V. Corrective and Preventive Action Procedure

The supplier shall have a written corrective and preventive action procedure in place that responds to claims and concerns received from SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V.. To assure timely resolution of nonconforming issues, the supplier shall apply problem solving techniques to identify root causes and implement permanent corrective actions. The following documentation is required:

    1. Nonconforming material, delivery, and service problems are communicated to the supplier. The nonconformance will be documented on a Quality Information Sheet (QIS) and issued to the supplier. The QIS will detail the problem. The corrective action taken/required to immediately address the problem and any effects it may have had on SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V., its customer or the supplier will be documented and must be followed. The supplier must complete the 3I-3A report and return it to the appropriate member of the SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V. Quality Assurance Department within 24 hours of notification of a defect.

 

    1. The supplier must respond to the QIS with corrective action and may be required to submit the corrective action response documented on the appropriate Countermeasure Activity Sheet (CAS). The written response must be made by the due date indicated on the QIS. Countermeasures (C/Ms) that are 30 days past due will be required to be presented in person by the supplier. This may also warrant an additional QIS to be issued for no good (NG) response. QIS’s that are customer related will be required to be presented in person at the requesting facility. The supplier shall maintain appropriate records of inspections, investigations, experiments, and verifications.

 

    1. In the event that timely and effective countermeasures are not taken the following actions may be deemed necessary:

 

    1. The Company’s interim containment cost will be debited at $40.00 per man-hour and $60.00 per man-hour for overtime.
    2. The Company’s permanent containment and/or corrective action cost will be debited.
    3. The Supplier may be required to present their corrective action activity at SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V. facility.

In efforts to contain nonconforming product, the Company may request the supplier to sort supplied materials at the Company’s and/or its customer’s premise. The following guidelines must be followed:

    1. The supplier is responsible for providing the necessary manpower and supervision to conduct all related sorting and rework. Only associates of the supplier are permitted to perform sort activities. No temporary personnel will be permitted to sort unless prior authorization is given by SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V..

 

    1. Supplier representatives must follow the Company’s Safety Rules:

 

      1. Safety glasses with side shields must be worn in all designated areas.
      2. Steel toe shoes are required in all production areas.
      3. Smoking: SumiRiko Ohio, Inc. is a smoke-free property. Smoking will not be allowed anywhere on SumiRiko Ohio, Inc. Property. At SumiRiko Tennessee, Inc., smoking is allowed ONLY in outside designated areas, with cigarettes discarded in appropriate receptacles.
      4. All associates are to wear full length shirts covering their shoulders. Shorts at knee length are permitted. Hair that is shoulder length or longer should be tied back in all production areas.
      5. Horseplay and unsafe acts have no place in safety. Do not engage in horseplay, careless behavior, unnecessary yelling, or throwing of boxes, parts or objects. Pick up all parts that are dropped on the floor.
      6. Practice proper 5S. Keep all passageways, emergency exits and aisles clear of obstructions. Do not place any item in front of electrical panels, fire extinguishers, eye wash stations, or showers.

 

    1. Prior to the sort, the supplier shall define the method for sorting nonconforming product, and the method for identifying sorted material. The supplier shall notify the Company of these methods prior to the sort.

 

    1. The supplier must clearly document any re-work activities and submit them to SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V. for approval.

 

    1. The supplier is responsible for providing the necessary tools and equipment for completing the sort.

 

  1. The results of the sort shall be documented and submitted to SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V., Quality Assurance Department upon completion of the sort.

Any costs incurred by the Company to support containment activities until the supplier is able to dispatch the required sort personnel may be charged back to the supplier. In addition, costs associated with nonconforming material, is the responsibility of the supplier. For example:

    1. Original and return freight charges.

 

    1. All expedited cost for replacement, including any secondary operation costs, freight costs (including, but not limited to, airfreight, charter servicing, next day couriers, etc.).

 

    1. Cost of the part and any components that have been fabricated to an unrecoverable condition (i.e. assemblies, work-in-process, etc.). The cost charged to the supplier for defective assemblies will not exceed the selling price of the item to the Company’s customer.

 

    1. All downtime charges caused by a defective product and/or late delivery to the Company will be charged to the supplier at the current downtime or overtime rates. As of July 8, 1998 those rates are $40.00 per man-hour and $60.00 per man-hour for overtime hours worked.

 

    1. Any downtime charges incurred by SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V. for line stoppage at the customer that have been caused by the Company’s supplier problem will be the responsibility of the supplier entirely. The Company’s customers have different policies and charges related to downtime. The Copany will bill the supplier no more than the amount charged against SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V..

 

  1. An administrative fee of $300.00 will be assessed to any supplier when a sort is required at the Company and/or its customer.

Upon completion of any sorting/rework/downtime activities, SumiRiko Ohio, Inc., SumiRiko Tennessee, Inc., or S-Riko Automotive Hose de Chihuahua, S.A.P.I. de C.V. will issue a debit memo to the supplier.