SUPPLIER MANUAL

Supplier Manual
Rev. B

June 16,2009

TABLE OF CONTENTS
Table of Contents
Table of Contents
Record of amendments
Letter of Introduction
Supplier Quality Assurance Philosophy
Acknowledgement Sheet

Page No.
2
3
4
5
6

Section 1.0

SELECTION ASSESSMENT AND DEVELOPMENT

1.1
1.2
1.3

Qualification for the PTW Inc. Supplier List

Self Assessment Questionnaire
Supplier On Site Assessment

7
7
8

Section 1.4

PERFORMANCE MONITORING AND DEVELOPMENT

1.4
1.5

Introduction
Monitoring Methods

8
8

Section 2.0

DOCUMENT CONTROL

2.1
2.2
2.3

Control of Drawings
Control of Specifications
Control of PTW Inc. Supplier Manual

8
9
9

Section 3.0

PTW INC. PURCHASE ORDERS

10

Section 4.0

Conditions of Business and PTW Inc. Purchase Order

11

Section 5.0

Quality Terms

11

Section 6.0

REQUIREMENTS SCHEDULING

14

6.1
6.2

Scheduling
Delivery

14
14

Section 7.0

PROBLEM REPORTING AND RESOLUTION

15

7.1
7.2
7.3

Notification from Supplier

Notification to Supplier
Corrective Action Request - Supplier Charge Backs

15
16
17

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Supplier Manual
Rev. B

June 16,2009

Table of Contents

Page No.

Section 8.0

LOT TRACEABILITY

18

8.1

Traceability Requirements

18

Section 9.0

ASSOCIATED BUSINESS CONDITIONS

18

9.1

Items Related to PTW Inc. and Its Suppliers

18

RECORD OF AMENDMENTS
Revision
No.

Change
Date

Description

th

Revised Completely

th

Updated Section 2.3 Control of PTW Inc Supplier Manual

June 09 , 08

June 16 ,09

Page 3 of 19

Supplier Manual
Rev. B

June 16,2009

LETTER OF INTRODUCTION

Dear Supplier:
This manual is provided to assist in the development of a strong business relationship
that is built on mutual trust between yourselves and Pinnacle Tool Works Inc.
Our company philosophy and the requirements of our business systems are set forth in
this manual in order that you may understand our commitment to continual improvement
and our expectations for our suppliers.
Our Management Team has formally reviewed the systems, procedures and
requirements contained within this manual. Suppliers are encouraged to forward
comments and suggestions to PTW Inc. for inclusion in the review process.
PTW Inc. and our staff look forward to working with you.

Yours sincerely

Dale Harris, President

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Supplier Manual
Rev. B

June 16,2009

SUPPLIER QUALITY ASSURANCE PHILOSOPHY

WE REQUIRE A COMMITMENT FROM OUR SUPPLIERS TO BECOME PARTNERS IN

MEETING OUR GOAL OF ZERO DEFECTS AND CONTINUALLY IMPROVING CUSTOMER
SATISFACTION.

We seek to establish long-term relationships with you in a joint effort to remain

competitive in a market dominated by global sourcing. Suppliers that meet our
requirements will be considered for pre-sourcing in their commodities, and will share in
supplier initiated cost savings and improvements.
PTW Inc. will remain loyal to suppliers who are committed to find solutions to our
customers needs and who are leaders in quality, delivery and cost.
We expect you to promote a philosophy of continual improvement and to develop,
monitor and assess, on an on-going basis, your level of compliance with ISO 9001:2008
or TS16949 requirements through the following:
On going use of statistics in all facets of the operation, with a mechanism to
track effectiveness through identified key measurement indicators.
Participation in simultaneous engineering programs
Use of analytical techniques such as design of experiments, quality function
deployment, value analysis/value engineering, failure mode and effect
analysis, and other techniques as appropriate.
To this end, we invite you to participate in a partnership that requires open
communication and mutual trust with equal opportunity for growth and profitability.

