valiant supplier quality handbook

Valiant Machine & Tool Inc. Supplier Quality Handbook

Document Number: Revision Level: Revision Date: Issued By: Page: VCH1-0011 Rel 3.0 04/30/2013 A. Krol 1 of 46

Supplier Quality Handbook



Table of Contents 1. Introduction ....................................................................................................................... 3 2. General Supplier Requirements........................................................................................ 3 2.1 Supplier Code of Conduct ...........................................................................................3 3. Supplier Assessment ........................................................................................................ 5 3.1 Supplier Initial Assessment ............................................................................................. 5 3.2 Documentation Audit ....................................................................................................... 5 3.3 On-Site Assessment ....................................................................................................... 5 3.4 Control and Release of Valiant Furnished Documents.......................................................................... 6

4. Manufactured Components Quality Requirements........................................................................ 7 4.1 Details............................................................................................................................. 8 4.2 Fabrications ............................................................................................................................... 9 4.3 Purchased Controls Components ................................................................................ 11 4.4 Purchased Mechanical Components............................................................................ 11 4.5 Major Mechanical Sub-Assemblies .............................................................................. 12

5. Additional Information on Manufacturing Process......................................................... 14 5.1 Welding Requirements and Guidelines ........................................................................ 14 5.2 Welding Tube Construction Material ............................................................................ 15 5.3 Welding Inspection Requirements................................................................................ 16 5.4 Aerospace Welding Requirements ............................................................................... 18 5.5 Stress Relieving............................................................................................................ 19 5.6 Heat Treating ................................................................................................................ 19 5.7 Heat Treating for Aerospace ........................................................................................ 19 5.8 Surface Treatment ........................................................................................................ 19 5.9 Part Identification .......................................................................................................... 20 5.10 Paint Requirements ................................................................................................... 21 5.11 Paint Requirements for Aerospace………………………………………………………. 22 6. Production Components Quality Requirements ………………………………………………. 22 6.1 Advance Product Quality Planning .............................................................................. .22 6.2 Production Part Approval Process (PPAP) Requirements …………………………… 23 6.3 Raw Materials and Additional Processes for Production Activities …………………… 28 6.4 Production Releases ……………………………………………………………………… 29 6.5 Shipping Requirements for Production Type Material ………………………………… 29 6.6 Labeling Requirements for Production Type Material…………………………………… 30 6.7 Packaging of Production Material …………………………………………………………. 30 6.8 Delivery ………………………………………………………………………………31 6.9 Certificate of Compliance …………………………………………………………………… 32 7. Shipping Guidelines ........................................................................................................ 32 7.1 General Shipping Requirements ................................................................................... 32 7.2 Freight and Transportation ........................................................................................... .32 7.3 Shipping/Receiving Normal Operating Hours................................................................ 32 7.4 Customs Documentation .............................................................................................. .32 7.5 Documentation for All Shipments .................................................................................. 33 8. Deviation Request Process ............................................................................................ 33 9. NCMR Process ................................................................................................................ 33 Document Revision Record ................................................................................................ 35 Document Approval and Signoff Record ............................................................................ 36 Appendix .............................................................................................................................. 37



1. Introduction Valiant Machine & Tool Inc. is committed to establishing strong relationships with a capable supplier base. This commitment requires an understanding and support of Valiant’s Corporate Supplier Quality requirements.

The intent of this Supplier Quality Handbook is to clearly outline Valiant’s quality policies, expectations and procedures for supplier quality management.

Valiant Quality Policy

The Valiant Group and Partnering Companies are totally committed to, and actively participate in, the ongoing process of Quality Improvement, Reliability, Maintainability and Durability.

We provide our Customers with World-class technology and innovation, and added product value.

Our Objective is to meet and surpass the requirements of our Customers by delivering advanced technology on time, every time.

2. General Supplier Requirements 2.1 Supplier Code of Conduct The supplier’s business operations are to be performed in a manner that is appropriate, as it applies to their ethical, legal, environmental, and social responsibilities. Below is a listing of some of the basic requirements:

2.1.1 Compliance with Local Laws and Regulations The Supplier must adhere to the laws and regulations that govern them based on their business location. This includes all local, state/provincial and federal laws and regulations in the country of origin.

2.1.2 Compliance with Environmental, Health, and Safety Laws The Supplier will provide and maintain for all its employees, contractors and visitors, a safe and healthy work environment that meets or exceeds applicable standards for occupational health and safety. No Valiant employee or Customer shall be exposed to hazardous materials or unsafe conditions while visiting a Supplier’s facility or as a result of shipped product to a Valiant or Customer location. For items or areas with inherent hazards, safety notices must be posted and clearly visible. As applicable, documented safety handling and protection information must be provided. Suppliers must maintain and operate its manufacturing/production facilities and processes in accordance with local, state/provincial and federal laws and regulations in the country of origin.



2.1.3 Environment and Sustainability The Supplier will conduct business in a manner that provides responsibly for the protection of health and that of the environment. The Supplier will continue to reduce and minimize the environmental impact of its operations in the short term, and work toward the implementation of environmentally- sustainable strategies in the long term.

2.1.4 Product Safety In all instances where a product is manufactured to a new design, for a new system, or for a new application, it is important that Supplier and Valiant allocate responsibility for assuring that all performance, endurance, maintenance, safety and operating requirements are met. It is preferred that this allocation of responsibility be in writing.

2.1.5 Harassment and Discrimination The Supplier will not tolerate harassment or discrimination on the basis of gender, race, colour, religion, age, national origin, sexual orientation, gender identity, disability, political affiliation or veteran status.

2.1.6 Child and Forced Labour The Supplier shall employ workers of minimum legal age in accordance with local, state/provincial and federal laws and regulations in the country of origin. Child labour laws must be followed at all times. Government authorized job training or apprenticeship programs are acceptable and respected.

The Supplier shall not practice the use of forced labour and any physically abusive disciplinary practices will not be tolerated.

2.1.7 Compensation The Supplier will promote its employee’s material well-being by providing compensation and benefits that are competitive and comply with applicable laws and regulations. This includes minimum legal wage, overtime wages, and benefits (required by law).

2.1.8 Work Hours/Days The Supplier shall not exceed the daily and weekly working hours as permitted by local, state/provincial and federal laws and regulations in the country of origin.

