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SUPPLIER MANUAL
FOR TBM
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Updates made to this TBM Supplier Manual, are effective beginning from
January 1st 2016
This manual has changed completely. Please read this manual carefully, in order to
identify changes made. Supplier is responsible for all requirements included, please
make sure all people related to this manual has a written copy at hand.
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TROQUELADORA BATESVILLE DE MEXICO (TBM) Supplier Handbook
Introduction
TBM has developed this handbook to communicate terms, conditions and requirements
to our supplier base. The handbook is available to all of our suppliers and is referenced
on every TBM P.O. as part of the sales agreement. Updates will be made as needed. The
most recent revision date will appear at the bottom of each page. Revisions apply to all
open purchase orders.
All issues and concerns should be communicated to the TBM Purchasing Manager, Quality
Manager, or to the appropriate TBM Buyer. The TBM Supplier Handbook should be
handled as a confidential document and should not be shared with any other customers.
Supplier Responsibilities and Requirements
Troqueladora Batesville de Mexico, S. de R. L. de C. V. is dedicated to delivering the
highest quality parts to our customers at the most cost competitive price. Every part
delivered to TBM must conform to the customer specifications.
Note: The following requirements are listed in two groupings: Production
Suppliers and MRO Suppliers.
All Production (metal, purchased parts, and outside service) suppliers to
Troqueladora Batesville de Mexico are required to:
• Provide 100% good quality product and service to TBM upon acceptance of each
order.
• Have 100% on time delivery.
• Have lot traceability.
• Move product in a first in, first out manner (FIFO).
• Insure that materials used in part manufacture meet existing governmental and
Safety regulations on restricted, toxic, and hazardous materials and any
environmental, electrical, and electromagnetic constraints that may exist in the
country where the material is being sold and manufactured.
• ©Submit SDS (Safety Data Sheets) on any chemical or substance supplied to
Troqueladora Batesville de Mexico.
• ©Parts are not be distorted in any way.
• ©All clean and deburr parts must have a minimum of 30 day Rust Inhibitor and
be dry to touch unless otherwise specified on the customer print or PO or other
specifications.
• Permit Troqueladora Batesville de Mexico personnel or TBM customer to visit the
supplier facility, upon verbal notification at any time, to verify production method
of parts or products. Visit by TBM or our customer does not absolve supplier of
quality requirements.
• Submit "certificates of insurance" showing proof of insurance and workman's
compensation coverage.
• Implement a documented disaster recovery plan in case of tire, tornado, etc.
• Submit all metal pricing (on new quotes) by referencing the "TBM Material Award
Memo" dated for current year.
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• ©Submit Level 3 PPAP and IMDS on all new jobs. (email to:
• Provide or show plans to provide bar code labels on all products delivered to TBM,
unless otherwise directed by TBM Purchasing or Quality Associate.
• Label, count, and package all parts to TBM specifications.
• Calibration system in place for scales a minimum of 2 times per year.
• Maintain a system that must be Certified to IATF-16949, or plans to be certified.
• Work toward a "Preferred Supplier" status.
• Notify appropriate TBM Buyer of ANY process changes per AIAG PPAP manual,
and get prior approval if deemed necessary.
• Provide technical support on all parts or products supplied to TBM.
• Provide immediate response on any defect or quality issues.
• Adhere to all guidelines, rules, and regulations of the TBM supplier handbook.
• Provide part certification, at Supplier's expense, by an accredited lab on all parts
you are awarded.
• Provide small lot pilots, pre-pilots, and trial lots, to production at production cost.
• Supplier must support end of program requirements at productions prices and
quantities relating to TBM needs.
• Continue to supply service parts requirements at production part prices for ten
years after production part obsolescence.
• Respond on rejected material within 7 days after being notified by TBM. (If the
Metal Supplier does not respond within 7 days after notification from TBM the
material is scrapped at the Supplier's expense).
• Be responsible for all charges (including express charges) incurred due to Supplier
being behind or due to Supplier Quality rejects.
• Comply to all standard skid sizes requested by TBM.
• Material must produce an acceptable product, (which means that it is fit for
Customer's application.)
• All Suppliers must sign a confidentiality statement.
• All Suppliers should quote product and services according to section # 5 of this
handbook.
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All MRO suppliers are required to:
• Provide 100% good quality product and service to TBM upon acceptance of each
order.
• Have 100% on time delivery.
• Insure that materials used in part manufacture meet existing governmental and
safety regulations on restricted, toxic, and hazardous materials and any
environmental, electrical and electromagnetic constraints that may exist in the
country where the material is being sold and manufactured.
• Submit SDS (Safety Data Sheets) on any chemical or substance supplied to
Troqueladora Batesville de Mexico.
• Permit Troqueladora Batesville de Mexico personnel or TBM customer to visit the
supplier facility, at any time, upon verbal notification, to verify production method
of parts or products. Visit by TBM or our customer does not absolve supplier of
quality requirements.
• Submit "certificates of insurance" showing proof of insurance and workman's
compensation coverage.
• Implement a documented disaster recovery plan in case of fire, tornado, etc.
• Provide technical support on all parts or products supplied to TBM.
• Adhere to guidelines, rules, and regulations of the TBM supplier handbook.
• © Basic Understanding and Compliance to TBM Standards and Principles.
• All Suppliers must sign a confidentiality statement.
• Comply with terms and conditions listed in Sec 11. (Terms and Conditions)
_______________________________ _____________________________
TBM Purchasing Manager TBM Quality Manager
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TROQUELADORA BATESVILLE DE MEXICO (TBM)
Supplier Handbook
Table of Contents
Subject Section
Introduction
Table of Contents
Company Profile 1
Quality / Supplier Development 2
Inventory, Scheduling and Delivery 3
Direct Ship From Outside Suppliers 4
Quoting lnformation 5
Supplier Rating Process 6
TBM Packaging, Paperwork and Barcode Label Requirements 7
©ISO / TS / Environmental Requirements / Safety Requirements 8
Supplier Contacts 9
Price Increase Policy 10
Accounts Payable (terms & conditions, TBM Credentials) 11
TBM Required Forms 12
TBM Supplier Related Documents 13
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TROQUELADORA BATESVILLE DE MEXICO (TBM)
Policy Statement
Success Through Continuous Improvement
Comply with Requirements
Improve the Environment
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Troqueladora Batesville de Mexico Supplier Handbook
Quality / Supplier Development
This section of the Supplier Handbook identifies requirements for the following:
Production Process Approval:
1) Overview/Requirements for PPAP
2) Supplier Request for Process Approval
3) Nonconforming Product Traceability
4) Guidelines and Policies for "Sorts" by Suppliers
5) Supplier Quality Audits
6) Part Certification (Ship -to- Stock Flow Chart)
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Troqueladora Batesville de Mexico
Supplier Handbook
Production Process Approval
©1) Overview/Requirements TBM requires Level 3 PPAP and IMDS submission from their Suppliers unless otherwise stated. TBM suggest that all Suppliers obtain a copy of the AIAG PPAP Manual. PPAP Manual is available for a small fee and can be ordered through AIAG. Contact AIAG at 1-877-275-2424 or
www.aiag.org. PPAPs must comply with AIAG requirements. Test results must be from an A2LA
accredited lab or ISO/TS 16949 Certified Lab. When submitting a PPAP to TBM, make sure all documents are included and in order. All documentation must be included in a single packet (file - Adobe Acrobat) to be accepted and approved. All documentation in a PPAP packet should pertain to the job # being submitted. Only submit one job # per Adobe Acrobat file. Email to: [email protected]
©2) Supplier Request Process Approval The Supplier Request Process Approval is a method to track any changes a supplier needs to make regarding a part. The change may be related to a location change within the Company, a rework process approval, an engineering change, or any significant process change. Whenever a supplier recognizes that a change is needed, this document is used to communicate the change request and seek approval from TBM, see form and work instruction F-7.4.1.2i & I-7.4.2m in Section 12
and Section 13 for more details. Most requests result in indirect changes in other areas. For example, a change of location could result in shipments coming in to TBM without labels. This
document is used to minimize these types of situations. ©3) Nonconforming Product Traceability The supplier is responsible for assuming that TBM lot traceability is maintained throughout the supplier's facility. TBM uses the Barcode serial # from the Barcode Label to track the part from
start to finish. If nonconforming product is received by the supplier from TBM, it is the supplier's responsibility to contact the Troqueladora Batesville de Mexico Purchasing Buyer. Supplier MUST notify TBM SQT (Supplier Quality Technician) for a Hold Tag, so that product can be identified and dispositioned. If nonconforming product is produced by the supplier and it is discovered prior to shipment, it is the supplier's responsibility to contain all nonconforming product. It is the intent of Troqueladora
Batesville de Mexico to produce a product that meets our customer requirements and expectations every time. A product that is out of specification, or that is not packed in accordance with planned production methods, or labeled incorrectly, can cause expensive and unnecessary downtime. The supplier will be held financially accountable for expenses incurred due to not meeting
requirements.
Non-Conforming product should be placed in a different type container than what finished "Good" parts are packed in. (Ex. red tote). Dropped parts are to be scrapped, placed in a non-conforming container not to be used or considered good due to possible bent/damaged parts. We believe that through detailed planning, tracking, and process control, TBM and its supplier
base can continually work towards a zero defect status.
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Troqueladora Batesville de Mexico
Supplier handbook
Production Process Approval
© Nonconforming Product Traceability cont. © Suppliers have 24 hours from time of contact (phone and/or e-mail) by TBM to enact a containment plan if notified of non-conforming product found at TBM and/or at TBM's customer. Response is required in writing on a plan to quarantine all suspect product at ALL locations, part
disposition (sort, scrap, rework, etc...) and how good parts are going to be identified (stickers,
tags, paint marking etc...) coming into TBM. © When it does become necessary to so non-conforming product and trough investigation and analysis it is determined that the nonconformance originated from a particular supplier, that supplier is expected to bear the cost of that burden. The following is a set of guidelines that are used when nonconforming product has been found:
1st offense supplier can send in a sort facility by contacting the TBM SQT (Supplier
Quality Eng.). The SQE will have information on sort facility options in the area to sort the nonconforming product. Suppliers have the overall responsibility to find sorters and provide follow-up information to TBM SQE. When necessary the supplier will be notified to oversee the sort at TBM. 2nd offense supplier is to send in a representative from their facility to oversee the sort.
If time doesn't permit, Troqueladora Batesville reserves the right to s01t nonconforming product
and debit the supplier for sort charges. © Once sort has ended, the supplier has 24 hours to disposition (return, scrap, etc...) the nonconfo1ming parts. If not, TBM will either scrap or return the nonconforming parts at the supplier’s expense. If Troqueladora Batesville sorts, a sort charge of $28.50 per hour, per Associate, is debited to the
supplier. If a supplier sends representatives, the supplier's quality report only reflects that product that is found to be non-conforming. If Troqueladora Batesville sorts the product, the supplier's quality report reflects the entire amount of product that needs to be sorted. The need for sorting should be a rare requirement for supplier's product. When the need arises, we believe that quality feedback data can be gained by having members of the supplier's organization do the sorting. © If time allows for the parts to be sent back to the supplier, and the supplier requests this,
instead of sorting the parts at TBM, the total amount of parts sent back to the supplier will be counted against them. We highly encourage the supplier's interaction in these matters. Troqueladora Batesville may also require the supplier to share in, or assume other costs associated with nonconforming product. These additional costs include, but are not limited to, express freight
charges and TBM customer charge backs.
