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PROCEDURES TABLE OF CONTENTS

 Control of Documented Information Procedure


 Record Retention Matrix
 International Plastics Organizational Chart
 Sales Order Procedure
 Purchasing Procedure
 Shipping and Receiving Procedure
 Nonconforming Product Procedure
 Returned Goods Procedure
 Customer Complaint Procedure
 RMA Procedure
 Internal Audit Procedure
 Corrective Action Procedure
 Business Objectives/Initiative Planning Process
 Exhibit: Internal Forms
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CONTROL OF DOCUMENTED INFORMATION
Revision 5, Effective 10/09/18

SCOPE: This procedure is intended to ensure control of documented information.

PROCEDURE:
International Plastics controls documents in use for quality management. Any
necessary revisions of the Quality Manual or Procedures Manual will be made by the
ISO Specialist. The Quality Manual and the Procedures Manual are Electronic and
can be accessed through FileMaker and our Internal Web.

Each Department Manager is responsible for document changes and revisions. This
person has the authority to submit all the documents and data changes for review and
approval to the ISO Specialist.

Minor changes to documents are defined changes that do not affect the technical
content or process. (i.e.: Typos & clarifications.) Major changes to documents are
defined as new requirements or changes that affect the technical content or process.

Minor revisions may be noted in hand writing until they are submitted with the next major
revisions. Other quality documents contain the document identification and revision
date.

Quality Manual:
The nature of revisions to the Quality Manual is documented in the Quality Manual
Appendix: Revisions.

Lower-Tier Controlled Documents:


Revisions to Procedures found in the Procedures Manual are referenced through a
revision level and effective date marked on the document. Form revisions will be noted
on the Internal Forms Index found in the Procedure Manual Appendix.

Documents such as Picking Slip, Purchase Order, Order Acknowledgement & RMA’s
do not have Revision numbers. Changes to these documents can only be made by the
IT Department.

IP's document control procedures ensure that issues that pertain to the appropriate
documents are available at all locations where operations essential to the effective
functioning of the quality system are performed. Invalid and/or obsolete documents are
immediately removed from all areas of operations and assured of no longer use. All
obsolete documents held for legal and/or knowledge preservation purposes are
sufficiently identified (obsolete or archived mark).

All IP personnel are responsible for ensuring that documents remain legible and readily
identifiable.

Documents of external origin are identified and their distribution controlled. A listing of
external documents is found on the Master List of Documents.
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Document Revision History

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Added the following statement:


“Documents such as Picking Slip, Purchase Order, Order Acknowledgement & RMA’s do not
have Revision numbers. Changes to these documents can only be made by the IT Department”

Added the following statement for clarity:


The Quality Manual and the Procedures Manual are Electronic and can be accessed
through FileMaker and our Internal Web.
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Control of ISO Registration Mark and Certificate:

The ISO registration mark and the certificate that states the fact that International
Plastics is an ISO 9001:2015 company are both controlled in order to prevent improper
use of either one. The guidelines that specify the proper use of the mark and certificate
will be followed, and the ISO Specialist is responsible for ensuring that these guidelines
are followed.

If the accreditation body’s mark is used, IP makes clear that the accreditation mark
signifies the accreditation body mark not IP. The ISO Specialist must approve any use
of the registration marks or certificate before they can be used.

Identification
Quality records are readily identified by their respective heading and reference number.
Records are maintained on a daily/monthly/annual basis. Paper based records are
indexed by type of record when stored, and computer generated records are indexed in
the computer.

Retrieval
All the quality records may be retrieved by any personnel needing to demonstrate the
conformance of the product to specifications only when the material in question is in
doubt or when the customer requests a copy.

Disposition
All RMA’s are electronic only. No paper copies are generated so there are no
paper records to dispose of.

Document Revision History

Revision 5 – document updated to ISO 9001:2015. Incorporated Control of Records procedure.


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Records Retention Matrix
Revision 12, Effective 11/09/18
Storage/ Retention Time /Protection
Computer generated records are electronically filed and are easily accessible to all IP
personnel. On a daily basis, the electronic records are backed-up by the MIS
department.

The paper-based records are stored and maintained by the ISO Specialist and/or
Accounting personnel in the facilities that provide suitable environmental conditions to
minimize damage or deterioration and to prevent loss. All back-up tapes of electronic
documents are kept and maintained for the life of the media by the MIS department.