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Rev. B

June 16,2009

ACKNOWLEDGEMENT SHEET
Please retain this sheet in your manual and return a signed copy, indicating that you have
received, reviewed and accepted in principle the contents of this manual. All communications with
respect to the contents of this manual are to be addressed initially to the Quality Department at
PTW Inc. If you have any comments or concerns please feel free to note them below prior to
returning the copy of your acknowledgement sheet.
Along with the signed acknowledgment page please enclose the following completed documents
to be maintained in your supplier file.
Supplier contact sheet (phone list) including after hours contact
name and phone number
Organizational chart
ISO Certificate
TS16949 Certificate
Detailed map to your facility(s)
Please note below reasons for any omissions
Comments (Please Type):

Supplier name, address and telephone number (Please Type):

Authorized Signature:
Name and Title:
Date Signed:

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Supplier Manual
Rev. B

1.0

June 16,2009

SELECTION, ASSESSMENT AND DEVELOPMENT OF SUPPLIERS

1.1

Qualification for the PTW Inc. Supplier List

1.1.1

By being identified by the customer as the selected source for a specific

part or commodity, the approval process begins. There will be no special
exemptions for these suppliers. All requirements must be met.

1.1.2

By competitive bidding following receipt of a Request for Quotation, for

goods or services not previously supplied to or for PTW Inc. Business
relationship requirements will be initiated by PTW Inc. if it is determined
that potential exists for further assessment.

1.1.3

Current suppliers will be eligible by meeting PTW Inc. and its customers
requirements. Eligibility will also be assessed by means such as:
Pre-assessment surveys from suppliers
On-site evaluations by PTW Inc. personnel
Resolution of any areas of concern
Confirmation of performance in all required areas via PTW Inc. monitoring
and reporting systems
Participation in and compliance with all PTW Inc. systems, procedures and
requirements contained within this manual

1.1.4

1.2

An Approved Supplier list will be maintained by PTW Inc. The listing will be
updated on a continuous basis to reflect input from the assessment;
development and performance monitoring systems maintained by PTW
Inc. Data from these systems are used to establish supplier ratings.

Self-Assessment Questionnaire
1.2.1

A Self-Assessment Questionnaire may be forwarded to a

supplier/subcontractor for completion when PTW Inc. is considering
awarding new or additional business.

1.2.2

The self-assessment questionnaire is to be completed as requested and

returned to the originator by the requested date. It is expected that
suppliers will utilize a multi-discipline approach in order to complete the
survey document. If questions are considered to be not applicable, indicate
N/A.

1.2.3

A self-assessment questionnaire may be requested by PTW Inc. prior to an

on site assessment being performed.

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Supplier Manual
Rev. B

1.3

Supplier On Site Assessment

1.3.1

1.3.2

1.4

June 16,2009

On-site supplier assessments performed by PTWs QAR to determine

whether the supplier is capable of meeting all specifications and customer
requirements.
A copy of the completed assessment or section(s) is forwarded by PTW
Inc. to the supplier; who must initiate any follow up actions required.

PERFORMANCE MONITORING AND DEVELOPMENT

1.4.1 Introduction
1.4.1.1 All production suppliers to PTW Inc. shall participate in the Continual
Improvement and Supplier Monitoring process, with the exception of
generic products suppliers.
1.4.1.2 PTW Inc establishes a performance measurement system which is
reviewed by management on a monthly basis

1.5

Monitoring Methods
1.5.1 Quality performance will be monitored by PTW Inc.via Corrective
Action Reports.
1.5.2 Delivery performance will be monitored by PTW Inc. via packing slip errors,
missed/late delivery and shipping discrepancies.

2.0

DOCUMENT CONTROL
2.1

Control of Drawings
2.1.1

All new or revised drawings and/or sketches concerned with the supply of
product or services to PTW Inc. will be forwarded to the supplier with a
document acknowledgement. For acknowledgement that all files have
been updated to current revision levels, the form must be signed and
returned to the PTW Inc. Document Control Coordinator within 2 business
days.

2.1.2

All suppliers shall have a documented system in place for monitoring

receipt; control and obsolescence of all PTW Inc. supplied drawings.

2.1.3

For any controlled or uncontrolled document that exists between PTW Inc.
and its suppliers, whether they are in electronic media or hard copy format,
no supplier shall share, copy or provide access to such documents to any
third party without written approval to do so.

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Rev. B

2.2

2.3

June 16,2009

Control of Specifications
2.2.1

Specifications controlled or originated by PTW Inc. concerned with the

supply of product or services to PTW Inc. will be forwarded with a
document acknowledgement. The form must be signed and returned to
the PTW Inc. Document Control Coordinator within 2 business days.