©4) Guidelines and Policies for "Sorts" by Suppliers In-house and at Customer's Facilities When it becomes necessary for a supplier to sort or rework components at TBM or at one of our customer's facilities, they must comply with all of the safety and procedural policies and guidelines established for that facility. The appropriate TBM Quality Associate will contact and work with our suppliers in organizing and relaying the criteria necessary to successfully complete the sorting or rework event in a timely manner. No parts, components, or material should be removed without
the authorization of the TBM Associate in charge of the event.
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Troqueladora Batesville de Mexico
Supplier handbook
Production Process Approval
Guidelines and Policies for "Sorts" by Suppliers
In-house and at Customer's Facilities
Cont.
TBM supplies or arranges to have all equipment and tools, necessary to perform and
complete the sort or rework event.
The supplier's personnel are expected to stay until an adequate number of parts or
components have been sorted or reworked to sustain production. Upon completion of
the sort or rework event, the parts or components must be clearly identified with tags
supplied by TBM personnel to signify that the parts or components have been completed.
Copies of the sort and hold tags are included in this Section 12.
The sorting team is required to clean up all trash, dunnage, and any excess material left
from the sorting or rework event. The supplier's personnel are required to coordinate
their work schedules with the TBM Associate in charge. Supplier's personnel cannot leave
the premises without notifying the responsible TBM Associate.
When supplier personnel are involved in a sorting or rework event, the particular facility's
dress, safety codes, and procedural guidelines must be strictly followed. Remember, we
are guests. The following stipulations are some standard guidelines to adhere to while
involved in a sort event:
1) No shorts or dresses.
2) No open toe shoes, sandals, high heels or tennis shoes (unless steel toe).
3) No torn jeans or tank tops.
4) No shirts or hats with inappropriate or offensive writing or logos.
5) Alcohol or drugs are not tolerated.
6) Appropriate personal protection equipment must be used.
7) Responsible TBM Associate must be aware of sorting or rework crew
whereabouts at all times during the event.
8) No smoking, except in designated areas outside the building is permitted.
©5) Supplier Quality Audit
TBM reserves the right to perform audits on suppliers at any time. It is TBM's
requirement to have all suppliers develop a quality system which is certified to IS0-
9001:2008, or IATF16949.
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Troqueladora Batesville de Mexico Supplier handbook
Scheduling and Delivery
Scheduling and Delivery All OSS Suppliers are expected to process parts within the lead days listed below. Troqueladora Batesville de Mexico also provides (where applicable) a daily "OSS Supplier Schedule". This schedule will list all known ship dates that are approaching within the next several days. This schedule will also assist suppliers in responding to unexpected rush orders, which may get moved
onto the schedule.
Suppliers should process parts in the following manner unless otherwise directed by the TBM Buyer: 1. Meet all of the requirements listed on the "OSS Supplier Ship Schedule" (If supplied). 2. Next, Process all parts in a "first in, first out" manner in accordance with the lead days listed below:
a) If batch sizes are too large to process all parts within the appropriate lead days, then the supplier is expected to run the maximum amount of parts possible each day until all parts are complete.
b) Satisfy all requirements in full container quantities if possible. Lead Days for Outside Service Supplier Delivery, Processes The Maximum process time for OSS delivery is as follows:
Assembly 4 Days Repack @ TBM 2 Days Deburr/Clean/Degrease **Outside 3 Days Passivate 3 Days
Dacro 4 Days E-Coat/Powder Coat/Oxide 4 Days
Heat Treat/ Anneal 4 Days Phosphate 3 Days Machine/Mill 4 Days Plate 3 Days Deburr & Plate 3 Days Nylon Coating 9 Days Electro Polish 6 Days
Geomet 5 Days Geomet 720 9 Days Metal Jacket 6 Days OSS Sort/Repack 3 Days Cathodic Coatings 4 Days Electro-polishing 6 Days Trivalent Zinc Nickel 10 Days
©Over Molding 10 Days ©lnjection Molding 10 Days
Note: Any supplier who cannot meet the delivery requirements stated above, should contact the TBM Buyer with a catch up plan including overtime if necessary. If a supplier's actual turnaround time exceeds "Lead Days" listed above, the supplier may be subject to express freight and / or
down time charges which are incurred.
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Troqueladora Batesville de Mexico Supplier handbook
Scheduling and Delivery
Note: Loading of product being shipped to TBM is to be done in a safe and
orderly fashion as to not cause damage to product during transportation. Any
questions or special requests should be conveyed to the purchasing or quality
contact at TBM. Here are a few guidelines:
• Do not double stack cardboard crates that have product in them.
• Empty crates may be stacked in a fashion that does not allow them to
fall onto good product or cause damage to any product.
• Do not double stack skids of cardboard boxes on each other.
• Boxes may be stacked onto solid plastic skids with lids when needed
but must be secure to not allow wooden skids to slide off the plastic
below it or cause damage to the skid below it.
• Do not stack heavier product on top of lightweight product as to cause
any crushing of the material in the bottom container or containers.
• If material is stacked, it must be done so in a fashion to avoid spillage
or damage of product. Make sure the load is secure and stacked in a
fashion as to not fall over during transit.
Note: Shipment of parts returning to TBM from OSS Suppliers cont.
Exceptions to the above rule may be granted upon request by supplier. All deviation
requests should be directed to TBM purchasing or quality representative. (Examples of
exceptions are service parts, "hot" parts where we are allowed to ship partials to the
customer etc...).
Metal and Purchased Parts Supplier Delivery
Metal or Purchased parts are required to arrive at TBM on date specified on the Plex
"Online Releases" screen or the "Purchase Order".
Supplier rejects are issued for Early/Late deliveries unless prior approval is given by
appropriate TBM Buyers (Deliveries must arrive on date specified). Supplier rejects are
also issued for quantities over/under schedule.
Commitment Explanation: In the event that a job becomes obsolete or there is a
specification change, TBM is only responsible for any "Firm" releases listed on Plex "On
Line Releases" screen. TBM is not responsible for quantities on Plex "Material
Requirements Forecast" or the "Components Requirement Forecast" screens. These
screens should be used for planning purposes only.
Special note for Purchased part or Supply parts providers:
TBM expects purchased part providers to have enough inventory on hand for TBM
production needs. However, TBM also expects suppliers to control inventory levels in a
manner that will minimize inventory liability for TBM and the supplier.
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Troqueladora Batesville de Mexico Supplier handbook
Scheduling and Delivery
Metal Suppliers Performance to Schedule Requirements:
All TBM metal suppliers are responsible for having scheduled material at TBM on time,
every time. We will discuss delivery delay issues that may arise, however TBM will expect
to be notified at least one day, preferably two days, in advance of scheduled date. If the
supplier cannot supply the material on time and does not give notice, that supplier may
be held responsible for expenses incurred by TBM, including but not limited to express
delivery charges and press down time. If the supplier does not give proper advanced
notice of delivery issues, the supplier is still expected to find possible alternative sources
for material whenever possible, and supply alterative material when necessary at regular
material price.
©TBM will work with suppliers to fill trucks, but does not guarantee truck load quantities.
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Troqueladora Batesville de Mexico Supplier handbook
Direct Ship From Outside Service Suppliers
Outside Service Suppliers are required to follow requirements identified in TBM's
following work instruction “Direct Ship from Outside Service Supplier”. In the event there
are questions or issues please contact your respective Purchasing Contact (see Section
9).
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TBM´s Work Instruction
Direct Ship from Outside Service Supplier
INSTRUCTION
1.0
OSS Buyer may choose how they communicate shipment schedules to the OSS Supplier.
TBM assumes that the OSS Supplier is making the shipment as scheduled unless they
notify the appropriate OSS Buyer. It is the Outside Service Suppliers responsibility to
notify TBM's Buyer if the shipment is short or if the Outside Service Supplier is unable
to make the shipment. TBM requires the Outside Service Supplier to notify TBM's Buyer
at a minimum of 3:00pm the day before shipment if there are problems with the
shipment. This enables us to notify the Customer and make necessary arrangements.
1) The OSS Supplier is responsible for following the schedule(s) provided.
2) The OSS Supplier is responsible for bar code labeling product before shipping.
3) The OSS Buyer is responsible for telling the OSS Supplier which trucking
company to use.
4) It is the OSS Supplier responsibility to call in the truck for shipment.
5) The OSS Supplier is responsible for making a Bill of Lading for shipment. The
Bill of Lading must clearly show the Customer ship to address. Bill of Lading
should ALWAYS be marked COLLECT/PREPAID depending on the
circumstance. The Bill of Lading should state "Do Not Stack Parts".
6) The OSS Supplier will send a copy of their shipper with the shipment.
7) © The OSS Supplier is responsible for emailing a copy of the shipper to TBM
as soon as the truck leaves. If the truck is a late truck, the shipper must be
emailed before 10:00 am the next day. The paperwork needs to be
emailed/faxed to the Purchasing Clerical associate.
8) If applicable, the OSS Supplier will be responsible for sending an ASN to the
Customer. OSS Buyer will notify the OSS Supplier if this pertains to them.
***** FAILURE TO DO THE ABOVE STEPS MAY RESULT IN DELAY OF PAYMENT TO YOU! *****
QUALITY VERIFICATION BY SUPPLIER BEFORE SHIPMENT
Inspection of finished parts is done before shipment. Parts are inspected per the
purchase order requirements, quality standards or any additional requirements decided
by TBM's Customer.
NO BOXES CAN BE SHIPPED UNTIL INSPECTED AND BAR CODE LABELS ARE ON BOXES
All parts that ship directly from an OSS Supplier to a TBM Customer will follow the following instructions:
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Troqueladora Batesville de Mexico Supplier handbook
Quoting Information
Suppliers to Troqueladora Batesville de Mexico, have the opportunity to quote parts for potential
new business. It is very important that each quote is very precise and contains all the information that is requested on the RFQ (Request for Quote) sheet. Material must produce an acceptable product, (which is fit for Customer's application). The following list is information that should be contained on every quote:
• Part description and TBM job number (when available), TBM Quote Number.
• Estimated Annual Quantities Quoted.
• Price of material, service, or process. • All non-standard Lab Testing should appear in the quote as a separate line item. • Possibility of a surcharge and if so, the appropriate price range. • Type of process quoted (ex. Plating - Barrel/ Rack) • Lot traceability. • All OSS part quotes must include total packaging cost. (Packaging should be broken
out on quote.) • Transportation of Part (ex. FOB - Batesville / FOB - Supplier) • Purchased Parts Must have piece weight on every quote.
Note: Troqueladora Batesville Mexico figures the cost of freight per part on every quote. If you do not add freight; we will.
• © TBM request delivered pricing on Metal quotes. • Price should be firm for one year or length of proposed contract. • For metal, price must be per lbs. or cwt. For a service being provided, price must be
per part. • Scrap allowances on quotes are not acceptable. If a Supplier does choose to include a
scrap allowance on any quote, the cost of that scrap allowance will be added to the
Suppliers quote prior to comparison with other Suppliers. • All piece weight on quotes are approximate.
