AMB Engineering Ltd
Terms and Conditions of Purchase
Please note printed copies of
this document are uncontrolled
Contents
General
Terms
1.0 Definitions
2.0 Formation of Contracts
3.0 Variation
4.0 Price
5.0
Passing of property and risk to the Buyer
6.0
Excess quantities
7.0
Law
Quality Terms and Conditions
8.0 Scope
9.0 Purpose
10.0 Related Documents
11.0 Approval Requirements
12.0 General Quality
Requirements
13.0 Business Quality
Improvement Objectives
14.0 Organisation
15.0 Purchase Order / Document
Order Control
16.0 Procurement of Components
17.0 Control of Non-Conforming
Material
18.0 Rejections after Delivery
19.0 Supplier Monitoring
20.0 Records & Archives
21.0 Certificate of
Conformance
22.0 Preservation and
Packaging
23.0 First Article Inspection
(FAIR)
24.0 Right of Access
25.0 Business Continuity
Planning
26.0 Change Control
27.0 Traceability
28.0 Special Process
Requirements
29.0 Manufacturing &
Process Control
30.0 Inspection Reports
31.0 Source Inspection
32.0 Concessions/Permits
33.0 Corrective Actions
34.0 Special Process Suppliers
35.0 Distribution
General
Terms and Conditions
1.0 Definitions
1.1
The
term “Buyer” shall mean the Company so named in the Purchase Order.
1.2
The
term “Supplier” shall mean the person, Firm or Company to whom the Purchase
Order is issued.
1.3
The
word “Goods” includes all goods covered by the Purchase Order including
proprietary items, raw materials, processed materials, fabricated items and
services provided.
1.4
The
term “Purchase Order” shall mean buyers purchase order which specifies that
these Conditions apply to it.
1.5
The
“Contract” shall mean the contract between the Buyer and the Supplier consisting
of the Purchase Order. These conditions and any other documents (or part
thereof) specified in the purchase order.
1.6
The
term “Order” shall mean the Purchase Order/Contract as detailed in point’s 1.4
& 1.5.
1.7
The
“Company” shall mean AMB Engineering Ltd (hereinafter referred to as AMB).
1.8
The
terms “These Conditions” shall mean the Buyers standard Terms and Conditions of
Purchase set out in this document including additional requirements specified
on the face of the order.
2.0 Formation of
Contracts
2.1 All contracts of purchase made by AMB shall be deemed to
incorporate these Terms & Conditions. No written or printed terms
inconsistent with these Conditions or additional thereto shall be binding upon
the Company unless expressly accepted in writing by the Company’s
representatives.
2.2 The Company shall not be liable in respect of any Orders or
instructions other than those issued or confirmed on the Company’s official
forms duly signed by the Company’s authorised representatives.
2.3 The Company will incur no obligation in respect of any
order until the Company receives the written confirmation of the Supplier in
the form of an acknowledgement of the order. If the Supplier should fail to
provide such written confirmation, the Company shall have the option of either
regarding the Order unconditionally accepted, or withdrawing the same by notice
to the Supplier, in which case any costs incurred by the Supplier shall be for
the Suppliers account. Acceptance of the Order constitutes a Contract between
the Company and the Supplier.
3.0 Variation
3.1
This order when accepted by the Supplier constitutes the complete and final
agreement between the Company and the Supplier. No variation, amendment or
alternative understanding in any way purporting to modify the Contract shall be
binding upon the Company unless made in writing and signed by the company’s
authorised representative.
4.0 Price
4.1 The prices stated in the Order are fixed
and firm unless otherwise stated.
5.0 Passing of property and risk to the Buyer
5.1 The property and risk in
the Goods shall remain in Seller until they are delivered to the address
specified in the Purchase Order
6.0
Excess Quantities
6.1
The Company accepts no liability for the acceptance of payment for Goods
delivered in excess of quantities specified in the Purchase Order unless
otherwise agreed and may return such goods to the Seller at no risk or expense
to the Company.
7.0
Law
7.1 The application of the uniform laws on
International Sales shall be governed by the Laws of England and any claim or
dispute arising there from shall be subject to the jurisdiction of and
determined by English Courts.