2.1.9 Freedom of Association and Collective Bargaining The Supplier needs to recognize and respect its employees’ right to communicate openly with management regarding working conditions without fear of reprisal, intimidation or harassment. Workers should have the right to associate freely and bargain collectively in accordance with local laws and regulations. The Supplier will work constructively with recognized employee representatives to promote the interests of its employees.

2.1.10 Ethics The Supplier will under no circumstances tolerate the giving or receiving of money, gifts, or favours to improperly influence the behaviour of another individual, organization, government employee, politician, or government body in furtherance of a commercial or personal advantage. Suppliers will conduct their business in a manner that meets the Valiant Group Code of Business Ethics - VCH4-0017 (Appendix 1) policy.



2.1.11 Responsibility, Implementation and Enforcement Valiant encourages businesses throughout our supply chain to adopt and enforce similar guidelines and practices. It is the responsibility of the Supplier to verify and monitor compliance of the Valiant Supplier Quality policies, procedures and expectations at their operations as well as that of their sub-tier sources.

2.1.12 Confidentiality The Supplier shall ensure the confidentiality of Valiant-contracted products and projects under development, related product information, as well as intellectual property shared as a result of the working relationship.

The supplier may not, at any time, proceed with engaging/hiring an employee or consultant of any one of the Valiant Group of Companies as an employee, consultant or self-employed person for a period of one year after the end of any specific contract.

3. Supplier Assessment Suppliers may be involved in a supplier assessment process as part of an ongoing quality assurance practice. The approval process may include, but not be limited to the following activities:

3.1 Supplier Initial Assessment Valiant may request the Supplier to provide a copy of its Quality Management System certificate and/or complete a self-assessment of its business and quality management system and capabilities (i.e., quality, delivery, technology, cost, and continual improvement objectives).

3.2 Documentation Audit In those cases where a Supplier’s Quality Management System has not been certified by an accredited certification body, Valiant may request a copy of the Quality Management System Manual and supporting procedures (and perhaps internal audit reports) to determine if the Supplier’s quality management system meets Valiant requirements. The Supplier’s Quality Management System Manual, which is to be current and approved by the Supplier's management, including or making reference to related documents utilized throughout the company. The quality management system documentation shall include Supplier’s statements of a quality policy and quality objectives. Top management shall define quality objectives and measurements which should address customer expectations and be achievable within a defined period of time. The Supplier shall promptly notify the Valiant buyer of any substantial changes to the Supplier’s quality management system or personnel.

3.3 On-Site Assessment Valiant and/or its Customers may elect to conduct an on-site assessment of a Supplier’s product, process and equipment capabilities, due to product/process complexity or project criticality. The on-site assessments could include:

• Technology, Services and Capability Assessment – to determine whether the Supplier has the needed technical resources, including design and engineering resources, adequate computer-aided design language/format, manufacturing, production and inspection equipment, facilities, electronic commerce capability, etc.

• Business and Manufacturing Operations – to determine whether the Supplier has the financial resources, production capacity, and other business resources needed to fulfill Valiant volume production needs and continuity of supply.



• Continual Improvement Initiative – to determine if the Supplier’s culture, methods and skills are present to actively pursue continual improvement.

• Sub-Tier Supplier Control – to evaluate the effectiveness of the Suppliers sub-tier management processes and ensure that products or services procured from sub-tier sources and delivered to Valiant conform to all applicable Valiant requirements.

3.4 Control and Release of Valiant Furnished Documents Documents furnished by Valiant to the Supplier are provided solely for the purpose of doing business with Valiant. Proprietary documents may be provided to the Supplier in hard copy, electronic or other media. The Supplier is responsible for controlling and maintaining such documents to preclude improper use, loss, damage, alteration and/or deterioration.

Unless authorized by the Valiant buyer in writing, the Supplier may not transmit or furnish any Valiant supplied documents, or copies of such documents, to anyone outside the Supplier's business organization except to a sub-tier source used by the Supplier for performance of work under the Valiant-Supplier contract. The Supplier shall return to Valiant, or purge electronic copies of, all proprietary documents with the last delivery of products or services on the contract. Valiant may request the Supplier to provide objective evidence or certification that proprietary documents have been purged. The Supplier shall flow down this requirement to all sub-tier sources, when such sources will be in receipt of Valiant proprietary documents during completion of work for the Supplier under the Valiant-Supplier contract.



4. Manufactured Components Quality Requirements The following section of the Supplier Quality Handbook is broken down into five distinct equipment categories based on the type of equipment being provided by a particular supplier. Please see the appropriate section that best describes your supplied material.

The table below gives examples of the equipment categories and the type of material that falls under that particular category as well as the Supplier Quality Measurables that are to be adhered to by our supplier base.

Equipment Category

Equipment Examples / Definition

Supplier Quality Measurables

1 Details • Part Touching • Fixturing Details • Locators • Shafts

• Engineering Drawing • Inspection Evidence • Material Certificates

2 Fabrications • Metal Prep Work • Complete Weldments • Fabrication Assemblies

• Engineering Drawing • Inspection Evidence • Material Certificates

3 Purchased Controls Components

• Transformers • J-Boxes • Switches • Valves • Panel Components

• Engineering Drawing • Functional & Application

Verification • Tier 2 Application Agreement

4 Purchased Mechanical Components

• Motors • Pumps • Cylinders • Robot & Robot Cables • Gear Boxes • Blowers • THK Rails • End Effectors • Clamps • Nozzles

• Engineering Drawing • Functional & Application

Verification • Tier 2 Application • Agreement

5 Major Mechanical Sub- assemblies or Service

• Work Stations • Conveyor Systems • Geo, Respot, Install

Fixtures • Bushing Press

• Qualification Plan Defined by Program Team

• Tier 2 Application Agreement • Calibration / Certification

Documents (not applicable for all)



Equipment Category

Equipment Examples / Definition

Supplier Quality Measurables

• Welding Units • Torque Units • Gluing Units • Robot EOAT • Marking Equipment • Vision Systems • Laser Systems • Leak Test Equipment • Hemming Equipment • Washer Housings • Dunnage Systems • Platforms • Assembly Equipment • Feeders • Probe Units • Pallets • Load Assists • Hand Tools • Gantry Systems • Electrical Panels

• Spare Part Lists & Maintenance Manuals

• Material Certificates • APQP Elements

4.1 Details All details being shipped to a Valiant facility must comply with the engineering drawing that was provided. Parts must be fully inspected prior to shipment and an inspection tag should be attached to the parts.