TBM RFQ and Job Award Process The following information is to inform you of the internal RFQ (Request For Quote) process at TBM. When an RFQ is received from a TBM customer the process flow is as follows:
• The RFQ is received from the customer. • Purchasing Clerical sends out RFQs to TBM suppliers. The bid list used for the process
is provided and updated by the TBM Purchasing Dept. • The information from the completed TBM supplier RFQs are then itemized on a
spreadsheet and sent to the appropriate TBM buyer. • The TBM buyer makes a decision based on service history and a total cost scenario.
(Only suppliers on the "Approved Supplier List" are considered for new business
awards) • The completed information from the buyer is sent to the Purchasing Manager for
approval. • Upon Purchasing Manager's approval, the information is then sent back to the TBM
Cost Estimator (Sales) for TBM product cost compiling.
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Troqueladora Batesville de Mexico Supplier handbook
Quoting Information
TBM RFQ and Job Award Process
Cont.
• The TBM Sales Department then compiles TBM product cost and sends
completed quote to TBM customer.
• If TBM receives the job, the appropriate TBM suppliers are contacted with
production start-up dates.
• TBM reserves the right to re-quote material or processes at anytime prior to
award.
Note: The time frame of TBM quote submission to our customers and verification of
customer job award could be as long as a year so please be patient.
Long Term Agreements
Troqueladora Batesville de Mexico purchase the vast majority of carbon metal products
used for production via an AMM or CRU as Cost Adjusting process. On occasion TBM asks
suppliers to quote for the opportunity to supply material for several years on particular
jobs. All long term agreements such as those previously mentioned will be honored by
Troqueladora Batesville de Mexico as long as:
Our customer does not demand that we move material supply source or reduce
price of material or risk losing the business.
Our customers continue this business with TBM.
Supplier continues to supply acceptable quality and service as outlined in the TBM
Supplier Handbook.
Supplier adheres to all items in the long term agreement.
Note: TBM Buyers will give All Suppliers preliminary feedback on quotes on a limited
basis. Please use the following process:
Suppliers should contact Buyers (email) and ale1t them that you are requesting
feedback on a particular quote. (Please limit feedback to 5-6 in a 6 month period).
Request should be made at the time you are faxing/emailing the quote back to
Batesville.
Customer Specific Requirements:
• All Honda and Autoliv finished parts must be packaged utilizing Poly Labels.
• No ceramic media may be used for the processing of Autoliv parts.
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Troqueladora Batesville de Mexico Supplier handbook
Selection and Evaluations of Suppliers
The following definitions and explanations describes in detail the supplier selection and
evaluation process of TBM.
(see FL-6. l.2b TBM Supplier Rating Flow).
Expectations
Every supplier to TBM is expected to supply the highest quality material or service at the
most economical price possible. Suppliers are tracked and expected to perform 100%
on time delivery to prearranged delivery dates. For more details see QP-6.1.2 Supplier
Selection and Evaluation in Section 13.
Bid List
The bid list is a list of suppliers that is maintained, updated, and circulated by the
Purchasing Clerical at the discretion of the Purchasing Manager. This list is made up of
current suppliers and potential new suppliers that are used to perform RFQs (request for
quotes) on potential new business items. Potential new suppliers on the list are added
and replaced at random in an effort to constantly perform price analysis on the market,
while completing necessary day-to-day duties. Any supplier can be added to the bid list
at the discretion of the Purchasing Manager, regardless of the supplier's status.
Approved Supplier List
The approved supplier list is a list of suppliers that is maintained, updated quarterly. The
Approved list is maintained based on a set of scoring criteria outlined in the "supplier
scoring matrix". It is made up of suppliers that have not fallen under the
approved/preferred status for 3 consecutive quarters. If a Supplier does not hold at least
an "Approved" status, they may not receive new business from TBM. The preferred
supplier status is a subset of all of the approved suppliers and are those suppliers who
excel at what they do and receive evaluation scores that regularly exceed a certain
threshold based on performance. The preferred suppliers receive additional
consideration over other approved suppliers when new business items are awarded.
TBM Approved Supplier status is based on performance.
To Add a New Supplier:
1) The Purchasing Manager places the potential new supplier on the bid list.
2) The Purchasing Department sends out a preliminary supplier survey.
3) The Purchasing Manager reviews the survey.
4) An assessment audit is performed.
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Troqueladora Batesville de Mexico Supplier handbook
Selection and Evaluations of Suppliers
© Supplier Quarterly Performance: Every supplier's performance is continuously
monitored. Each supplier will receive their performance score every 3 months.
Score card performance is based on: Quality, Delivery & Service
The supplier's score allows them to be placed in one of the three following categories:
Supplier Category Status
Favorite Supplier This is the highest status that a supplier can obtain.
The preferred suppliers are
subsets of all the approved
suppliers, based on a score that
reflects excellent performance.
These suppliers receive
additional considerations when
new business items are being
awarded.
Approved Supplier These suppliers are placed on
the "Approved Supplier List"
based on their score.
Require Improvement Supplier
These suppliers are not awarded
any new business, based on their
score. If they presently supply
products or services to TBM,
they are directed by Quality
Manager or Purchasing Manager
on improvement plans. If their
performance does not improve
they are slated for discontinued
business.
Further clarification of supplier category and status can be found in (supplier scoring).
A supplier may move from one category to another based on continued performance.
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Troqueladora Batesville de Mexico Supplier handbook
Selection and Evaluations of Suppliers
Suppliers are audited as needed, based on performance or Non-ISO/AITF certification
(with TBM customer approval only), using the format FO-CO-01 Evaluation of Supplier’s
Quality System.
DEGREE OF COMPLIANCE
RESULT RECOMMENDATIONS
90 A 100 ACCEPTED RELIABLE SUPPLIER
70 A 89 FULFILLS IN MAJORITY
A PLAN OF IMPROVEMENT IS REQUIRED TO IMPROVE ON
WEAK POINTS
UNDER 69 NEEDS
IMPROVEMENT
REQUIRES A SUBSTANTIAL PLAN OF IMPROVEMENT TO
THE SYSTSEM
The purpose of this program is to target the best suppliers available for new and
continued business based on: quality, continued service, and most competitive overall
cost.
©Supplier Quality Rating
The Supplier Quality Rating section is a measure of Quality, Delivery, and Service issues.
The Supplier Rating System rates the areas of Quality, Delivery, and service. PPM stands
for the total number of rejects received in relation to 1,000,000 parts received or total
number of rejects divided by total number of parts received times 1,000,000. This PPM
value is then given a relative score. There are three sections to the Supplier Quality
Rating System.
1. Quality Section
This section pertains to the quality level of parts received by Troqueladora Batesville de
Mexico. Troqueladora Batesville de Mexico’s suppliers are expected to monitor and
control their process; therefore, any defects found at TBM or at our customer's facility
are considered within this section. This section, along with Corrective Action
responsiveness, carries the heaviest point values.
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QUALITY
PPM's Points
0 to 20 30
21 to 35 15
More than 36 0
ISSUES Points
0 30
1 15
2 or More 0
Quality Target 60
2. Delivery
For all suppliers deliverys on time and complete, and also if there is any expedite issue
related to supplier.
DELIVERY
COMPLETE / ON TIME
Points
100% - 99% 20
98% - 95% 15
94% - 90% 10
89% or Less 0
EXPEDITED Points
0 5
1 or More 0
Delivery Target 25
3. Service
For suppliers receiving a TBM Supplier Quality Rejection Notification, the amount of time
it takes the supplier to respond with an acceptable cause and countermeasure is
evaluated in this section. Timely responses results in a score of 15 pts.. No response to
corrective action required or incomplete is a score of 0 and is carried until corrective
action is closed out.
SERVICE
RESPONSE Points
Firsts 5 Days 10
More than 5 Days 0
PPAP REVALIDATION Points
On time and complete 5
NO 0
Service Target 15
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Troqueladora Batesville de Mexico Supplier handbook
Supplier Scorecard
SUPPLIER :
EVALUATION TOPIC January Febrary March April May June July August September October November December 1 º Quarter 2 º Quarter 3 º Quarter 4 º Quarter ANNUAL
Received parts 0.00 242110.00 0.00 100800.00 0.00 240000.00 0.00 100800.00 242110.00 340800.00 145727.50
Rejected parts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
PPM 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
30, 15, 0 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 15.00
ISSUES 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
30, 15, 0 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 30.00 15.00
COMPLETE /
ON TIME100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50%
20, 15, 10, 0 20.00 20.00 20.00 20.00 20.00 20.00 20.00 15.00 20.00 20.00 10.00
EXPEDITED 0 0 0 0 0 0 0 0 0 0 0%
5, 0 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 2.50
RESPONSE YES YES YES YES YES YES YES YES YES YES
10, 0 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 5.00
PPAP YES YES YES YES YES YES YES YES YES YES
5, 0 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 2.50
EVALUATION 100.00 100.00 100.00 100.00 100.00 100.00 100.00 20.00 0.00 0.00 0.00 0.00 100.00 100.00 0.00 0.00 50.00
PPM's Points Points Points
0 to 20 30 20 10
21 to 35 15 15 0
More than 36 0 10 Points
ISSUES Points 0 50 30 Points 01 15 5
2 or More 0 0
Quality Target 60 25 15
TOTAL
SCORE
90 - 100
70 - 89
< 70
COMPLETE / ON TIME RESPONSE
COMPONENTS - SUPPLIER
PERFOMANCE YEAR 2017
ACME SA
AVERAGE
QUALITY
DELIVERY
SERVICE
SCORE
QUALITY DELIVERY SERVICE
100% - 99% Firsts 5 Days
98% - 95% More than 5 Days
94% - 90% PPAP REVALIDATION
89% or Less On time and complete
EXPEDITED NO0
1 or More
Delivery Target Service Target
CATEGORY
FAVORITE
APROVED
REQUIRES IMPROVEMENT
January Febrary March April May June July August September October November December
Monthly
Score100.00 100.00 100.00 100.00 100.00 100.00 100.00 20.00 0.00 0.00 0.00 0.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
1 º Quarter 2 º Quarter 3 º Quarter 4 º Quarter ANNUAL
Score 100.00 100.00 0.00 0.00 50.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
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EFFECTIVE: January, 2016
REVISION: 4.0
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Troqueladora Batesville de Mexico Supplier Scoring Matrix
Scoring Description
Note: Entire Rating & Scoring Criteria has changed
Rating Area Rating Criteria Score Possible
Quality PPM 0-20 30 points
(total rejects/total shipped 21-35 15 points
X 1,000,000) 36 + 0 points 30 points
Quality Issues 0 30 points
1 15 points
2 + 0 points 30 points
Delivery Score 100% - 99% 20 points
(On time and complete) 98% - 95% 15 points
94% - 90% 10 points
89% or Less 0 points 20 points
Expedited Delivery 0 5 points
1 + 0 points 5 points
Response to Corrective Action First 5 days 10 points
More than 5 days 0 points 10 points
PPAP Revalidation On time and complete 5 points
Not received 0 points 5 points
Total Possible= 100 Points
EXAMPLE:
Supplier: XYZ Plating Shop
December January February
ppm score ppm score ppm score
Quality ppm 22 15 20 30 15 30
Issues score Issues score Issues score
Quality Issues 1 15 0 30 0 30
Delivery 20 15 20
Expedited Delivery 5 5 5
Response to Corrective Action 10 10 10
PPAP Annual Revalidation 5 5 5
Total = 70 95 95
Quarterly Score = 70 + 95 + 95 = 260/3 = 87 points out of 100 possible.