Quality
Terms and Conditions
8.0 Scope
8.1 The following sections detail the
requirements to be satisfied by suppliers to AMB Engineering Limited. AMB
requires that each supplier must comply with the quality requirements set forth
within this document and to maintain a Quality Management System that ensure
materials, goods and services comply with all our specified requirements.
8.2 These contract requirements are additional
to the details on our Purchase Order (which focus on product quantity,
logistics, part descriptions, special references, etc.).
9.0 Purpose
9.1 To establish and confirm a supplier’s
Quality Assurance requirement for AMB for organisations supplying materials,
goods and services that have a direct impact on the specification and or
performance of an AMB product.
10.0 Related Documents
The following documents are internal to AMB and
may be available upon request:
Procedure
Subject
Ref:
QA-PR-07 Purchasing/
Approval of Suppliers (for reference only)
Ref:
QA-PR-10 FAIR - First
Article Inspection Report (for AMB’s use / completion)
Ref:
QA-PR-12 Non
Conformance (for reference only)
11.0 Approval Requirements
11.1 Suppliers shall as the terms so require,
supply, release and deliver all products in accordance with the Purchase Order
and all requirements identified therein.
11.2 AMB require its suppliers to be certified
against EN AS 9100 and or EN AS 9120 (current issue) when contracted for
Aerospace / Defence work (this is an EN AS 9100 and or EN AS 9120 customer
contract requirement). If a supplier’s business is not structured specifically
for Aerospace / Defence contracts, then the supplier must be certified against
ISO 9001 current issue as a minimum. If a test and or calibration laboratory,
the supplier must be ISO 17025 accredited by UKAS.
11.3 Suppliers that do not comply with the
above may be used by AMB, provided the supplier’s Quality Management System complies
with the following requirements (QA-PR-07) and has been formally approved by
AMB management. All certification awarded must be accredited by UKAS (or
similar notified body under the mutual recognition agreement (MRA) for
international accreditation – refer to EA – EC notified bodies).
11.4 All products shall be
supplied strictly in accordance with the purchase order (and technical
specification provided). The delivery of incomplete product / shortages is not
permissible unless specified on the purchase order or by written authority of
AMB.
11.5 When the supplier is
manufacturing a product on behalf of AMB, the supplier may only use Special Process
Suppliers who are AMB approved. A complete list of AMB approved Special Process
Suppliers can be supplied on request.
11.6 Material Stockists / Distributors / Franchised
Distributor shall hold as a minimum ISO9001: latest issue Certification. As a
minimum, items shall only be procured directly from the manufacturer or
approved distributor / franchised distributor.
Note: Documentation and data
supplied with the purchased item shall ensure that full traceability of the
purchased item is maintained, confirming that the purchased item conforms to
specification and was actually produced by the designated manufacturer
(objectively).
11.5 In the event that a
supplier has its approval against AS9100, AS9120 and / or ISO 9001 removed the
supplier must immediately inform AMB in writing stating reason / status of
withdrawal.
12.0 General Quality
Requirements
12.1 Enquiries concerning the
content of this document and other referenced documents, or requests for
additional copies should be referred to the purchasing representative
responsible for the Purchase Order within AMB.
12.2 The requirements of this
document and of AMB procedure QA-PR-07 ‘Purchasing’ will be used to provide
both existing and potential suppliers with visibility of the current Quality
& Standard requirements and expectations of AMB contracts.
12.3 It is the policy of AMB
to manufacture and supply products and services, which result in, or contribute
to, safe conditions for its customers and the end-users of such products and
services. In furtherance of this policy, Suppliers shall establish controls and
procedures that ensure that the attention necessary for the achievement of this
objective is objectively provided throughout the production in support of their
products.
12.4 Suppliers are required to
comply in full with the contents of this document. If a supplier cannot comply
with any portion of this document, then the supplier must advise AMB in
writing. AMB will review the supplier request and advise the supplier of the
results in writing. The supplier is responsible for keeping all related
documentation on file at their facility. No deviation from this document is
acceptable in advance of formal agreement to do so in writing from AMB. Such
formal agreement must be retained by the supplier.
