QMS Tier 2 Doc.

: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 1 of 14

Receiving Inspection
Procedure
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 2 of 14

1.0 PURPOSEAND SCOPE

1.1 Purpose
1.1.1 The purpose is to establish a system for performing Receiving Inspection at our
Company.

1.2 Scope
1.2.1 The scope of this procedure is focused on examining receipt of purchased
materials/products from Suppliers.

2.0 APPLICABLE DOCUMENTS

The following documents are applicable to the extent specified within this document:

Industrial/Commercial/Government Documents
ISO 9001 Quality Management Systems Requirements

our Company Documents

ATS-DCP-1001 Document Control
ATS-HRP-1001 Training and Certification
ATS-QAP-1004 Quality Records
ATS-QAP-1013 Customer Property
ATS-QAP-1005 Non-Conforming Material System
ATS-QAP-1006 Corrective Action(s) System
ATS-QAP-1008 Internal Audits
ATS-PGP-1001 Purchasing System

Internal Forms
FORM 1069 Defect Report (Materials)
FORM 0100 Rejected (Red Tag)
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 3 of 14

3.0 RESPONSIBILITY/SET-UP REQUIREMENTS

3.1 Responsibility
3.1.1 Quality Assurance – is responsible for preparing, approving and maintaining this
document.

3.1.2 Purchasing – is responsible for ensuring the Receiving Inspection function is complied
with in accordance with this document.

3.1.3 Receiving Inspection Operators – are responsible for performing the Receiving
Inspection activities defined in this document.

3.2 Inspection Equipment

3.2.1 The following equipment/tools shall be used as required to perform Receiving Inspection
activities:

Item
No. Manufacture
Model/Part Number
1 None None

3.3 Materials
3.3.1 The following materials are required when performing Receiving Inspections:

Item Part Number Qty Manufacture

No.
1 None None

3.4 Inspection Documentation/Aids

3.4.1 Prior to starting the Receiving Inspection activity, obtain the s packing list and a copy of
the Purchase Order (PO).
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 4 of 14

4.0 INSPECTION REQUIREMENTS (TYPE 1 AND 2 POs)

4.1 Inspecting Purchased Material

4.1.1 All materials/products/equipment/tools that are purchased for resale or in-house
processing of deliverable materials/products shall be processed through Receiving
Inspection upon receipt prior to being placed into stock or production fabrication areas.
This includes all raw metals, lubrication materials, packaging supplies, etc. The
Receiving Inspection shall be conducted as specified in this document.

4.1.2 The item(s) requiring Receiving Inspection along with the Supplier's packing list,
certificate of analysis/compliance (when required by PO) and other documentation is
delivered to the designated Receiving Inspection area by the "Receiving" Department. In
the event that items received are too large or bulky to be delivered to the Receiving
Inspection area, Receiving will deliver the paper work to the Receiving Inspector, noting
location of the item(s). The item(s) shall be clearly marked “Awaiting Receiving
Inspection - Do Not Use” to prevent unauthorized use until Receiving Inspection
acceptance occurs. The Receiving Inspector will then inspect the material at point of
delivery.

4.1.3 Received item(s) are inspected on a first-in-first-out basis unless priorities are scheduled
in advance by the Purchasing, Business Operations or Quality Assurance management
personnel.

4.1.4 Conducting the Inspection

4.1.4.1 Receiving Inspection department shall conduct the Receiving Inspection using the
Purchase Order. The Purchasing Department shall provide the Purchase Order
information to the Receiving Inspection Department via a printed PO copy or Purchasing
approved Supplier internet Purchasing software. Receiving Inspection personnel shall use
Appendix A - General Receiving Inspection Requirements as the standard Receiving
Inspection instruction unless otherwise re-directed by Quality Assurance. When needed to
confirm the correct item was received, the Receiving Inspector may obtain a stocked item
from the Stock Room or catalog visual aid too compare visually the correct item was
received.

4.1.4.2 When there is 1 reject or more, the complete lot shall be rejected. Then 100% re-
inspection shall be performed to segregate conforming versus nonconforming material
unless the complete lot/batch is dispositioned to be "Returned to" or "Scrap".
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 5 of 14

4.1.5 Material/Product Handling and Packaging

4.1.5.1 When it is necessary to open the Supplier's packaging to inspect items, the items shall be
handled and re-packaged in the same or equivalent manner performed by the original
manufacture/Supplier. For items that are packaged in sealed containers/bags, after
inspection, the inspected items shall be re-sealed using the proper container/bag or other
packaging material.