N°: DC-CO-001
EFFECTIVE: January, 2016
REVISION: 4.0
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Troqueladora Batesville de Mexico
Finished Product Requirements
TBM is responsible for issuing purchase orders and shippers identifying all requirements
for Outside Service Supplier.
Outside Service Supplier is responsible for verifying all requirements specified are met
before shipping product back to TBM.
Finished Product Requirements
Outside Service Supplier must verify that All TBM packaging requirements specified are
met before shipping product to TBM. Outside Service Supplier verifies the following:
Verify that a box quantity and type has been established.
Verify that parts are packed into the collect container with the correct quantity. This
is specified on the purchase order.
Verify that all bar code labels (if applicable) and paperwork are finished and securely
attached to the skid.
If packed into returnable containers, all old barcode labels and paperwork must be
removed, and insides cleaned out.
Cardboard boxes must be taped shut, unless stated otherwise.
All skids must be shrink wrapped unless other arrangements are made and approved
by TBM's Buyer.
Shrink wrap must be to the skid, not just to the containers and must be pulled tight,
but not so tight as to deform the containers.
A minimum of three wraps must be around the skid unless standard wrapping
requirements are set.
On certain jobs, special wrapping may be required and this is specified on the
purchase order. (Ex: corner boards required on the top edges, skid banded and
shrink wrapped).
Container Requirements
If the quantity for a bulk container is not specified, the quantity is determined by the
amount of product received or processed by the Outside Service Supplier.
For parts that are packed onto skids, all of the full containers must have the same
quantity that is specified.
A Supplier can only send one partial skid, per job number, per shipment.
Remember, the supplier must be granted a deviation from TBM Quality representative
prior to shipping a partial box.
The partial box must have a partial container tag that can be easily seen on the
skid.
Finished product must be packed into the same size container that is specified.
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Troqueladora Batesville de Mexico Finished Product Requirements
Container Requirements Cont.
If the lot goes over the maximum number of containers specified, but is less than one
full layer, all containers can go on 1 skid.
If there are any special circumstances where the Supplier may need to exceed the
maximum quantity, the Supplier must call TBM's appropriate Buyer.
TBM containers are to be completely empty before returning to TBM. Arrangements must
be made with TBM Buyer for the return of TBM containers. TBM containers can only be
used for TBM parts.
Note: Please return containers in a timely manner. TBM Cardboard Crates can be re-
used. Please return with as little damage as possible.
Skid Size
If the skid size is not specified on the purchase order, then the skid must not exceed 42"
wide (towmotor, fork side, front) X 48" long. This allows the skid to fit into TBM's racks
and the Customers racks.
The skid must be useable and in good condition with no broken boards.
Supplying Packaging
Outside Service Supplier must notify TBM's OSS Buyer if any alternative packaging
material needs to be used.
This must be approved prior to shipment to TBM.
If TBM is responsible for supplying packaging, the packaging material is sent either with
the product or prior to the shipment of the product.
Outside Service Supplier must notify TBM's OSS Buyer if packaging material is not
received. Other arrangements for packaging material are made at this time and a
deviation "ok to ship" form F-13.4b is issued to the supplier by TBM appropriate Buyer.
If parts do not have a deviation form attached for any deviation issued, parts will be
rejected and counted against the Supplier's PPM and evaluation score.
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Troqueladora Batesville de Mexico Supplier Hanbook
Outside Service Paperwork Requirements
Outside Service Supplier WIP Label
The color of the Outside Service Supplier WIP Label is located near the bottom of the
label in bold letter. Colors are: Blue, Orange, White, and Yellow the color depends on
the next operation of the job.
Keep rework parts separated from all other product. Must use "Rework Label". All Rework
needs cleaned up on a weekly basis.
Special Parts Tag, Keep Separate Tag, V-Sort, and P-Sort Tags
If a container of product received by the Outside Service Supplier has a "Special Parts
Tag" or "Keep Separate Tag", a "V-Sort" or a "P-Sort" tag then Supplier must read the
tag to verify whether or not the tag applies to their process. If so, the Supplier must
follow instructions listed on the tag.
Only parts with the same "Special Parts Tag", "Keep Separate Tag", "V-Sort" or "P-Sort"
tag may be mixed during batch processing unless the tag states otherwise.
"Special Parts Tags", "Keep Separate Tags", "V-Sort Tag" or "P-Sort Tag" must remain
with all lots produced off of original container. If there are more than one skid or batch
container that is produced off the original container, copies of the tag must be made and
placed on each container. The tag must be copied on the same color paper.
If the Supplier has any questions about the instructions listed on the tag, contact TBM's
Supplier Quality Tech, Quality Manager or Buyer.
Supplier Reject Tag
If the Outside Service Supplier has parts that are non-conforming and need reworked,
stripped, re-ran, the Outside Service Supplier must notify TBM Quality Dept. or Buyer.
The TBM Quality Dept. or Buyer will fill out a Supplier Hold Reject Tag and e-mail/fax it
to the Outside Service Supplier to be placed on all containers of nonconforming parts.
The Supplier Hold Reject Tag must remain on patrts when shipped back to TBM. If TBM
receives non-conforming parts from the Outside Service Supplier, TBM places a Supplier
Hold Reject Tag on All suspect parts and rejects back to Outside Service Supplier. Once
parts are sorted, reworked, etc..., the Supplier Reject Tag must stay on each container
when returned back to TBM.
TBM Hold Tag
If a container of product is received by the Outside Service Supplier that is suspect non-
conforming, the supplier notifies the TBM Quality dept. for a hold tag. TBM Quality dept.
will fill out a hold tag and e-mail/fax it to the supplier to be placed on all suspect parts.
Suspect parts are sent back to TBM with the hold tag placed on each container. The hold
tag should be copied on red paper.
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EFFECTIVE: January, 2016
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Troqueladora Batesville de Mexico Supplier Hanbook
Outside Service Paperwork Requirements
Miscellaneous Data & Paperwork
Product that is shipped to Outside Service Supplier must have a TBM WIP Label, this is
located on one of the sides of the container.
All parts must have a Plex label.
Plex Labels contain TBM's Lot Traceability information for that particular lot (container).
© If the supplier is unable to print a label, a deviation form must be requested from TBM
Purchasing Dept. Deviation form must be attached to skid/container of parts when being
sent to TBM.
Paperwork Placement
The data or paperwork must be taped or wired to the side of the skid or tub/container
with the processed product.
Note: Deviation form must be used on skid when deviation is issued for no
labels, missing WIP label, wrong packaging etc. Deviation forms are to be
requested through TBM appropriate Buyer.
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EFFECTIVE: January, 2016
REVISION: 4.0
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Troqueladora Batesville de Mexico Supplier Hanbook
OSS Barcode Labeling Requirements
All Troqueladora Batesville de Mexico customers require us to bar code label each box
or skid. All barcode labels supplied by the OSS Supplier must first be approved by the
Troqueladora Batesville de Mexico MIS Department.
NOTE: SUPPLIER MUST VERIFY THAT THE TBM JOB/OPERATION ON THE PLEX
WIP LABEL MATCHES THE JOB/OPERATION NUMBER ON THE FINISHED PART
BARCODE LABEL PRIOR TO ATTACHMENT.
lf there are any quality, labeling or packaging errors or concerns, one of the following
could occur:
1) TBM reserves the right to charge a $50.00 hold tag charge
for any reject/hold tag.
2) Supplier is issued a Corrective Action. An issue of a corrective
action effects the monthly evaluation score directly.
3) All inventory at TBM requiring relabeled is the responsibility of
the supplier which they may do one of the following:
a. Come in and relabel
b. Call in Temporary Service to come in and fix the issue.
c. Have parts sent back (reject if time allows)
d. TBM associates relabel at a standard rate of $28.50 per
hour per person.
4) All failures to comply are communicated to the Supplier Quality
Team.
N°: DC-CO-001
EFFECTIVE: January, 2016
REVISION: 4.0
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Troqueladora Batesville de Mexico Supplier Hanbook
Standard Bar Code Labeling Requirements
Standard Box Labeling: There are two labels per box. Place the labels on the box so
that they are corner to corner (as per AIAG standard). See page 7.8A
** Exception: Honda Labels are placed end to end on boxes (See page 7.8E). For
plastic bags, one label placed on the outside of the bags
** Make sure both labels have the same serial number. Barcode labels are generated in
sets. Place the boxes on the skid so that at least one label is visible.
Standard Bulk Labeling Finished Parts: There are two labels per crate. Place the
barcode labels in the upper left hand comer of both the front and back of the crate, as
pictured above. See page 7.8G
Standard Bulk Labeling WIP: The BTD WIP Label should be placed in the middle of
the front of the crate. See page 7.8G.1
See P.O. for exceptions.
NOTE: SUPPLIER MUST VERIFY THAT THE TBM JOB/OPERA TION ON THE PLEX
WIP LABEL MATCHES THE JOB/OPERATION NUMBER ON THE FINISHED PART
BARCODE LABEL.
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EFFECTIVE: January, 2016
REVISION: 4.0
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EFFECTIVE: January, 2016
REVISION: 4.0
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REVISION: 4.0
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REVISION: 4.0
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N°: DC-CO-001
EFFECTIVE: January, 2016
REVISION: 4.0
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REVISION: 4.0
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Troqueladora Batesville de Mexico Supplier Hanbook
Packaging and Barcode Label Guidelines for Metal
This work instruction is a set of guidelines that TBM Metal Suppliers should use in the
event questions arise. The P.O. identifies the requirements of Metal. In the event there
are questions, contact appropriate Buyer.
1) All coils must be labeled.
2) All coils on a skid must be labeled somewhere in the "front face" of the skid
(preferably inline with skid runner). If there is more than one coil per skid, all coils
must be labeled on the same "front face" of that skid.
3) All standup coils are to be labeled on the top 1/2 of the coil, so that labels are easy
to access.
4) Master labels stating the total coils and weight on the skid are optional.
5) Each coil must have a tag containing the following information: net weight, heat
number, serial number, TBM P.O. number, and TBM job number (with dash).
6) How the labels are attached is left up to the supplier. If using tape, please do not
tape over any information that needs to be scanned. Do not apply tape directly to
the coil.
7) There shall be 3/4" spacers used between coils, with a minimum of four spacers
used. Each spacer should be lined up with the banding.
8) © There should be no paper stuffers in the laps of coils, unless specified by TBM
(ex. Aluminum). Paper is required on top of the skid, if the skid is to be stacked.
9) Barcode Labels MUST be scannable. TBM reserves the right to reject Material if
Barcode Labels do not scan.
Special Requirements for Metal
1.) Material Certification is required.
2.) TBM accepts no worse than 1/4" camber in 8 feet.
3.) No stencils or flags on material.
4.) No welds are allowed.