12.5 Verbal agreements are
un-acceptable.
12.6 Suppliers shall maintain AMB
specifications and other Standards at the latest issue and shall review the
issue status of specifications on receipt of a Purchase Order and or at least
once within a six month period (particularly for repeat contracts).
13.0 Business Quality
Improvement Objectives
13.1 All suppliers are
expected to have plans to achieve Business (Quality) improvements as part of
their continuous improvement programme.
13.2 AMB is dedicated to
continuous improvement in the quality and integrity of its services and to the
satisfaction of its customer requirements and expectations. Suppliers’
contribution to this approach through the quality and reliability of their
products and services is a prerequisite.
13.3 Each supplier shall
demonstrate continuous improvement based on pro-active loss-prevention, root
cause analysis and effective timely corrective action.
14.0 Organisation
14.1 Any change to the
management representative responsible for Quality Management System and / or
Inspection within the supplier’s organisation (or group ownership) shall be
communicated to AMB. Changes to premises shall be notified sufficiently in
advance to AMB.
15.0 Purchase Order /
Documentation Issue Control
15.1 Purchase Order amendments
shall be subject to review by AMB prior to acceptance. The review shall ensure
that copies of all processes and specifications quoted within a Purchase Orders
are available, and that, where a supplier is unable to carry out any
operations, approved sub-contractors may be identified.
15.2 Where a supplier has more
than one site, every site used to produce product for shipment direct to AMB
must have AMB approval.
15.3 AMB shall be afforded the
right of entry to verify at source and / or upon receipt that purchased product
conforms in all respects to specified requirements. This action shall not
absolve the supplier of the responsibility for the quality of the delivered
product nor preclude its subsequent rejection should other quality issues arise
at a later date / time.
15.4 Where the use of a
sub-contractor is permitted, the identification and selection shall form a part
of the initial contract review. Suppliers may consider / use a sub-contractor
suitable given the following circumstances: The sub-contractor is currently
approved by AMB.
15.5
Suppliers are responsible for ensuring the flow down of applicable sections of
the AMB documentation reference numbers and related specifications to second
tier suppliers
15.6 Suppliers must reference AMB
documentation reference numbers on all Purchase Orders issued in support of
activity for AMB (referring their suppliers to the AMB web-site for latest
version documentation).
16.0 Procurement of Components
16.1 Failure of components can
have major effects on airworthiness, safety, reliability, operational integrity
– with related cost impact. All parts are therefore termed “controlled” and
should be treated as such (bonding requirements may be appropriate and / or
necessary).
16.2
To mitigate the possibility of the inadvertent user of counterfeit parts, the
Seller may only purchase components and parts procured directly from the
Original Equipment Manufacturers (OEMs) or through the OEMs' authorised
distribution chain. If an Independent Distributor is used, the Seller must make
available to AMB (if AMB so requests) OEM documentation that authenticates
traceability of the components to that applicable OEM.
16.3 If the required items cannot be
procured from these sources, use of product without appropriate traceability documentation
from independent distributors (brokers) or other sources is not authorised
unless first approved in writing by AMB.
NOTE: It is the supplier’s
responsibility to check that any sub-contractor is correctly approved prior to
use (objective evidence for audit purposes maybe required).
17.0 Control of Non-Conforming
Material
17.1 The supplier shall have
no discretionary power to deviate from the specification requirements as
detailed with Purchase Order (and supporting documentation). Concessions will
only be accepted on receipt from the Supplier of a full “root cause analysis” report
detailing the issues and evidence of preventative action. Parts subject to
concession must not be delivered to AMB until AMB approves a concession.
Note: Concessions are normally
only issued to Suppliers when a product is non-conforming, and the non-conformance
does not affect fit, form or functionality.
17.2 No rework shall be
permitted on identified non-conforming product without written approval from
AMB. Manufacturing records shall clearly record the operation and the results
achieved, should re-working under a concession be approved.
17.3 Where the supplier has
any reason to suspect non-conformance of any delivered product, then the
supplier must immediately notify AMB.