4.1.5.2 Items received from the Supplier shall be marked/labeled/tagged with the Part Number
and /or detailed description (i.e. 0.25” x 1.00” Screw, etc.) specified by the Purchase
Order prior to being placed into stock or to shipment to the Customer. When the Part
Number is specified on the issued Purchase Order, and the items received contain the
Supplier's part number marking/label/tag, the items shall have the Part Number applied.
When practical without repackaging, the Supplier's part number and other identification
information shall be removed.

4.1.6 Re-Stocking Issued Item(s)

4.1.6.1 When material being returned from the Customer, special processing, Marketing, etc.
and needs to be placed back into the Stock Room as acceptable for resale
purposes/delivery to customer, the item(s) shall be re-inspected for visual damage and
proper part number marking/labeling.

4.1.8 Additional Inspection Instructions (when required)

4.1.8.1 If an additional detailed Quality Receiving Instruction (QRI) or other written instruction
is needed and not available for a certain part, Quality Assurance or the Department
supervisor/manager will prepare the written instruction and sign/initial and date the
document prior to use. Quality system documents/instructions that are prepared for on
going use are released and maintained per DCP-1001, Document Control. Written
instructions/memos that are intended for a single event or short term use are
signed/initialed by Quality Assurance or the Department supervisor/manager, and are
attached to the Supplier's packing slip/shipping documentation once the Receiving
Inspection is completed.

4.1.9 Processing Inspected Items

4.1.9.1 Item(s) will then be processed in accordance with either paragraph 4.2 - Acceptable
Purchased Items or 4.3 - Nonconforming Material depending on acceptability.
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 6 of 14

4.2 Acceptable Purchased Items

4.2.1 The Receiving Inspector shall initial & date the Vendors invoice of packing slip to
indicated acceptance, or stamp “QA Receiving Inspection Acceptance”, referencing the
item numbers being accepted on the front (preferred) or back of the Supplier's packing
slip or shipping document(s), recording accepted quantity, and initial/stamp and date.
When the rubber stamp is not available, the Receiving Inspector shall initial and date the
packing slip or receipt to indicate acceptance.

4.2.1.1 The accepted Supplier's Packing Slip, Certificate of Analysis/Compliance and other
shipping document(s) are then routed to General Administration/Purchasing for
processing and filing. When deemed necessary by QA, the Certificate of
Analysis/Compliance documents may be retained in a file in the QA Department.

Examples of stamp information:

ALL OK
TY 07/14/14

or

QA Receiving Inspection Acceptance QA Receiving Inspection Acceptance

Item Qty Qty Item Qty Qty

No.(s) Accepted Rejected No.(s) Accepted Rejected
1 10 35 ALL ALL 0
3 2 0 _____ _____ ____
2,6,9,12 300 0 _____ _____ ____

Approval: DRC Date: 06/28/14 Approval: DRC Date: 06/28/14

4.2.1.3 When there is multiple line numbers received per Supplier packing slip/shipping
document(s), the packing slip/shipping document shall include the above stamp
acceptance entry for each line item received on the packing slip/shipping document. If all
items are acceptable, it is acceptable to specify more than one line item number in the
"Item No.(s)" block (i.e. Items No.(s) 1, 2, 5 & 8) or write “ALL” Items and “ALL” Qty
Accepted are being accepted.
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 7 of 14

4.2.2 The accepted material will be forwarded to the Stock Room or Project area and the
Receiving Supplier’s packing list and other documentation are routed to General
Administration/Purchasing for further processing.

4.2.3 The Receiving Inspector shall ensure that the received item or the item’s packaging is
properly tagged, marked or labeled with the item’s identification information prior to
routing the item to the Stock Room or Fabrication area(s).

Part Number: __________________________

Quantity: ____________ (optional)
PO No.: __________________ (optional)

4.2.3.1 When the Supplier marks, tags or labels the product or its packaging with the part
number/description information, additional identification is not necessary. As
required by our inventory system and user drawings, the item shall be identified with
the part number as specified by the issued Purchase Order.

4.3 Nonconforming Material

4.3.1 All non-conforming material shall be identified, controlled, and dispositioned in
accordance with ATS-QAP-1005, Nonconforming Material System.

4.3.1.1 The rejected item(s) is segregated from the acceptable material, and a Rejected (red tag)
tag is prepared and placed with the material/product to indicate that it is nonconforming.
A Defect Report (DR) form is prepared prior to the disposition and re-processing of the
nonconforming material/product.

