Valley Machine Supplier Flow Down Requirements.
Rev A
1. Supplier Quality Management System
a. The Supplier must compile and maintain a single source of documented information and refer to it as a Quality Manual. The Quality Manual must include a description of the quality management system and contain or make reference to the documented information and associated aviation, space, and defense industry requirements contained within AQMS.
1. Measurement Traceability
a. The Supplier must retain documented information that provides evidence of monitoring and measurement equipment calibration. The retained documented information must include the required calibration register elements defined within the AQMS standard and the results of calibration traceable to NIST.
b. Calibration Suppliers must comply with ANSI Z540.1, ISO 17025 or ISO 10012.
3. General
a. Supplier must maintain, and have available on a timely basis, quality records traceable to the conformance of product/part numbers delivered to Valley. Supplier must retain such records for calendar year + 10 years from the date of shipment under each applicable order for all product/part numbers unless otherwise specified on the order. At the expiration of such period set forth above and prior to any disposal of records, Valley reserves the right to request delivery of such records.
b. Supplier shall grant Valley, customers of Valley, or any governmental regulatory agencies access to Suppliers premises or manufacturing facilities. This includes the freedom to witness and audit all phases of fabrication, testing, storage or goods sold to VMS, pertinent documents and records related to the PO/contract, subject to any limitations or controls required to ensure compliance. VMS will provide notice to Supplier (typically 48 hours minimum.)
4. Operational Planning and Control
a. ‘Work-Transfer’ is defined as movement or re-location of work to be performed, either by Seller or Seller’s Supply Chain, from one facility to another, from Seller to a supplier in Seller’s Supply Chain, from a supplier in Seller’s Supply Chain to Seller, or from one supplier in Seller’s Supply Chain to another supplier in Seller’s Supply Chain (including to any affiliate of Seller).
i. Seller will not and will ensure supply chain will not, Initiate a Work Transfer without Valley’s prior written approval.
b. When directed by Valley, supplier will comply with and flow down to its Supply Chain the requirements of Boeing Form X38656, “Advanced Product Quality Planning (APQP) & Production Part Approval Process (PPAP)”
5. Prevention of Counterfeit Parts
a. The Supplier must ensure their internal processes address the use of Customer/Engineering authorized manufacturers and/or designated sources (e.g.; Qualified Product List {QPL}) and they must ensure retained documented information is validated prior to the release of products and the documented information includes traceability to the designated source.
5. Customer Communication
a. When specifically requested by Valley, Supplier must make specified quality data and/or approved design data available in the English language.
b. Regulatory Approvals: For aircraft regulated by Civil Aviation Authorities, regulatory approval may be required for Seller to make direct sales (does not include “direct ship” sale through Boeing) of modification or replacement parts to owners/operators of type- certificated aircraft Regulatory approval, such as FAA Parts Manufacturer Approval (PMA), is granted by Civil Aviation Authorities. Seller agrees not to engage in any such direct sales of Products or Services under this Agreement without appropriate regulatory approval. Unless explicit contractual direction is given to the contrary, no articles (or constituent parts thereof) ordered by Boeing Commercial Airplane Co. purchased under this agreement shall contain any Federal Aviation Administration- Parts Manufacturer Approval (FAA-PMA) markings and the accompanying paperwork (e.g., packages, shippers, etc.) shall not contain any FAA- PMA markings.
i. This procurement is under Boeing’s Federal Aviation Administration (FAA) issued Production Certificate 700 quality system supplier control program. Unless explicit contractual direction is given to the contrary, no articles (or constituent parts thereof) ordered by Boeing Commercial Airplanes shall contain any Federal Aviation Administration- Parts Manufacturer Approval (FAA-PMA) markings and the accompanying paperwork (e.g., packages, shippers, etc.) shall not contain any FAA-PMA markings.