2.2.2

Specifications noted on drawings and/or sketches supplied by PTW Inc.

and subsequent specifications referred to within the body of those
specifications shall be obtained by suppliers directly from the controlling
authorities (i.e. ASTM, SAE, etc.).

2.2.3

All suppliers shall have a documented system in place for obtaining all
required specifications.

2.2.4

For any controlled or uncontrolled document that exists between PTW Inc.
and its suppliers, whether they are in electronic media or hard copy format,
no supplier shall share, copy or provide access to such documents to any
third party without written approval to do so.

Control of PTW Inc. Supplier Manual

2.3.1

Latest copy of PTW Inc. Supplier Manual is posted on our website

www.pinnacletoolworks.com, supplier is responsible to keep their records
updated.

2.3.2

For new suppliers PTW Inc. will forward electronic copy of this manual to
the supplier. Supplier must complete, signed and returned page 6 to the
PTW Inc. Document Control Coordinator within 2 business days along with
other documents .

2.3.3

All suppliers shall have a documented system in place for receipt, control
and acknowledgement of all issues and revisions, to any/all-controlled
documents.

2.3.4

For any controlled or uncontrolled document that exists between PTW Inc.
and its suppliers, whether they are in electronic media or hard copy format,
no supplier shall share, copy or provide access to such documents to any
third party without written approval to do so.

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Supplier Manual
Rev. B

3.0

June 16,2009

PTW INC. PURCHASE ORDER

TERMS AND CONDITIONS OF PURCHASE

BUYER MEANS, PINNACLE TOOL WORKS INC., BUYER TERMS MEANS THE TERMS AND CONDITIONS ON THE FACE
AND BACK OF THIS ORDER AND ANY OTHER TERMS AND CONDITIONS SPECIFICALLY INCORPORATED HERIN BY
REFERENCE; SELLER MEANS THE SUPPLIER SHOWN ON THE FACE OF THIS ORDER; AND GOODS MEANS THE
PRODUCT OF SELLER SHOWN ON THE FACE OF THIS ORDER AND ALL RAW MATERIALS, COMPONENTS, TOOLING,
EQUIPMENT AND SUPPLIES TO BE DELIVERED BY AND ALL SERVICES TO BE PROVIDED BY SELLER HEREUNDER.

1. ACCEPTANCE: (A) SELLER WILL BE DEEMED TO HAVE ACCEPTED THIS ORDER WHEN SELLER ACKNOWLEDGES THIS
OR BEGINS PERFORMANCE UNDER THIS ORDER. SELLERS ACCEPTANCE IS LIMITED TO ACCEPTANCE OF BUYERS
TERMS. BUYER HEREBY OBJECTS TO AND REJECTS ANY PROPOSAL BY SELLER FOR ADDITIONAL OR DIFFERENT
TERMS. IF SELLER PROPOSES ADDITIONAL OR DIFFERENT TERMS WHICH RELATE TO THE DESCRIPTION, QUANTITY,
PRICE OR DELIVERY SCHEDULE OF THE GOODS, SELLERS PROPOSALS WILL OPERATE AS A REJECTION OF BUYERS
OFFER; IN ALL OTHER CASES, SELLERS PROPOSAL WILL BE DEEMED A MATERIAL ALTERATION OF BUYERS TERMS,
BUYERS TERMS WILL BE DEEMED ACCEPTED BY SELLER WITHOUT SELLERS ADDITIONAL OR DIFFERENT TERMS. IF
THIS ORDER IS DEEMED AN ACCEPTANCE OF SELLERS PRIOR OFFER, BUYERS ACCEPTANCE IS EXPRESSLY
CONDITIONAL ON SELLERS ASSENT TO BUYERS TERMS
(B) BUYER AND SELLER AGREE THAT NOTWITHSTANDING THE PRIOR OR SUBSEQUENT USE BY SELLER OF ANY ORDER
FORM, INVOICE, OR OTHER DOCUMENT CONTAINING PRINTED TERMS AND CONDITIONS. THEY ARE CONTRACTING
SOLELY ON THE BASIS OF THIS ORDER, WHICH CONTAINS THE ENTIRE UNDERSTANDING OF THE PARTIES AND IS
INTENTED AS A FINAL EXPRESSION OF THEIR AGREEMENT AND A COMPLETE STATEMENT OF THE TERMS THEREOF,
AND MAY NOT BE AMENDED, MODIFIED OR OTHERWISE SUPPLEMENTED UNLESS SUCH AMENDMENTS, MODIFICATIONS
OR SUPPLEMENTS ARE IN WRITING AND SIGNED BY BUYERS AUTHORIZED REPRESENTATIVE. A PROVISION CONTAINED
IN ANY ORDER FORM, INVOICE OR OTHER DOCUMENT USED BY SELLER (WHETHER PRIOR OR SUBSEQUENT TO THE
DATE HEREOF) WHICH IS INCONSISTENT WITH THIS SUBPARAGRAPH WILL HAVE NO FORCE OR EFFECT AND WILL NOT
BE BINDING ON THE BUYER UNLESS SUCH PROVISION IS CONTAINED IN AN ORDER FORM, INVOICE OR OTHER
DOCUMENT DATED SUBSEQUENT TO THE DATE HEREOF AND IS SPECIFICALLY INITIALED BY BUYERS AUTHORIZED
REPRESENTATIVE.