4.3.2 The Defect Report and/or Rejected (red tag) is kept with the segregated non-conforming
material and Supplier's packing list/shipping document(s) for identification purposes.
When the DR is issued by the Receiving Inspector, the DR number shall be recorded on
the packing slip/shipping document(s) along with the Receiving Inspectors or QA’s
initials/stamp and date:

Example:
DR# 1001
MGU 06/28/14

4.3.3 The rejected material along with the DR and/or Reject tag will be placed in the
Nonconforming Material Hold area for discrepant material until dispositioned by
approved Preliminary Review (PR) or the Material Review Board (MRB) personnel. See
ATS-QAP-1005, Nonconforming Material System procedure for authorized PR/MRB
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 8 of 14

personnel. Prior to disposition of the nonconformance, Receiving Inspection shall

prepared the DR form to record the PR/MRB disposition.

4.3.3.1 Receiving Inspection will process the unacceptable material in accordance with the
disposition decision made by PR/MRB per ATS-QAP-1005, Nonconforming Material
System.

4.3.3.2 Upon completion and closing of the DR form, the closed DR record (white copy) shall be
attached to the Supplier's packing slip/shipping document(s) etc. The Receiving Inspector
shall stamp “QA Receiving Inspection Acceptance”, initial/ stamp and date, and record
accepted quantity on the Supplier’s Packing Slip to indicate acceptance of the material.
The accepted Supplier's packing slip/shipping document(s) is then routed to General
Administration/Purchasing for processing and filing.
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 9 of 14

5.0 NON-DELIVERABLE PURCHASED ITEMS (TYPE 3)

5.1 General
5.1.1 Upon receipt of the Non-Deliverable (Type 3 Purchases – Office supplies, etc.) Items,
Receiving shall verify the correct Part Number and Quantity were received as defined by
the Purchase Order and Supplier’s packing list/shipping document(s). If there is no
damage and all appears to be acceptable, Receiving shall initial and date the Supplier’s
packing slip/shipping document(s) to indicate acceptance of the material.

5.1.1.1 It is also acceptable for Receiving Department to stamp “QA Receiving Inspection
Acceptance”, initial/date, and record accepted quantity on the Supplier’s packing
slip/shipping document(s) to indicate acceptance of the material. The accepted Packing
Slip is then routed to Purchasing/General Administration for processing and filing.

5.1.2 Non-Deliverable material shall be routed directly to the person who purchased it. No
Receiving Inspection per Appendix A shall be performed.

6.0 CUSTOMER SUPPLIED PROPERTY

6.1 General
6.1.1 Upon receipt of Customer supplied property (i.e. material, parts, products, tools,
equipment, software, etc.), the items shall be inspected and properly identified per ATS-
QAP-1013, Customer Property.
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 10 of 14

APPENDIX A - RECEIVING INSPECTION REQUIREMENTS:

GENERAL PRODUCTS/MATERIALS

Type 2 Supplier- Production Items or Raw Materials Purchased from Distributors or as

Standard Off-The-Shelf Items from Suppliers

The following inspection requirements shall be used:

Item Material/Product Description Inspection Receiving Inspection

Requirement Codes Record(s) Required
(See Appendix B)
1 Computers/Electronic 1, 2, 7 Supplier Packing Slip or
Assemblies/Units/System Invoice
2 Chemicals 1, 2, 7 Supplier Packing Slip or
(i.e. Gases, Liquids, Cutting Oils, Invoice
Anti-Rust lubricant, Degreaser, etc.):
3 Packaging/Shipping Materials (i.e. 1, 2 Supplier Packing Slip or
Tape, Metal Banding, Boxes, Invoice
Packaging, etc.)
4 Electrical Parts (i.e. connectors, fuses, 1, 2, 7 Supplier Packing Slip or
resistors, diodes, capacitors, inductors, wire, Invoice
etc.)
5 Mechanical Hardware (i.e. screws, 1, 2, 7 Supplier Packing Slip or
bolts, washers, brackets, spacers, Invoice
etc.)
6 Cables and Wire 1, 2, 7 Supplier Packing Slip or
Invoice
7 Printed Circuit Board Assemblies 1, 2, 7 Supplier Packing Slip or
Invoice
8 Other Items 1, 2, 7 Supplier Packing Slip or
Invoice
9
10
11
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 11 of 14

APPENDIX A - RECEIVING INSPECTION REQUIREMENTS:

GENERAL PRODUCTS/MATERIALS
(continued)

Type 1 Supplier - Subcontracted Fabrication/Processing Items based on or Customer

Specifications

The following inspection requirements shall be used for production delivered items:

Item Material/Product Description Inspection Receiving Inspection

Requirement Record(s) Required
Codes (See
Appendix B)
a. Subcontract Fabrication Services 1, 2, 3, 5, 9, A, (*1) Suppliers Packing Slip
(i.e. Fabrication, Assembly, Drug (*2)
Screening Results, Back Ground
Investigation, etc.)
b. Custom Fabricated 1, 2, 3, 5, 9, A, (*1) Suppliers Packing Slip
Materials/Products based on (*2)
Drawings (i.e. units, assemblies,
subassemblies, components, parts, etc.)