7. Design and Development Planning
a. Boeing Design Digital Product Definition (DPD) approval is required per Document D6-51991.
i. If not approved per D6-51991,Supplier shall complete and submit DPD Questionnaire VMS114, Attachment B.
b. For BGS-C only, applies to McDonnell Douglas Heritage part numbers.
i. Where Boeing specifications and/or processes are listed within the detail design, specification control, or envelope drawing, incorporated by this purchase document, Seller shall adhere to the latest revision of the Boeing specification and/or process, unless otherwise specified in the purchase document.
8. Control of Externally Provided Processes, Products, and Services
a. Valley furnished materials shall require strict accountability by the supplier. The Supplier shall maintain positive individual lot integrity of finished product and identification of any excess material. At the time of delivery, the Supplier shall return any excess material furnished by Valley.
b. No material substitution is allowed.
c. When Supplier utilizes test reports to accept raw material from External Providers, the following requirements apply:
i. Test reports must be checked 100% against Supplier’s requirements and applicable specifications.
ii. Validation test requirement: Supplier must periodically validate test reports for raw material accepted on the basis of test reports. That validation must be accomplished by Supplier or other independent party through periodic, scheduled tests of raw material samples. Schedules for frequency of tests will be established by Supplier based on historical performance of the raw material provider/manufacturer.
iii. Supplier must retain test reports provided by the raw material provider/manufacturer, as well as Supplier’s validation test report results as quality records traceable to the conformance of Goods, as specified elsewhere in this contract.
iv. Supplier shall send copies of material certs attached to pack slip/certificate of conformance.
d. Supplier is required to establish and maintain a FOD prevention program compliance with AS/EN/JAC 9146 Foreign Object Damage (FOD) Prevention Program – Requirements for Aviation, Space, and Defense Organizations.
e. Supplier must comply with Boeing document D1-4426 “Approved Process Sources” (http://active.boeing.com/doingbiz/d14426/index.cfm). This document, subject to revision from time to time, defines the approved sources for special processing, composite raw materials, composite products, aircraft bearings, designated fasteners, and metallic raw materials. The Supplier’s purchasing information must conform to the purchasing data requirements of Boeing document D1- 4426 Appendix D. These purchasing data requirements can be found at: http://active.boeing.com/doingbiz/d14426/Appendix-D.pdf
f. When specified, Supplier must perform First Article Inspections (FAI) in accordance with AS/EN/SJAC 9102, Aerospace First Article Inspection Requirement. Valley reserves the right to conduct surveillance of the supplier’s FAI.
g. Supplier must comply with the AS/EN/JISQ 9100 requirements and 14CFR Part 21.2 regarding the application of the Acceptance Authority Media (AAM) requirements.
i. Supplier must, within its organization and its supply chain, ensure that the use of AAM is clearly defined within its Quality Management System (QMS).
ii. Supplier must, be able to demonstrate evidence of communication to its employees and to its supply chain; use of AAM must be considered as a personal warranty of compliance and conformity.
iii. Supplier must maintain compliance to the AAM requirements by assessing its process and supply chain as part of its internal audit activities. The areas of focus of this assessment must include but not limited to:
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- Authority Media Application Errors (i.e. Omission, Typos, Legibility, etc.)
- Authority Media Application Untimely Use(i.e. Documentation is not completed as planned, Stamp/Sign as you go”, etc)
- Authority Media Application Misrepresentation(i.e., uncertified personnel, Falsification of documentation, Work not performed as planned, etc.)
- Authority Media Application Training Deficiencies (i.e. Ethics, Culture (i.e., uncertified personnel, Falsification of documentation, Work not performed as planned, etc)
- Authority Media Application Training Deficiencies (i.e. Ethics, Culture awareness, Proper Use of authority media, etc.)
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h. Suppliers must provide a Certificate of Conformance (CofC) statement on their Shipping document certifying its quality assurance department has inspected the parts and they adhere to all requirements, applicable PO, drawings/specifications.
i. The following should be listed in the CofC
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- Lot Number
- Manufacturer’s name and address
- Specification numbers with Revision levels
- Material Type, alloy, temper, etc.
