procurement management and process requirements · iso 9001, ts16949 standards * ts 16949 standards...

PROCUREMENT

MANAGEMENT

AND PROCESS

REQUIREMENTS

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1. Process Topic: Supplier Selection & Criteria

1.1 Objectives

To state the selection process of Suppliers and the requirements that needs to be fulfilled to ensure a

smooth flow of registration.

PCI aims to ensure a smooth cooperation and experience with our valued suppliers, right from the start,

at our Supplier registration process. In order to allow both our suppliers and PCI to have reasonable

expectations of each other with abundant future opportunities, it is important that we have accurate

assessments of Suppliers’ capabilities and ensure requirements are adhered to. After signing the contract,

PCI will maintain our suppliers in an Approved Vendor List (AVL) which allows swift and easier transactions

in the future.

1.2 Process Flowchart

*PCI Reference: Document OF-30002

Need to do

A. Customized Parts:

1) In order to be chosen as a potential Supplier, Supplier has to respond to a Request for Quote (RFQ)

on the requested parts’ specifications by filling in a template of costs breakdown with their Best

Quote. Shortlisted Suppliers will be informed promptly.

2) Acknowledge and confirm with signature on Standard Guidelines and Information and submit to

relevant PCI Commodity Engineer upon shortlisted as potential Supplier. Attach relevant data and

certificates to allow faster approval process. Examples: TS 16949:2002, ISO 9001:2000

certifications

3) Allow PCI for visits to assess supply and distribution capabilities when requested

Respond to RFQ with Best Quote

Shortlisted / Chosen Supplier

Acknowledge and confirm on Standard

Guidelines and Information

Allow PCI to visit site and assess

capabilities if needed

Evaluation of Supplier for approval

Full audit of SupplierSign contract & open Supplier

account

http://www.pciltd.com.sg/

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4) Upon approval of Supplier, submit pre-filled Supplier Selection Audit Checklist (SSAC) and allow

audit by PCI’s cross functional audit team if necessary. Supplier will be rated and ranked

accordingly.

*Refer to Supplier Selection Audit Rating Interpretation Guide (SSARIG) for details

5) Invitation to sign contract

B. Standard Parts

All parts/components quoted to PCI Pte Ltd needs to be accompanied with the HS code/ECCN

Export Control Classification Number

1.3 Important Requirements (to be submitted)

1) Supplier Profile Information

2) Alteration of Product Agreement

3) Non-Disclosure Agreement

4) Certificate of Conformance

5) REACH Compliance Declaration

6) RoHS Compliance Declaration

7) Fixed Assets / Tooling Reports (where applicable)

8) Acknowledgement Forms

1.4 Notes

Supplier Profile Information

It is important to inform and update PCI on any significant changes, 6 months ahead of time, e.g.

Relocation of factories or change of banking facilities. This will prevent any misinformation and

misunderstandings between the parties involved for continued and pleasant cooperation.

Service Level Agreement (SLA) *For customized parts only

The SLA will need to be agreed upon the awarding of a new project. It should minimally consist of the

Ordering System, Ordering Information and Delivery Reply of the project pertaining specifically to the

Supplier.

ISO 9001, TS16949 Standards

*TS 16949 standards will be more appropriately apply for Suppliers providing automotive parts

The objective of TS 16949 is the development of a quality management system that covers continuous

improvement, defects prevention and efforts to cut down costs and wastes. PCI follows strictly according

to ISO/TS 16949:2002 and ISO 9001:2000 standards and would also reasonably expect Suppliers to

maintain and implement these minimum expectations with proper documentation.


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Supplier Facility Access

Upon prior notice, when necessary, it shall be required for Suppliers to permit PCI and/or PCI’s customers

to have access to facilities and those of Sub-contractors. This is to enable the appraisal of parts, processes

and documents to have fully conformed to requirements as expected to ensure smooth production and

delivery of orders. Refer to section Process Topic: Supplier Performance Monitoring / Evaluation for more

information on procedures and processes involved.

Nonconforming Materials Settlement: SUPPLIER REJECT NOTE

In the unfortunate case of material part nonconformance, PCI will issue a Supplier Reject Note (SRN) to

the Supplier involved for notice and corrective actions. A recognition/reply is needed on the SRN within 5

working days to continue with any analysis and actions required for the nonconformance. Refer to

Nonconformance Settlement Procedures under section Process Topic: Supplier Performance Monitoring

/ Evaluation for more information.

