SILCOTECH BONNY PRODUCTS (INDIA) PVT. LTD.

AUTOMOTIVE QUALITY Date of Issue: 01/08/2017

MANAGEMENT SYSTEM SUPPLIER SELECTION & Issue No. 02 .Rev. No. 00
IATF 16949:2016 DEVELOPMENT PROCEDURE Date of Rev.___________
(SBPIPL/OCP/05/00)

Procedure: Supplier Selection & Development

1. SUMMARY
1.1. This procedure defines the requirements to document the process of Supplier evaluation &
development to ensure product quality for Suppliers of raw materials, bought - out parts,
packing materials. Suppliers for job-works like plating, heat treatment, machining etc.,
suppliers for services like transport, calibration, maintenance etc.
1.2. Responsibility of Commercial and Material head for Raw Material / Executive Director for Job
Workers and Machine & equipment suppliers / Store & Purchase head for tooling, Packaging
material, consumables & stationary / Maintenance head for spares and tools / Tool room &
Development head for development material and calibration. “Critical materials or services”
are those materials or services which are incorporated into final product, or which have a
direct impact on the company’s product or quality system, or which are otherwise deemed as
critical by management.
2. REVISION AND APPROVAL
Approved
Rev. Date Nature of Changes
By
0 01/08/2017 Original issue. Director

3. SUPPLIER EVALUATION, SELECTION AND CONTROL

3.1. The Purchase head evaluates new suppliers. Purchase head have both the responsibility and
authority to approve and disapprove suppliers.
3.2. New suppliers are evaluated in accordance with the following criteria:
 Pricing
 Availability
 Reputation / references
 Location
 Shipping terms and capabilities
 Quality system certification status (ISO 9001 / IATF 16949 certification preferred)
 Quality of samples received (incl. testing results)
 On-site audit results
 Telephone interview results
 Written survey results
 Customer mandate
 Sole source / OEM status

3.3. Where a customer mandates a special process source, both SILCOTECH BONNY
PRODUCTS (INDIA) PVT LTD and any suppliers must use the required supplier; this usage
may override SILCOTECH BONNY PRODUVTS (INDIA) PVT LTD’s approval status rules.
3.4. In some cases a formal risk assessment may be conducted as part of the evaluation and
selection of a potential supplier, or in order to determine if a problematic supplier should be
retained; see Risk and Opportunity.

Issued By : QC Head 1 Approved By : Director

 SILCOTECH BONNY PRODUCTS (INDIA) PVT. LTD.

AUTOMOTIVE QUALITY Date of Issue: 01/08/2017

MANAGEMENT SYSTEM SUPPLIER SELECTION & Issue No. 02 .Rev. No. 00
IATF 16949:2016 DEVELOPMENT PROCEDURE Date of Rev.___________
(SBPIPL/OCP/05/00)

3.5. The Purchase head will maintain an Approved Supplier List which lists all evaluated and
approved suppliers, their approval status, and the scope of their approval.
3.6. Suppliers who meet any of the evaluation criteria, in the judgment of the person conducting
the evaluation, may then be entered into the purchasing system and items may be purchased.
However, the supplier is entered into the Approved Supplier List (SBPIPL/PUR/01/00) on a
CONDITIONAL basis, pending inspection or review of products or services rendered.
3.7. Upon successful receipt or review of products or services, the manager may then advance the
supplier’s status to APPROVED.
3.8. If the results of review of product or service received are insufficient or otherwise lacking, the
buyer may then elect to change the supplier’s status to DISAPPROVED, or to leave it at
CONDITIONAL until further orders are received and reviewed.
3.9. A supplier may also be listed as RESTRICTED, where certain purchasing restrictions are
placed on the supplier. This may be useful to limit what products may be purchased from a
supplier, or to place other conditions.
3.10. The Approved Supplier List (SBPIPL/PUR/01/00) indicates the supplier, location, approval
status (Approved, Conditional, Disapproved, Restricted), and the scope of approval (typically
commodity type or product family). Re-approval of suppliers is continual and ongoing based
on the suppliers ability to meet the criteria of paragraph 3.2.2. For Restricted status, a note of
the restriction must also be included.
3.11. Suppliers used for at least six months prior to 01/08/2017, have been grandfathered into the
system as Approved, provided they have no outstanding quality issues on record, and only
upon the decision by Purchase head to do so.
3.12. Verification of purchased product is carried out in accordance with the Receiving procedure.
3.13. All new Suppliers shall be evaluated and approved by concerned person mentioned above in
responsibility, before any regular order is placed on them.

3.14. For general items, the basis of vendor selection shall be one or more of the following: -
- Having their Quality System certified to ISO-9001 or IATF 16949.
- Presence on the Customers’ Approved Supplier List.
- Manufactures or suppliers of propriety items.
- Having records of successful supplies to the organisation for last six months or more.
- Reputed brands, Market reputation.

Issued By : QC Head 2 Approved By : Director

 SILCOTECH BONNY PRODUCTS (INDIA) PVT. LTD.