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ii. A certification statement that meets the intent of the following: (Supplier) certifies that these parts were purchased, and/or manufactured, and/or processed, and/or assembled and inspected and meets all applicable buyer PO requirements.
9. Conflict Minerals
a. Raw material suppliers shall be in compliance with section 1502 of the Dodd_Frank Act, as a supplier, Valley requires that raw material suppliers perform due diligence in evaluation the supply chain regarding conflict minerals and that a filled out and signed declaration of nonuse is completed yearly.
10. Incoterms 2000, Addemdum #1
a. The INCOTERMS 2000 for all orders from Buyer will be Free on Board if by ocean and Deliver Duty Unpaid; otherwise, Boeing will pay for freight per Boeing standard routing instructions. When buyer’s order requests delivery outside the United States of America, the Import of Record will be the buyer placing the order. Title and risk of loss shall pass at place of shipment (i.e. for orders shipped directly from a mill, title and risk of loss shall pass at Boeing, or Boeings service provider’s shipping dock and Buyer will maintain adequate insurance to cover shipments at the time title and risk of loss transfer to Buyer).
11. Ozone-Depleting Substance
a. “Ozone-depleting substance,” as used in this clause, means any substance the Environmental Protection Agency designates in 40 CFR Part 82 as—
i. (1) Class I, including, but not limited to, chlorofluorocarbons, halons, carbon tetrachloride, and methyl chloroform; or
ii. (2) Class II , including, but not limited to hydrochlorofluorocarbons.
b. Seller shall label shipping or storage containers of ozone – depleting substance and products that contain or are manufactured with ozone-depleting substances in the manner and to the extent required by 42 U.S.C. 7671j (b), (c), and (d) and 40 CFR Part 82, Subpart E, as applicable:
Warning
Contains *_______, a substance(s) which harm(s) public health and environment by destroying ozone in the upper atmosphere.
Warning
Manufactured with *_______, a substance(s) which harm(s) public health and environment by destroying ozone in the upper atmosphere.
* Seller shall insert the name of the relevant substance(s).
12. Working Conditions and Human Rights
a. Seller further commits that any material violation of law by Seller relating to basic working conditions and human rights, including laws regarding slavery and human trafficking, applicable to Seller’s performance under this Contract/ Agreement may be considered a material breach of this Contract/Agreement for which Boeing may elect to cancel any open Orders between Boeing and the Seller, for cause, in accordance with the provisions of this Contract/Agreement, or exercise any other right of Boeing for an Event of Default under this Contract/Agreement. Seller shall include the substance of this clause, including this flow down requirement, in all subcontracts awarded by Seller for work under this Contract/Agreement
13. Control of Nonconforming Outputs
a. ESCAPEMENT NOTIFICATION FOR NONCONFORMANCE (Notification of Escapement (NOE)
i. For Product(s) which have been delivered to or on behalf of Valley and Seller knows or suspects that such Product(s) are or may be nonconforming, Seller shall, within 3 business days after the day of discovery of a potential escape, the notification from sub-tier supplier, and/or the entry of the issue into the quality process, notify Valley in writing as set forth herein to allow Valley to conduct a preliminary safety risk assessment. The minimum information required at this stage of the notice of investigation are:
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- Affected process(es) or Product(s) part number(s) and name(s)
- Description of the nonconforming condition and the affected engineering requirement (i.e., what it is, what it should be and per what requirement).
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a. If the condition is a possible safety of flight issue, submit all available information immediately. This applies to new or initial instances of an escape or potential escape, escapes or potential escapes that were previously identified and isolated by Boeing, but Seller identifies additional units or a nonconformance cannot be inspected for the same nonconformance condition. This notification requirement is applicable to all Sellers.
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- Quantities, shipping dates, purchase orders and destinations of delivered shipments;
- Suspect/affected serial number(s) or date codes, lot numbers, or other part identifiers and airplane line units when applicable.
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b.When a nonconforming product is discovered at the Supplier’s facility, the supplier shall submit a Nonconforming Material report to Valley and tag the discrepant part.