The following two pages show in detail examples of the two types of barcode labels that
can be used. Both are A.I.A.G. standard.
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REVISION: 4.0
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Troqueladora Batesville de Mexico Supplier Hanbook
Packaging and Barcode Label Guidelines for Purchased Parts
Packaging and Barcode Label Guidelines for Purchased Parts
1.) Parts are to be packed in boxes supplied by the Purchased Parts supplier. The box
weight shall weigh no more than 40 pounds per box.
2.) Boxes are to have a label on each box that includes:
The TBM part number. (Barcode required)
Box Quantity (Barcode required)
Box Serial Number (Barcode not required)
Lot Number. (Barcode not required)
TBM also requires a separate master label on every skid that represents every part
number and lot number combination that is on that skid. For example:
If there is one part number that is all from the same lot number on one skid,
you will only need one master label.
If you have one part number on the skid with multiple lot numbers, you will
need to have a master label representing each lot number that appears on the
skid.
If you have multiple part numbers on the skid. You will need to have one master
label for each part number / lot number combination on the skid.
Each master label must reference:
The TBM part number (Barcode required).
The Skid Quantity (Barcode required).
The Skid Serial Number that references the lot number, which appears on every
box that that particular master label represents. (Barcode required).
Barcode Labels "MUST" be scannable. TBM reserves the right to reject parts if barcode
labels do not scan.
NOTE: ALL BOXES MUST BE IDENTIFIED AS "CERTIFIED" PRIOR TO SHIPPING
TO TBM (ex. 100% Sorted, Inspected, Certified). If boxes or containers are not
marked as such, they are subject to rejection.
3.) Boxes should be placed on a skid no larger than 42" x 48" if commercial carrier
transit is required.
4.) Please put "Do Not Stack" on the bill of lading and "Do Not Stack" labels on the skids
of product to prevent double stacking by the trucking company. Failure to do so
results in damage charges being debited to you in the event of damage.
5.) All correspondence (packing lists, invoices, etc...) must reference the purchase order
number with the release number immediately after the purchase order number.
(Ex. PO # 99999-5)
The following page shows in detail an example of the type of barcode label that can be
used.
N°: DC-CO-001
EFFECTIVE: January, 2016
REVISION: 4.0
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REVISION: 4.0
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Sample Purchased Part Packing Scenario
Scenario #1: Skid with all the same part number and same lot number.
Required: - A label on each box with the Part Number, Quantity and Lot
Number.
- A Master on the skid with the Part Number, Total Quantity and
Serial Number. The Serial number is a combination of a unique
number, a dash (-) and the lot number for the parts on this There
should be 1master label for each different part number/lot number
combination on the skid.
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EFFECTIVE: January, 2016
REVISION: 4.0
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Sample Purchased Part Packing Scenario
Scenario #2: Skid with All the same part number and multiple lot numbers.
Required: -A label on each box with the Part Number, Quantity and Lot
Number.
-A Master on the skid with the Part Number, Total Quantity and
Serial Number. The Serial number is a combination of a unique
number, a dash (-) and the lot number for the parts on this. There
should be 1 master label for each different part number/lot
number combination on the skid.
-Each Lot number can be on separate skids if required.
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Sample Purchased Part Packing Scenario
Scenario #3: Skid with multiple parts and multiple lot numbers.
Required: - A label on each box with the Part Number, Quantity and Lot
Number.
- A Master on the skid with the Part Number, Total Quantity and
Serial Number. The Serial number is a combination of a unique
number, a dash (-) and the lot number for the parts on this. There
should be 1 master label for each different part number/lot
number combination on the skid.
- Each Part Number/Lot number can be on separate skids if
required.
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EFFECTIVE: January, 2016
REVISION: 4.0
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Troqueladora Batesville de Mexico ISO/IATF Requirements
Troqueladora Batesville de Mexico is TS-16949:2009 Certified. Troqueladora Batesville
de Mexico requires all suppliers to be ISO 9001:2008 or AITF-16949 certified. Exceptions
to this requirement will only be considered in special circumstances with a written waiver
from the Troqueladora Batesville de Mexico customer that is affected.
Environmental Management Program
In an effort to preserve and protect the environment, TBM has implemented an
environmental management system. The system is designed to reduce our negative
impact, conserve our resources, and recycle many of our materials. In order to achieve
these goals, several programs have been put in place. The contractor/supplier is
responsible for helping TBM achieve these goals by following the programs set in place.
These programs include:
I. Recycling Program:
1. Aluminum cans, plastic drink bottles, paper, cardboard, aerosol cans, dry
cell/lithium ion batteries, light bulbs, toner/printer cartridges, mercury
containing equipment, and electronic devices can be recycled. These items
should be placed in the proper recycle container so that it can be sent to the
appropriate recycling company. If unsure what container an item should go in
contact a manager or a supervisor and they can direct where to put the item.
II. Used Oil
1. Any used oil must be disposed of at the proper locations.
2. Contact a manager/supervisor to direct you to a used oil location.
III. Spill Prevention Control Countermeasure (SPCC)
1. A chemical spill outside the walls of the plant that has the potential to enter
the plants property, waters of the state, or be released into the air must be
addressed right away.
2. As soon as the spill is found, a manager or supervisor must be notified of the
spill. The manager/supervisor will then initiate a "CODE ORANGE" This will
notify the Emergency Action Team (EATs Team).
3. The EATs team has been trained in how to respond to a chemical spill. This
team will then take the proper stems to mitigate the spill or release.
IV. MSDS/SDS/GHS/Right to Know
1. Any chemical brought in to TBM by contractor/supplier must be accompanied
with a standard 16 section SDS sheet.
2. Any chemical brought in to TBM by contractor/supplier must be properly
labeled with the manufacturers label or with a GHS style label.
3. All employees of contractor supplier must be trained on the information in an
SDS sheet as well as the information on a GHS label.
N°: DC-CO-001
EFFECTIVE: January, 2016
REVISION: 4.0
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Troqueladora Batesville de Mexico Supplier Handbook
Safety Requirements
Contractor/supplier shall be responsible for providing TBM with a certificate of insurance for
property and liability. Anyone who is sent to work at TBM by the contracting company shall be trained in TBM's contractor/supplier policy by the contracting company. Contractors/Suppliers shall not have open containers, drinks or food on the production floor. When the contractor/supplier work activities relate to specific safety programs (such as hot work, lockout, confined space, etc.), the contractor/supplier shall comply with all applicable OSHA regulations, related standards, and TBM requirements, including but not limited to the following:
I. PERSONAL PROTECTIVE EQUIPMENT
1. Contractor/supplier shall be responsible to perform a personal protective equipment assessment for each task their associates will perform.
2. Contractor/supplier shall provide their associates with the correct personal protective equipment and ensure that it is used consistently and appropriately.
3. Contractor/supplier shall train their associates to use and maintain the required personal protective equipment.
II. ELECTRICAL
1. Contractor/supplier's electrical activities shall not begin until the contractor/supplier and/or sub contractor/supplier has reviewed the plant "Are Flash Analysis" information for any components, systems, or installations being worked on by contacting the TBM authorized associate.
2. Contractor/supplier's electrical activities shall be performed using all required personal protective equipment identified by applicable OSHA regulations and the requirements of NFPA 70E.
3. Contractor/supplier's electrical activities shall be performed by only trained and qualified associates as identified by applicable OSHA regulations and the requirements of NFPA 70E.
4. Contractor/supplier shall utilize only approved parts and components approved by
Troqueladora Batesville de Mexico.
III. LOCKOUT TAGOUT
1. Contractor/supplier's lockout activities shall not begin until the "Contractor/supplier's Lockout Review Form" has been approved by TBM's authorized associate.
2. Contractor/suppliers shall utilize TBM's equipment specific lockout placards for servicing and maintenance activities for which work will be performed.
3. Each contractor/supplier employee shall have their own individual lock with an identification of the contractor/supplier and employee on the lockout device. Master or extra keys for lockout devices are not permitted on TBM property.
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Troqueladora Batesville de Mexico Supplier Handbook
Safety Requirements Cont.
4. Contractor/supplier's employees shall never remove any other person's/company's lock
(including a TBM lockout device) that has been installed on an isolating energy source.
5. Contractor/supplier may use a group lockout method as long as isolated energy sources have been confirmed and individual lock out devices are placed on the group lockout box by All authorized contractor/supplier employees who shall be in the danger zone of the equipment.
IV. FALL PROTECTION
1. Contractor/supplier shall provide fall protection when associates are exposed to work heights over 6 feet.
2. Contractor/supplier shall provide fall protection when work activities are less than 6' from
the leading edge of the roof, mezzanines, or floor openings that is unprotected by guardrail or equivalent protection.
3. Contractor/supplier's fall protection activities shall be reviewed by contractor/supplier's
qualified person prior to implementation.
4. Contractor/supplier's fall protection activities shall include pre-planning (including the
coordination of rescue services) with TBM's authorized associate.
5. Contractor/supplier's fall protection program must follow or exceed TBM's fall protection
program.
6. Contractor/supplier shall identify and provide rescue services or make the necessary
arrangements with TBM to provide such services.
7. Contractor/supplier shall only use equipment designed for fall protection as part of a complete Personal Fall Arrest System.
8. Contractor/supplier shall inspect fall protection equipment prior to each use.
9. Contractor/supplier shall ensure that fall arrest anchor points meet 5000 lb. load rating, and/or contractor/supplier shall contact TBM qualified person at the plant to determine adequate anchor point.
V. LIFTING EQUIPMENT
1. Contractor/supplier shall ensure that any lifting equipment used is used within the rating
capacity and have approved license for operating all forklift equipment.
2. Contractor/supplier shall ensure that any lifting equipment is inspected daily by contractor/supplier's competent personnel. Such equipment shall include hoist components, lifting attachments, etc. This inspection shall be documented and available to TBM upon request.
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Troqueladora Batesville de Mexico Supplier Handbook
Safety Requirements Cont.
3. Contractor/supplier shall utilize only the appropriate lifting attachments for the
environment where the work will be performed.
VI. AERIAL PLATFORMS
1. Contractor/supplier shall require a fall restraining system in all boom lifts. Fall protection in scissors lifts is required if guardrail system is not in place. The designated anchor point must be used at all times. In a scissors lift, fall protection is not needed if the work will
not be leaving the lift. However, if the worker leaves the platform at any time while elevated, safety harness and lanyard is required.
2. Contractor/supplier shall not permit standing or sitting on the guardrails.
3. Contractor/supplier's area platforms shall be inspected, at a minimum, once a <lay per
the manufacturer' s instructions.
4. Contractor/supplier shall have the gate closed at all times when the lift is occupied.
5. Contractor/supplier shall not exceed the manufacturer's load capacity at any time.
6. Contractor/supplier shall ensure that its employees follow the manufacturer's approved
procedures when exiting of the basket is necessary.
VII. CONFINED SPACE
1. Contractor/supplier shall not conduct confined space activities without signed
authorization from TBM's authorized associate or designated associate.
2. Contractor/supplier shall obtain and review the "Contractor/supplier Permit-Required Confined Space Hazard Notification" form, which is prepared in order to notify contractor/suppliers of known confined space hazards and coordinate entry and surrounding activities.