Record Identification Retention Time Storage


Sales Order (Picking Slip) Electronic Only Electronic Only
Customer Purchase Order –If we 6 months Sales Rep Files
have one from the Customer
Purchase Order to Vendor Electronic Only Electronic Only
Warehousing Agreement Electronic Only Electronic Only
Customer Invoice Electronic Only Electronic Only
Vendor Invoice Electronic Only Accounting Files
Bill of Lading Electronic Only Electronic Only
Preventive Maintenance Records 1 year Accounting Files
Records of Planning- Section 6 1 year ISO Specialist Files
Vendor Evaluations 1 year ISO Specialist Files
Management Review documentation 1 year ISO Specialist Files

Internal audit Checklist 1 year ISO Specialist Files


Corrective Action forms 2 years ISO Specialist Files

RMAs/Non-Conforming Electronic Only Electronic Only


Materials/ Customer Complaints
Sales Order Worksheet 2 months Sales Rep Files
Sample and Quotation Worksheet 2 months
Inspection records - Receivers Electronic Only Electronic Only

Training Records Indefinitely Electronic Only

Evaluations of Competency – Indefinitely Electronic Only


Employee Competency Reviews
Yearly
Accounting and Financial Records 7 years Various
Conditions of Sale and Credit App. 5 years Customer Files
Records of facility maintenance 1 year Accounting Files
(cleaning, pest control)

Electronic Records are kept indefinitely in digital document format.

The Terms: Sales Order, SO, Picking Slip & Pick Ticket are all used interchangeably
by employees. They are all the same thing.
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Document Revision History

Revision 11 – document updated to include

Preventive Maintenance Records


Records of Planning
Vendor Evaluations
Non-Conforming Materials
Customer Complaints
RMAs
Inspection Records - Receivers
Competency Evaluations
Facility Maintenance
Added Customer Invoice
Changed Storage to Electronic Only for Training Records and Employee Competency Reviews

Added the following statement for clarification:


The Terms: Sales Order, SO, Picking Slip & Pick Ticket are all used interchangeably by
employees. They are all the same thing.
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International Plastics Organization Chart
Revision 3, Effective 8/21/18

Document Revision History

Revision 3 – Changed position from Billing & ISO Specialist to two separate positions-
1. ISO Specialist
2. Billing Specialist

Changed Merchandising & Pricing Analyst to Merchandising Manager and put Merchandising
& Pricing Analyst under that position

Added Warehouse Manager – Senior Warehouse Associate and Warehouse Associates report
to Warehouse Manager
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SALES ORDER PROCEDURE


Revision 14, Effective 4/24/18
SCOPE: This process describes the procedures necessary to properly process an
incoming sales order. Sales Reps at IP are responsible for carrying out these
procedures in the described way that follows.

PROCEDURE:
I. Customer Verification

A) Sales order from an existing customer:

1. An existing customer should be found in the computer under the name of the
company.
2. Once the customer is found in the computer, the computer will show who the
assigned Sales Rep at IP is for the customer. If that Sales Rep is available, the
assigned Sales Rep should help the customer. If the assigned Sales Rep is not
available, the one answering call should help the customer.
3. Sales Rep helping the customer verifies customer's ship to address and credit
terms.

B) Sales order from a new customer:

1. Collect all information from the customer (company name, address, ship to
address, email, phone and fax number, how they heard about IP, credit
information - terms or a credit application). If possible, have the customer email
or fax this information because there is less chance of incorrect information being
received. (This is not necessary for over the counter cash sales)

2. Decide on the payment method based on the following:


(Unless order is prepaid by check, credit card or money order/cashier’s check)

• If the customer has a favorable Cortera rating -Customer may open


an account. Ask the customer to fill out a credit application. This may
be emailed or faxed to the customer.

• If customer is not listed with Cortera or does not have a favorable


Cortera rating the customer must prepay the order with an Accepted
Credit Card, Check, Cash or Money Order. (Note: If placed on an
accepted credit card, credit card must be approved before order is
released. NO C.O.D. SHIPMENTS!)

3. Information is entered in the computer.

II. Taking a sales order


**For all Customers that are Payment with Order - A prepayment by Check, Cash,
Money Order or Credit Card must be obtained when the order is entered for all drop
shipments. The Sales Rep is strongly encouraged to contact the vendor that is shipping
the goods to get any overrun qty prior to goods being shipped so that the customer’s
credit card can be charged for any overage amt prior to goods being shipped to the
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Customer. If we don’t know the overrun qty or freight amt prior to shipping a new Auth
will be obtained when the order is billed. Customer will be refunded for any over
payments.

**Items shipping out of IP require Auth only prior to shipping goods because if card is
declined we can hold the goods. **

A) Warehouse 1 Location Items (stock products):


1. Take all necessary product specifications from the customer.
2. If the customer wants to order a stock item, check inventory of the item on the
computer.
3. If the item is in stock, the sales rep takes the order. If item is backordered, see
Section III. Back Orders.
4. Verify the shipping date with the customer and make any special notes about
shipping. Try to up sell and cross sell each customer.
5. Print sales order. Verify sales order to insure accuracy. Avoid duplicating a
sales order.
6. Sales order is placed in the bin to go to the warehouse.