Delivery: (a) Time is of the essence in this order. Seller will make deliveries in the quantities and at the specified herein or in
releases issued hereunder. If sellers deliveries fail to meet Buyers delivery schedule, Buyer, in addition to its other rights
may (1) may direct expedited routing and charge seller for any excess costs incurred as a result and (2) may charge Seller for
any costs incurred by Buyer and /or Buyers customers for production delays caused by Sellers failure to meet such
schedules.
(b) Buyer will not be liable for Sellers commitments or production arrangements in excess of the amount or in advance of the
time required under Buyers delivery schedule. If Seller delivers Goods in advance of Buyers delivery schedule Buyer may
either (1) return such goods at Sellers expense for proper delivery; or (2) withhold payments for such Goods until the
schedule delivery date and place such Goods in storage for Sellers account until the scheduled delivery date. While the
Goods are being returned in accordance with (1) of the preceding sentence or being retained in accordance with (2) of such
sentence, the Goods will be at Sellers risk
Quality: Seller will maintain an inspection of quality systems acceptable to Buyer in conformity with any drawings,
specifications and data which are part of this order and with any quality program of Buyer described in materials referenced
on the face of this order and incorporated herein by such reference, Seller will maintain adequate authenticated inspection
and test reports, affidavits, and certifications relating to the work preformed under this order, retain such record for a period of
ten (10) years after completion of this order or as otherwise specified by Buyer, and make such records available to upon
request. Seller acknowledges that Buyer may reduce its incoming inspection procedures in reliance upon Sellers
maintenance of a quality system as required hereunder
Inspection and Acceptance of Goods: (a) Buyer may inspect all Goods ordered hereunder at all times and places,
including the period of manufacture. Such inspection may at Buyers option include confirmation of Sellers compliance with
required quality control procedures. Seller will permit Buyer and/or its designees access to Sellers facilities and assistance

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June 16,2009

reasonably necessary for such inspection at no additional cost to Buyer. All Goods are subject to final inspection and
acceptance anytime after delivery to Buyer.
(b) Notwithstanding any acts of Buyer, which may be deemed under applicable law to constitute acceptance Goods, payment
for delivered Goods will not constitute acceptance thereof. Buyer may reject any Goods that do not meet the specifications
set forth in this order. Buyer may return any such Goods to seller for reimbursement, credit, replacement or correction as
Buyer may direct, or Buyer may correct and/or replace such Goods at Sellers cost. Any Goods rejected by Buyer will be at
Sellers risk and expense and Seller will not thereafter tender such goods for acceptance unless former rejection or
requirement of correction is disclosed. Seller will reimburse Buyer for any packaging, handling, and transportation costs Buyer
incurs with respect to rejected Goods. Replacement value of the goods and any associated costs by Buyer and/or customer
including sub-assemblies will be charged back at full value.
(c) Buyer may revoke its acceptance of Goods at any time, whether or not substantial modifications to the Goods has been
made, if a defect in the Goods which could not have been discovered during Buyers normal inspection procedures or which
is not normally discoverable until the Goods are used substantially impairs the value of the Goods to Buyer.
(d) Neither Buyers exercise nor its failure to exercise, any rights provided hereunder will relieve the Seller of responsibility for
such Goods as are not in accordance with the order requirements or impose liability on Buyer thereof.