Inspection reports and material certificates need to be utilized and maintained by the supplier as evidence as they may be requested at a later time. The format of the inspection report is the supplier’s choice. For multiple items that have the same part number, completed on same equipment with the same set-up, a random check of no less than 10% of the population is required.

Table below is an example of what quality documents are required for details:



Example Part # Quantity Ordered

Required Documents

A 12345XX 1 • Inspection report evidence available for (1) piece

• Material Certificates

B 12345YY 100 • Inspection report evidence available for minimum (10) pieces (10% of population)


Below is an example of a shipment of non-conforming details that were received at

Valiant (NCMR #3031, Project #101-3-1497, Part #31497-200-656-00-013-003):

4.2 Fabrications All fabrications being shipped to a Valiant facility must comply with the engineering drawing that was provided. Parts must be fully inspected prior to shipment and an inspection tag should be attached to the parts.



Inspection reports and material certificates need to be utilized and maintained by the supplier as evidence as they may be requested at a later time. The format of the inspection report is the supplier’s choice. For multiple items that have the same part number, completed on same equipment with the same set-up, a random check of no less than 10% of the population is required.

Table below is an example of what quality documents are required for fabrications:

Example Part # Quantity Ordered

Required Documents

A 54321XX 1 • Inspection report evidence available for (1) piece


B 54321YY 40 • Inspection report evidence available for minimum (4) pieces (10% of population)

• Material Certificates An example of an inspection report for a weldment that was provided to Valiant with a shipped component is attached in Appendix 2. Below are examples of non- conforming fabrications that were received at Valiant.

Example 1: NCMR #2547, Project #101-3-1498, Part #31497-265-178-00-001-001



Example 2: NCMR #4103, Project #101-3-1498, Part #31498-135-154-02-008-003

4.3 Purchased Controls Components All controls components being shipped to a Valiant facility must comply with the engineering drawing that was provided or the product catalog details that were specified in the Purchase Order. There may be supporting quality documents (manufacturer’s certificate, test report, etc.) that are required for certain components based on customer specific requirements and those will be clarified on the Purchase Order or thereafter.

Product Application Agreements may be required for certain components under this category. Application Agreements will be requested from suppliers through Valiant’s design group, a reference document can be seen in Appendix 4.

Appendix 3 shows an example of inspection evidence for a common pressure switch that is provided to Valiant from one of our suppliers.

4.4 Purchased Mechanical Components All mechanical components being shipped to a Valiant facility must comply with the engineering drawing that was provided or the product catalog details that were specified in the Purchase Order. There may be supporting quality documents (manufacturer’s certificate, test report, etc.) that are required for certain components based on customer specific requirements and those will be clarified on the Purchase Order or thereafter.

Product Application Agreements may be required for certain components under this category. Application Agreements will be requested from suppliers through Valiant’s design group, a reference document can be seen in Appendix 4.



4.5 Major Mechanical Sub-Assemblies or Service All major stand-alone mechanical sub-assemblies that are self-contained units must undergo a functional validation and a qualification run-off to ensure supplied equipment meets Valiant’s and the final customer’s requirements. The qualification requirements will be defined and generated by the project team for the specific item being supplied during the Request for Quote (RFQ), Simultaneous Engineering (SE) phase of the project or thereafter.

Some of the purchased components in this category may also contain calibration/test information and material certifications that needs to be provided with the shipped equipment. The table below identifies some additional documentation that may be required.

Supplied Material Document Requirements Load Cells • Calibration Certificate

• Due at time of shipment • Hard Copy

Torque Guns • Calibration Certificate • Due at time of shipment • Hard Copy

Weld Guns • Calibration Certificate • Due at time of shipment • Hard Copy

Vision System • Validation Documentation • Due at time of shipment • Hard Copy

Laser Systems • Validation Documentation • Class of Laser Identification Documentation • Due at time of shipment • Hard Copy

Leak Test Equipment • Calibration Certificate • Due at time of shipment • Hard Copy

GEO Fixtures • CMM Report • Due at time of shipment • Hard Copy or Electronically

Gluing Units • Validation Documentation • Due at time of shipment • Hard Copy

Marking/Scribing Equipment

• Calibration Certificate • Due at time of shipment



Supplied Material Document Requirements • Hard Copy

Robot EOAT • Build/Inspection Check sheet • Due at time of shipment • Hard Copy

Probe Units • Calibration Certificate • Due at time of shipment • Hard Copy

Servo Press Units • Validation Documentation • Due at time of shipment • Hard Copy

Appendix 5 shows an example of a validation document (test report) that was provided to Valiant with supplied equipment. The report indicates that the general arrangement of the final product (high pressure pump) was validated as purchased, prior to shipping to a Valiant facility.

Some equipment in this category that is self-containing, turnkey type sub-assembly (feeder, conveyor, etc.) also requires additional deliverables to be provided to Valiant at time of shipment. See summary table below for deliverable details:

Major Stand Alone Equipment Final Deliverables

Document Requirements

Spare Part List • Due at time of shipment • Valiant approved format (Appendix 6) • Electronic

Maintenance Manuals • Due at time of shipment • Supplier’s format • Electronic & Hard Copy

Preventative Maintenance Plan • Due at time of shipment • Supplier’s format • Electronic

R & M Information • Due at time of shipment • Valiant approved format • Electronic

Final Drawings • Due at time of shipment • Valiant approved format • Electronic



Major Stand Alone Equipment Final Deliverables

Document Requirements

Other documentation mandated by government laws, regulations, environmental, safety, ergonomic specifications, etc…

• Due when and if requested by Valiant

5. Additional Information on Manufacturing Process 5.1 Welding Requirements and Guidelines For any material with welding applications, the information on the part print must be adhered to. General Valiant welding requirements and guidelines are listed below and are to be maintained at all times:

5.1.1 Prior to fit-up and welding, the adjacent surfaces must be cleaned of all oil, grease, paint, rust, scale, and/or other deleterious substances within 1 inch of the weld zone by washing, filing, brushing, grinding, or other appropriate means

5.1.2 Cracks and crack-like defects are not acceptable

5.1.3 Overlap is not acceptable

5.1.4 Each layer of welding must be free of any inclusions and/or porosity

5.1.5 Incomplete penetration and incomplete fusion is not acceptable

5.1.6 Crater pits are not acceptable

5.1.7 Artificial undercut created by overzealous application of a pneumatic chipping hammer or grinding is not acceptable

5.1.8 Weld spatter is not acceptable where it would interfere with bolting surfaces, gasket surfaces, cover openings and bearing surfaces. It is also not acceptable in fuel oil, air, water or lube oil passages. Spatter in excess of 6 globules per square inch and/or greater than 3/32 inch in diameter are not acceptable at any time

5.1.9 Burn through or melt through are not acceptable

5.1.10 The width of butt welds must not exceed the width of the prepared groove by more than 15% of the groove width per side.