17.4 Scrapped (or
non-conforming) components must be physically damaged beyond repair prior to
actual disposal (to prevent mixing with conforming product of the same /
similar type / model). The AMB management representatives (or their customer)
may require a report from the Supplier and / or witness by inspection and of
process of damage and / or disposal.
18.0 Rejections after Delivery
18.1 The Supplier shall be
notified of non-conforming supplies found after delivery. AMB will contact the
supplier and issue a CAR, (Corrective Action Report), against the parts prior
to return.
18.2 Following receipt of a
CAR notification the Supplier shall take immediate containment action. The
action shall include 100% inspection of all supplier stock or work in progress.
This containment action shall be taken within 48 hours of notification from AMB.
The supplier shall provide within 14 days results of an investigation into the
root cause of the problem and provide corrective action to prevent recurrence.
The findings, corrective action and effective date shall be reported to AMB.
19.0 Supplier Monitoring
19.1 All Suppliers shall
monitor the quality and delivery performance of product delivered to AMB. In
addition each supplier’s quality and delivery performance is continually
monitored by AMB. A supplier whose performance does not achieve and maintain an
acceptable level shall be formally notified of their supplier status and may be
required to implement improvement actions accordingly. Failure to improve or
respond positively to an AMB CAR will result in the withdrawal of supplier
approval by AMB.
20.0 Records & Archives
20.1 All (Quality Management
System) records held by Suppliers shall be legible and identifiable to the
product involved. Records shall be stored and maintained in such a way that
they are readily retrievable in facilities that provide a suitable environment
to minimise deterioration or damage and to prevent loss. Records shall be
available for evaluation by AMB until such time as AMB authorise disposal in writing.
20.2 Documentation and records
applicable to AMB shall not be amended with correction fluid. A single linked
line shall delete any revisions and/or correction of errors and will be
accompanied by an initial and date.
20.3 Should a supplier cease trading
with AMB, quality records shall still be maintained until disposal is
authorised by AMB. If the supplier ceases trading completely, or is unable to
maintain the records, AMB must be informed so that alternate arrangements can
be made to store the records.
20.4 All records shall be
retained by the Supplier for a period of 25 years unless otherwise agreed with
AMB.
21.0
Certificate of Conformance
21.1 A Certificate of Conformity (C of C), which shall
include sufficient information to enable it to be correlated to the supplies
and must accompany supplies submitted / provided to AMB. Certificates and
supporting documentation will be identified by Purchase Order / Contract number
and shall include the following information:
21.2 The Certificate shall
include a statement of conformity individually signed by an authorised
signatory of the Supplier and shall be as stated below or similar, subject to
agreement by AMB
We (name of the supplier)
hereby confirm that the whole of the supplies detailed hereon have been
manufactured, inspected and tested and conform in all technical and integrity
respects with the requirements of the contract order / specification.
(signed by: authorised *
person from the Supplier)
Note: * The Supplier shall be
able to demonstrate to the satisfaction of AMB that the nominated authorised
signatory has controlled usage of the authority (with the technical competence
demonstrated by qualification and experience supported by validated CV claims).
21.3 Where the Supplier
utilises an automated system for generation and / or authorisation of
certificates / records, then those systems shall be subject to robust
management and security controls approved by AMB to protect the integrity of
the certification process.
21.4 The Supplier shall ensure
completion of all requirements of the purchase order prior to delivery including
all processes. Deliveries of goods that do not fulfil the purchase order
requirements will not be accepted. The Supplier is responsible for providing a
C of C that confirms that the products, processes, and/or services furnished
meet the requirements for lot, of each shipment, of the AMB Purchase Order. The
C of C must have at a minimum the following:
a) Consignees name and address
b) Consignors name and address
c) Reference number and date of the certificate
d) Description and quantity of supplies
e) Related specification or drawing numbers and issue (as
appropriate)
f) Identification marks and serial numbers (as appropriate)
g) Manufacturing lot no. or traceability reference (works
order / batch number)
h) Any limitations/Shelf Life Expiry dates (as appropriate)
i) Signature(s) of ** approval
(for inspection / release)
21.5 When the purchase order
and / or applicable documents do not specify a method of packaging and
preservation, it is the supplier’s responsibility to assure that product is
preserved and packed using methods and materials that will assure that it is delivered
damage free to AMB.