3. Contractor/supplier shall provide its own pe1mit that meets or exceeds OSHA 1910.146.
4. Contractor/supplier shall post the contractor/supplier's permit and the "Contractor/supplier Permit Required Confined Space Hazard Notification" form before beginning the entry operation.
5. Contractor/supplier shall have the appropriate number of appropriately trained
contractor/supplier entrants, attendants, and entry supervisors.
6. Contractor/supplier shall have rescue services identified and provided or have made the
necessary arrangements with TBM to provide such services.
7. Contractor/supplier shall provide and use appropriate monitoring equipment calibrated within 24 hours of each entry.
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Troqueladora Batesville de Mexico Supplier Handbook
Safety Requirements Cont.
8. Contractor/supplier shall notify the TBM authorized associate or designated person when
work is completed. Contractor/supplier shall provide feedback to TBM's authorized associate of any hazards confronted or created in the space by documenting such feedback on the "Contractor/supplier Debriefing Comments" form.
9. Contractor/supplier shall provide all equipment needed to enter a space (including rescue
equipment).
VIII. FIRE PROTECTION
1. Contractor/supplier shall provide portable fire extinguishing equipment of the proper type in all construction trailers, material storage areas, and for all welding, cutting, or burning operations during construction.
2. Contractor/supplier shall obtain approval from TBM's authorized associate for temporary walls and dust protection prior to use.
3. Contractor/supplier shall cooperate with fire protection authorities, insurance
underwriters, and TBM to carry out their recommendations.
IX. HOT WORK
1. Hot work activities shall not be performed by the contractor/supplier until the "TBM Hot
Work Permit" has been issued by TBM's authorized associate or authorized TBM's
associate. The permit must be completed and posted in the immediate area of the hot work operation.
2. Contractor/supplier's planned hot work activities must be reviewed by contractor/supplier's management personnel prior to start-up to ensure that flammables and combustibles are moved to the proper distance and/or protected by flame proof contains, covers, fire blankets, or equivalent protection.
3. Contractor/supplier's hot work activities must always be conducted with the appropriate
number of trained fire watchers as approved by TBM's EATS team or authorized hot work
associate. Fire extinguishing equipment shall be present, operative, and accessible.
4. Contractor/supplier's hot work activities must not be conducted without TBM's authorized associate or designated associate located on-site to monitor hot work activities.
X. CLOTHING
1. In order to protect workers, workers must wear clothing appropriate for work at TBM.
i. Pants must be worn. No shorts or dresses. No torn, holey jeans or tank tops. ii. Hard soled leather shoes or safety shoes must be worn. No open toe shoes,
sandals, high heels or tennis shoes.
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Troqueladora Batesville de Mexico Supplier Handbook
TBM Contact Info Troqueladora Batesville de Mexico encourages open communication with its suppliers. Below is a
list of TBM contacts that can be reached through the main number at +52 442 211 3600 or the number listed below. We would like to reiterate that the primary account contact for all suppliers should be the appropriate buyer. Any after-hours emergency concerning delivery should be directed to TBM's Shipping Department, or if unavailable, Alejandro Romo +52 1 442 23670359 (cell phone) As a general reminder, supplier visits are always welcomed and encouraged, but must be made by an appointment.
Troqueladora Batesville de Mexico La Noria Num. 106 Parque Industrial Queretaro
KM 28.5 Carr. QRO-SLP Santa Rosa Jauregui
Queretaro, Mexico CP. 76220
Phone#: 011 52 442 211 (ext.)
Main#: 011 52 442 211 3600
Fax#: 011 52 442 211 3610
Name Title Ext. E-mail Address
Romeo Gomez General Manager 3620 [email protected]
Alejandro Romo Purchasing Manager 3608 [email protected]
Abraham Hernandez Controller 3622 [email protected]
Jesus Martinez Manufacturing Manager 3611 [email protected]
Danilo Duarte Quality Manager 3637 [email protected]
Octavio Orihuela Customer Service Manager 3629 [email protected]
Rafael Resendiz Shipping Manager 3626 [email protected]
Monica Guzman Purchasing Supervisor 3625 [email protected]
Cristina Olmos Customs/Traffic Supervisor 3621 [email protected]
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Troqueladora Batesville de Mexico Price Increase Policy
Troqueladora Batesville de Mexico is interested in continuing to develop long term
relationships with our suppliers. We want to do this in an effort of bringing the most
innovative product to our customers at the lowest possible total cost. In this spirit, we
are willing to work with our supplier base in cost containment and knowledge sharing
ventures whenever possible. However, due to the highly competitive nature of our
business, it is imperative for TBM to watch our total cost of producing quality products.
All jobs awarded to our suppliers are awarded based on a "Total Cost" scenario which
consists of:
The ability to supply a quality product or service.
Quality history
Price
Service history
The ability to consistently and continuously supply product to TBM in a first-in,
first-out, just-in time fashion with a 100% on time delivery.
Many jobs awarded to TBM by our customers are on "Long Term" contracts for a set
price over the term of the contract. Jobs that are not on "Long Term" contracts with our
customers are under continuous "Price Freeze" or "Cost Down" scrutiny. For these
reasons, if TBM encounters a price increase situation with our suppliers, it must be
"Standard Policy" that we also scrutinize that increase and test the present market
conditions through supplier "Price Break Down Analysis" and/or the competitive bid
process. The information gained through these procedures will go through the same
"Total Cost" scenario as the original award process. If the supplier price increase is found
to be excessive or not in the best interest of TBM and its customers, the business will
run the risk of being moved to another supplier.
Please keep the following in mind when requesting a price increase!
1. All suppliers must provide a minimum of sixty (60) days notification in writing of any
price changes. This notification period will be used to analyze the request, discuss
justification, evaluate alternatives, and negotiate a settlement. No increase will be
paid until it is officially accepted by TBM.
2. All items that are effected by a supplier price increase will be put out for bid.
3. The notifications should have the following information listed on it: item description,
our job#, our operation number, current price, and proposed price. Along with this,
there should be the documentation to support your proposal.
4. After thorough review, suppliers will be requested to discuss notification and
justification. It is our expectation that the supplier will offset all increases relating
to labor and overhead through a continuous improvement program or other
productivity gain efforts within their operation.
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Troqueladora Batesville de Mexico Price Increase Policy
Price Increase Policy
Cont.
5. Buyer and seller should review all creative opportunities to reduce waste and
inefficiencies to obtain the best value in the procurement process for both pa1ties.
6. Changes accepted by Troqueladora Batesville de Mexico will be instituted on any
orders placed on or after the negotiated effective date.
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Troqueladora Batesville de Mexico
Corporate Credentials
COMPANY NAME: Batesville Tool & Die, Inc.
ADDRESS: 177 Six Pine Ranch Road
Batesville, In 47006
PHONE: 812-934-5616
TYPE OF COMPANY: Corporation--Incorporated 1978
BUSINESS: Tools, Dies, Metal Stampings, Welding Assemblies
FED TAX ID: 35-1444312
TAX EXEMPT NO.: 002295318 001 6
STATE DUNS NO: 09-390-5479
OFFICERS:
PRESIDENT/CEO: Jody Fledderman, Batesville, IN
VP-TOOLING: Dave Lynch, Batesville, IN
VP-MANUFACTURING: Jay Fledderman, Batesville, IN
VP-STAMPING: Joel Fledderman, Batesville, IN
VP-QUALITY: Jim Wintz, Batesville, IN
VP-MATERIALS: Brent Muckerheide, Batesville, IN
VP-SALES: Gene Lambert, Batesville, IN
VP-FINANCE: Jorge Lopez, Batesville, IN
PAYMENT PROCEDURES: Undisputed invoices are processed and paid weekly on
Fridays. TBM payment terms are 3%- 5 / 2% - 15 / Net 60 days as of 1/1/06. Credit
Card payments are also available. For those suppliers interested in setting up discount
terms, please submit proposal for consideration to our Controller, Abraham Hernandez.
PURCHASE ORDERS: Purchase order numbers are required, but may be received
verbally.
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GENERAL TERMS AND CONDITIONS (Revision 3/20/08)
1. ACCEPTANCE:
Seller has read and understands this contract and agrees that Seller’s written acceptance
or commencement of any Work or services under this contract shall constitute Seller's
acceptance of these terms and conditions only.
2. SHIPPING AND BILLING:
Seller agrees: (a) to properly pack, mark and ship goods in accordance with the
requirements of Buyer, the involved carriers, and, if applicable, the country of
destination; (b) to mute shipments in accordance with Buyer's instructions; (c) to make
no charge for handling, packaging, storage or transportation of goods, unless otherwise
stated as an item on this contract; (d) to provide with each shipment packing slips with
Buyer's contract and/or release number and date of shipment marked thereon; (e) to
properly mark each package with a label/tag according to Buyer's instructions; (f) to
promptly forward the original bill of lading or other shipping receipt for each shipment
in accordance with Buyer's instructions. Seller will include on bills of lading or other
shipping receipts correct classification identification of the goods shipped in accordance
with Buyer's instructions and the carrier's requirements. The marks on each package
and identification of the goods on packing slips, bills of lading and invoices (when
required) shall be sufficient to enable Buyer (or Buyer's Customer) to easily identify the
goods purchased. Seller further agrees: (a) to accept payment based upon Buyer's
Evaluated Receipt Record/Self Billed Invoice, unless an invoice is requested by Buyer;
and (b) to accept payment by electronic funds transfer. The payment date is set forth in
the Line Item Detail of this contract, or if not stated, shall be the date established by
Buyer's Multilateral Netting System (MNS-2), which provides, on average, that payment
shall be made on the second day of the second month following, in the case of the
Buyer's North American facilities, Seller's shipment date of goods or date of services,
and, for all of Buyer's other locations, Buyer's receipt date of the goods or date of
services. Buyer may withhold payment pending receipt of evidence, in such form and
detail as Buyer may direct, of the absence of any liens, encumbrances and claims on the
goods or services under this contract.
3. DELIVERY SCHEDULES:
Time is of the essence, and deliveries shall be made both in quantities and at times
specified in Buyer's schedules. Buyer shall not be required to make payment for goods
delivered to Buyer that are in excess of quantities specified in Buyer's delivery schedules.
Buyer may change the rate of scheduled shipments or direct temporary suspension of
scheduled shipments, neither of which shall entitle Seller to a modification of the price
for goods or services covered by this contract. Where quantities and/or delivery
schedules are not specified, Seller shall deliver goods in such quantities and times as
Buyer may direct in subsequent releases.
4. PREMIUM SHIPMENTS:
If Seller's acts or omissions result in Seller's failure to meet Buyer's delivery
requirements and Buyer requires a more expeditious method of transportation for the
goods than the transportation method originally specified by Buyer, Seller shall ship the
goods as expeditiously as possible at Seller's sole expense.
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5. CHANGES:
Buyer reserves the right at any time to direct changes, or cause Seller to make changes,
to drawings and specifications of the goods or to otherwise change the scope of the work
covered by this contract including work with respect to such matters as inspection,
testing or quality control, and Seller agrees to promptly make such changes. Any
difference in price or time for performance resulting from such changes shall be equitably
adjusted by Buyer after receipt of documentation in such form and detail as Buyer may
direct. Any changes to this contract shall be made in accordance with Paragraph 31.