5.1.11 For piping, width and reinforcement limitations will apply to the internal surface as well as the external. For full penetration welds, width and reinforcement limitation will apply to the inside reinforcement also.

5.1.12 Fillet welds are to be of specified size and length:

• Tolerance for size – minus zero to plus 3/16”

• Tolerance for length – minus zero to plus 3/4”



5.1.13 Convexity and concavity of fillet welds should not deviate more than 50% of the specified fillet size from flat, or 1/8 inch, whichever is less. Concave welds must meet minimum drawing requirements.

5.1.14 Leg lengths of equal leg fillet welds may not vary more than 3/16 inch from each other

5.1.15 Undercut may not contain any sharp crevices. The maximum undercut must be 1/64 inch or 10% of the adjacent base metal thickness, whichever is less

5.1.16 Weld reinforcement for butt welds must not exceed:

• 1/16 inch for welds up to and including ¼ inch thickness

• 3/32 inch for welds over ¼ inch to 1 inch thickness

• 1/8 inch for welds over 1 inch to 2 inch thickness

5.1.17 When welding material over ¼ inch thickness, low voltage short circuit (GMAW-S) mode is not recommended. GMAW-S welding is usually associated with current ranges of 30-225 amps, electrode diameters of 0.030”-0.045” and gases of no more than 80% Argon and is likely to cause lack of fusion in thicker material.

5.2 Welding Tube Construction Material When welding components made out of hollow tube construction, vent holes should be added to the material to prevent incidents of trapped air. This will also eliminate any issues with trapped air while stress relieving the components. The picture below shows a tube weldment with vent holes added throughout.



5.3 Welding Inspection Requirements Prior to shipping any material with welding work, the supplier is responsible for visually inspecting the parts for possible defects as a result of not maintaining the welding requirements listed in the section above.

When official weld inspection is requested for the acceptance or rejection of material and workmanship, which may be required for certain projects, it shall be performed by a qualified inspector.

The acceptable qualification bases are the following:

5.3.1 Current certification as an American Welding Society (AWS) Certified Welding Inspector (CWI) in accordance with the provisions of AWS QC1

5.3.2 Current qualification by the Canadian Welding Bureau (CWB) to the requirements of the CSA Standard W178.2 Level II

5.3.3 Current qualification American Society for Nondestructive Testing (ASNT) Level II / III to the requirements of the ASNT TC 1A Standard.

Pictures below depict some unacceptable welds that were made for Valiant that exhibit some of the defects listed above, something a simple visual inspection would have identified

Photo 1: Poor Fit-Up



Photo 2: Overlap and lack of fusion

Photo 3: Lack of fusion and under fill



Photo 4: Crater pit and spatter

5.4 Aerospace Welding Requirements For aerospace related work, there are more detailed welding requirements and those will be identified per project basis and outlined in the RFQ or thereafter. The following table identifies some common aerospace requirements that have been requested by the end customers in the past, and it is to be used as a reference. More requirements may be expected and some must follow specified format.

Aerospace Requirements When Required by Valiant Weld Inspector Certificates

Prior to starting welding

• Full Qualified Welding Procedure Specification (WPS) in accordance with AWS D1.1

• Procedure Qualification Record (PQR) • Welding Performance • Qualification Record (WPQR) • Material Certificates

Pre-Weld Inspection After completion of pre-weld activities

Tack and Fit-up Inspection After completion of tack and fit-up

Final Weld Inspection After completion of final welding • Categorized based on customer

requirements



5.5 Stress Relieving Cold working, hot rolling, grinding, quenching treatments, welding, and thermal cutting all can induce residual stress into metal. Welding, in particular, because of the rapid thermal expansion and contraction created along a very localized area, is a prime source of residual stress. The level of stress generated by welding can be very high depending on certain conditions such as heat input, base metal thickness, cooling rate, restraint of the weldment, and welding process itself, which all play a role in the level of residual stress induced into a weldment.

Where stress relieving is specified and required, there should be a document provided to Valiant validating the process was performed. Since the effectiveness of stress relieving is dependent on the control exercised in bringing the component to proper temperature and then its subsequent cooling, some of the basic information contained on the report should include:

• Rate of heating

• Soaking (holding) temp

• Soaking (holding) duration

• Rate of cooling

5.6 Heat Treating For any material with heat treating specifications, the information on the part print must be adhered to.

For hardening applications, the hardness number needs to be properly recorded and reported as part of detailed inspection. Valiant reserves the right to audit the hardening process source, whether the process is done in-house or outsourced by the supplier.

5.7 Heat Treating for Aerospace For aerospace related work, there are more stringent heat treat requirements and those will be identified per project basis and outlined in the RFQ or thereafter. The following table identifies the heat treat requirements that are to be submitted to Valiant for evidence for the final customer:

Aerospace Requirements When Required by Valiant Heat Treat Charts • Upon completion of heat treat

5.8 Surface Treatments Parts that call out any surface treatments must be completed as specified on the part print. Prior to shipping the supplied material, the parts must be visually inspected. The surface treatment applied is to cover the base metal completely and be of uniform shade. The supplier is responsible for ensuring that any post- treatment after coating is applied before shipping the components. The part shall show no evidence of pitting, intergranular attack, or corrosion. In some cases, parts with blind holes may require additional cleaning and/or neutralizing to eliminate bleed-out. Picture below depicts details shipped to Valiant with coating bleed-out that wasn’t properly cleaned



Any hollow type of details where liquid can get trapped inside during the coating process need to have a way of draining.

If the details cannot be drained properly, drain holes need to be added to ensure all the liquid is removed prior to shipping. This requires prior approval from Valiant by utilizing the Specification Deviation Request Form located it Appendix 7 of this document.

5.9 Part Identification Part identification is required on all parts at the detail level. Part identification requirements are specified on the Purchase Order and/or part prints. The identification labels must be legible after part is painted by visibly stamping with the Manufacture Part Number. Product can be stamped, etched or engraved. Other labeling methods can be utilized, if approved.

