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1 Exigences qualité applicables aux fournisseurs et sous-traitants de la Division Câblage et Services Europe / Quality Requirements to be applied by the Europe Wiring and Services Division Suppliers and Sub Contractors Sub-Process BUY-04 Manage the Supplier contracts Sub-Sub-process N/A PURPOSE: OBJET : This document defines the general and particular requirements applicable to suppliers of products and services of the European Wiring and Services Division of Labinal society of the Safran group. Ce document définit les exigences générales et particulières applicables auxquelles doivent répondre les Fournisseurs participant à la réalisation de produits et services de la Division Câblage et Services Europe (DCSE) de LABINAL du groupe Safran. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 1 of 69

2 APPLICATION SCOPE: DOMAINE D'APPLICATION : This instruction is applicable to all supplies covered in an order from Labinal EWSD that goes into the composition and production of equipment it designs. Persons concerned The partners, joint contractors and Suppliers of Labinal EWSD and their subcontractors. Note In this document: the term «Labinal» means the European Wiring and Services Division of LABINAL, society of SAFRAN group that notifies or has notified any purchase contracts, the term "Supplier" refers to Safran's partner, joint contractor, service provider, Supplier or subcontractor of rank 1 for Labinal, the term "Subcontractor" means the partner, subcontractor or Supplier of rank 2, or a lower rank, of Labinal the term "Contracting Authority" means any customer of Labinal, the term "Contract" means a purchase contract or an order. Cette instruction est applicable à toute fourniture objet d'une commande de la part de LABINAL DCSE, entrant dans la composition et la réalisation des matériels de sa conception. Acteurs concernés Les partenaires, coopérants et Fournisseurs de LABINAL DCSE ainsi que leurs sous-contractants. Nota Dans ce document : le terme " Labinal" désigne la Division Câblage et Services Europe de LABINAL société du groupe Safran qui passe ou a passé des contrats d'achat, le terme "Fournisseur" désigne le partenaire, coopérant, prestataire, Fournisseur ou sous-traitant de rang 1 de Labinal, le terme "Sous-contractant" désigne tout partenaire, sous-traitant ou Fournisseur de rang 2, ou plus, de Labinal, le terme "Donneur d'ordre" désigne tout client de Labinal, le terme "Contrat" désigne un contrat d'achat ou une commande Approval of the document Step Author(s) Simon Pierre-Luc Name Approver(s) External Approval PLUSQUELLEC Fabrice; CASTRO Emmanuel [External Approval] A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 2 of 69

3 Table of contents 1. INTRODUCTION LABINAL EWSD EXPECTATIONS RECOGNITION OF THE REQUIREMENTS DOCUMENTS REQUIRED FOR APPLICATION TERMS AND DEFINITIONS ABBREVIATIONS DEFINITIONS DOCUMENT AND FORMS LINKED TO THE INSTRUCTION QUALITY MANAGEMENT SYSTEM GENERAL REQUIREMENTS Pre-requisites Access rights Cost control Logistic strength DOCUMENTATION REQUIREMENTS CONFIGURATION MANAGEMENT MANAGEMENT OF THE LABINAL LOANED TOOLS ARCHIVING RESPONSIBILITY OF THE MANAGEMENT RESOURCES MANAGEMENT PROVISION OF RESOURCES HUMAN RESOURCES INFRASTRUCTURE WORKING ENVIRONMENT THE PRODUCTION PROCESS PRODUCTION PLANNING CUSTOMER PROCESS DESIGN AND DEVELOPMENT PURCHASES PRODUCTION AND SERVICE PREPARATION MONITORING AND MEASUREMENT SYSTEM CONTROL INDUSTRIALISATION MEASUREMENT, ANALYSIS AND IMPROVEMENT GENERAL MONITORING AND MEASUREMENT Customer satisfaction In-house audits Process monitoring and measurement A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 3 of 69