22.0 Preservation and
Packaging
22.1 Electrostatic Sensitive
Devices (ESD) must be preserved by the supplier using appropriate ESD packaging
materials, and stored under conditions recommend by the manufacturer.
For
all delivered parts the method of packaging must:
·
Prevent damage or deterioration in transit
·
Permit safe handling
·
Assure that all necessary warnings are completely visible
·
Assure the shipping address, supplier name, qty, and part
number are visible.
·
Assure that the packing list, quality documents, and other
important information is enclosed, or securely fastened.
23.0 First Article Inspection
Report (FAIR)
23.1 When a FAIR is required
with the goods to demonstrate compliance with all the procurement
specifications detailed in the design package the following must apply: First
Article Inspection Reports shall be in accordance with AS 9102 and or AMB
procedure QA-PR-10.
23.2 A copy of the FAIR shall
be supplied with the product unless otherwise stated. The supplier shall retain
the FAIR as a quality record and they shall not be disposed of without the
written permission of AMB. This shall not absolve the supplier of the
responsibility for the quality of the delivered product nor preclude its
subsequent rejection should other quality issues arise.
24.0 Right of access
24.1 Any person authorised by AMB,
including the Customer or Regulatory Authority, shall not be unreasonably
refused permission by the supplier to enter any works, warehouse or other
premises under the supplier’s control for the purpose of surveillance or
inspection of any tools or materials procured or used for the manufacture of
the goods or process of manufacture on the completed goods themselves before
dispatched to AMB or their customer.
25.0 Business Continuity Planning
25.1 AMB advises each supplier
to have a written business continuity plan to cover disaster recovery and the
responsibilities and actions to be taken in the event of an emergency that may
affect deliveries to AMB that will bring the supplier on line in the shortest
possible time.
26.0 Change Control
26.1 Uncontrolled change
within the supply chain can cause deficiency escapes into AMB. It is crucial
therefore that all change, no matter how trivial it may appear, is assessed for
potential risk and then subject to mitigating actions and control.
Changes can occur in three ways
1) Change to the manufacturing location, either within a
supplier or between suppliers.
2) Changes to Components.
3) Changes within the company’s stores department, Storage
and dispatch method, including machines, people etc.
The control mechanism for these is as follows.
1) Changes to the manufacturing location shall be notified to
AMB.
2) Changes in components shall be raised with the buyer
responsible for the purchase order. The buyer shall take the appropriate action
within AMB and inform the Customer. The supplier must not progress with any
changes to the component without written agreement from AMB.
3) Changes within the Company’s stores department shall be
controlled as follows:-
·
All changes to components storage location shall be subject
to a documented risk review prior to being carried out.
·
Staff changes within the company’s stores department must be
fully trained and supervised until level of competence is assessed and approved
as competent.
·
Changes to the Stock control computer system, must be
documented, risk assessed, audited and checked after changes for example, new
operational software is introduced or updated.
All documentation relating to
point 3 must be kept indefinitely and made available to AMB on request in
writing with reasonable notice following a CAR with relation to supply quality
problems.
27.0 Traceability
27.1 All parts shall be
clearly traceable back to the original manufacturer of the parts. Where the
supplier has purchased a component or assembly, they shall have a copy of the
original manufacturer’s certificate of conformance.
27.2 All components and assemblies
shall be traceable to the original material identification.
27.3 The traceability system
must facilitate the rapid identification of any part delivered and suspected of
being defective. Containment action must be implemented immediately to protect
the customer from any defects found that affect quality of the product.
All records in relation to AMB
must be kept indefinitely and shall be made available to AMB upon request
28.0 Special Process Requirements
(Ref. section 34.0 of this document for requirements)
28.1 Any special process
supplier must be AS9100 or ISO9001 approved or meet the requirements outlined
in section 34.0 of this document. The supplier performing the special process
must certify that all applicable requirements have been met.
