HTCI, Co. Purchase Order Terms and Conditions
HTCI continually strives to provide the highest quality products in a timely manner. To that end, we have implemented the following terms and conditions for controlling our purchasing activities. Controlled suppliers will be periodically evaluated for quality purposes.
1.0 Evaluation Criteria
1.1 Quality Management System
When deemed necessary, HTCI requires an ISO-9000 Quality Management System or equivalent for the product being ordered. Special Processes may require NADCAP approval. If so, this shall be noted on the Purchase Order.
1.1.1 On time Delivery
1.1.1.1 On Time Delivery. HTCI expectations are 95% or better. HTCI will identify agreed upon lead times on our purchase orders to you. Please contact the HTCI purchasing manager concerning any deviation from this scheduled delivery.
1.1.2 Quality of Parts
1.1.2.1 HTCI expectations are 100% accuracy. HTCI will complete a receiving verification inspection to ensure all purchase order and quality requirements have been met. We will also ensure the parts are free from handling damage and parts are free from FOD.
1.1.2.2 Prior to shipping any non-conforming part to HTCI, authorization must be given by a member of the HTCI Quality Team and the parts must be identified as non-conforming when shipped.
1.1.2.3 Supplier shall ensure all shipments to HTCI contain no counterfeit part contamination (i.e. a part not meeting print, purchase order, or job specification requirements).
1.1.3 Certifications and Delivery Paperwork
1.1.3.1 HTCI expectations are 100% accuracy. Please ensure all certifications and delivery paperwork is free of errors. Certifications must reflect exact requirements of the issued HTCI purchase order.
1.1.3.2 Unless noted otherwise, all records are to be retained for 10 years.
1.1.4 Competitive Pricing
1.1.4.1 We at HTCI pride ourselves in providing our customers with exceptional customer value. As a valued member of our supply chain we expect that these values be reciprocated with our subcontractors.
2.0 Evaluation Results
2.1 If your company falls below the required quality thresholds, it may result in one of the following:
2.1.1 Corrective Action Request - Your company will have 2 months to correct the deficiency, and provide documented proof of this correction.
2.1.2 Removal from Approved Supplier List - Your Company may be removed from the approved supplier list until such a time as the issues are settled.
3.0 Purchase Order Requirements
3.1 Standard Requirements - The following paragraphs apply to all Purchase Orders
3.1.1 Flow Down Requirements - Flow down to the supply chain any requirements, including record retention and right of entry.
3.1.2 Record Control - All records associated with production, including specifications, must be maintained for 10 years, unless otherwise specified.
3.1.3 Right of Entry - HTCI requires right of entry for themselves, their customer, and regulatory authorities to all levels of the supply chain involved with the Purchase Order. This includes access to all areas of the facilities and all applicable records.
3.1.4 3.1.4 Ensuring that persons are
3.1.4.1 — Their contribution to product or service conformity
3.1.4.2 — Their contribution to safety
3.1.4.3 — Their importance of ethical behavior
3.2 As Applicable Requirements - Various requirements are periodically referenced in the Purchase Order or with an attached sheet as applicable. The following paragraphs may apply and will be noted on the Purchase Order.
3.2.1 Reference Standards Identification and Revision Status - HTCI requires the latest revisions to be used on any specifications, drawings, process requirements, inspection/verification instructions and other relevant technical data, unless noted otherwise in the details of the Purchase Order.
3.2.2 Acceptance Requirements - HTCI has requirements for testing/verification. Use of statistical techniques for product acceptance must be statistically valid. All critical items including key characteristics are expressed in the details of the Purchase Order.
3.2.3 Qualified Personnel - If noted, HTCI requires qualified personnel to fulfill the Purchase Order.
3.2.4 Approval of Process - If noted, HTCI must approve the process used including: product, procedures, processes, and equipment.
3.2.4.1 Notification of Changes - HTCI must be notified when changes to the process occur and when a new process approval is required due to a change.
3.2.5 Test Specimen Requirements - If noted, HTCI has requirements for test specimens for approval, inspection/verification, investigating, and auditing.
3.2.6 Product Traceability – HTCI requires the supplier to have the capability of providing full traceability for the material being purchased, including names and addresses of prior sources (if any)
3.2.7 Acceptance of Financial Responsibility – HTCI hereby notifies the supplier that they may be liable for remedial costs should any counterfeit material be provided. HTCI is not under obligation to return suspect or confirmed counterfeit material and may elect to scrap any known counterfeit material. HTCI may request proof of financial responsibility such as material liability insurance.
*Added 3.2.6 Product Traceability and 3.2.7 Acceptance of Financial Responsibility (on page 3)
Issue 3, 6/15/2020