B) Warehouse 3 Location Items: (custom items we stock and release per customers blanket
purchase order)
1. Take all necessary custom product specifications from the customer.
2. Confirm cost and delivery time with Inventory Control Manager or vendor, and
verify all information including price with customer.
3. Sales Order is entered for the item(s) into the computer.

4. A Sales Order Acknowledgment or Quote is sent to the customer, and must be


returned signed by the customer verifying the details of the order on all WH
3 orders that are over $250 along with a signed Warehousing Agreement**

5. If the item is Custom Printed a signed Acknowledgment or quote is


required along with a signed proof.

**A Warehousing Agreement is only needed if the item has not been
purchased by the customer before. If the customer has purchased the item
before we do not require a Warehousing Agreement –those items are
grandfathered in.

**Note- The Warehousing Agreement can be specified on the Order


Acknowledgement, Quote, or can be a separate document. At this time
there is not a standard document that everyone uses. Some customers
don’t like to fill out an extra piece of paper so we are flexible. This
information just has to be documented**

6. Purchase Order is entered to the vendor according to Purchasing Procedures.


7. The job file and all associated paperwork including, the sales order, purchase
order, the signed acknowledgment, signed Warehousing Agreement (if required),
customer’s purchase order (if one was received), signed proof (if custom printed)
is reviewed and approved by the Sales Manager. The Sales Manager keeps for
1 year.
8. If the goods come into IP the items must be checked by the responsible Sales
Rep, Sales Manager, or Designated Rep before the goods are shipped.
9. Sales Orders that ship from IP are filed electronically. If shipped from Vendor no
Sales Order is printed by Sales Rep.
10. The vendor invoice is filed electronically.
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C) Warehouse C Location Items: Drop Shipments (non-stock / custom products that drop
ship to customer from vendor (See part (D) also for custom artwork orders):

1. Take all necessary custom product specifications from the customer.


2. Confirm cost and delivery time with Inventory Control or vendor, and verify all
information including price with customer.
3. Sales Order is entered for the item(s) into the computer.

4. For New Custom Printed Items - A Sales Order Acknowledgment or Quote is


sent to the customer, and must be returned signed by the customer verifying
the details of the order. Collect payment if applicable.

5. For Repeat Custom Printed Items and Plain (Non-Printed) Items $250 or above -
A signed Sales Order Acknowledgment, Quote, Customer PO, Fax, Email or
signed proof is required. Collect payment if applicable.

***For Repeat Orders under $250 - A signed Sales Order Acknowledgment,


Quote, Customer PO, Fax or email is suggested but not required. ***
Collect payment if applicable.

6. Purchase Order is entered to the vendor according to Purchasing Procedures.


7. The job file and all associated paperwork including, the sales order, purchase
order, the signed acknowledgment, customer’s purchase order (if one was
received), signed proof (if custom printed) is reviewed and approved by the Sales
Manager. The Sales Manager keeps for 1 year.
8. The vendor invoice is filed electronically.

To enter a new Custom Item (Warehouse 3 or Warehouse C) into the computer,


first set up a stock number for the item. Use the following guidelines to set up the
stock number properly:

• The inventory ID will consist of the prefix "C-", followed by the customer's ID,
then the appropriate ending number (C-ABCD01-01, for example).
** Use proper notation and spacing between numbers**

• If the item is the same as our inventory in whse 1, do not put our stock number in
the first line of description, just put in the description.
• If order requires plates for custom printing then an item is set up with as above
with an addition of a “P”.
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D) Warehouse C and 3 items that require custom artwork specifications:


1. Once the sales order and purchase order are correctly entered, as described in
section (C), the Sales Rep takes the Art, SO, PO to the Vendor and customer’s
purchase order (if one was received) to the artist. The artist prepares a job file.
2. The artist then prepares or creates the appropriate artwork and electronic pre-
press files. An electronic color proof showing the placement, colors, and
technical specifications is emailed to the Sales Rep. The job file is given back to
the Sales Rep at that time.
3. The Sales Rep then e-mails a final color proof to the customer for signed
approval. Once the proof is signed and returned to the Sales Rep, the PO and
proof are e-mailed or faxed to the vendor or plate maker. The electronic artwork
files are then e-mailed or mailed to the vendor.

4. The job file and all associated paperwork including, the sales order, purchase
order, the signed acknowledgment, signed Warehousing Agreement (if
required), customer’s purchase order (if one was received), signed proof (if
custom printed) is reviewed and approved by the Sales Manager. The Sales
Manager keeps for 1 year.

