contractors already approved by customers and appearing in their approved sub-contractors list, if referred to us by customer or list of their approved sub-contractors is made available through our marketing or development department, the names of such sub-contractors shall be directly added to our approved sub-contractors list for the products / services specified & applicable for that customer only. The formal evaluation of these vendors shall be at the discretion of GM(Comm). However, this approval shall not absolve the Purchasing department from ensuring supply of products / services meeting the specifications. Wherever any agency is being used for procurement of material, who is procuring material from the approved subcontractor list of customer, both i.e., the agency and the manufacturer shall be on the approved subcontractor list of . In such cases the agency shall be tracked for on time delivery performance and the manufacturer shall be tracked, through agency, for quality performance. 07. A list of all the approved vendors shall be maintained mentioning the scope of supply and the date of registration. II. PERIODICAL EVALUATION 01. Control over the subcontractors for quality is exercised through inspection scheduled audit of the supplied product. 02. Performance of the sub-contractors are regularly monitored and feed back given to them for their performance & quality improvement. Records are maintained.

QUALITY ASSURANCE PROCEDURE

TITLE : PROCEDURE FOR SELECTION, APPROVAL AND

PR.NO :QP-06-02 PAGE NO : 4 OF 4 ISSUE NO : 01 REV NO : 00 DATE : 16.03.1997

ENLISTMENT OF SUBCONTRACTOR.

03. Periodical sub-contractor rating : Periodic vendor rating shall be done by Dy.Manager - Materials as follows : Vendor rating shall shall be done once in 6 months for vendors/sub contractors/ suppliers. The inspection reports for products, services supplied during review period shall form the basis for rating. Vendor rating shall be carried out for the following data : Quality Rating Index on FM-06-06 Price Rating Index on FM-06-07 Delivery Rating Index on FM-06-08 100 % on time delivery performance clause of review form shall be reviewed specifically The Rating Criteria Shall Vendor Rating Index (Overall) . Refer WI-06-04. The vendor rating details shall be recorded by the Dy. Mgr Materials . A letter of vendor rating shall be forwarded to the concerned vendors for information for them to know areas for improvement. For under rated vendors, if performance does not improve after three feedbacks, appropriate action shall be taken by Purchase Incharge to locate for alternative sources and the existing vendor disqualified.. SUB-CONTRACTORS DEVELOPMENT: A detailed time line program shall be evolved by GM-Commercial for subcontractors development and monitor their progress for continuous and improved quality in their product and services using section I & II of QS 9000 as the fundamental quality system requirement.