4 Product monitoring and measurement Quality review meeting NONCONFORMING PRODUCT CONTROL DATA ANALYSIS IMPROVEMENT SPECIAL QUALITY CLAUSES INDUSTRIAL CHANGES MANAGEMENT GENERAL INDUSTRIAL TRANSFER NON-QUALITY COST PENALTIES FOR DELAY VERSION FRANÇAISE INTRODUCTION ATTENTES DE LABINAL PRISE EN COMPTE DES EXIGENCES DOCUMENTS NÉCESSAIRES À L APPLICATION TERMES ET DÉFINITIONS ABRÉVIATIONS DÉFINITIONS LES OUTILS ASSOCIÉS À L INSTRUCTION SYSTÈME DE MANAGEMENT DE LA QUALITÉ EXIGENCES GÉNÉRALES Prérequis Droits d'accès Maîtrise des coûts Robustesse logistique EXIGENCES RELATIVES À LA DOCUMENTATION GESTION DE LA CONFIGURATION GESTION DU MATÉRIEL MIS À DISPOSITION PAR LABINAL ARCHIVAGE RESPONSABILITÉS DE LA DIRECTION MANAGEMENT DES RESSOURCES MISE À DISPOSITION DES RESSOURCES RESSOURCES HUMAINES INFRASTRUCTURE ENVIRONNEMENT DU TRAVAIL RÉALISATION DU PRODUIT PLANIFICATION DE LA RÉALISATION DU PRODUIT PROCESSUS RELATIFS AU CLIENT CONCEPTION ET DÉVELOPPEMENT ACHATS A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 4 of 69

5 7.5. PRODUCTION ET PRÉPARATION DU SERVICE MAÎTRISE DES DISPOSITIFS DE SURVEILLANCE ET DE MESURE INDUSTRIALISATION MESURE, ANALYSE ET AMÉLIORATION GÉNÉRALITÉS SURVEILLANCE ET MESURE Satisfaction du client Audits internes Surveillance et mesure des processus Surveillance et mesure des produits Revue Qualité MAÎTRISE DU PRODUIT NON CONFORME ANALYSE DES DONNÉES AMÉLIORATION CLAUSES QUALITÉ SPÉCIFIQUES CHANGEMENTS INDUSTRIELS MAJEURS CONDITION D APPLICATION TRANSFERT INDUSTRIEL COÛT DE NON QUALITÉ PÉNALITÉS DE RETARD DOCUMENT ADMINISTRATION A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 5 of 69

6 1. INTRODUCTION 1.1. LABINAL EWSD EXPECTATIONS The implementation of the Quality policy of LABINAL i.e. customer satisfaction and continuous improvement of the processes involves all players, and particularly the Suppliers. This policy is applied along three lines of action, as follows: Quality: divide the number of non-quality events and nonconformities by two, each year; Costs: reduce costs by 5% each year; Lead-times: non compliance with lead-times by a factor of two, each year. All these objectives must be consistent with the objectives of LABINAL s customers. They shall be reviewed if necessary. LABINAL s Suppliers shall contribute to achieving these general objectives, which will be established on a case by case basis. The Supplier undertakes to comply with the regulations in force, and with LABINAL s requirements, in its respective areas of contractual responsibility vis-à-vis LABINAL. Any documents provided by LABINAL to the Supplier as recommendations or assistance material are meant to help the Supplier make the product, and benefit from LABINAL s experience. These measures shall not in any case reduce the responsibility of the Supplier, particularly in terms of the final quality of the product. Achievement of these objectives shall be measured inter alia by performance indicators that are shared between the companies in the Safran group. The above mentioned performance monitoring action will give rise to a rating. Safran reserves itself the right to: Take any curative and corrective measures required or necessary in order to correct any failure to perform, at the Supplier's expense; Draw up a list of the Suppliers that do not meet the performance requirements specified by Safran, including on costs, quality and logistics (this list shall be issued to all the companies in the Group); Stop consulting the Suppliers that are included in this list. The requirements below supplement the requirements of the ISO/EN/AS/JISQ standards and are structured according to the same principle RECOGNITION OF THE REQUIREMENTS In accepting a Contract that calls for application of this document, the Supplier shall be deemed to have accepted the content of this document. In order to ensure easier monitoring, the requirements set out in this document are numbered. The Safran s requirements issued from GRP-0087 are prefixed with [S-x.x.x] The Safran s requirement adapted for Labinal is identified with a star as [S-x.x.x]* The Labinal s requirements are prefixed with [L-x.x.x] To guarantee the traceability of the requirements described in AP2190-GRAMS, an indication to the compliance with AIRBUS requirement is specified as: GRAMS : L C A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 6 of 69