Typical Manufacture Part Number will have the following pattern:

XXXXX-XXX-XXX-XX-XXX-XXX

Some examples of appropriate part labeling are shown below:



5.10 Paint Requirements Paint requirements and colours for various components can be specified either on individual part prints or are outlined in the Purchase Order or through other communication with the supplier. If paint is requested, all specified requirements must be adhered to. Supplier must ensure ALL primer and paint used is LEAD, CHROMIUM and CADMIUM FREE. Paint MSDS Sheets must be provided with each shipment, attached to the packing slip.

Prior to painting, all machined surfaces or any other surface specifying to be left unpainted on the part print must be taped off. Any tapped holes or clearance holes need to be plugged off for contamination prevention.

Although the individual paint processes will differ somewhat for wet spray painting and powder coating application, the general flow remains the same and should follow the (3) basic process steps listed below:

5.10.1 Part Preparation, Pre-treatment or Priming Prior to Painting

• Prepare part by removing any oil, dirt, lubrication greases, metal oxides, welding scales etc.



• Any cleaning solutions used must be compatible with the specified primer

• Variety of chemical and mechanical methods can be used for part preparation and pre-treatment, if method not specified, use supplier standard

• Follow specifications for primer application if available

5.10.2 The Paint Application

• Apply wet paint or powder coat as per specification

5.10.3 Drying or Curing

• Follow specifications for drying and curing if available

• Powder coat requires a certain temperature for a certain length of time in order to reach full cure and establish the full film properties for which the material was designed, this information should be available, if requested by Valiant

5.11 Paint Requirements for Aerospace For aerospace specific projects, there may be additional more detailed paint requirements and those will be provided during RFQ or project kick-off phases or anytime thereafter.

6. Production Components Quality Requirements 6.1 Advance Product Quality Planning Advanced Product Quality Planning (APQP) is a structured process which ensures that production suppliers have the ability to consistently produce conforming product. Suppliers engaged in providing production type components are requested to engage in the Valiant’s APQP process. This collaborative effort not only ensures that the product design meets future Customers’ expectations, but also allows for intelligent inputs of the supply chain and interfacing groups.

The chart below identifies the five concurrent and collaborative phases that take place in APQP along with ongoing feedback assessment and corrective action.



Control Plan Inputs

The tools within APQP make up a road map where the design and process teams engage with the supply chain to exchange inputs of the new product and process designs. The following APQP tools and tasks require Valiant’s supplier base participation in order to improve product and process quality, including:

• Failure Modes Effects Analysis (FMEA) during system, product and process design to identify and control risk

• A completed and signed Supplier Application Agreement for key components to ensure the proposed products satisfy the design intent and are appropriate for a particular application

• Methodology to ensure non-conforming product is detected and contained

• Calibration, Inspection results and or test data is to be provided by the suppliers for parts being shipped to Valiant

• Participation and timely closure of open issues that may surface during all the project phases

• Regular updates of project timing

Suppliers are required to attend upon request Valiant APQP meetings and allow Valiant employees to attend the Supplier’s APQP meetings upon request. Suppliers are required to provide APQP timing charts to monitor progress to Valiant SQE assigned to specific commodity.

6.2 Production Part Approval Process (PPAP) Requirements Any Production Part Approval Process (PPAP) activities that happen within Valiant follow the standard 18-point submission and approval process; some important activities are detailed below



6.2.1 Design Records / Drawings The supplier is to submit to Valiant a legible copy of the part print with each and every feature (including print notes, standard tolerance notes and specifications). These are to be road-mapped or ballooned and systematically identified to correspond with inspection results. The part print must be checked and signed by an assigned Valiant representative.

The supplier is responsible for the design records including the math data, specifications, raw material identification, formulations, processing steps and parameters. The supplier is to provide a hard copy of these design records for approval by the assigned Valiant representative.

6.2.2 Engineering Change Documents Any revisions to the process including marked up drawings or specifications, authorizing the supplier to deviate from the design record must be submitted to Valiant via a Supplier Change Request (SCR) and copies of approved SCRs maintained as records.

6.2.3 Customer Engineering Approval The supplier must maintain evidence of customer engineering approval, if specified and required by the process.

6.2.4 Design FMEA (DFMEA) If the supplier is responsible for the design of the part, they are responsible for the DFMEA. Otherwise, the DFMEA is the responsibility of Valiant and the supplier may be engaged to assist in participating during FMEA workshops.

6.2.5 Process Flow Diagrams (PFD) The Process Flow Diagram must follow the process form receipt of raw materials and receiving inspection, through any warehousing and shipping steps. It should also include Dock Audits and Final Inspections. The PFD must include all potential paths that a part can take throughout the process, including inspections, containment, rework and scrap. Any material shipped to sub-contractors and returned back to supplier’s facility must also be included in the PFD. The format of the PFD is of Supplier’s choice but must be approved by a Valiant representative.

The numbering and sequencing of the operation numbers on the PFD must be consistent and match to that of the FMEA, Control Plans to allow for easy cross-referencing between the documents. All Key Product Characteristics (KPCs) and Quality Control Inspections (QCIs) must be noted on the PFDs.

6.2.6 Process FMEA (PFMEA) The PFMEA is a living document, evolving with the process and should be initiated at early stages, prior to tooling for production. PFMEA must take into account all manufacturing operations, from individual components to assemblies. Any processes that may impact the manufacturing and assembly operations within the plant must also incorporated into the PFMEA, including shipping, receiving, material transport, storage, automation, and labeling/identification.

6.2.7 Control Plan Control plans must follow the manufacturing process form receipt of raw materials through shipping activities, encompassing receiving inspection, dock audits and final inspections. Control



methods of both product and process characteristics should be listed. If work instructions are referenced in the Control Plan, those need to be included in the PPAP package. The Control Plan must be part (or part family) specific and is to include part print revisions with all dimensional characteristics and notes identified on the print. Anything required to make a defect-free part must be addressed by the Control Plan.

The numbering and sequencing of the operation numbers on the Control Plans must be consistent and match to that of the PFD, FMEA to allow for easy cross-referencing between the documents.

Sub-Supplier Control Plans should be available for Valiant to review, if requested.