6. SUPPLIER QUALITY AND DEVELOPMENT; INSPECTION:
Seller agrees to participate in Buyer's supplier quality and development program(s) and
to comply with all quality requirements and procedures specified by Buyer, as revised
from time to time, including those applicable to Seller as set forth in Quality System
Requirements QS-9000. In addition, Buyer shall have the right to enter Seller's facility
at reasonable times to inspect the facility, goods, materials and any property of Buyer
covered by this contract. Buyer's inspection of the goods, whether during manufacture,
prior to delivery or within a reasonable time after delivery, shall not constitute
acceptance of any work-in-process or finished goods.
7. NONCONFORMING GOODS:
Seller acknowledges that Buyer will not perform incoming inspections of the goods, and
waives any rights to require Buyer to conduct such inspections. To the extent Buyer
rejects goods as nonconforming, the quantities under this contract will automatically be
reduced unless Buyer otherwise notifies Seller. Seller will not replace quantities so
reduced without a new contract or schedule from Buyer. Nonconforming goods will be
held by Buyer in accordance with Seller's instructions at Seller's risk. Seller's failure to
provide written instructions within 10 days, or such shorter period as may be
commercially reasonable under the circumstances, after notice of nonconformity shall
entitle Buyer, at Buyer's option, to charge Seller for storage and handling or to dispose
of the goods without liability to Seller. Payment for nonconforming goods shall not
constitute an acceptance of them, limit or impair Buyer's right to assert any legal or
equitable remedy, or relieve Seller's responsibility for latent defects.
8. FORCE MAJEURE:
Any delay or failure of either party to perform its obligations shall be excused if Seller is
unable to produce, sell or deliver, or Buyer is unable to accept delivery, buy or use, the
goods or services covered by this contract, as the result of an event or occurrence
beyond the reasonable control of the party and without its fault or negligence, including,
but not limited to, acts of God, actions by any governmental authority (whether valid or
invalid), fires, floods, windstorms, explosions, riots, natural disasters, wars, sabotage,
acts of terrorism, labor problems (including lockouts, strikes and slowdowns), inability
to obtain power, material, labor equipment or transportation, or court injunction or
order; provided that written notice of such delay (including the anticipated duration of
the delay) shall be given by the affected party to the other party as soon as possible
after the event or occurrence (but in no event more than 10 days thereafter). During
the period of such delay or failure to perform by Seller, Buyer, at its option, may
purchase goods and services from other sources and reduce its schedules to Seller by
such quantities, without liability to Seller, or have Seller provide the goods and services
from other sources in quantities and al times requested by Buyer, and at the price set
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forth in this contract. In addition, Seller at its expense shall take such actions as are
necessary to ensure the supply of goods and services to Buyer for a period of at least
30 days during any anticipated labor disruption or resulting from the expiration of Seller's
labor contract(s). If requested by Buyer, Seller shall, within 10 days, provide adequate
assurances that the delay shall not exceed 30 days. If the delay lasts more than 30 days
or Seller does not provide adequate assurance that the delay will cease within 30 days,
Buyer may immediately terminate this contract without liability.
9. WARRANTY:
Seller warrants/guarantees that the goods covered by this contract will conform to the
specifications, drawings, samples, or descriptions furnished to or by Buyer, and will be
merchantable, of good material and workmanship and free from defect. In addition,
Seller acknowledges that Seller knows of Buyer's intended use and warrants/guarantees
that all goods covered by this contract that have been selected, designed, manufactured
or assembled by Seller based upon Buyer's stated use will be fit and sufficient for the
particular purposes intended by Buyer. The warranty period shall be that provided by
applicable law, except that if Buyer offers a longer warranty to its customers for goods
installed on vehicles, such longer period shall apply.
10. INGREDIENTS DISCLOSURE; SPECIAL WARNINGS AND INSTRUCTIONS:
If requested by Buyer, Seller shall promptly furnish to Buyer in such form and detail as
Buyer may direct: (a) a list of all ingredients in the goods; (b) the amount of all
ingredients; and (c) information concerning any changes in or additions to such
ingredients. Prior to and with the shipment of the goods, Seller agrees to furnish to
Buyer sufficient warning and notice in writing (including appropriate labels on the goods,
containers and packing) of any hazardous material that is an ingredient or a part of any
of the goods, together with such special handling instructions as may be necessary to
advise carriers, Buyer, and their respective employees of how to exercise that measure
of care and precaution that will best prevent bodily injury or property damage in the
handling, transportation, processing, use or disposal of the goods, containers and
packing shipped to Buyer.
11. INSOLVENCY:
Buyer may immediately terminate this contract without liability to Seller in any of the
following or any other comparable events: (a) insolvency of Seller; (b) filing of a
voluntary petition in bankruptcy by Seller; (c) filing of any involuntary petition in
bankruptcy against Seller; (d) appointment of a receiver or trustee for Seller; or (e)
execution of an assignment for the benefit of creditors by Seller, provided that such
petition, appointment or assignment is not vacated or nullified within 15 days of such
event. Seller shall reimburse Buyer for all costs incurred by Buyer in connection with any
of the foregoing, including, but not limited to, all attorneys or other professional fees.
12. TERMINATION FOR BREACH OR NONPERFORMANCE; SALE OF ASSETS OR
CHANGE IN CONTROL: Buyer reserves the right to terminate All or any part of this contract, without liability to Seller, if Seller: (a) repudiates or breaches any of the terms of this contract, including Seller's warranties; (b) fails to perform services or deliver goods as specified by Buyer; (c) fails to make progress so
as to endanger timely and proper completion of services or delivery of goods; and does not correct such failure or breach within 10 days (or such shorter period of time if commercially reasonable under the circumstances) after receipt of written notice from Buyer specifying such failure or
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breach. In addition, Buyer may terminate this contract upon giving at least 60 days notice to Seller, without liability to Seller, if Seller (i) sells, or offers to sell, a material portion of its assets, or (ii) sells or exchanges, or offers to sell or exchange, or causes to be sold or exchanged, a sufficient amount of its stock that effects a change in the control of Seller; or (d) The other Party defaults in warranty, or representation hereunder, and the default is not cured after thirty (30)
days written notice to the defaulting Party by the non-defaulting Party or; (e) The other Party is subject to any administrative or governmental action that suspends or terminates its business or that portion of its business that relates to any outstanding Orders; or (f) The other Party makes a general assignment for the benefit of creditors, suspends business, or commits any act amounting to business failure, or makes a voluntary assignment or transfer of all or substantially all of its property; or (g) A voluntary petition under Title 11, U.S.C., as amended, or any successor statute
(the "Bankruptcy Code") is filed by the other Party, or any involuntary petition to obtain an order for relief against the other Party is filed under the Bankruptcy Code that is not vacated within sixty
(60) days from the date of filing, or a receiver or custodian (as defined in the Bankruptcy Code) is appointed under the Bankruptcy Code for such other Party, which appointment is not vacated within sixty (60) days from the date of appointment.
13. TERMINATION FOR CONVENIENCE: In addition to any other rights of Buyer to terminate this contract, Buyer may, at its option, immediately terminate all or any part of this contract, at any time and for any reason, by giving written notice to Seller. Upon such termination, Buyer shall pay to Seller the following amounts without duplication: (a) the contract price for all goods or services that have been completed in accordance with this contract and not previously paid for; and (b) the actual costs of work-in-
process and raw materials incurred by Seller in furnishing the goods or services under this contract to the extent such costs are reasonable in amount and are properly allocable or apportionable under general/y accepted accounting principles to the terminated portion of this contract; less, however, the sum of the reasonable value or cost (whichever is higher of any goods or materials used or sold by Seller with Buyer's written consent, and the cost of any damaged or destroyed goods or material. Buyer will make no payments for finished goods, services, work-in-process or
raw materials fabricated by Seller in amounts in excess of those authorized in delivery releases
nor for any undelivered goods that are in Seller's standard stock or that are readily marketable. Payments made under this Paragraph shall not exceed the aggregate price payable by Buyer for finished goods or services that would be produced or performed by Seller under delivery or release schedules outstanding at the date of termination. Except as provided in this Paragraph, Buyer shall not be liable for and shall not be required to make payments to Seller; directly or on account of claims by Seller's subcontractors, for loss of anticipated profit, unabsorbed overhead, interest
on claims, product development and engineering costs, facilities and equipment rearrangement costs or rental, unamortized depreciation costs, or general and administrative burden charges from termination of this contract. Within 60 days from the effective date of termination, Seller shall submit a comprehensive termination claim to Buyer with sufficient supporting data to permit Buyer's audit, and shall thereafter promptly furnish such supplemental and supporting information as Buyer shall request. Buyer or its agents shall have the right to audit and examine all books, records, facilities, work, material, inventories and other items relating to any termination claim of
Seller.
14. INTELLECTUAL PROPERTY: Seller agrees: (a) to defend, hold harmless and indemnify Buyer, its successors and customers against any claims of infringement (including patent, trademark, copyright, industrial design right,
or other proprietary right, or misuse or misappropriation of trade secret) and resulting damages and expenses (including attorneys and other professional fees) arising in any way in relation to the goods or services contracted, including such claims where Seller has provided only part of the goods or services; Seller expressly waives any claim against Buyer that such infringement arose out of compliance with Buyer's specification; (b) that Buyer or Buyer's subcontractor has the right to repair, reconstruct, or rebuild the specific goods delivered under this contract without payment of any royalty to Seller; (c) that parts manufactured based on Buyer's drawings and/or
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specifications may not be used for its own use or sold to third parties without Buyer's express written authorization; and (d) to the extent that this contract is issued for the creation of copyrightable works, the works shall be considered "works made for hire;" to the extent that the works do not qualify as "works made for hire," Seller hereby assigns to Buyer all right, title and interest in all copyrights and moral rights therein.
15. TECHNICAL INFORMATION DISCLOSED TO BUYER: Seller agrees not to assert any claim (other than a claim for patent infringement) with respect to any technical information that Seller shall have disclosed or may hereafter disclose to Buyer in connection with the goods or services covered by this contract.
16. INDEMNIFICATION:
If Seller performs any work on Buyer's premises or utilizes the property of Buyer,
whether on or off Buyer's premises, Seller shall indemnify and hold Buyer harmless from
and against any liability, claims, demands or expenses (including attorneys and other
professional fees) for damages to the property of or injuries (including death) to Buyer,
its employees or any other person arising from or in connection with Seller's performance
of work or use of Buyer's property, except for such liability, claim, or demand arising out
of the sole negligence of Buyer.
17. INSURANCE:
Seller shall maintain insurance coverage with carriers acceptable to Buyer and in the
amounts set forth in the Special Terms. Seller shall furnish to Buyer either a certificate
showing compliance with these insurance requiren1ents or certified copies of all
insurance policies within 10 days of Buyer's written request. The certificate will provide
that Buyer will receive 30 days' prior written notice from the insurer of any termination
or reduction in the amount or scope of coverage. Seller's furnishing of certificates of
insurance or purchase of insurance shall not release Seller of its obligations or liabilities
under this contract.