III. Backorders

A) Backorder of an entire order:


1. If it is necessary to backorder an entire order, first verify with customer that this
will take place, and then enter the sales order (picking slip) as a backorder
status.
2. Include any special messages on the Picking Slip for the warehouse. This is
important in order for the warehouse personnel in handling the order in the
proper manner.
3. Every morning the Backorder Report is checked by the Sales Rep. When the
goods that are backordered have been received, the sales order (picking slip)
is printed.
4. The sales order (picking slip) is placed in the warehouse bin by the Sales Rep.

B) Backorder of a line item:


1. If necessary to backorder line items on a multiple item order, first verify with
customer that this will take place.
2. Print sales order (picking slip) with necessary instructions on which
items are to be backordered.
3. The sales order (picking slip) is placed in the warehouse bin by the Sales Rep.
4. When backordered items are restocked, the Sale Service Rep prints out a sales
order for the item(s) to be shipped to the customer.
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IV. Sales order editing and Quotations

A) Editing sales orders:


1. When editing a sales order that is in Picked Status, the Sales Rep obtains the
printed sales order (picking slip) that will be changed.
2. The Sales Rep edits the order in the computer and prints another sales order (picking
slip).
3. The new sales order (picking slip) is placed in bin to go to the warehouse.
4. The old sales order (picking slip) is destroyed.

B) Customer wants a non-stock quotation:


1. Determine if IP has the capability to fulfill the customer's needs.
2. If capable of meeting the customer's needs, take the product requirements and
the quantity from the customer.
3. Communicate that a return call will be made with a quote.
4. Notify the vendor that has the best ability to meet the requirements. Give the
vendor the information for a quote. Ask the vendor for a faxed or emailed quote
and a lead time on the product.
5. Once the vendor quote is received notify the customer of the price for the product
and the lead-time required.

Document Revision History

Added (picking slip) beside the word Sales Order to clarify the actual name of the document

Under WH C and Artwork – Changed Job Jacket to Job File and explained how the Job File is
handled now.
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PURCHASING PROCEDURE
Revision 7, Effective 4/24/18
SCOPE: This procedure pertains to the purchasing procedures of items from IP's
approved vendors. The procedures are carried out by the Inventory Control
Manager (or his Assistant with the Manager’s signature) for Warehouse 1 items,
while Sales Reps carry out the procedures for Warehouse 3 and C items.

Warehouse 1 Location (Stock):

1. Inventory Control Manager runs an Alert Report which shows which stock items
have reached the reorder point.

2. The Inventory Control Manager (or his Assistant with the Manager’s Signature)
reads and picks items to be ordered, and places them on order with an approved
vendor.

3. A PO is entered into the computer, emailed or printed and faxed. (The vendor,
stock number, quantity, price, and shipping instructions are entered information.)
The PO does not require a signature if it is entered by the Inventory Control
Manager/Sales Manager, or the President.

Warehouse 3 Location (Custom):

1. Follow all Sales Order Procedures found in “Section II.,B: Warehouse 3


items.”

2. Purchase orders must be approved by the President or Sales Manager


before sending to the vendor. Email or Fax a copy to the vendor.

3. Once the sales order (picking slip) has been invoiced if it shipped from IP, the
Sales Order (picking slip) is filed electronically. If shipped from Vendor, No
Sales Order is printed.

4. The Vendor Invoice is filed electronically.

Warehouse C Location (Custom):

1. Follow all Sales Order Procedures found in “Section II.,C: Warehouse C


items.”

2. Purchase orders must be approved by the President or Sales Manager .


Email or Fax a copy to the vendor and print a hard copy.

3. The Vendor Invoice is filed electronically.

Document Revision History


Updated the Scope of this procedure due to change in numbering of the ISO Standard
Removed “Print a hard copy” of PO
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SHIPPING AND RECEIVING PROCEDURE


Revision 5, Effective 8/28/18
SCOPE: This procedure defines Identification and Traceability as applicable to the
quality system of International Plastics (IP). The procedures used in shipping goods
from IP to its customers and receiving goods from vendors are performed by the
warehouse personnel. These procedures are to be followed in order to ship orders to
IP customers correctly and maintain IP’s inventory records.

PROCEDURE:

Shipping procedures: (General)


1. Warehouse personnel obtain Picking Slip from office bin. (Last pick up 4:50
P.M.)
2. Orders are sorted into picking bins by category (UPS, our truck, truck lines, or
CPU). Be careful for any backorders or any special messages on orders.