6.2.8 Measurement System Analysis (MSA) The supplier is to have all applicable MSA studies completed as gage R&R, bias, linearity, stability studies for all equipment used for new or modified gages, measurement and test equipment listed in the control plan. Parts used in the analysis must be production representative. Any devices not meeting the gage R&R acceptance criteria must have a containment plan such as 100% inspection or gage improvement.

6.2.9 Dimensional Results The Supplier is to provide evidence of the dimensional results and those must correspond to the road mapped or ballooned print outlined in the Design Record. All dimensions (expect reference dimensions); characteristics and specifications noted on the Design Record and Control Plan should be listed and must indicate “In Spec/Out of Spec” and/or “Pass/Fail”. Any requirements not satisfied must include an Interim Recovery Worksheet filled out by the Supplier and submitted to a Valiant representative.

6.2.10 Material, Performance Test Results The supplier is to perform and provide any material certification and/or material test results relating to the part and production material when chemical, physical or metallurgical requirements are specified by the Design Record or Control Plan.

Material certification is required for all raw materials and for each component. For PPAP parts qualification/approval, material certification document must be provided prior to commencement of cutting or processing. Documentation is to include the following:

• Product dimensions (thickness, length, width, diameter, etc.),

• Number of pieces,

• Manufacturer of material (name, contact information)

• Mill Name/location/address

• Heat & lot number

• Chemical composition

• Metallurgical data (alloy designation, hardness, yield strength, ultimate tensile strength, elongation)

• Ultrasonic test (where applicable)



If the material certification is not written in English, a report from an accredited, independent laboratory within the United States or Canada showing actual chemical and physical properties is also required.

The supplier is also to include any performance or durability tests as prescribed in the Design Record or Control Plan relating to the part and production material.

6.2.11 Initial Process Capability Studies The supplier is responsible for performing a multi piece capability study at the time of PPAP. The piece quantity is to be mutually agreed upon by the Supplier and Valiant prior to executing the part run. Data for all KPCs and QCIs and other special characteristics deemed necessary by Valiant must be maintained. If these are not identified, the supplier should select at least one dimension to demonstrate process capability. The multi piece data should come from the available PPAP production run parts. The capability study plan is to be documented and pre-approved by Valiant.

The acceptance criteria for the process will be based on the AIAG PPAP requirements and typically follows the following breakdown for process capability evaluation:

Result Action (Run Output) > 1.67 • Current process is acceptable

• Review results of the study with the team • Production can begin following an approval

1.33 ≤ (Run Output) ≤ 1.67 • Current process is acceptable, but may require some improvements

• Review results of the study with the team • Changes to the Control Plan may be required if process

not improved prior to start of volume production

(Run Output) < 1.33 • Current process is not acceptable • Review results of the study with the team

6.2.12 Qualified Laboratory Documentation If testing is performed in a Supplier’s internal lab, a copy of their quality certification and laboratory scope must be provided. If the Supplier uses an external lab, their certification documentation and laboratory scope must also be provided. The required certifications are to be current and all the laboratories are to be ISO/IEC 17025 certified.

Laboratory scope is a quality record that includes specific tests, evaluations and calibrations a laboratory has the ability and competency to perform and also lists the equipment, method and standard used to perform the evaluations.

6.2.13 Appearance Approval Report (AAR) A separate AAR must be completed and provided for each part (or family of parts) for submission if the product has appearance requirements listed on the Design Record. AAR will



typically apply to parts with color matching, grain and surface appearance requirements. A standard Supplier form can be used and must be approved by a Valiant representative.

6.2.14 Sample Product to Plant The Supplier is to send the sample product to the plant specified on the Purchase Order or as instructed by a Valiant representative. The sample parts provided are to be manufactured the permanent process. Packaging is to be part appropriate and parts are to be identified (labeled) as PPAP with each sample numbered and correlated to a dimensional report. The Supplier is to provide the shipping information (carrier name, tracking number, quantity) to Valiant representative responsible for receiving the PPAP.

6.2.15 Master Sample The Supplier is responsible or retaining a master sample for each production process, tool, pattern, mold, die, etc., unless otherwise specified by Valiant. The requirement indicates that the master sample must be retained for the same period as the production part approval records or until a new master sample is produced for the same customer part number. A master sample may also be required by the Design Record, Control Plan or inspection criteria for use as a reference of a standard. The master sample must be stored in a suitable location that maintains integrity of the sample with proper identification including the sample approval date and the manufacturing date.

6.2.16 Checking Fixtures/Aids/Gages If required or requested by the customer, the Supplier must submit any part – specific assembly or component checking aid with the PPAP submission. The checking aid must agree with the part dimensional requirements and must be certified as such by the Supplier. Any checking aids used for production must be visually colour-coded as green (PASS) or red (FAIL). A validation process is to be defined and a schedule established.

6.2.17 Customer Specific Requirements The supplier must have records of compliance to all applicable customer specific requirements. These may be PPAP submission requirements that are specific to Valiant components that may be established during the course of the project. Some of these may include:

• Interim Recovery Worksheet, used for less than full approval (print changes not yet released)

• New Tool Information, including photos, description and drawings

• Supplier Packaging

• Supplier Contact List, provided to Valiant at the beginning of the project

• Factory Floor Layout

• Raw Material Certification, from the material producer specifying the manufacturing location, lot number, product name, test dates and test data

• Raw Materials and Value Added Services

• Shipping Requirements for Production Type Material



• Supplier On-Site Process Approval (SOPA) may be utilized to verify compliance. Valiant assigned representatives will be present during the supplier process review.

• Material Safety Data Sheets (MSDS), the most recent copy of the MSDS as published by the original material manufacturer is to be provided to the Valiant procurement representative prior to shipment. A copy of the MSDS documentation should also be attached with the material shipment.

• Preventative and maintenance plan for the key equipment

6.2.18 Part Submission Warrant (PSW) The supplier must record the required information on the PSW upon satisfactory completion of all requirements. A separate PSW needs to be provided for each customer part number unless prior approval is granted. All the fields on the PSW must be properly filled out with part number revision level matching the drawing. The AIAG PPAP template is an acceptable format to be used by the Supplier or a Valiant form may be used. Electronic signatures and submissions are acceptable.

6.3 Raw Materials and Additional Processes for Production Activities Bar, tubing, plate, structural Stock: These items are ordered on a “per job” basis and, sometimes, to inventory. All purchases must be quoted prior to order. Written quotes must include price and delivery date and terms. The heat code of the material shall be included on the packing slip and invoice. If a Valiant Job Number appears on the Purchase Order, this Job Number shall appear on the packing slip, product labeling and invoice.