29.0 Manufacturing &
Process Control
29.1 Adequate, clean
well-maintained facilities shall be provided to enable products to be
consistently produced in accordance with the requirements of the AMB purchase order.
29.2 Suppliers shall establish
a procedure detailing the general workmanship practices for the prevention of
Foreign Object Debris.
29.3 Suppliers must not omit
any part of any specification except when defined on the purchase order or
covered by a non- conforming report authorised by AMB.
29.4 Suppliers providing Shelf
life items shall ensure they are correctly labelled with shelf life expiry and
suitably packaged. No shelf life items within 6 months of expiry will be
accepted.
29.5 Suppliers are expected to
establish procedures for identifying adequate statistical techniques for
determining process capability of key characteristics, especially when these
are identified on the documentation. Such techniques shall demonstrate
management ownership and responsibility and be based on recognised industry
models.
29.6 Where the supplier uses a
sample inspection plan as a means of product acceptance, the plan shall be
predicated on industry recognised models, statistically valid and shall
preclude the acceptance of known non-conforming product. Documented procedures
and records to demonstrate this shall be available.
29.7 All parts supplied to AMB
shall be identified in accordance with the requirements of AMB. Suppliers shall
maintain records to identify the materials used and the manufacturing and
processing history of each batch of parts supplied to AMB. A lot number that
enables all associated records to be retrieved shall identify each batch.
30.0 Inspection Reports
30.1 The supplier is
required to maintain and provide upon request all inspection records. The
records must be at a minimum based on an established/recognised sampling plan.
31.0
Source inspection
31.1 Source Inspection will be
used by AMB to help develop a new supplier, or a supplier that is having
quality issues. Source inspection at a supplier’s site will be imposed by a
letter issued from AMB to the supplier. In the event AMB imposes source
inspection, only AMB can remove or waive source inspection.
31.2 AMB will also use source
inspectors to perform in process checks at a supplier, process audits at a
supplier, or corrective action development, or follow up. AMB will select a
UKAS and / or other approved inspector.
32.0 Concessions / Permits
32.1 If a supplier’s quality
system discovers a non-conformance to the AMB Purchase Order, the supplier can
submit a request for a concession to the Buyer.
The supplier can use the table below to determine when a
concession is needed.
|
Option
|
AMB
Approval/Concession Required |
|
*Rework
the non-conformance prior to shipment |
*Yes
|
|
Scrap
and re-place |
No
|
|
**Request
to use the product as is |
**Yes
|
|
**Request
to repair the non-conformance |
**Yes
|
*Rework
must return the part to full compliance and specification.
**Requests
to use as is, or repair a non-conformance, must be processed using the
suppliers own concession request form and signed by AMB.
Note: The supplier is not authorised to
dispatch items requiring concession until they have been informed of the
applicable Concession Number and the supplier has a copy of the approved
concession. This Concession Number must appear on their Certificate of
Conformity, each time a delivery is made from the batch that has been approved
under Concession.
33.0 Corrective Actions
33.1 If AMB perform a supplier audit and finds
a non-conformance a request for corrective action will be issued to the
supplier. Corrective actions for issues found during an audit will be
documented. Before an audit will be closed out all open audit CARs must be
answered by the supplier and accepted by AMB.
34.0 Special Process Suppliers
34.1 AMB uses AS9100 or ISO
9001 approved special process suppliers. In addition to AS9100 & ISO 9001
approval, the special process supplier must demonstrate the ability to satisfy
all applicable requirements. Failure to satisfy any requirement will prevent AMB
from using that supplier. Coded welder status is required when requested.
34.2
AMB considers the following to be special processes:
·
Material
heat / other treatments
·
Composite
/ polymer binding
·
Twin-pack
resin / adhesives
·
Painting
/ power-coating
·
Non-destructive
testing (NDT)
·
Anodizing
/ plating
·
Welding
/ soldering / brazing (all)
35.
Distribution (appropriate access of this document)
Internal
·
AMB
purchasing department
·
AMB
quality department
External
·
All
AMB suppliers, supplying against Defence / Aerospace and related contracts (as
identified by AMB)
·
AMB
Customers (on request)
·
Auditors
from Certification Bodies (on request)