4.0

5.

Termination for Convenience: (a) Buyer may terminate this order or any part of it for its convenience by written or verbal
notice to the Seller. Upon receipt of the termination notice, Seller will immediately stop all work hereunder and cause any of
its suppliers or subcontractors to cease such work. Buyer will not pay Seller for all Goods which are (1) ready for shipment in
accordance with this orders delivery schedule prior to Sellers receipt of the termination notice, (2) conform to all
requirements of this order, and (3) are free and clear of all encumbrances.
In no way will Buyer be liable for amounts in respect of anticipated profits, lost profits, interest expense or other consequential
damages.

6.

Termination for Cause: Buyer may terminate this order or any part hereof for cause in the event
of a default by Seller.
Default means (1) Sellers failure to comply with any of the terms and conditions of this order; (2) Sellers failure to give
Buyer, upon request, reasonable assurance of Sellers future performance; (3) insolvency, bankruptcy, liquidation or
dissolution of Seller; or (4) any other event which causes reasonable doubt as to Sellers ability to render due performance
hereunder. If after termination for Default, it is determined that Seller was not in Default, the rights and obligations of the
parties will be the same as if the termination was for Buyers convenience.

Payments: Buyer will pay the price stipulated on this order for the Goods delivered and accepted, less deductions, if any, as
herein provided, but only (1) upon submission by Seller of an invoice or (2) pursuant to other mutually agreed-upon
arrangements. The prices for Goods will not be subject to any variation without the prior written consent of Buyer. Unless
otherwise specified, Buyer will pay for partial deliveries accepted by the Buyer.

Conditions of Business and PTW Inc. Purchase Order

The extent of the purchase contract shall be from:
The Purchase Order Form with its terms and conditions, including Purchase Order
Rider and supplier agreements as required.
Requirements as set down in the PTW Inc. Supplier Manual
Compliance with all relevant local, provincial state and federal government legislation
Any/all additional requirements specified in writing by the PTW Inc. Materials
Department and purchasing functions.
Purchase Requisition (PTW Inc.)

5.0

Quality Terms
5.1

The following Terms are on PTW Purchase Orders as a requirement of ISO

9001:2008.
5.1.1

The P.O. terms are tailored to the vendor type, under 3 categories:

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Supplier Manual
Rev. B

Metals Supplier

5.2

June 16,2009

Platers / Cleaners

Heat Treaters

ISO 9001:2008 TERMS:

5.2.1 Process Control, meaning well defined and measured process

parameters, written instructions to set up equipment, and
inspection and monitoring of a process with a Process Log. For
Chemical Processes, a Lab Record for changes to tank chemistries
and test methods would be expected.
5.2.2 Incoming Inspection, where you verify that you know what PTW part
you are about to process and that the various other supplies to your
process are what they should be.
5.2.3 Final Inspection and Test, this is where the processed parts are
tested to verify that the technical requirements on the P.O. have
been met. Testing can and should be done as batches are
completed, but before a complete order is finished and later found
to be unusable by PTWs Customers. Your certificate and data from
measurement equipment may also be required.
METAL SUPPLIERS: (paraphrased)
A - MATERIAL CERTS WITH SHIPMENTS: Any shipments that arrive without Complete Certs
will be rejected.
B - NO MIXED HEAT NUMBERS.: This is necessary to ensure that Heat numbers stay separate
at PTW and that tools are not damaged because material was mixed on a skid.
C - ALL METALS COVERED : Any bare, uncovered metals will be rejected. Surface rust that will
appear later on steel will damage our tools and make parts that will be rejected by our Customers.
Other metals and alloys can be contaminated, damaging the tools and the parts made.
Uncovered metals can also sustain surface damage that prevents the metal from feeding through
equipment.
PLATERS / CLEANERS:

(paraphrased)

A NO MIXING OF PTW PARTS: It is critical for PTW parts that the parts are not mixed with
each other, between lots or even between bins in the same lots or with parts left in your process
from other Customers. Any events like this destroy traceability for Automotive Customers and
break automatic equipment when foreign parts are mixed in. In the case of sized loads by weight
for plating barrels, the volume in the barrel may appear low, Operators must never top-up barrels
with parts from other bins !