6.3.1 Forgings Forgings are purchased on a contract or long term agreement and are usually scheduled for regular releases. Release dates may need to be adjusted to fulfill customer needs at any time. Due dates of actual deliveries will depend upon arrangements made with Valiant’s assigned Procurement representative. Material Certificates are required for each shipment unless waived by a statement on the Purchase Order.

6.3.2 Castings Like forgings, castings are purchased on contract or long term agreements and are usually scheduled for regular releases. Release dates may need to be adjusted to fulfill customer needs at any time. Due dates of actual deliveries will depend upon arrangements made with Valiant Purchasing Department. Unless waived by language in the Purchase Order, excess material from parting lines and gates shall be removed by grinding or other effective means. Material Certificates are required for each shipment unless waived by a statement on the Purchase Order.

6.3.3 Pre-Cut Blanks Material is sometimes ordered to be cut to a specified size and/or shape by plasma, flame, water or laser cutting equipment, or other means. Cut blanks are ordered on a “per job” basis. Dimensions and tolerances shall be clearly defined in a drawing or on the Purchase Order. Unless waived by language on the purchase order, all edges shall have “slag” removed by grinding or other effective means. The heat code of the material shall be included on the packing slip and invoice. If a Valiant Job Number appears on the Purchase Order, this Job Number shall appear on the packing slip, product labeling and invoice.



6.3.4 Heat Treatment, Stress Relieving, Plating of Production Material Suppliers that provide value added service such as plating and heat treatment shall retain all inspection records pertaining to work performed for Valiant for a minimum of five years. Valiant shall be notified before any such records are destroyed. These inspection records shall be available for review at any time. Vendors shall provide a Certificate of Compliance when required by a statement on the Purchase Order. This Certificate shall include the following information:

• Part Number,

• Part Name,

• Valiant Purchase Order Number,

• Valiant Job Number (if applicable)

• Date(s) that work was performed

• Quantity of lot

• Quantity tested

• Reference to the specification used

6.4 Production Releases Effective communication regarding any and all information that may affect the timely delivery of material(s) to support Valiant’s daily production builds is mandatory.

Valiant production facilities will provide Suppliers with regular material releases against blanket purchase orders to meet production requirements. Releases will be sent to the Suppliers via email, or facsimile (or EDI) by Valiant Materials Management representative at the appropriate Valiant production facility. Releases will advise Suppliers of Valiant’s commitments.

It is the Supplier’s responsibility to contact the assigned Valiant Materials Management representative if an updated weekly production release is not received. The Supplier will be responsible for any and all expedite cost associated with failure to do so.

6.5 Shipping Requirements for Production Type Material It is the Supplier’s responsibility to notify a Procurement representative in writing if Valiant needs to change the Supplier contact name, phone number, fax number, email address, etc. for the production releases or purchase orders.

In the event of any failure by the Supplier to deliver material on time, the Supplier must immediately contact Valiant’s assigned Plant Materials Management representative to discuss any late shipments and the potential impact. As a result of the late shipment, the Supplier is also to complete and submit a Supplier Request for Deviation form to Valiant.

Before assessing any charge-backs for late deliveries, Valiant will consider if sufficient lead-time was provided. It is Valiant’s expectation that the Supplier can meet a mutually agreed percentage increase over the Valiant quoted volume within a mutually agreed period provided that Valiant is not exceeding the stated tool capacity or otherwise agreed. It is also Valiant’s expectation that the Supplier will immediately react to the increase by shipping a significant portion on the next shipment and notify Valiant assigned representative of any portion the Supplier cannot fulfill.



6.6 Labeling Requirements for Production Type Material

6.6.1 Labeling Pre-production Material All prototype, pre-production, PPAP, early production, engineering sample parts must be labeled with Special Shipment Labels.

6.6.2 Labeling Production and Service Parts All boxes, containers, racks and pallets containing components must be labeled in accordance with Valiant specific facility labeling requirements. These requirements include, but may not be limited to, the application of labels that are visible from opposite sides of the shipment. In the case of a mixed pallet, two master labels visible from opposite sides should be included which details of every product within the shipment. The following information must be included on the approved label for all production components shipped to Valiant’s manufacturing facilities:

• Valiant assigned Part Number

• Valiant Revision Level (if applicable)

• Part Description

• Quantity in box or rack or specific container

• Supplier Manufacturing Date

• Supplier Name

• Valiant’s Purchase Order Number

• Unique Serial Number code that can be traced to the manufacturing date

• Ship to location

Any bar code labels and standards used by the Supplier are to be reviewed and approved by Valiant assigned representative.

6.6.3 Country of Origin Markings The country of origin must be clearly marked on shipping labels and documentation. Actual marking of each individual parts with country of origin (e.g. etch, ink, other) is to be reviewed with Valiant/End-Customer.

6.7 Packaging of Production Material Suppliers are responsible for submitting packaging proposals to Valiant assigned representative for evaluation and approval. Once a packaging proposal is received from the Supplier, both parties will work together to evaluate feasibility of the proposal and work through selecting a final packaging solution. As part of this evaluation phase, Valiant may require a packaging trial. Final approval for packaging will be provided by the Valiant assigned representative prior to any shipments of production parts.

The packaging selection criteria will depend upon the specific part or material, the method of transportation and the method of handling required by the receiver. However, certain basic factors deserve consideration. Package size, strength and type must be selected to provide protection and to fit the method of handling, mode of transportation, applicable carrier regulations, and distance of transit.



Whenever possible all parts will be shipped in returnable packaging, unless an alternative is pre-approved by Valiant assigned representative. Design parameters of boxes, containers, etc. shall consider optimization of cubic capacity, required robustness/strength, load density, stack-ability, modes of transportation used, equipment utilization, etc. to ensure freight/product integrity.

Additionally, Suppliers are to review their packaging on an on-going basis in order to improve deliverable part quality and continual minimization of costs.

6.7.1 Manually Handled Loads Manually handled loads must permit efficient handling and ergonomically safe containers; the following design considerations and guidelines apply:

• In cases where operator lift assist equipment (e.g. cranes, forklift, etc.) may not be used, these packages must not exceed 15.0 kg gross weight and should be shaped so that one person can easily handle the container.