UPS & truck line orders:


1. Picker obtains Picking Slip from picking bin
2. Pick order using necessary equipment and with safety. Be careful not to damage
item and always leave picking location in a neat manner.
3. Verify that what is picked is what the order calls for (the item is correct and the
quantity).
4. Return items to order staging area.
5. Picked items are properly packed. Inspect packaging for any damaged case. If
package is damaged, use necessary packaging to repair. If the product is
damaged, replace product with good product and notify Inventory Control
Manager of damaged product. Sales order (picking slip) is initialed by the picker
to verify that the order has been picked correctly.
6. All WH 3 Items must be checked by the responsible Sales Rep, Sales Manager, or
Designated Rep before the goods are shipped. That person will initial the “Checked
By” area on the ticket.
7. Orders sent to shipping stage area where they are entered in the computer. The
shipper initials sales order (picking slip) to verify that the items match the order.
8. The Picking Slip is put in proper tray for accounting. The packing list is put on
the order for the customer.

CPU or our truck:


1. Obtain Picking Slip from picking bin.
2. Pick order, verify order to what is picked and initial the sales order (picking
slip). Inspect packaging for damage.
3. Customer signs order and receives packing list.
4. Place Picking Slip in proper tray for accounting.
5. Package product to protect from being damaged, if product is not already
sufficiently packaged.

**The WH is checked daily to ensure product has been properly unloaded, stacked, stored
and pulled in a proper manner to avoid having product end up on the floor. **
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Receiving Procedures:

Truck lines and vendor deliveries:


1. Obtain bill from driver and safely unload truck (make sure wheels are chocked).
2. Check quantity received to the amount on bill of lading. Check for damage and
make sure that the items are palletized correctly. If amounts are correct and
product is undamaged, sign bill of lading.
3. Count and check amount received to amounts on packing list.
4. If any shortage, damage, or mislabeled product not noted upon original
receipt of goods then follow appropriate procedures below.
5. All Whse 3 items must be checked by the responsible Sales Rep, Sales
Manager, or Designated Rep.
6. Attach bill of lading and packing list together which are given to Accounting who
receives the items into the computer.
7. Remove incoming shipping labels.
8. Make sure the product is secure and protected sufficiently for stocking (especially
overstock items which may be stored high on a rack will require securing.
9. Place shipment in correct bin location.

UPS, FEDEX, etc.:


1. Sign necessary paper for delivery person.
2. Find and obtain packing list and any shipping documents that come with the
package(s). Then, follow steps 3 through 9 from above. (NOTE: There may not
be a bill of lading with these type of shipments).

If quantity received does not match packing list:


1. Note actual quantity of received product on the Vendor supplied packing list.
2. Accounting or Inventory Control Manager notifies vendor of the shortage.

Shipment is fully damaged or packaged incorrectly:


1. If full damaged, document on bill of lading that shipment is fully damaged and
have driver contact dispatcher for instructions
2. Notify Accounting or Inventory Control Manager of the damage or incorrect
packaging
3. Inventory Control Manager makes decision to refuse or accept shipment.

Shipment is partially damaged:


1. The one receiving shipment is to notify Accounting or Inventory Control Manager.
2. Inventory Control Manager makes decision to refuse or accept shipment.
3. Receive freight and document bill of lading as partially damaged, if decided to
receive.
4. Accounting or Inventory Control Manager notifies vendor of the damaged
shipment
5. Receive the remainder of the shipment as specified under steps Receiving
Procedures for Truck Lines and Vendor Deliveries (found above).

Product is mislabeled:
1. If product is mislabeled, the one receiving shipment is to notify Accounting or
Inventory Control Manager that there is a labeling problem. The vendor is
contacted.
2. Inventory Control Manager makes decision to receive or not receive goods.
3. If shipment is kept, packages are relabeled with correct information.
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Storage:
1. After a product has been received into the warehouse, if needed, all the stretch
wrap and shipping labels are removed from the product.
2. The product is then stored in the appropriate bin location if that space is
available. If the space is not available, the product is stored in an overstock
location. Once the picking bin location has been depleted of inventory, then the
overstock is moved to the picking bin location.

Identification
IPI ensures that labeling on all products is sufficient for identification by personnel picking
orders and customers who receive them.

Handling & Packaging


When products are prepared for shipping warehouse personnel verify the items against
the Picking Slip for accuracy.

All warehouse personnel are trained in the correct packaging procedures and therefore
ensures that the following:

• Packaging requirements are effectively handled in order to prevent the deterioration


of quality product.

The packing, packaging and labeling of goods, if specified by the customer, are
established during the sales order activity with the customer; otherwise, warehouse
personnel make sure that the Shipping and Receiving Procedures are sufficient in getting
the product to the customer in good order.

Storage
All products are stored in a manner and in areas that prevent damage to them.
Warehouse personnel store the product using appropriate methods. All inventory is
assessed annually.
Protection/Delivery
Prior to shipping, the warehouse personnel ensure that the materials are protected from
damage by the proper wrapping, placement under secured storage conditions, and are
extended to include the delivery to destination.
Preservation
Due to the nature of the product stored by IPI, preservation is not an issue. However, all
product is stored in a condition and manner as to protect it.