7 [L-1.2] No deviation in application is acceptable unless first agreed upon between Safran and the Supplier in an agreement to be formalized by a Requirement Conformity Matrix IPR5-06-A C In case of discrepancy in the understanding of the present document, the French version has precedence. 2. DOCUMENTS REQUIRED FOR APPLICATION The Supplier shall obtain all documents required that are not published by Labinal, at the latest index in force (definition information and standards). For information, the list of the common procedures of the Safran group is available in document GRP Any documents and standards mentioned directly or indirectly in the contracts shall apply. Failing any version number, the latest valid version shall apply. The list below indicates the major standards required for application: EN/AS/JISQ 9100 Aerospace series Quality management systems requirements EN/AS/JISQ 9110 Aerospace series Quality Systems Model for quality assurance applicable to maintenance organizations EN/AS/JISQ 9120 Aerospace series Quality management systems Requirements applicable to stock keepers and distributors EN/AS/JISQ 9131 Aerospace series Quality management systems Nonconformity documentation EN/AS/JISQ 9134 Aerospace series Quality systems Guidelines for the management of the supplier s chain risk EN/AS/JISQ 9102 Aerospace series Quality systems First article inspection EN/AS/JISQ 9103 Aerospace series Quality management system Management of the variation in key characteristics) ISO 9001 Quality management systems Requirements AQAP 2110 NATO Quality Assurance requirements for Design, Development and Production AQAP 2120 NATO Quality Assurance requirements for Production AQAP 2130 NATO Quality Assurance requirements for Inspection and Test NF L Aerospace Quality management and assurance Statement of conformity ISO/IEC General requirements concerning the qualification of Calibration and test laboratories IS Environmental management system Specifications and guidelines for use OHSAS Occupational health and safety management system Specification A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 7 of 69

8 3. TERMS AND DEFINITIONS 3.1. ABBREVIATIONS AMDEC French acronym for Analysis of the Failure Mode and their Effects and their Criticality AC/AP French acronym for Corrective action/preventive action ACN Cognizant airworthiness authority AQAP Allied Quality Assurance Publication (NATO) ASD-EASE AeroSpace and Defense European Association for Supplier Evaluation DC French acronym for Statement of conformity EASA Form 1 Release certificate authorized by the European Aviation Safety Agency FMECA Failure Modes, Effects and Criticality Analysis HSE Health, Safety and Environment IAQG International Aerospace Quality Group MCE French acronym for Requirements conformity matrix Nadcap National Aerospace and Defense Contractors Accreditation Program NDT Non Destructive Testing OASIS Online Aerospace Supplier Information System PRI-Nadcap Performance Review Institute Nadcap SQAP System Quality Assurance Plan 3.2. DEFINITIONS The terms that are used in this document are used according to the definitions given in ISO9000, EN/AS/JISQ 9100 and EN/AS/JISQ 9120, with the following supplements: Approval: the result of an assessment that authorizes Labinal to issue a contract with the Supplier. Certificate of Conformance (COC): Document substantiated by an empowered person and stating conformance of equipment delivered with specified requirements. Concession: Written authorization to use or deliver a quantity of products or equipment already produced but nonconforming. Contract: an agreement between Labinal and a Supplier that defines the conditions applicable to a given purchase or a series of purchases. A purchase contract may specify one or more orders, or only define the conditions of issuance and acceptation of subsequent orders. Definition: a set of documents/data as mentioned in the contract and that constitute the technical baseline of the product (drawings and associated documents, technical specifications, parts lists, technical documents, special instructions associated with the contract, etc.). Discrepancy: Deviation with regard to that which is expected. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 8 of 69