Acceptance Quality Level (AQL)

With the immense worldwide competition, greater demands for good quality product by customers, many

companies are striving for zero defects through statistical process control, improved processes, closed

loop inspection systems, and other means.

The zero acceptance number plans are used to provide equal or greater consumer protection with less

inspection than the corresponding MIL-STD-105 sampling plans. In addition to the economic advantages,

these plans are simple to use and administer. Because of these advantages, and with greater emphasis

being placed on zero defects and product liability prevention, PCI Private Limited has adopted this plan

for our incoming inspection.


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Supplier Assurance of Supply (AOS)

Suppliers shall, as soon as possible, develop and propose contingency plans in dealing with potential

events of stoppage in production or delivery mishaps due to unforeseen circumstances/potential

catastrophes that will disrupt the flow and whole supply chain for PCI. It is essential that PCI be informed

immediately in the event of any disastrous happening, and grant access to PCI on the facilities, tools, and

replacements wherever necessary to remedy the situation.

Continuous Improvement / Cost Reduction Program

PCI appreciates Suppliers in putting in efforts in trying to achieve internal economic efficiencies from cost

reductions and Value Analysis/Value Engineering (VA/VE) programs. With consistent and continuous

reduction in costs, PCI Private Limited can be assured of its cost competitiveness, in turn maintaining

present deals and securing more future ones. These cases will bring continuity in Suppliers’ orders and

make safe future businesses for Suppliers too. Concrete plans of improvements on quality, delivery,

schedules and prices have to be drawn up and implemented to all business processes possible. We are

keen to work together with Suppliers to achieve these and would definitely bode well in the evaluation of

Suppliers’ performances in the future.


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1.5 Forms Reference

1) Supplier Selection Audit Checklist (SSAC) (to be hyperlinked)

2) Standard Guidelines and Information (to be hyperlinked)

2. Process Topic: First Article Approval

2.1 Objectives

To state the process flow for the submission of first article approval by Suppliers as when awarded new

production projects.


*PCI Reference: Document OF-30005

Need to do

1) Supplier will be informed of the following items needed for the FA sample:

a. Schedule of Sample / Gantt Chart

b. Critical Dimensions of Parts (Cp/Cpk)

c. Cosmetic Requirements (include Defect Limit and Color) in accordance o PCI’s and/or

customers’ product specifications

2) An ETA schedule of the samples will have to be committed to PCI

3) Submit FA Report and Samples for approval


1) First Article Report

2) Non-returnable samples (number of sets & pieces to be defined by PCI and customer)

3) Coloring chips / texturing grades (if any)

Receive request for FA report and Samples

Submit FA Report and Samples

If FA report and Samples do not

pass verification, resubmit again

FA approval


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2.4 Notes

FA Report

The First Article Report will consist of documents that include, but not limited to drawings, specifications,

certifications, tests results, etc. PCI has checklists for minimum requirements and contents that are

supposed to make up the FA report. Please refer to the forms below for FA checklists for the respective

commodities.

2.5 Form Reference

1) First Article Cover Sheet (to be hyperlinked)

2) FA Checklists (to be hyperlinked)

3. Tooling

3.1 Documentation and Tooling Records

PCI seeks the cooperation of Suppliers in summarizing information on the total number of tools in

Suppliers’ premises; hence there is a need for several reports to be submitted.

1) Fixed Assets – Property on Loan

i. Photograph of each tooling / mould is needed. We require Suppliers to provide tooling

information of each tool and label it accordingly on the individual tool. The information of the

tooling shall be pasted on the tool by pre-printed label or engraved it directly on each tool.

The tooling information should consists of the below items:

a) PCI Item Part Number

b) End Customer Part Number (if any)

c) Inscription of “Property of PCI (or ‘Customer’)”

d) Number of Cavity

e) Tooling Dimensions

f) Weight

g) Ruler / Cigarette Box (for indication of size – to be placed beside the tool for photo

shoot)

2) Fixed Assets Summary Report

i. Required for yearly submission

3) Tool Life Report

i. Required for monthly submission


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3.2 Marks and Identification

All tools and machinery belonging to PCI Pte Ltd shall have to be properly marked and identified with ease

with the following information:

1) PCI part number

2) Model

3) Description

4) End customer part number

5) Number of Cavity

6) Tool dimensions

7) Tool weight

3.3 Tooling Costs

Costs involved in the manufacturing and the maintenance of tooling equipment and machinery will be

fairly borne by PCI. If proven misused however, costs of replacement repairs and maintenance above what

is originally agreed by both parties shall be borne by the Supplier.

