1 Purpose

Control the evaluation and selection of suppliers (including outsourcers), procurement information, verification of purchased products and the procurement process to ensure that the purchased products meet the specified requirements.

2 Scope of application

Applicable to the control of supplier selection, evaluation, procurement information and verification of purchased products.

3 Abbreviation

4 Responsibilities

4.1 The production management department is responsible for the control of procurement, organizes the evaluation and selection of suppliers, proposes procurement requirements and implements them Procurement of productive materials.

4.2 The Quality Inspection Department participates in the evaluation and selection of suppliers, is responsible for the inspection and verification of production materials such as raw materials and accessories, and is responsible for controlling non-conforming products of purchased production materials.

4.3 The general manager is responsible for the approval of qualified suppliers.

4 Procedures

4.1 Classification of purchased materials

5.1.1 Purchased materials are an integral part of the product and directly affect the quality of the product. To ensure that purchased supplies not only meet specified requirements, but also meet specific customer requirements in contractual situations. The company classifies the production materials provided by suppliers in order to implement different control methods and different levels of control over suppliers.

5.1.2 According to the degree of impact of purchased materials on subsequent product realization or final products, they are divided into three categories: A, B, and C:

Important materials (referred to as Category A): refers to the raw materials and accessories that constitute the main or key parts of the final product and directly affect the quality of the final product, including: sheets, glass, paint, etc.

General materials (category B for short): refers to general raw materials and accessories that although they form part of the final product, have no significant impact on the quality of the final product, including: glue, sealing strips, handles, two Point locks, wind braces, glass mats, etc.

Auxiliary materials (category C for short): refers to packaging materials that do not constitute the final product.

5.2 Principles of supplier selection

5.2.1 Select suppliers through supplier evaluation to ensure the quality of purchased materials. At the same time, ensure the implementation of designated procurement to avoid blindness and randomness in procurement.

5.2.2 For suppliers who have established supply channels, they must comply with the following seven principles during the initial selection: quality assurance, reasonable price, timely delivery, considerate service, near first, then far, and environment Those in good condition or the leaders have awareness of improving the environment and will give priority to suppliers with good environmental performance when meeting quality conditions.

5.2.3 In addition to complying with the above principles, new suppliers must also meet the following conditions:

a) Have a legal business license and relevant qualification certificates if necessary Material.

b) Have corresponding production, processing, and storage conditions;

c) Have good quality reputation and credit status.

5.3 Preliminary selection of suppliers

5.3.1 The production management department collects basic information (business license, qualification certificate, company profile, product description) of suppliers who are capable of supplying the company's materials , quality inspection report, certification certificate, etc.).

5.3.2 Suppliers are initially selected based on the types of materials provided by the suppliers and the supplier selection principles. Under normal circumstances, Category A requires the selection of two or more suppliers, and Category B and Category C require the selection of more than one supplier.

5.3.3 Select suppliers according to the following method:

5.3.3.1 For suppliers that have established supply channels, the production and management department shall collect information based on previous purchase inspection records and Basic information of suppliers to verify their product quality, delivery time, service quality, reasonable price, etc., and select suppliers from them.

5.3.3.2 For new suppliers:

For new suppliers of Class A materials, the production management department will organize the quality inspection department to conduct written evaluation and sample evaluation, if necessary You can go to the supplier to conduct an on-site evaluation to select the supplier.

For new suppliers of Category B materials, the Production Management Department will organize written evaluations and sample evaluations. For suppliers who are unable to submit samples, only written evaluations can be conducted to select suppliers.

For new suppliers of Category C materials, the Production and Management Department will conduct a written evaluation to select suppliers.

5.3.4 Three categories of preliminary evaluation methods

5.3.4.1 Sample evaluation:

a. The production management department will ask the supplier to provide samples and submit them to quality inspection. Department conducts sample inspection.

b. When the sample passes the inspection, it will be approved by the production management director.

c. When the inspection fails, the supplier can be notified of the inspection results and a second sample inspection can be carried out. If it is determined to be unqualified again, no cooperation will be provided.

5.3.4.2 Written evaluation:

For suppliers who are unable to send samples, a written evaluation should be conducted. The production management department should review the relevant supplier's information in detail and select the supplier that meets the company's requirements. The detailed information of the supplier determines whether to be a supplier.

5.3.4.3 On-site assessment:

On-site assessment of the supplier is required. The supplier’s production capacity, quality management capabilities and environmental conditions can be evaluated based on the items in the "Supplier Assessment Form" Conduct on-site understanding and evaluation, and report suppliers that meet the company's requirements along with their evaluation data to the production management department manager for approval.

5.4 Evaluation and selection of suppliers

5.4.1 The company’s evaluation and selection of suppliers shall be conducted in the form of meetings. Led by the production supervisor, the production management department organizes the quality inspection department to evaluate the preliminary suppliers. The evaluation content includes the following:

a. Company size;

b. Production capacity and technical level;

c. Company environment;

d. Sales capabilities or supply channels (intermediaries).

5.4.2 The participating reviewers will evaluate the preliminary suppliers one by one based on the basic information provided by the supplier, the relevant information of the three preliminary evaluation results, and the above-mentioned review content. Make records in the "Party Evaluation Form", and the evaluators will sign and be responsible for their evaluation results.