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Rev. B

June 16,2009

B PTW IN - PROCESS TAGS: The In Process Tags must stay with the parts and parts bins
must be processed one at a time and returned to a bin with the In Process Tag they belong to.
C CERTS REQUIRED: Certificates of Compliance as well as any other Certs and Test reports
with your measurements for your process are needed with every shipment.
D PLATER: NO FLAKES: While plating thickness can be met it should be clear that PTW
Customers will still reject parts based on appearance and adhesion. Process controls for cleaning
processes, plating time, current, anode condition and chemical balance need to be managed to
prevent the plating defects noted.
CLEANER: NO TARNSHING: Cleaning processes need to be thorough enough to remove all
oils, grits and metal fines from parts. Control of tank agitation, chemistry and part drying will
provide clean parts without tarnishing and spotting. A Water Break test is also required on a
sample of parts.
E ALL PARTS PROTECTED: Any bare, uncovered parts can be ruined in transit by exposure
to any number of risks. Making the carrier responsible when parts are uncovered is no solution to
PTW, the value of our parts is completely lost! Under ISO 9001:2008 clause 4.15, all suppliers
must provide protection for product either while in storage or while in transit.
HEAT TREATERS: (paraphrased)
A NO MIXING OF PTW PARTS: It is critical for PTW parts that the parts are not mixed with
each other, between lots or even between bins in the same lots or with parts left in your process
from other Customers. Any events like this destroy traceability for Automotive Customers and
break automatic equipment when foreign parts are mixed in. In the case of sized loads by weight
for H/T barrels, the volume in the barrel may still appear low, Operators must never top-up barrels
with parts from other bins !
B PTW INPROCESS TAGS: The In Process Tags must stay with the parts and parts bins
must be processed one at a time and returned to a bin with the In Process Tag they belong to.
PTW will begin scrapping and charging back the full value of mixed parts and bunched or
swapped In Process Tags.
C CERTS REQUIRED: Certificates of Compliance as well as any other Certs and Test reports
with your measurements for your process are needed with every shipment.
D ALL PARTS PROTECTED: Any bare, uncovered parts can be ruined in transit by exposure
to any number of risks. Making the carrier responsible when parts are uncovered is no solution to
PTW, the value of our parts and your valued added process are completely lost! ISO 9001:2008
under clause 4.15 requires all suppliers to provide protection for product either while in storage or
while in transit.

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6.0

June 16,2009

MATERIAL REQUIREMENTS SCHEDULING

6.1

6.2

Scheduling
6.1.1

Raw material may be ordered by issuance of individual purchase orders.

6.1.2

Suppliers who have been issued with a PTW Inc. blanket purchase order
will receive releases. Each material release supersedes the previous
weeks release and MUST be used for planning, scheduling and shipping
purposes. It is the Suppliers responsibility to contact their Material Planner
if no release is received.

Delivery
6.2.1 Suppliers who are unable to meet their future material release
requirements based on required DELIVERY DATE and QUANTITY MUST
notify their Material Planner in writing (VIA E-MAIL and/or FAX) by returning
a signed copy of the material release with notes no later than the same
business day the release(s) were received.
6.2.2 The delivery goal for PTW Inc. suppliers is 100% on time arrival of
acceptable product. The supplier is responsible to deliver product to PTW
Inc. 100% on time. This means delivering the correct quantity, of the
correct product, at the correct time specified by PTW Inc.
6.2.3 Sudden up-front changes in your material release requirements can be the
result of your current material in-house being quarantined, unscheduled
usage of your parts in our facility, stock losses due to inventory
inaccuracies, possible Engineering Changes resulting in a different
demand pattern or simply an unusual Production Scheduling increase.
Your Material Planner will be able to resolve any questions you have
regarding these situations. It is the responsibility of the supplier to contact
the Material Planner if this situation does occur.
6.2.4 Early and late deliveries, over and under shipments are not in accordance
with our expectations and cannot be tolerated. They disrupt our planning,
manufacturing and handling processes driving costs up. Suppliers are
expected to deliver late shipments to our facilities via the appropriate
premium freight carrier (as communicated with your Material Planner) at
their expense. Should the supplier not provide just cause for these
situations, PTW Inc. may charge back all associated costs to the supplier in
accordance with your purchase order rider and the ASSOCIATED
BUSINESS CONDITIONS section of your PTW Inc. Supplier Manual. As
well any unauthorized shipment received before our receipt date may be
shipped back to the supplier at their expense.