AUTOMOTIVE QUALITY Date of Issue: 01/08/2017

MANAGEMENT SYSTEM SUPPLIER SELECTION & Issue No. 02 .Rev. No. 00
IATF 16949:2016 DEVELOPMENT PROCEDURE Date of Rev.___________
(SBPIPL/OCP/05/00)

3.15. JOB WORKERS / RAW MATERIAL / BOP PARTS SUPPLIER DEVELOPMENT

Supplier shall be nominated on the basis of following: -

- Having their Quality System certified to ISO-9001 or IATF 16949.
- Presence on the Customers’ Approved Supplier List.
- Manufactures or suppliers of propriety / similar items.
- Having records of successful supplies of similar item to the organisation for last
six months or more.
- Reputed brands, Market reputation.

At the time of supplier selection supplier is communicated in advance and audited as per
audit check sheet, Supplier shall score min 80% to qualify, or else need to submit action
plan for improvement. Re-assessment shall be planned against the action / time plan
submitted by supplier.
The Supplier Quality Management System shall be reviewed / audited on yearly basis by
the designated function as audit check sheet and Annual Vendor Audit Plan and remarks
made on the Supplier Data Sheet referring to Review / Audit reports. The goal shall be to
purchase products conforming to requirements and to ultimately develop the Supplier
quality system as per the requirements of ISO/TS: 16949. The audited suppliers shall be
informed in writing regarding shortcomings and an action plan of improvements shall be
called from the supplier.
Supplier shall have min 80% to qualify, or else need to submit action plan for
improvement. Re-assessment shall be planned against the action / time plan submitted
by supplier for closure of the open points.

Wherever required, action plan shall be drawn jointly by the designated function and the
vendor representative.

The action plan shall be closely monitored by the designated function and be a subject of
MRM.

Customer specific requirements shall be shared with supplier and get the issuance
acknowledged.

Feasibility commitments and Quality Agreement / targets shall be received from supplier.

No disclosure agreement shall be signed with supplier before sharing any information /
document / design related to SBPIPL or Customer.

The Suppliers approved by the Commercial and Material Incharge / Executive director, on
the VDS shall be listed on the AVL.

Timing plan / APQP status review sheet shall be received from supplier and critical path shall
be defined for the projects and shall be monitored closely till product acceptance.

PPAP shall be done for level 3 or as per customer requirements.

Issued By : QC Head 3 Approved By : Director

 SILCOTECH BONNY PRODUCTS (INDIA) PVT. LTD.

AUTOMOTIVE QUALITY Date of Issue: 01/08/2017

MANAGEMENT SYSTEM SUPPLIER SELECTION & Issue No. 02 .Rev. No. 00
IATF 16949:2016 DEVELOPMENT PROCEDURE Date of Rev.___________
(SBPIPL/OCP/05/00)

If customer have any specific requirement about documentation / record retention / audits, same shall
be shared with supplier and must get supplier acceptance.

All other terms and conditions required shall be shared with supplier during release of purchase orders.

3.16 CONTINOUS EVALUATION

Regular Periodic Supplier Evaluation shall be done by the designated function on the
basis of performance rating of all Suppliers covering product quality and delivery as per
following formula: -
Delivery Rating =( TR) X 100
TS
TR = Total Receipt TS = Total Schedule

Quality Rating = QO X 100

Qs
QO = Quantity Ok First Time QS = Quantity Scheduled For the Period

Min rating shall be 80% with target of 100 % on time delivery.

Average annual rating shall be provided to the Supplier by the designated function.

Along with Delivery and quality performance rating to be considered for Customer notification
about quality and delivery, line disruption, customer complaints, premium freight respond
time, communication, timely submission of required documents etc.

In case the monthly evaluation has continually been below last average, for 3 – 4
months, then the matter shall be addressed immediately.

Service providers shall be issued Corrective Action for any problems encountered.
If 5 or more Problem Reports are issued to a particular service provider for 10
orders placed on him, then, the Supplier shall be warned and could be black
listed by the Commercial and Material Incharge on failure to improve.

The designated person shall evaluate delivery performance of vendors (percentage

on time delivery) every month. This shall be intimated to the vendor and he shall
be asked to improve the performance.

Continually falling rating may lead to dropping of the Supplier from the approved
vendor list by the Commercial and Material Incharge.

The designated person shall evaluate delivery performance of vendors (percentage

on time delivery) every month. This shall be intimated to the vendor and he shall
be asked to improve the performance.

Annual requalification of the part to be done by supplier and requalification

inspection report shall be submitted to SBPIPL.
Supplier shall be followed for requalification as per annual requalification plan.

Issued By : QC Head 4 Approved By : Director

 SILCOTECH BONNY PRODUCTS (INDIA) PVT. LTD.

AUTOMOTIVE QUALITY Date of Issue: 01/08/2017

MANAGEMENT SYSTEM SUPPLIER SELECTION & Issue No. 02 .Rev. No. 00
IATF 16949:2016 DEVELOPMENT PROCEDURE Date of Rev.___________
(SBPIPL/OCP/05/00)

6.0 DOCUMENTATION

- List of Supplier & Service provider SBPIPL/PUR/01/00

- Evaluation of Supplier & Service provider SBPIPL/PUR/03/00
- Supplier trail order verification form SBPIPL/PUR/04/00

Issued By : QC Head 5 Approved By : Director