9 Industrial Substantiation Report (DVI): A set of documents required in order to: demonstrate that the manufacturing process is capable of ensuring reliable and repetitive production of a product in compliance with the certified or qualified model; cover the first article review in agreement with EN 9102; control all changes to the manufacturing process and any subsequent impacts on the quality of the products. Lot: a set of products that have the same configuration and have common manufacturing and inspection conditions (same manufacturing process and/or production run, etc.). Inspection: Action designed to measure, examine, test and calibrate one or more characteristics of a product or service, and to compare them with the specified requirements, in order to establish their conformance. Official organisms: the Quality assurance representative (RAQ), for military equipment; the Airworthiness Authority (ACN), for commercial equipment; the French or foreign organization acting under the delegation of one of the above authorities. Order: an order given to a Supplier to deliver a specified product under agreed conditions. The order may be issued under a purchase contract or independently of any prior agreement. Purchaser: Any LABINAL WED personnel empowered to play a part in the relationship with suppliers in accordance with the requirements of this document: family purchaser, project purchaser, Supplier Quality and Logistics manager, vendor scheduler, Quality department of concerned LABINAL WED facilities, etc. Requirement: A need or expectation that is stated, implied or obligatory. Special Process: in addition to the manufacturing operations defined as special processes under the EN9100, the Non Destructive Testing (NDT) operations also belong to this category. Specification: Document that specifies the requirements to which the product or service must conform. Technical assistance: Support provided by LABINAL WED to a subcontractor in order to fulfill the orders involving specific processes. Vendor/Stock Keeper/Distributor: A Supplier that purchases and resells products without modifying them with respect to their original definition. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 9 of 69

10 3.3. DOCUMENT AND FORMS LINKED TO THE INSTRUCTION Référence IPR5-06-A1 IPR5-06-A2 IPR5-06-A3 IPR5-06-A4 IPR5-06-A5 IPR5-06-A6 IPR5-06-A7 IPR5-06-A8 IPR5-06-A9 IPR5-06-A10 Objet FAI Report Conditions Générales d achat Droit Français General Terms and Conditions of Purchase / French Law Conditions Générales d achat Droit Marocain General Terms and Conditions of Purchase / Moroccan Law Conditions Générales d achat Droit Mexicain General Terms and Conditions of Purchase / Mexican Law Requirement Conformity Matrix Change Notification form Mechanical parts Statement of Work 4. QUALITY MANAGEMENT SYSTEM 4.1. GENERAL REQUIREMENTS Pre-requisites Safran is a member of IAQG, ASD-EASE and the PRI-Nadcap organization. [S-4.1.1a] As a player involved in the design, production or repair of mostly aeronautical and space products, and the performance of intellectual services, the Supplier must have a quality system that is certified by a certification organization (other party) that is recognized internationally C C [S-4.1.1b] The information collected as part of the certification process (audit report, detail of the rating obtained) shall be made accessible to Labinal. L C L C L C L C [S-4.1.1c] The requirements of the EN/AS/JISQ 91XX standard (9100/9110/9120 according to its areas of activity) shall apply C C [S-4.1.1d] If the aerospace segment reaches 50% of its activity, the Supplier must be certified EN/AS/JISQ 91XX and be registered in the OASIS base C [S-4.1.1e] In any other cases, the ISO 9001 certification is required.. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 10 of 69