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Rev. B

7.0

June 16,2009

PROBLEM REPORTING AND RESOLUTION

7.1

Notification from Supplier to PTW Inc.

7.1.1

7.1.2

7.1.3
7.1.4

7.1.5

Immediate action shall be taken in the event that a supplier has reason to
believe that a non-conforming condition exists. Contact shall be by fax,
followed by a telephone call to the PTW Inc. Materials Planner.
PTW Inc. personnel will initiate a CAR for containment and disposition of
the nonconforming material and for documentation of nonconforming
condition.
The Supplier Performance Rating will not be affected on supplier-initiated
concerns.
All suspect material shall have a disposition within 5 calendar days of
written notification. Written notification is typically done by, but not limited
to, the Corrective Action Request. Failure to comply will result in suspect
material returned at suppliers expense. The Supplier Performance Rating
will be affected for the full quantity returned.
Notification to PTW Inc. shall be followed up by:
i.
Immediate containment, until disposition is completed, of all
suspect material at: supplier, PTW Inc. and in-transit.
Disposition can include, but is not limited to, replacement
with new material, sorting, priority delivery as agreed.
Note: PTW Inc. will not permit supplier rework to be
performed on-site.
ii.

A copy of the CAR form will be forwarded to the supplier for

disposition of the material.

iii.

Interim corrective action report must be documented and

forwarded to the PTW Inc. champion within 24 hours by fax
copy and/or E-Mail showing as a minimum: containment
activities, interim corrective actions, material disposition, sort
results, and investigating team with primary contact.

iv.

Comprehensive corrective action report is required within 15

days. As a minimum the report shall have identified: root
cause (both system failure & non-detection), permanent
corrective actions indicated with commitment date.

v.

Complete corrective action reports required when all

permanent corrective actions are in place. Validation of

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June 16,2009

permanent corrective action taken shall be documented and

submitted before concern is closed.

7.2

7.1.6

The supplier must ensure workers representing their company have the
necessary skills, training, safety equipment and tools to perform their job /
task in a safe and timely manner.

7.1.7

It is the suppliers responsibility to provide evidence of WSIB coverage for

the workers representing their company while visiting PTW Inc. in the event
of an accident / injury

Notification from PTW Inc. to Supplier

7.2.1

In the event that PTW Inc. personnel identify a non-conformance, PTW Inc.
personnel will initiate a Corrective Action Request for Containment and
disposition of the nonconforming material and for documentation of the
nonconforming condition.

7.2.2

All suspect material shall have a disposition within 5 calendar days of

written notification typically by but not limited to the Corrective Action
Request. Failure to comply will result in suspect material returned at
supplier expense.

7.2.3
i.

Notification from PTW Inc. will be followed up by:

Immediate containment, until disposition is completed, of all suspect
material at: supplier, PTW Inc. and in-transit. Disposition can include,
but is not limited to, replacement with new material, sorting, priority
delivery as agreed.
Note: PTW Inc. will not permit supplier rework to be performed on-site.

ii.

A copy of the CAR form will be forwarded to the supplier for disposition
of the material.

iii.

Interim corrective action reports must be documented and forwarded to

the PTW Inc. champion within 24 hours by fax copy and/or E-Mail
showing as a minimum: containment activities, interim corrective
actions, material disposition, sort results, and investigating team with
primary contact.

iv.

Comprehensive corrective action report is required within 15 days. As

a minimum the report shall have identified: root cause (both system &
non-detection), permanent corrective actions indicated with
commitment date.

v.

Complete corrective action report is required when all permanent

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corrective actions are in place. Validation of permanent corrective

action taken shall be documented and submitted before concern is
closed.

7.3

7.2.4

If the supplier is unsuccessful in containing non-conforming material

at the suppliers location then it will be up to the PTW Inc. Supplier Quality
Representative to determine if Controlled Shipping - Level 1 would provide
the next level of assurance.