Note: Any product nonconformities are to be handled as specified under the


Nonconforming Product Procedure.

The WH is checked daily to ensure product has been properly unloaded, stacked,
stored and pulled in a proper manner to avoid having product end up on the floor.
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Document Revision History – Shipping

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Added “All WH 3 Items must be checked by the responsible Sales Rep, Sales Manager, or
Designated Rep before the goods are shipped. That person will initial the “Checked By” area on
the ticket.”

Replaced “Customer signs order and receives yellow copy” with “Customer signs order and
receives packing list. (We no longer use 2 part paper)

Document Revision History – Receiving

Moved Identification, Handling & Packaging, Storage, Protection/Delivery and Preservation


from ISO Manual to Receiving Section in Procedures manual

Added the following statement:


The WH is checked daily to ensure product has been properly unloaded, stacked, stored and
pulled in a proper manner to avoid having product end up on the floor.
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NONCONFORMING PRODUCT PROCEDURE
Revision 8, Effective 4/24/18

SCOPE: This procedure defines the Control of Nonconforming Product of ISO


9001:2015 as applicable to the quality system of International Plastics (IP). IPI has
determined that nonconforming outputs (Product) may be identified in 3 different ways:
through customer complaints and/or returns, nonconforming purchased materials, and
materials identified as nonconforming as a result of internal processing.

If a product, received on a PO or in the process of being shipped to a customer, is found


to be nonconforming (the product is bad or does not meet specified requirements), the
following procedures are to be followed.

If the product is a stock item, the Inventory Control Manager/Warehouse Manager is


responsible for each step below.

However, if the product is a custom item and a Sales Rep ordered, then that Sales Rep
is responsible for steps # 2 – 5 where it reads Inventory Control Manager
/ Sales Rep:

1. The product that is nonconforming is separated to avoid mixing into the


conforming stock of that product. Whse personnel are to label as non-conforming
and separate from all other goods until the appropriate action is determined.
2. The Inventory Control Manager / Sales Rep makes a decision to receive, return,
or scrap the product.

• The Inventory Control Manager is responsible for determining dispositions of all stock
items.
• The appropriate Sales Rep is responsible for determining dispositions of all custom
items.

3. Vendor is notified if shipment is being returned. If we ship goods back to vendor


a Sales Order (picking slip) is entered to ship goods back to the vendor so that
we will have tracking info. If vendor arranges pick up no Sales Order (picking
slip) is needed.
4. The Inventory Control Manager / Sales Rep fills out a RMA in the Filemaker
System to record the nonconformance by the vendor.

5. If the product is returned to the vendor, the Inventory Control Manager routes the
RMA to Accounting.
6. Accounting uses the RMA to enter debit memo to remove goods from inventory
and to enter a debit to the vendor.
7. Package shipment to be shipped back to vendor.
8. Prepare shipping bill of lading.
9. The RMA is kept on file in the computer and a monthly report of product
nonconformities will be reviewed by management.
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Document Revision History

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Added the following for clarification purposes:


The Inventory Control Manager is responsible for determining dispositions of all stock items.
The appropriate Sales Rep is responsible for determining dispositions of all custom items.
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RETURNED GOODS PROCEDURE


Revision 7, Effective 04/18/19
SCOPE: This procedure is intended to ensure Customer Satisfaction & to make sure
that Accounting is aware of all Returns so that inventory is correct.

**If nothing is being returned – See Customer Complaint Procedure**

** Also see RMA Procedure**

1. When Customer receives goods if customer is not satisfied for any reason
(Customer Error, Customer Goodwill, Order Entry, WH error, Non-Conforming
Product, etc.) the order is billed because the customer received the goods.
2. If the product is to be returned, the Sales Rep must decide if the product is to be
returned to IP or directly to the vendor.
3. The Sales Rep enters a RMA to record the error and specify what we are going
to do with the goods.
4. If the Return is due to an error by IP, or a Nonconforming product, the Sales Rep
will note on the RMA that a Call Tag or Return Label needs to be issued. A
UPS Call Tag/Return Label is submitted electronically or the Sales Rep asks
the customer ship the item UPS Collect if it is small enough to ship via UPS. If
the shipment is too large for UPS it can be returned by a common carrier. The
Rep arranges the pickup with the Carrier. If the customer is at error, the
customer will pay for the shipping cost.
5. The Sales Rep gives the RMA # to the customer so they can put that number on
the shipping label.
6. The Rep enters a New Order for the Replacement Item, if applicable.
7. When Goods are returned the WH inspects goods and updates info on the
RMA. If there is no RMA in the system the Warehouse Manager or Senior WH
Associate does research to find out who the Customer/Rep is. The Rep is
contacted and a RMA is entered by the Rep.
8. The WH routes the RMA to Accounting. If the RMA does not have a status of
“Manager Approved” Accounting will get with the Sales Manager to get
approved before credit is issued unless the manager is out.
9. If there is paperwork from Customer with the Return or Shipping paperwork
such as a Delivery Receipt from Truck Line that paperwork is turned in to
Accounting.