3.4 Preventive and Predictive Maintenance

Suppliers are expected to initiate and schedule their own preventive and predictive maintenance on all

PCI tooling equipment and machinery, with proper documentation. Records will have to be included in

the Tooling Report furnished to PCI regularly.

3.5 Illicit usage of Tools

Suppliers are strictly forbidden to utilize PCI owned tooling equipment and machinery for any purpose

(including manufacturing for other non-related customers) other than for PCI materials and parts as

agreed. Suppliers are also not allowed to use any tooling equipment and machinery that is not approved

through the appropriate process by PCI for any PCI contracted production and needs.

3.6 Ownership

All tools have to be kept in good condition by Suppliers in Suppliers’ premises up to a period of 5 years

after product End-of-Life. During this period, the Supplier is liable for all service parts orders.

3.7 Transfer of Ownership

All transfer of tools will have to go through thorough checks so that proper handing over procedures are

implemented. This is also to ensure that the current holder of tools will execute proper maintenance and


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retain proper records on the tools. Please refer to the Tooling Transfer Checklist (to be hyperlinked) for

more details.

For more details on handling tools, please refer to Article 2 of Alteration of Product Agreement.


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4. Materials Planning & Forecasting

4.1 Materials Planning Requirements

Suppliers shall receive monthly, 6-mth rolling forecasts of PCI’s material needs as a preemptive for any

upcoming orders. The forecast provided shall assist you in the planning of manufacturing capacity,

booking of raw materials, etc. The forecasts shall not be regarded as legally binding as a formal Purchase

Order (PO) of goods. Procurement and Delivery will only be formalized upon the release of a PO.

Legend

Demand Forecasted monthly demand in units Supply Firm Amount of supply, in units, supplier has given commitment to Supply Not Firm Amount of supply, in units, supplier has yet to give commitment to an issued Purchase Order Net Demand Total accumulated shortfall from PCI’s demand starting from the 1st given date in MRP

Below is an example of how to interpret PCI Forecast

Intepreting PCI Forecast

Demand Derivation

Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12

PCI Customer Demand 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

FG on Hand 3,500

Demand after FG - - - 500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Manufacturing LT (2wks) - 500 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Raw Material on Hand 900

Demand - - 600 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Supply Firm

Open PO 1 (Del Date) 2,000 2,000

Open PO 2 (Del Date) 2,000 1,000 2,000

PO 1 Commit (Ship Ntf) 2,000 2,000

Supply Firm 2,000 2,000

Supply Not Firm

Supply Not Firm 2,000 1,000 2,000

Net Demand

Net Demand = Previous week Surplus + Supply Firm + Supply Not Firm - Demand

Net Demand - - 600- 1,600- 600- 600- 400 600- 400 1,400 1,400 1,400


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4.2 Contingency Plan

Suppliers are required to prepare a contingency plan to cater to the needs of rapid surges of orders from

PCI above the normal requirement stated in the forecasts. Please refer to Supplier Assurance of Supply

(AOS) in the section Process Topic: Supplier Selection and Criteria.

5. Process Topic: Procurement and Delivery

5.1 Objectives

To state the process sequences on the steps to follow in shipping materials/parts upon receiving PCI

Purchase Orders (PO). Abiding by this sequence will smoothen the processes and reduces time spent on

errors and wrong deliveries.


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*PCI Reference: Document OF-30007, OF-30008, OF-30009

Need to do

1) Confirm PO details and send commitment to [email protected] within 1 day of

receipt of Purchase Order (PO) by PCI.

For all requests to modify purchase details, e.g. quantity/schedule/no commitment, please state

your modifications clearly in the PO and email back accordingly as shown in example below:

A commitment must be made before initiating delivery/pre-shipment alert

For all other enquiries, e.g. pricing/leadtime/NCMR/EOL, etc please contact respective PCI

Commodity Engineers.

2) Send shipment pre-alert to [email protected] upon receiving confirmation reply in 2

working days. Shipment approval will be received from PCI in 1 working day.