7.2.5

If the supplier remains unsuccessful in containing non-conforming material

at their location when on Controlled Shipping - Level 1 then it will be up to
the PTW Inc. Supplier Quality Representative to determine if Controlled
Shipping - Level 2 should be initiated.

Corrective Action Request - Supplier Charge Backs

7.3.1

PTW Inc. is diligently striving for a cooperative relationship with our

suppliers, with the end of better quality and delivery without problems as
detailed in the Supplier Quality Manual. To control our costs and maintain
our competitive position, it is very important that we have quality parts
delivered on time every time. However, in some instances, we have to deal
with supplier part quality and/or delivery issues that were not contained or
replaced prior to shipment, in order to maintain production.
Considering the limited resources to deal with supplier issues, we will be
implementing a new fee structure for our supplier charge back system.

7.3.2 The following fee structure will be adopted for rework, sorting and/or scrap:
Standard Charges:
Corrective Action Request Administrative cost: First occurrence = $275.00,
each repeat offence = $400.00 USF
PTW Inc. shop rate to perform sort/rework functions due to supplier defect
is $35.00 per hour. (Note: Only PTW Inc. representative is permitted to
sort/rework finished goods and/or product at customer location)
Any incurred costs at customer location due to supplier defective product.
Including travel costs.
Material cost: P.O. piece price cost
7.3.3 Freight charges: charges incurred by PTW Inc. due to late delivery

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8.0 LOT TRACEABILITY

8.1

Lot Traceability
8.1.1

9.0

All products supplied to PTW Inc. shall be traceable by date code to a lot of
no more than eight hours production. At PTW Inc. request, the supplier
must be able to trace all parts from a lot. Markings on bar code labels or
cartons can be considered part of the traceability system.

ASSOCIATED BUSINESS CONDITIONS

9.1

Items Related to PTW Inc. and Suppliers

9.1.1 Suppliers shall work with PTW Inc. to share detailed cost data as it relates
to products for PTW Inc. and its customers.
9.1.2 Suppliers shall share 50% of the benefits after expenses of cost reduction
efforts with PTW Inc.
9.1.3

Processes shall be aimed at nominal values unless otherwise directed in

writing by PTW Inc. Quality Manager or designate. It is expected that a
target for compliance of zero defects be set for all goods and services to be
supplied to PTW Inc.

9.1.4

In the event of non-conforming goods or services being supplied to PTW

Inc. or its customers, the costs identified from a Corrective Action Request
will be charged back, to the supplier following mutual resolution for
responsibility for any such claims. Corrective action procedures for
response and follow-up are as outlined in Section 7.0 in this Manual.

9.1.5

Suppliers shall maintain accurate records, which show PTW Inc., and its
customers conformance requirements are being met. Documented
procedures shall be in place defining responsibilities for records control as
outlined within the requirements of ISO 9001:2008. Legal or government
requirements prevail.

9.1.6

Suppliers shall maintain a documented, comprehensive business plan.

Development and establishment of goals and objectives, monitoring
performance, and adjustments to the plan shall include input from all
departments.

9.1.7

Suppliers are expected to use a fair and consistent method of applying the
profit factor and distribution of overhead expenses in support of PTW Inc.
and its customers requirements, consistent with goals of long-term
financial viability, and automotive industry standard practices.

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9.1.8

Suppliers are expected to develop and implement a company wide training

plan with input from all departments, with appropriate review and approval
mechanisms.

9.1.9

Team building and organized employee involvement groups, working

towards customer satisfaction, shall be developed.

9.1.10 Suppliers shall have documented procedures for assessing, selecting,

monitoring and developing their own suppliers, with built-in continuous
improvement philosophy geared to customer satisfaction and potential
cost reductions.
9.1.11 Suppliers shall have documented procedures to effectively track and meet
all key event dates, e.g. tooling build; prototypes; sample submissions;
control plans, etc.
9.1.12 The supplier must ensure workers representing their company have the
necessary skills, training, safety equipment and tools to perform their job /
task in a safe and timely manner.
9.1.13 It is the suppliers responsibility to provide evidence of WSIB coverage for
the workers representing their company while visiting PTW Inc. in the
event of an accident / injury.

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