11 [S-4.1.1f] If it does not hold the certification required, the Supplier must prove that it has initiated a certification effort. [S-4.1.1g] For military equipment, the requirements of the AQAP21XX (2110/2120/2130) standard shall apply. [S-4.1.1h] The Supplier shall take and maintain permanent and suitable measures to maintain and improve its Quality Management System, in particular for the activities associated with the production of the product: through appropriate audits, equipment and processes, in its own shops and at its Subcontractors'; through sustained monitoring of corrective actions; through periodical assessment of its quality level in production, using suitable measures; and using indicators tailored to Labinal 's requirements (return rate, on-time performance, failure rate during final inspection, etc. [S-4.1.1i] The Supplier shall participate in the sustainable development efforts and define an industrial risk prevention system based on the environmental and social protection standards (e.g.: ISO and OHSAS 18001) C [S-4.1.1j] The Supplier shall inform Labinal of any changes made to its Quality Management System (restriction in scope, changes in certifications, etc.) within 48 hours. [L-4.1.1k] The supplier must be able to present to Labinal it s politic of continuous strengthening based on concrete results and already realized, giving details on the companies objectives, organization and the structure of continuous improvement as well as the status of the performance indicators. L C Access rights [S-4.1.2a] The Supplier shall allow Labinal's representatives including any specially commissioned third parties, accompanied by the Contracting Authorities and/or Government Agencies to freely access the areas in its shops and the inspection stations where Labinal products are being handled, and shall also allow them to consult all the associated records C [S-4.1.2b] The Supplier undertakes to provide all assistance required for the above persons to perform their tasks within optimum conditions C [S-4.1.2c] This requirement also applies to the Supplier's Subcontractors and shall be passed through them. [S-4.1.2d] The Supplier shall push back to Labinal before a contract is established any restriction applicable to any information considered as confidential, and shall propose satisfactory conditions of access.. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 11 of 69

12 [S-4.1.2e] Labinal reserves the right to distribute the whole or part of the results of the information to the other companies in the Safran group Cost control [S-4.1.3a] The Supplier is responsible for the management and control of costs for all the products and services to be supplied to Labinal, at every stage in the process (development, manufacturing, product support, etc.) C [S-4.1.3b] As such, the Supplier shall: be capable of presenting the structuring principles and rules of its costs; guarantee to Labinal that it controls the origin of the costs and then monitors the costs; make a permanent effort to reduce costs; help Labinal set its cost objectives and attain these objectives, including through proposed changes, in cases where the definition is provided by Labinal.. [S-4.1.3c] The Supplier shall identify and cover the cost risks associated with any exposure to variations in exchange rates or any other economic factors Logistic strength [S-4.1.4a] In order to demonstrate its capacity to be responsive in adapting its production to changes in Labinal s requirements, the Supplier shall identify all the restrictions associated with the industrial scheme. [S-4.1.4b] Rules of flexibility in the specification of the requirements shall be established on Labinal's initiative. These rules shall be based on firm, flexible and forecast phases. In case of a sudden and/or significant change in demand, the Supplier shall make simulations and submit the consequences to Labinal. [S-4.1.4c]* The Supplier shall control the flexibility associated with the analysis of its own risks. It shall remain capable at all times of anticipating any event that could disrupt the flow of components, in the production and delivery processes.specially he shall define and provide their backorder management methodology. He shall demonstrate how delays and shortage are monitored. L C [S-4.1.4d] The Supplier is responsible for its own Subcontractors, and shall make sure that the responsiveness required is maintained. [L-4.1.4e] The supplier commits to develop with LABINAL WED the solutions that allow the reduction of the number of paper orders (EDI, web EDI, consigned stocks, JITs ). In order to achieve it, the supplier shall contact LABINAL WED to agree on a logistic contract. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 12 of 69