• The recommended pallets are a four-way entry, 1200 x 800mm and 1200 x 1000mm footprint.

• Use unique pallets only when product characteristics dictate and only if approved by Valiant.

• Whenever possible and as volume permits, manually handled packages must be able to be handled mechanically as a single load by forklift trucks. One full layer of cartons/containers on a pallet is sufficient volume to require that parts be palletized.

6.7.2 Mechanically Handled Loads Mechanically handled loads must allow proper handling by available equipment, shipped without damage and in a manner which will permit efficient unloading from the carrier; the following design considerations and guidelines apply:

• All mechanically handled loads must have four-way entry with flush cut top and bottom boards.

• All loads must be firmly secured to the pallet. Securing can be by non-metallic strapping (at least two bands lengthwise and two bands width wise) or by stretch wrap or shrink-wrap to maintain the integrity of the load.

• The container shall be designed to withstand the constant handling required by our Just-In-Time operation.

6.8 Delivery It is a Valiant requirement that all Suppliers are to provide 100% on time delivery performance of 100% of the required material. Any shortages, problems of concerns shall be communicated in writing to the designated Valiant representative. It is the responsibility of each Supplier to ensure that all shipments are in predetermined standard pack quantities at all times. Any over-shipments must be approved by Valiant assigned representative. If not approved, Suppliers will be held responsible for any return freight carrier charges, and/or other plant costs as a result of an over-shipment.



6.9 Certificate of Compliance The supplier is to submit with each shipment, a Certificate of Compliance, stating that products shipped against the Purchase Order are in compliance with quality assurance requirements, drawings, materials, processes, test specifications and any other referenced specifications. This Certification, which accompanies each and every shipment, must include the following information, when applicable:

• Purchase Order number

• Part Number (including revision level)

• Serial Number

• Heat Lot

• Batch Number

• Material and/or process specifications

• Actual measurements or reference to test inspection documentation as applicable.

The Certificate of Compliance must be validated with signature by an authorized Quality Representative (including title). When the supplier is not the manufacturer, the Manufacturer's Certificate of Compliance is required. The Supplier is to maintain records on file to substantiate product compliance to the contract and will furnish copies of these records upon request by Valiant’s representative(s).

7. Shipping Guidelines 7.1 General Shipping Requirements The supplier is responsible for providing a detailed shipper where the Purchase Order and each Purchase Order line is identified with the part number and quantity of parts being shipped. A shipper identifying a “lot” of details is not acceptable.

The supplied material must be securely packaged so that the contents arrive without damage.

7.2 Freight and Transportation Unless otherwise agreed and mentioned in the Contract, the Supplier is responsible for transport of parts from Supplier to Valiant defined destination. Generally, the Suppliers are responsible for covering transport costs including return of empty returnable packaging, if applicable. Valiant shall not be held responsible for additional charges for any shipments delivered outside the normal business hours requiring loading/unloading of emergency trucks after hours and during weekends or preparing proper paperwork to allow shipments.

7.3 Shipping/Receiving Normal Operating Hours Typically, the shipping and receiving department is available Monday to Friday from 7:00 am to 3:00 pm. Other arrangement can be made on a case-by-case basis if pre-arranged with the appropriate Valiant personnel.

7.4 Customs Documentation Suppliers shall provide all information necessary for Valiant to comply with all applicable laws, regulations and related legal reporting information in the countries of destination. The Supplier must provide all documentation and/or electronic transaction records to allow Valiant to meet Customs-related



obligations, any local content/origin requirements, and to obtain all Tariff and Trade program duty avoidance(s) and/or refund benefits.

Suppliers, not complying with this requirement, will be issued a Non-Conformance Material Report (NCMR) and will be responsible for all associated costs incurred as a result of the nonconformance, including but not limited, to an administrative fee. This administrative fee will be charged on a part number basis.

7.5 Documentation for All Shipments Each shipment is to be accompanied by a packing list/bill of lading that clearly identifies the following:

• Supplier Name

• Date of Shipment

• Packing Slip Number

• Purchase Order Number

• Shipping to Location

• Valiant designated Part Number

• Quantity shipped

• Part Description as stated on the PO

• Unit of Measure

Packing slip number scheme must also be shown on the Supplier’s invoice.

8. Deviation Request Process In the event the supplier would like to make any revisions to the provided part print, a Specification Deviation Request Form (VCH4-0008) can be submitted through the purchasing department. This deviation form can be used to capture specification changes, process changes and/or cost saving opportunities.

Appendix 7 includes the Specification Deviation Request Form.

9. NCMR Process The NCMR Process describes the activities that take place when a supplier generated non-conformance is discovered at a Valiant facility. Each time a supplier attributed issue is discovered, Valiant will initiate a Non-Conformance Material Report (NCMR). It is requested that the suppliers adhere to the NCMR process flow. The following process flow shows the steps that will take place when an NCMR is issued.



Please note that a Debit Memo will be issued against the supplier for rework cost as a result of non-conformances.



Document Revision Record

Revision Level

Revision Date

Revision Details

Rel 1.0 10/25/2011 • Original Release

Rel 2.0 11/22/2011 • Format Modifications

Rel 3.0 04/30/2013 • Additional info on part identification – Page 20 • Additional info on paint requirements – Page 21

•

•

•



Document Approval and Signoff Record

Name Area of Responsibility Date Signature Stephen Walukas Director – Procurement &

quality

Ed Neves Manager – AQP

Agnes Krol Supplier Quality



Appendix • Appendix 1: The Valiant Group Code of Business Ethics



• Appendix 1: The Valiant Group Code of Business Ethics – Page 2



• Appendix 2: Example of inspection report for a weldment that is provided to Valiant.



• Appendix 3: Example of inspection evidence for a common pressure switch that is provided to Valiant.



• Appendix 3: Example of inspection evidence for a common pressure switch that is provided to Valiant. (Page 2 of 2)



• Appendix 4: Valiant’s Tier 2 & 3 Application Agreement Form (VMT4-0041) (Pg 1 of 2)



• Appendix 4: Valiant’s Tier 2 & 3 Application Agreement Form (VMT4-0041) (Pg 2 of 2)



• Appendix 5: Example of a validation document that was provided to Valiant with supplied equipment.



• Appendix 6: Spare parts list that is to be provided as a deliverable to Valiant in the proper format



• Appendix 7: Valiant’s Specification Deviation Request Form (VCH4-0008)