Sub Process: Purchased Parts, Pass Through, Material Management

PURPOSE / SCOPE: To assure that all parts, materials, and supplies purchased by New Sabina Purchasing Dept. associates conform to specified requirements.

DEFINITIONS
1. Subco ntractor Perfo rmance Repo rt: Mo nthly evaluatio n of the suppliers delivery and perfo rmance repo rt.
2. Subco ntractor Delivery Status Report: System generated repo rt w ith current and past delivery perfo rmance.
3. Appro ved Sub-Co ntractor List: Co ntrolled list o f sub-co ntracto rs appro ved to supply materials and services.
4. Design Change No tificatio n: Info rmatio n received fro m Nippon Seiki describing an alteration o f a sub-compo nent o r a finished pro duct. This alteratio n co uld be a physical change, an assignment change, o r
co rrecting an erro r.
5. Design Change No tificatio n Ackno wledgement: A do cument sent to a sub-co ntracto r to be signed and returned as ackno wledgement fro m the sub-co ntracto r o f no tificatio n receipt and acceptance of a
design change.
6. MPS: Master Pro ductio n Schedule

RESOURCES ACTIVITIES CONTROLS / METHODS SUPPORT ACTIVITIES

1. JD Edwards Systems 1. Mo nito r & Maintain Appro ved Supplier List 1. Pro cess Wo rk Instructio ns
2. Master Production Schedule 2. Pro cess Certificate o f Analysis (As required) 2. Q MS Q uality Pro cedures
3. Maker Layo ut 3. Design Change Co ntro l & Co mmunicatio n 3. Supplier Mo nthly Performance Repo rt 1. No nco nfo rming Material Co ntro l
4. Design Change Notificatio n 4. Mo nito r Supplier Perfo rmance 4. Appro ved Supplier List 2. Invento ry Management
5. Q uo tations 5. Supplier Develo pment 5. Design Change No tificatio n 3. Productio n Co ntro l
6. Competent personnel to manage and 6. Track Supplier Premium Freight 6. Design Change No tificatio n Ackno wledgement 4. Change Co ntro l
mo nitor JDE & MRP 7. Maintain Purchase O rder 7. Mo nthly Freight O ver Budget Repo rt 5. Productio n Repo rting
7. Computers linked to the Intranet 8. Do cument Co ntro l & Reco rd Retentio n 8. Nippo n Seiki Mo nthly Verification Check List
8. Telepho ne 9. Mo nito r/ Manage Item Branch fo r 9. Pro ductio n Schedule
9. Fax Machine Purchasing. Input 10. Invento ry O n Hand
10. Printers

Next step based o n results o f analysis as listed belo w:

Delay Change Part No. Date

INPUTS:
Cancel Change Part No. Status
MRP, Check MRP
Current Invento ry Messages Order Parts Create Purchase Order Output:
Level,
Bill o f Material, Expedite CONTACT Accurate
Analyze SUPPLIER
NS Purchase Nego tiate Changed Date Purchase Order
Messages
Order, Adjust Quantity
Item Branch Plant Check Change Part Quantity
Set-up, Invento ry
Levels Pass Due Status
Pro ductio n Co ntrol Nego tiate Delivery Date
Data
No ne Required

PROCESS MEASURABLE
1. Supplier Mo nthly Q uality Repo rt: Number o f suppliers with Perfo rmance Ratings belo w 80%
2. Inbo und Premium Freight: Number o f shipments within Premium Freight Budget
3. Supplier Delivery: Number of late deliveries. Do wntime due to late delivery o f purchased parts/materials.
4. Invento ry: Number o f optimum days o f invento ry o n hand per co mponent/material targets.
5. Expedited Shipments: Co mpariso n o f number o f additio nal/expedite o rders vs. number o f regular o rders.
6. Supplier Q uality: Co st of so rt activities fo r no nco nfo rming purchased parts/materials.

S-24-07-001.I02 5/21/2021
Revision date: 5-9-06 Complete Revision of Process