**Note: Goods are not scrapped without approval of Inventory Control


Manager (if the item is Stock) or approval by Sales Rep (if the item is
Custom). This info is noted on the RMA by the Inventory Control
Manager/Sales Rep.**

10. If we are returning to the Vendor- the Inventory Control Manager works out
the details with the Vendor if the item is a Stock item. If it is a Custom item the
Sales Rep works out the details with the Vendor and enters a Sales Order
(picking slip) if we are shipping back to the vendor. If the vendor is picking up
from IP no Sales Order (picking slip) is needed.
11. When Accounting receives the RMA a credit is issued for the original order
and Vendor is debited if applicable.
12. The RMA is marked Resolved and Closed by Accounting.
21

Document Revision History

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Added the following statement:


“If there is no RMA in the system the Warehouse Manager or Senior WH Associate does
research to find out who the Customer/Rep is. The Rep is contacted and a RMA is entered
by the Rep.”

Added (picking slip) beside Sales Order to clarify actual name of document

Changed type of error from Customer Satisfaction to Customer Goodwill

Added the following statement:


“If there is paperwork from Customer with the Return or Shipping paperwork such as a
Delivery Receipt from Truck Line that paperwork is turned in to Accounting. “
22

CUSTOMER COMPLAINT PROCEDURE


Revision 5, Effective 11/09/18

SCOPE: This procedure is intended to ensure control of the customer complaints when
goods are not being returned. (Pricing, Freight, Billing errors, etc.)

PROCEDURE:
The process for handling customer complaints is necessary in order to provide the
customer with the best quality service and product. Following these procedures below
will enable IP to track and remedy any problems in the quality system at IP.

All RMA’s are entered in the Filemaker System.

1. Customer calls in to IP with a complaint (Pricing, Freight, Billing Error, Customer


Goodwill, etc.).

2. Sales Rep that handles the account takes the complaint, but if that Sales Rep is
unavailable, then the one who answers the call helps the customer.

3. Sales Rep researches the order in question and finds out all the necessary
information in order to fill out a RMA. **See RMA Procedure”

4. Based on the information, the Sales Rep determines the cause of the problem.

5. Sales Rep discusses with the customer the best options to resolve the problem and
tries to do within IP's ability to remedy the situation.

6. The Sales Rep fills out the RMA and assures the customer that the problem will be
resolved.

7. The RMA is routed to the Manager for approval and the manager routes to
Accounting which corrects the error.

8. The RMA is marked Resolved & Closed by Accounting.

Document Revision History

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Changed type of error from Customer Satisfaction to Customer Goodwill


23

RMA PROCEDURE
Revision 4, Effective 04/18/19
SCOPE: This procedure applies to the Returned Material Authorization process.
When Rep is aware that there is a problem on an order they enter a RMA in the
Filemaker System. The RMA should be entered before the goods come back if the
Rep is aware of the problem.

To enter a RMA:

1. Go into Filemaker. Enter Customer ID and go to the Detail History Tab.

2. Find the Invoice and Click on Create RMA.

3. When it pulls up the RMA form Click in the Responsible Field and select the
correct one from the drop down list.

4. For each item -In Reason Field or in Activity/Notes -Type a short explanation
of what the problem is. Enter Replacement SO # if there is one.

5. Also for each item – Click on Type of Error and Click the appropriate box/boxes:
Return to Stock, Scrap Product, Return to Vendor, Debit Vendor, Credit Goods.

6. Delete any items that will not be credited. Do this by clicking on the trash can on
the right side.
.
7. Add any of following that apply: Restock Fee % or Freight.

8. Go up to the top and Select the person to Route the RMA to. Sales Reps will
send to the Sales Manager for Approval. When a RMA is routed to someone the
RMA Number shows up on that person’s Users Tab in Filemaker so they know
they have a pending RMA.

9. The Sales Manager will check the RMA to make sure that all info is complete
and accurate. If the RMA is for $ only and nothing is being returned the Sales
Manager approves and routes to Accounting.

10. If goods are being returned - The Sales Manager will approve and route to the
Warehouse. When the goods come back the Warehouse routes to Accounting.

11. If there is paperwork from Customer with the Return or Shipping paperwork such as a
Delivery Receipt from Truck Line that paperwork is turned in to Accounting.