13 [L-4.1.4f] The supplier must only use carriers which have been previously validated by the supplier. In case of use of a logistic platform designated by LABINAL WED, the supplier agrees to apply the defined operational procedures DOCUMENTATION REQUIREMENTS [L-4.2a] On inquiry the Supplier shall provide the latest issue of the Quality System Manuel. L C [L-4.2b] The Supplier shall propose a qualification plan for acceptance to the Purchaser. This plan contains the qualification time schedule, the list of the processes certified and/or scheduled to be certified by Nadcap, the planning of the FAI. L C L C L C L C [L-4.2c] The Supplier shall deliver a Qualification Dossier composed of all the documents drawn up by them to meet the quality, technical and industrialization requirements (Manufacturing and inspection dossier, test report and Definition Dossier) L C [L-4.2d] When the Supplier shall deliver a Definition Dossier to the Purchaser: For all Standard Parts, Semi-finished products and materials it shall contain Suppliers technical definition ; For all Specified Parts it shall contain a drawing and : o Specified part reference o Part designation o Name of the Suppliers and manufacturing site o CAGE code o Any other information required by this specific qualification project. L C [L-4.2e] As soon as the order is received, the supplier must check that it possesses all the information needed for its execution in accordance with the terms stipulated in the order. It is the supplier s responsibility to request additional information it may deem necessary to complete all the product manufacturing and inspection phases. This responsibility includes substantiation of the documents it may have in its possession. [L-4.2f] Handover by the purchaser to the supplier of technical documents, manufacturing or inspection instructions, and the possible loan of tools designed to facilitate its work by sharing the experience acquired by LABINAL WED may, in no case whatsoever, diminish the liability of the supplier with regard to the final quality of the supply. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 13 of 69

14 [L-4.2g] The supplier Stockist / Distributor agrees to store all original documentation from the vendors. [L-4.2h] Vendor s documentation and traceability documentation must be maintained for a minimum of 7 (seven) years. [L-4.2i] The supplier must file those items proving conformity with the requirements specified for the period prescribed by the Purchaser, even if purchase orders are interrupted by LABINAL WED C 4.3. CONFIGURATION MANAGEMENT [S-4.3a] The Supplier shall fully control the configuration of the supplies throughout the various phases under its responsibility (development, manufacturing, maintenance, etc.). This must cover the identification and the traceability of the products and the associated documentation with the definition plans and/or Norms for standard Parts C [S-4.3b]* If the Supplier suggests any configuration management standards that are different from the standards specified by Labinal, the Supplier shall demonstrate equivalence and submit the application of such other standards to the products to Labinal for approval, and Labinal reserves the right in this case to terminate the contract or to impose his rules. [S-4.3c]* Any change in design or in a process shall first be submitted to Labinal for acceptation, based on the change document agreed upon with the Supplier. The change shall be accompanied by a substantiation file (IPR5-06-A8) that will validate the new solution and indicate the rank and date of application C [S-4.3d] Whenever Labinal modifies a document that is specified in the contract, the Supplier shall notify Labinal of the application of such change to the product. Reminder: full control of the configuration management process is an obligation under the standards in the EN/AS/JISQ 9100 and AQAP 2110 series. [L-4.3e] The supplier is in charge of obtaining copies of the specifications and standards prescribed and referenced by the purchaser but not supplied by the latter. [L-4.3f] The supplier is in charge of updating the complete documentation on its own premises, and on subcontractor premises. It must also take the necessary measures to prevent the use of obsolete documents and documents in bad condition or with non-validated overwriting. It must ensure that the complete documentation is available on all sites where it must be applicable A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 14 of 69

15 [L-4.3g] The supplier shall insure product tracability (including materials, work in progress materials, standard parts, components, ) C 4.4. MANAGEMENT OF THE LABINAL LOANED TOOLS. [L-4.4a] The loaned tools may not be modified prior to the written authorization of the purchaser. [L-4.4b] Throughout the period of the loan, the supplier shall ensure, at its expense, maintenance of these tools to keep them in perfect condition. [L-4.4c] For tooling owned by the Purchaser, the Supplier shall comply with the Purchaser related procedures (painting, marking, numbering ) C [L-4.4d] The Supplier shall deliver the list of tooling owned by Labinal. L C 4.5. ARCHIVING [L-4.5a] The premises used for filing of manufacturing and inspection documents shall be protected against fire and water. [L-4.5b] If the supplier ceases to operate, it must inform the Purchaser as soon as it has the information, and at least, if possible, 3 months ahead, so that the latter can transfer filing to other premises. 5. RESPONSIBILITY OF THE MANAGEMENT The specific requirements of Labinal are described in this document. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 15 of 69