5.4.3 After the preliminary selection of suppliers passes the review, the Production Management Department will submit the "Supplier Evaluation Form" to the general manager for approval. Those approved can be regarded as qualified suppliers.

5.4.4 Suppliers that provide services to the company, such as outsourced processing units, product transportation companies, etc., will also be issued evaluation reports by relevant departments respectively, and will be listed as qualified suppliers after approval by the general manager. State-authorized metrology laboratories and product testing institutions can no longer conduct service quality evaluations and can directly be regarded as qualified suppliers (not included in the list of qualified suppliers).

5.4.5 The Production and Management Department will prioritize the approved qualified suppliers and prepare a "List of Qualified Suppliers". The list will take effect after approval by the manager of the production management department.

5.5 Establishment of Qualified Supplier Files

5.5.1 For suppliers listed in the "Qualified Supplier List", the production management department must promptly establish the files of qualified suppliers. , and manage and analyze them to accumulate information for future selection of options.

5.5.2 Qualified supplier files include: information and quality records, such as information provided by the qualified supplier, supplier questionnaire, supplier evaluation form, purchased material quality feedback form, qualified supplier assessment form etc., and manage them in accordance with the requirements of the Record Control Procedure.

5.6 Quality tracking and re-evaluation of qualified suppliers

5.6.1 When incoming materials are inspected or verified as non-conforming products, they shall be dealt with according to the "Control Procedures for Non-Conforming Products". If the entire batch is unqualified, the Quality Inspection Department will also issue a "Purchased Materials Quality Feedback Form" and the management department will notify the supplier of the unqualified quality status and make rectifications within a time limit; if there is no obvious improvement by the time limit and two consecutive batches are seriously unqualified, Its qualification as a qualified supplier should be cancelled.

5.6.2 The Quality Inspection Department shall make statistics on the quality of the supplier’s incoming goods and pass them to the Production Management Department as one of the basis for the supplier’s re-evaluation.

5.6.3 Annual Assessment

5.6.3.1 At the end of each year, the Production and Management Department will conduct an assessment of qualified suppliers on the supply quality, delivery time, cooperation, price, etc. of that year. Re-evaluation,

5.6.3.2 The evaluation adopts a hundred-point system, with supply quality accounting for 40%, delivery time accounting for 10%, price accounting for 35%, and cooperation accounting for 15%.

a. Supply quality score = 40 × (number of qualified batches ÷ number of delivery batches)

b. Delivery time score = 10 × (number of on-time delivery batches ÷ delivery number) Number of batches)

c. Price score: When it is lower than the market price, it is 35, when it is equal to the market price, it is 30, and when it is higher than the market price, it is 20.

d. Cooperation score: The production management department makes statistics on whether the supplier is willing to cooperate when other special circumstances such as production occur.

5.6.3.3 The production management department will rate the supply quality, delivery time, cooperation, and price in accordance with the principles of 5.6.3.2, and record them in the "Qualified Supplier Assessment Form". The production management director or production management department will After approval by the department head, make a copy and distribute it to the supplier for reference as appropriate.

5.6.3.4 Supplier evaluation, grading and assessment

A-level suppliers have a total score of 91 to 100 points; A-level suppliers have priority in each purchase and payment.

Grade B, total score is 75-90 points; Grade B suppliers must maintain the original purchase quantity.

Grade C, with a total score of 65 to 74 points; for Grade C suppliers, please provide improvements before ordering for trial.

Level D, with a total score of 0 to 64 points; Level D suppliers may apply to cancel their login qualifications.

5.7 Procurement information

5.7.1 Procurement contracts or agreements or purchase lists and other documents should include the following information about the products to be purchased:

a. For products Quality requirements: Accept applicable versions of product standards or acceptance specifications or other accurate identification methods.

b. Other requirements; product name, specifications, quantity, delivery, price or other accurate identification methods.

When appropriate, procurement documents also include:

a. Requirements for approval or qualification of the supplier’s products, procedures, processes, equipment, and personnel, such as Safety certification requirements, processing process, equipment and personnel requirements, commissioned testing service requirements, etc.;

b. Applicable quality management system requirements.

5.7.2 Procurement implementation

5.7.2.1 The production management department prepares a "Purchase Contact Sheet" or a purchase contract based on the "Purchase Requisition" prepared by the Quality Inspection Department to clarify the requirements for purchasing products. The product name, specifications, price, delivery time, payment method, packaging, transportation, etc. will be reviewed by the supervisor of the production management department, and the supplier will be selected from the "Qualified Supplier List" for purchase.

5.8 Verification of purchased products

4.8.1 The quality inspection department inspector shall inspect or verify the purchased materials in accordance with the requirements of the "Product Monitoring and Measurement Control Procedures" and accept them if they are qualified , reject unqualified products or accept concessions to ensure that purchased products meet specified requirements.

4.8.2 When the company or the customer needs to carry out verification at the supplier’s site, the production management department should stipulate the verification arrangements and product release methods in the procurement documents so that the company or the customer can carry out verification on the purchase. Product verification.

4.10 All records generated by procurement control will be managed by the Production Management Department in conjunction with relevant departments in accordance with the requirements of the "Record Control Procedure".