Blissfield Manufacturing Company - SUPPLIER DEVELOPMENT STANDARD

Blissfield Manufacturing Company is a leader in the development, application and production of heat transfer technology dedicated to excellence in customer service and supported by a creative and flexible team. All Blissfield Manufacturing Company members have set their focus on the support of our founding principles of Foundation and Commitment.

Foundation

Excellence in all we do.

Commitment

Be the preferred solution provider to all markets we serve. Serve our customers, suppliers, co-workers and community with Honesty, Integrity, Trust and Respect.

Blissfield Manufacturing Company recognizes the key importance its supply chain plays in its ability to support its founding principles. We strive to select and develop a supply chain capable of meeting the demanding and changing needs of a world market.

The Blissfield Manufacturing Company Supplier Development Standard (SDS) is the basis for all supply chain partners furnishing raw materials, production components and subcontracted services used in Blissfield’s end products. The SDS applies to purchases for all plant locations of Blissfield Manufacturing Company. For simplicity purposes, this standard will refer to BMC which is meant to include all producing locations.

Supply Chain Requirements

Quality Management System

All suppliers and subcontractors of automotive-related materials and services must be third-party certified to ISO:9001:2000 at a minimum.

All suppliers and subcontractors of non-automotive related materials and services must have a quality management system in place compliant with ISO:9001:2000 standards.

The above do not apply to materials purchased from stocking distributor companies.

PPAP Requirements

All BMC suppliers of production components manufactured to drawings must submit a PPAP on the initial production launch, when a design change has been implemented affecting a significant design characteristic or when a change in the production location or process has been made. Included in the PPAP submission are:

Dimensional results: A full dimensional layout of a minimum of three parts per tool or mold/die
Parts: The specific parts/components used for the dimensional layout, numbered.
Print: Ballooned print to the revision level of the PPAP submission.
Materials Certification: Material certification for base materials from which the PPAP parts were manufactured.
Signed Warrant
Additional documents may be requested depending upon BMC’s customers’ requirements.

All PPAP submissions must be from production tooling and processes.

Supplier Corrective Action

BMC uses a Non-Conformance Report (NCR) to communicate quality concerns to its suppliers. The supplier is required to respond within the time-frame specified on the NCR. The initial response must include at a minimum:

NCR number and description of quality problem reported

Name, title, telephone and fax number for individual assigned primary responsibility to resolve the issue.

Desired disposition of affected material/components at all BMC locations; the suppliers’ choices are:

Scrap material at BMC at supplier’s expense
Return material to supplier for credit
BMC personnel to sort material at supplier’s expense
Hold for supplier’s personnel to sort on-site at BMC location(s). Note: supplier personnel must be on-site within 24 hours of notification.

Containment actions initiated by the supplier to prevent additional product from impacting BMC or its customers

Potential root causes

Failure to make disposition in a timely manner will require BMC to take necessary action to maintain production needs. All additional charges associated with untimely disposition will be debited to the supplier.

The supplier must submit a completed final Corrective Action Report within the time-frame specified on the NCR. The CAR must include the 8-D Final Response format.

Performance Rating

All suppliers of automotive-related materials, components and services receive a Supplier Performance report at least quarterly. Non-automotive related suppliers will receive a Supplier Performance report at the discretion of the V.P. of Administrative Services or the Supply Chain Manager. The report indicates the supplier’s 12-month rolling performance to quality, delivery and expedited freight standards. In addition, a composite of the supplier’s overall performance is reported.

Suppliers may dispute the reported performance indices by submitting documented proof of the data in err. BMC will review the documentation submitted to determine the acceptability of the information. If BMC so deems the supplier’s performance indices were presented inaccurately, the supplier’s performance report will be corrected.

On-Time Delivery: 3 Days Early / 1 Day Late = 100% On-Time Delivery
Quality Standard: Zero Defects
Expedited Freight: Zero instances of expedited freight on incoming material. Supplier’s expedited freight performance will be hindered if a late shipment to BMC caused us to expedite freight to our customer.

Supplier Status

Any one of the following conditions may result in PROBATION status:

All new suppliers enter our system as Probationary Status.
Ongoing disregard for BMC’s quality standard, on-time delivery requirement and expedited freight requirements.
Involvement in a field recall for a defect which the supplier could have reasonably prevented.
Violation of BMC’s NCR procedure.
Violation of BMC’s PPAP requirements.
Shipping known defective product without prior written approval.

Note: Suppliers remaining on Probationary Status for 180 consecutive days may be desourced.

QUALIFIED status may be granted per the following criteria:

Third-party registration to ISO:9001:2000 or TS-16949, or
Acceptable quality, delivery and freight performance for 6 consecutive months.

PREFERRED status may be granted per the following criteria:

Third-party registration to ISO:9001:2000 or TS-16949, and
Acceptable quality, delivery and freight performance for 4 consecutive quarters, or
As deemed appropriate by the V.P. of Administrative Services and Corporate Manager of Quality Assurance.

Product received from Preferred-status suppliers is received dock-to-stock. Preferred suppliers will be eligible for long-term sourcing agreements.

Additional Information

A $250 administrative charge will be added to all debits for non-conforming material, components or services.
Suppliers will be debited for the cost of any sorting or scrap incurred by Blissfield or its customers.
Suppliers will be debited for unauthorized use of a non-specified carrier. The additional amount of the freight will be charged back to the supplier.