16 6. RESOURCES MANAGEMENT 6.1. PROVISION OF RESOURCES [S-6.1a] The Supplier must maintain a policy and the processes required for the Supplier to be able to manage its capacities, including: calculation of adequacy between load and general capacity over the horizon documented by Labinal; fine analysis of the load/capacity adequacy on the "bottleneck" resources, over at least twice the product cycle; detailed scheduling of the capacity requirements. L C [S-6.1b] The Supplier shall make sure at all times that he has the operational capacities required, including at its Subcontractors', in order to meet the customer's requirements, and shall implement the action plans needed in order to handle any deviations in terms of the load/capacity adequacy in the short-, mediumand long-term. The Supplier shall control all the lead-times associated with its critical capacities (material procurement, operator training, etc.) and shall systematically analyze any future requirements in these particular areas C [L-6.1c] The Supplier shall deliver to Labinal all the results of the analysis HUMAN RESOURCES [S-6.2a] The Supplier shall make sure that the qualification of the personnel, including the personnel in charge of performing the design, development, program management, Quality and supply chain functions, is maintained at a sufficient level, as required in view of Labinal requirements. [S-6.2b] In managing and planning its human resources, the Supplier shall be proactive and shall make sure that the customer's requirements are clearly identified and taken into account. L C [S-6.2c]* The Supplier shall be capable of demonstrating that the personnel in charge of the design, development and control or specific technology expertise activities all have the qualifications and experience required in order to be able to meet the requirements and the objectives of Labinal. [L-6.2d] The Supplier will inform Labinal when modifications of human resources occur as for instance top management, operational interface, structural organisation, social plans A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 16 of 69

17 6.3. INFRASTRUCTURE [S-6.3a]* In case of a change in the infrastructure (move, restructuring, relocation, etc.), the Supplier shall define and apply the provisions required in order to maintain the quality of the product without impact on the delivered product, quality plan, transfer plan, risk analysis C [S-6.3b]* The Supplier shall inform Labinal of any change in its industrial tool, prior to implement such change C [S-6.3c] The Supplier must make all provisions required in order to guarantee the security of its facilities, storage rooms and other logistic resources, in order to avoid any risk of improper use of the products under the contract [L-6.3d] When it is necessary to modify or to update a tool, Labinal must give first the approval, based on a modification document (IPR5-06-A9). A justification dossier is jointed and indicates the range and the application date WORKING ENVIRONMENT N/A. 7. THE PRODUCTION PROCESS 7.1. PRODUCTION PLANNING [S-7.1a] The Supplier must maintain a policy and the processes required in order to be able to manage the planning process, and in particular shall implement: a sales and operation plan; a master production schedule; a master resource plan; a procurement schedule and program C C [S-7.1b] The Supplier must make sure at all times that the work in process meets the requirements [S-7.1c]* The Supplier shall establish and maintain a Product Quality Assurance Plan in accordance with Labinal's requirements. A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 17 of 69

18 [S-7.1d] The Supplier shall also apply a policy and the processes required in order to ensure proper management of its stocks, in particular in terms of the: buffer stock calculation rules; methods used to ensure precise stock control; key stock surveillance indicators; management of obsolescence and storage conditions C [S-7.1e]* If requested by Labinal, the Supplier shall provide the cartography of the industrial flows of the production process (internal/external) until the delivery of the product to the customer. This shall cover: the major production and inspection stages; the procurement of the components; the identification of the external activities; the door-to-door information (from reception through to delivery) for each localisation: delivery performance (service rate) and scrap rate; customer request (quantity per day, week, month); demonstrated capacity: for each major stage; for each bottleneck; representation of the flows, superimposed upon a layout drawing, from reception through to the place of delivery. L C L C L C L C [S-7.1f] The Supplier shall get, or at least start, a program management organization, in accordance with risks and requested requirements. L C [S-7.1g] The Supplier shall appoint a project leader, who will have full authority over the provision of all the constitutive items of the project: design, development, quality, performance improvement, management of the Supply Chain, risks, etc L C [S-7.1h] The Supplier shall manage the monitored project structure control effort (organization, schedule, control tools, project reviews and management of critical resources) C [S-7.1i] The Supplier shall make sure that its own Subcontractors initiate a project management effort in accordance with the same criteria whenever needed, and shall demonstrate the capacity of its Suppliers to meet such requirements. L C [L-7.1j] A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 18 of 69