Notes:
(*1) Certification of Analysis verification when specified by the PO.

(*2) The width, length, weight and height tolerances that shall be used on
materials/products is +/- 5% unless otherwise specified by the Purchase Order or
drawing, or s drawing/specification.
QMS Tier 2
QMS – Procedure
Subject: Receiving Inspection
APPENDIX B - RECEIVING INSPECTION CODE REQUIREMENTS
INSPECTION INSPECTION SAMPLE
CODE REQUIREMENTS
1 Each Lot
2 Each Lot
3 100% or 3 pieces minimum
per Lot; which ever is less
If 1 or more rejects, go to
100% inspection or reject lot.
4 Each Lot
5 Each Lot
Doc.: ATS-PGP-3001
Rev.: A
Date: 14 November 2014
Released By: Kristal Jewell
Page: 12 of 14
TYPE INSPECTION
Part Number and Revision -
a) Verify lot is the correct Part
Number/Description and Revision
(when applicable) per PO.
Quantity -
a) Verify correct Quantity per PO.
Verification via physical or weigh
count, or verify quantity marked on
Suppliers packaged items.
Dimensions -
a) Inspect length, width and thickness
dimensions per drawing/specification.
Safety/Hazardous Material
Identification -
a) Verify Material Safety Data Sheet is on
file with Production Control.
b) Verify Item is labeled with
safety/hazardous material information
by the manufacturer.
Packaging -
a) Verify no obvious damage to
packaging.
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 13 of 14

APPENDIX B - RECEIVING INSPECTION CODE REQUIREMENTS

(continued)

INSPECTION INSPECTION
CODE SAMPLE TYPE INSPECTION
REQUIREMENTS
6 Each Lot Certificate of Compliance or Analysis -
a) Verify Certificate of Compliance or Analysis is
received as required by the Purchase Order. The
"C of C" or "C of A" shall provide the following
information: a) Part Number, b) Lot or Batch,
Date Code or Serial No. Traceability, c) Quantity,
d) Statement stating full compliance of
requirements, e) Supplier Name, f) Measurement
Attribute Data (as required) and g) Supplier
written Approval
b) If all specifications are not listed on the C of C, or
out of specification, the material shall be rejected.
7 Sample 1 item Visual Inspect -
minimum per Lot a) Visual inspection to ensure no foreign
contamination or damage. Verify visually that the
item looks like existing products in stock and/or s
catalog.
8 Each Lot Quality Clauses –
a) Verify that the Supplier has met all PO and
Quality Clause requirements.
QMS Tier 2 Doc.: ATS-PGP-3001
QMS – Procedure Rev.: A
Date: 14 November 2014
Subject: Receiving Inspection Released By: Kristal Jewell
Page: 14 of 14

APPENDIX B - RECEIVING INSPECTION CODE REQUIREMENTS

(continued)
INSPECTION INSPECTION
CODE SAMPLE TYPE INSPECTION
REQUIREMENTS
C 100% per Lot Customer Stock & Ship Contracts Materials
a) Verify correct quantity of
packages/pallets received (do not open
packaging)
b) Verify there is no obvious external
shipping damage
c) No measurement or samples required
d) No material inspection (inside
packaging) required
e) No weight measurement required.
D 100% or 3 minimum Product Marking/Labeling -
per Lot; which ever a) Inspect item to ensure it contains proper
is less marking/labeling information as required by
the items drawing/specification or PO. Verify
marking is complete accurate and legible.
Verify correct material(s) were used to mark
or label item, and were placed in the correct
location when installed.
E Each Lot Test Data (Variable Measurement Data)
a) Verify Test Data is received as required by
the Purchase Order. The Test Data shall
provide the following information: a) Part
Number, b) Lot or Batch, Date Code or Serial
No. Traceability, c) Quantity, d) Test
Measurement Data, and evidence showing
full compliance of requirements, e) Supplier
Name, and f) Supplier written Approval.