18. SELLER'S PROPERTY:
Unless otherwise agreed to by Buyer, Seller, at its expense, shall furnish, keep in good
condition, and replace when necessary all machinery, equipment, tools, jigs, dies,
gauges, fixtures, molds, patterns and other items ("Seller's Property") necessary for the
production of the goods. The cost of changes to Seller's Property necessary to make
design and specification changes authorized by Buyer shall be paid for by Buyer. Seller
shall insure Seller's Property with full fire and extended coverage insurance for its
replacement value. Seller grants Buyer an irrevocable option to take possession of and
title to Seller's Property that is special for the production of the goods upon payment to
Seller of its net book value less any amounts that Buyer has previously paid to Seller for
the cost of such items; provided, however, that this option shall not apply if Seller's
Property is used to produce goods that are the standard stock of Seller or if a substantial
quantity of like goods are being sold by Seller to others.
19. BUYER'S PROPERTY:
All supplies, materials, tools, jigs, dies, gauges, fixtures, molds, patterns, equipment
and other items furnished by Buyer, either directly or indirectly, to Seller to perform this
contract, or for which Seller has been reimbursed by Buyer, shall be and remain the
property of Buyer and held by Seller on a bailment basis ("Buyer's Property''). Seller
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shall bear the risk of loss of and damage to Buyer's Property. Buyer's Property shall at
All times be properly housed and maintained by Seller, at its expense, shall not be used
by Seller for any purpose other than the performance of this contract; shall be deemed
to be personalty; shall be conspicuously marked by Seller as the property of Buyer; shall
not be commingled with the property of Seller or with that of a third person; and shall
not be moved from Seller's premises without Buyer's prior written approval. Buyer shall
have the right to enter Seller's premises at all reasonable times to inspect such property
and Seller's records with respect thereto. Upon the request of Buyer, Buyer's Property
shall be immediately released to Buyer or delivered to Buyer by Seller, either (i) F.0.B.
transport equipment at Seller's plant, properly packed and marked in accordance with
the requirements of the carrier selected by Buyer to transport such property, or (ii) to
any location designated by Buyer, in which event Buyer shall pay to Seller the reasonable
costs of delivering such property to such location. When permitted by law, Seller waives
any lien or other rights that Seller might otherwise have on any of Buyer's Property for
work performed on such property or otherwise.
20. SERVICE AND REPLACEMENT PARTS:
Seller will sell to Buyer goods necessary for it to fulfill its current model service and
replacement parts requirements at the price(s) set forth in this contract. If the goods
are systems or modules, Seller will sell the components or parts that comprise the
system or module at price(s) that shall not, in the aggregate, exceed the price of the
system or module less assembly costs. During the 15 year period after Buyer completes
current model purchases, Seller will sell goods to Buyer to fulfill Buyer's past model
service and replacement parts requirements. Unless otherwise agreed to by Buyer, the
price(s) during the first 3 years of this period shall be those in effect at the conclusion
of current model purchases. For the remainder of this period, the price(s) for goods shall
be as agreed to by the parties. When requested by Buyer, Seller shall make service
literature and other materials available at no additional charge to support Buyer's service
part sales activities.
21. REMEDIES:
The rights and remedies reserved to Buyer in this contract shall be cumulative with, and
additional to, all other or further remedies provided in law or equity. Without limiting the
foregoing, should any goods fail to conform to the warranties set forth in Paragraph 9,
Buyer shall notify Seller and Seller shall, if requested by Buyer, reimburse Buyer for any
incidental and consequential damages caused by such nonconforming goods, including,
but not limited to, costs, expenses and losses incurred by Buyer (a) in inspecting,
sorting, repairing or replacing such nonconforming goods; (b) resulting from production
interruptions, (c) conducting recall campaigns or other corrective service actions, and
(d) claims for personal injury (including death) or property damage caused by such
nonconforming goods. lf requested by Buyer, Seller will enter into a separate agreement
for the administration or processing of warranty chargebacks for nonconforming goods.
22. CUSTOMS; EXPORT CONTROLS:
Credits or benefits resulting or arising from this contract, including trade credits, export
credits or the refund of duties, taxes or fees, shall belong to Buyer. Seller shall provide
all information necessary (including written documentation and electronic transaction
records) to permit Buyer to receive such benefits or credits, as well as to fulfill its
customs related obligations, origin marking or labeling requirements and local content
origin requirements, if any. Export licenses or authorizations necessary for the export
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of the goods shall be the responsibility of Seller unless otherwise indicated in this
contract, in which event Seller shall provide such information as may be necessary to
enable Buyer to obtain such licenses or authorization(s). Seller shall undertake such
arrangements as necessary for the goods to be covered by any duty deferral or free
trade zone program(s) of the country of import.
23. SETOFF/RECOUPMENT:
In addition to any right of setoff or recoupment provided by law, all amounts due to
Seller shall be considered net of indebtedness of Seller and its affiliates/subsidiaries to
Buyer and its affiliates/subsidiaries; and Buyer shall have the right to set off against or
to recoup from any amounts due to Seller and its affiliates/subsidiaries from Buyer and
its affiliates/subsidiaries.
24. NO ADVERTISING:
Seller shall not, without first obtaining the written consent of Buyer, in any manner
advertise or publish the fact that Seller has contracted to furnish Buyer the goods or
services covered by this contract, or use any trademarks or trade names of Buyer in
Seller's advertising or promotional materials.
25. COMPLIANCE WITH LAWS; FORCED LABOR:
Seller, and any goods or services supplied by Seller, shall comply with All applicable
laws, rules, regulations, orders, conventions, ordinances or standards of the country(ies)
of destination or that relate to the manufacture, labeling, transportation, importation,
exportation, licensing, approval or certification of the goods or services, including, but
not limited to, those relating to environmental matters, wages, hours and conditions of
employment, subcontractor selection, discrimination, occupational health/safety and
motor vehicle safety. Seller further represents that neither it nor any of its
subcontractors will utilize slave, prisoner or any other form of forced or involuntary labor
in the supply of goods or provision of services under this contract. At Buyer's request,
Seller shall certify in writing its compliance with the foregoing. Seller shall inde1nnify
and hold Buyer harmless from and against any liability claims, demands or expenses
(including attorneys or other professional fees) arising from or relating to Seller's
noncompliance.
26. NO IMPLIED WAIVER:
The failure of either party at any time to require performance by the other party of any
provision of this contract shall in no way affect the right to require such perfom1ance at
any time thereafter, nor shall the waiver of either party of a breach of any provision of
this contract constitute a waiver of any succeeding breach of the same or any other
provision.
27. NON-ASSIGNMENT:
Unless otherwise specifically prohibited by applicable law, Seller may not assign or
delegate its rights or obligations under this contract without Buyer's prior written
consent.
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28. RELATIONSHIP OF PARTIES:
Seller and Buyer are independent contracting parties and nothing in this contract shall
make either party the agent or legal representative of the other for any purpose
whatsoever, nor does it grant either party any authority to assume or to create any
obligation on behalf of or in the name of the other.
29. CHOICE OF LAW; VENUE
The Agreement is governed by and will be construed in accordance with the laws of the
State of Indiana without giving effect to any choice of law or to conflicts of law provision
or rule (whether of the State of Indiana or any other jurisdiction) that would cause the
application of the law of any jurisdiction other than the State of Indiana.
The parties hereto hereby irrevocably submit to the jurisdiction of any state or federal
court serving Ripley County, Indiana over any claim or dispute arising out of or relating
to this agreement or any of the transactions contemplated hereby, and each party
irrevocably agrees that All claims or disputes shall be heard and determined in any such
courts exclusively. The parties hereby irrevocably waive, to the fullest extent pem1itted
by applicable law, any objection which they may now or hereafter have to the laying of
venue of any such dispute brought in any such court or any defense of inconvenient form
for the maintenance of such dispute or claim. Each of the parties hereto agrees that a
judgment concerning any such claim or dispute may be enforced in other jurisdictions
by suit on the judgment or in any other matter provided by law.
30. SEVERABILITY
If any term(s) of this contract is invalid or unenforceable under any statute, regulation,
ordinance, executive order or other rule of la\v, such term(s) shall be deemed reformed
or deleted, as the case may be, but only to the extent necessary to comply with such
statute, regulation, ordinance, order or rule, and the remaining provisions of this
contract shall remain in full force and effect.
31. ENTIRE AGREEMENT:
This contract, together with the attachments, exhibits, supplements or other terms of
Buyer specifically referenced in this contract, constitutes the entire agreement between
Seller and Buyer with respect to the matters contained in this contract and supersedes
all prior oral or written representations and agreements. This contract may only be
modified by a contract amendment issued by Buyer.
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Troqueladora Batesville de Mexico Standard Work Instruction
Request Process Change Approval
INSTRUCTION Work Instruction is not in sequential order. Form F-6.1.4d is issued to the Supplier requesting a process change from TBM's Supplier Quality Technician. 1.) Who - Internal, Customer or Supplier - Supplier Name and Address- Name of Supplier
responsible and address of facility.
2.) Job Number – TBM job number which is assigned to the part. 3.) Part Name - Part Name found on print. 4.) Part Number - Part Number found on print. 5.) Change - Indicate the type of change requested. 6.) Reason for Change - Describe the reason for the requested change.
7.) Effect of Change - Describe any effect the change may have on the part. 8.) Identification of Change: Describe how the parts will be identified to show the change.
9.) Duration of Change - Indicate the time frame of this change. 10.) Time to incorporate Change after Approval Date - Designate the time it takes to incorporate
the change. Note: Time is in weeks. 11.) Tooling or Facility Change Required - Identify if the change requires either the tooling or
current location of the facility to change. Is the cost affected? If yes, please provide a cost breakdown. Use an additional sheet if required.
12.) Piece Price Affected - Is the piece price affected by the change? If yes, please provide a cost breakdown. Use an additional sheet if required.
13.) Signature - Supplier Signature making request. 14.) Date - Date the RPCA is submitted to TBM. 15.) Title - Professional title of person making request. 16.) Samples Required - If samples of change are required to be submitted to the Supplier Quality
Technician, or responsible TBM Associate it is be noted in this section. These samples are
submitted so that a decision can be made by TBM Associate.
17.) Accredited Lab Certification Required - If parts need to be certified by an accredited lab, it is noted in this section.
18.) Rejected - If the change request is rejected, it is noted in this section. The reason for the rejection is noted in this section.
19.) Approved by - Representative from Purchasing and/or Supplier Quality must sign off request depending on type of request.
Note: Change is not to be incorporated until documented approval from TBM is received.
Whoever is requesting the change is responsible for completing items 1 - 15. Once completed forward a copy to TBM's Quality Department, Attention: Customer or Supplier Quality Technician. TBM's Customer/Supplier Quality Technician or appropriate Associate completes 16-19. Once
evaluated a copy is sent back to the Customer/Supplier approving or disapproving the request.
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Supplier´s Confirmation Signature
Supplier Representative Signature in this document, is the confirmation that supplier
should meet all requirements stablished in this “Suppliers Manual”, and get involved
actively in the Customer Requirements Accomplishment Program
Supplier should get back this page with its signature to TBM´s Purchasing Personal as
soon as possible.
Supplier´s name _____________________________________________
Address ________________________________________________________
________________________________________________________________
_____________________________
SUPPLIER REPRESENTATIVE
(DATE)
______________________________
POSITION
_________________________________
NAME & SIGNATURE