12. Accounting issues Credit Memo & Debit Memo if applicable then marks the
RMA Resolved and Closed.

Document Revision History


Updated the Scope of this procedure due to change in numbering of the ISO Standard

Added the following statement:


“If there is paperwork from Customer with the Return or Shipping paperwork such as a
Delivery Receipt from Truck Line that paperwork is turned in to Accounting. “
24

INTERNAL AUDITS PROCEDURE


Revision 21, Effective 4/24/18
SCOPE: This procedure is intended to ensure control of the internal audit process.

PROCEDURE:
The date of scheduled audits of the quality system is determined by the ISO
Specialist. Internal Audits will be done annually.

Print the Audit Checklist for documentation of the audit.

Review the quality manual and procedures. Use Audit Checklist to ask
questions/ discuss process when interviewing selected employees.

Interview the employees selected or an employee that is available.

The completed Audit Checklist is maintained by the ISO Specialist.

Any Corrective Action requests are noted.

The ISO Specialist and all necessary employees initiate Corrective Action requests.

If Corrective Actions are issued a follow-up audit will be conducted to verify


effectiveness of corrective action.

The ISO Specialist shares results of Audits in the Management Review Meeting or
before if necessary.

Document Revision History

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Changed Audit Worksheet to Audit Checklist

Removed Preventive Action


25

CORRECTIVE ACTION PROCEDURE


Revision 7 Effective 04/24/18
SCOPE: This procedure is intended to ensure control of the Corrective Action process.

PROCEDURE:

Corrective Action:
Any employee, who finds nonconformance in the IP quality system, is to:

1. Notify the Department Manager or the ISO Specialist of the nonconformance


and the need for Corrective Action.
2. The Department Manager or the ISO Specialist investigates the cause of the
nonconformance and proposes the appropriate Corrective Action to be taken and
indicates the date by which the Corrective Action will be fully implemented.
3. This information is communicated to the ISO Specialist on the Corrective
Action Request form.
4. The Department Manager or the ISO Specialist implements the Corrective
Action with the help of the appropriate personnel involved in the area that is
under correction.
5. After the due date for implementation, the ISO Specialist follows up with an
inquiry or an audit to determine if the Corrective Action has been implemented
and if it is effective. When there is objective evidence that the Corrective Action
is effective the Corrective Action can be closed out. If more work is needed to
fully implement the action a new follow up date is agreed upon.
6. The ISO Specialist keeps the Corrective Action Request Form on file.
7. If necessary the quality manual is updated.

Document Revision History

Updated the Scope of this procedure due to change in numbering of the ISO Standard

Removed Preventive Action


26

INTERNATIONAL PLASTICS BUSINESS


OBJECTIVES/INITIATIVE PLANNING PROCESS
(To Meet Section 6.2.2) Added 12/27/18
The Management team will meet monthly to review previous month by the following:
1.) RMA’s (non-conformities) both controllable and non-controllable by # of
occurrences and top 5 costliest.
2.) The previous month-end KPIs along with rolling 12-month averages of all KPIs.
Through review and discussion of the above information we will:
1.) Spot any negative or positive trends within our controllable Quality Objectives and
non-controllable RMAs
2.) Address any identifiable, ongoing non-conformity with Corrective Action and or
Objective/Initiative planning to reduce similar non-conformities in the future.
3.) Identify trends in our KPIs and spot opportunities to improve performance of KPIs
that ultimately drive the performance of the company. Develop and plan, as
needed, any new Business Objective/Initiatives based on these identified
opportunities of improvement. Document these using the “Business Objectives”
form (and eventually a database) that addresses: Plan of action; Resources
Required; Responsible Persons; Expected Completion date; and How it will be
evaluated.
4.) Review all open Business Objectives/Initiatives for accountability to track progress,
adjust resources and completion dates if necessary. Review effectiveness of
completed objectives as necessary.
The goal of this process is to: Keep us nimble and fluid as we focus and align our
Objective/Initiative planning on a monthly basis; better document and track them; better
communicate throughout the company; and create better accountability for faster
completion. Secondarily this will serve to be a stopgap measure for CAR’s that were not
initiated at the time of event and or in conjunction with a “correction action”.

Document Revision History

Added International Plastics Business Objectives/Initiative Planning Process


27

Appendix:

INTERNAL FORMS
To view internal forms, please refer to any of controlled hard copy of this manual.
(See index of documents below)

Document Date

Sales order / Picking Slip 05/25/18


Purchase order 05/25/18
Quote 05/30/18
Acknowledgment 06/13/18
Warehousing Agreement 05/15/07
RMA 06/01/18
Management Review Meeting 11/20/18
Audit Checklist 09/12/18
Audit Report 10/25/18
Corrective Action Request & Follow Up 08/13/18

These are typical forms and may change slightly in design or format without revision as
long as all the information and content remain the same.