19 The supplier must use preventive and corrective maintenance schedules for the manufacturing means, including machines and tooling, as well as maintenance instructions which define the operations to be performed. The supplier makes sure the availability of spare parts for critical parts and/or for wearing parts, which have been previously identified. [L-7.1k] The Supplier shall hold the complete drawing set of tools used to manufacture or test the products. L C [L-7.1l] The Supplier shall appoint a designated «Quality Manager responsible for the Quality aspect of the Project for the lifecycle of the contract. This manager shall be in the Organisation Breakdown Structure. L C 7.2. CUSTOMER PROCESS [S-7.2a] The Supplier, vendor, stock keeper or distributor shall provide Labinal with the technical data as communicated by the manufacturers concerning the products under the contract, and any associated changes. L C [S-7.2b] The Supplier shall obtain any and all export licenses required in order to allow the data and equipment to be exported and re-transferred to the end user and/or the identified third parties. [S-7.2c] The Supplier shall keep Labinal informed of any applicable regulation/restriction concerning any exports of data and equipment already supplied or to be supplied to Labinal. [S-7.2d] The Supplier shall also make sure that its own subcontractors fulfil the same commitments in terms of the requirements applicable to export licenses. [L-7.2e] The supplier must know the export control classification of the items provided to the purchaser (ITAR, EAR, CIEMMG or any other regulation). For each controlled items under any export control regulation, the supplier must inform the purchaser immediately so that to assess the export and re-export restrictions affecting the procured. [L-7.2f] The Supplier shall verify for integrity and applicability the Procurement Plans sent by Labinal prior to manual or automatic input into their Production Management System. The Supplier shall use the Purchaser s Procurement plans and call-ups for their Master Production Schedule and Material Requirements Planning calculation C [L-7.2g] A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 19 of 69

20 When Labinal gives Instructions on Manufacture Processes, the Supplier shall Comply with the process Or Obtain the agreement from Labinal to use an already qualified couple with a transition plan towards the Labinal s process C [L-7.2h] The Supplier shall deliver to the Purchaser for acceptance the cascade for subcontracting. L C 7.3. DESIGN AND DEVELOPMENT [S-7.3a] Labinal reserves the right to attend the design reviews, as scheduled and held by the Supplier or its own designer-supplier. [S-7.3b] The Supplier shall demonstrate that the services or products resulting from the development or design work meet the requirements and objectives of Labinal in terms of the quality, costs and lead-times C [S-7.3c] The Supplier shall therefore set up a project management action as defined above, and shall indicate the organization, the human and technical resources and the processes and approved methodologies. L C C [S-7.3d] The organization set up by the Supplier shall comply with the following basic requirements: rigorous application of the project control rules and methodologies; ongoing control by cross-functional teams, at all stages in the project; recourse to resources from outside the project and having authority to decide upon the quality of the work performed; concurrent engineering principles for the execution teams. It is strongly recommended to group the teams geographically on working platforms, particularly during the intense design phases (definition phase, start of the design phase) in order to ensure better efficiency, while ensuring intense circulation of the information, analysis of the workload items, in consistency with the requirements [S-7.3e] Proper project control requires the prior identification and ongoing and explicit management of technical, industrial and commercial risks, using a number of tools of the FMECA type C [S-7.3f] The Supplier shall make sure that the equipment and the technical resources implemented in order to perform the design and development services are capable of meeting the requirements and objectives of Labinal C [S-7.3g] A vertical blue line or text in blue indicates a text updated compared to the previous edition. Page 20 of 69

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