Please note that PCI logistics team will not be able to accept shipments that are not committed

beforehand. For all next day deliveries, please email the shipment pre-alerts to PCI before 4:30pm

every day.

3) Ship to arrive on agreed delivery date upon approval

##,#

# ##,#

# Modify Quantity Modify Date

21.08.2019 2,000


mailto:[email protected]


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4) If parts cannot be delivered as planned, shipment pre-alert will need to be re-submitted for

approval again when they are ready for delivery.

5) Send invoices/payments to [email protected] or snail mail to:

Send all Statement of Accounts (SOAs) and queries to: [email protected]

5.3 Terms and Conditions of Purchase Orders

1) THE PURCHASE

The Buyer desires to purchase and the Seller agrees to sell the materials and/or equipment set out in this Purchase Order subject to the terms and conditions herein.

2) MATERIALS AND/OR EQUIPMENT

2.1 Where any part of the materials and/or equipment purchased under this Order is specifically manufactured for the Buyer whether of the design of the Seller, Buyer or a third party, such part or product cannot be sold by the Seller to any third party without the Buyer’s written consent.

2.2 All materials, tools, dies, fixtures, drawings, specifications and other property, method or process, owned or paid for or agreed to be paid for by the Buyer, whether directly noted on the face of this Order or included by the Seller in the unit price of the finished part or product, shall be the property of the Buyer subject to removal at any time without cost or expense to the Buyer; all such to be identified and marked as the Buyer’s property, used only for the Buyer’s Order, treated as confidential material and covered by adequate liability, damage and fire insurance for the fair and reasonable value. The Seller shall assume full liability, maintain, and repair the same and return or turn over the same to the Buyer in good condition, reasonable wear and tear excepted, upon the completion, cancellation or termination of this Order, but the Buyer shall have the right to require delivery of all tooling prior to final payment of the purchase price. The Seller shall provide the Buyer with inventories there as the Buyer may request.

3) TECHNICAL DATA

The Seller shall at its own expense, furnish to the Buyer such documents as engineering drawings, handbooks, operation and service manuals and other technical data as the Buyer shall reasonably request with respect to the items purchased hereunder.

PCI Private Limited

35 Pioneer Road North

Singapore 628475

Attn: Material Operations Payable




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4) NO CHANGES OR MODIFICATIONS

Except for blanket order contracts, this Purchase Order contains the entire agreement between the parties hereto, and there are no other terms, conditions, or understandings, written or oral, than those contained herein. For blanket order contracts, the blanket order contract between the Buyer and the Seller and each subsequent Purchase Order requisitioning the specific amount to be the purchased shall form the entire agreement between the parties hereto, and there are no other terms conditions or undertakings, written or oral other than those contained in the Blanket Order Contract or in this Purchase Order. In the event of conflict between the terms contained in the Blanket Order Contract and the terms in this Purchase Order, the terms in the Blanket Order Contract shall prevail. No changes or modifications in quantity, price specifications, or terms and conditions will be permitted without specific authorization in writing from the Buyer supported by the Buyer’s issuance of a new revised purchase order, and no changes or modifications shall be effected by the Buyer’s acknowledgement or acceptance of order which may have been accompanied by the Seller’s forms containing terms or conditions at variance with or in addition to this Purchase Order.

5) DEFINITION OF WINDOW FOR CANCELLATION AND RESCHEDULING

Where applicable, components may have an agreed window for cancellation or rescheduling. These are represented in the PO by abbreviations of “CXL’ and “RSD”. The number of weeks stated next to “CXL” refers to the period counting backwards from the delivery date, during which cancellation is not allowed. PCI reserves the right to cancel the purchase order if the cancellation is initiated before the period of non-cancellation is reached. The number of weeks stated next to “RSD” refers to the period counting backwards from the delivery date, during which rescheduling of shipment is not allowed. PCI reserves the right to reschedule the purchase order if the reschedule is initiated before the period of non-rescheduling is reached.

6) QUALITY, QUANTITY & SPECIFICATIONS

Materials and /or equipment delivered must not be in excess or short of the quantity ordered, must be of the required quality and must fully meet the Buyer’s specifications. Otherwise they will be returned at the Seller’s expense and the Seller shall refund to the Buyer the purchase price and all freight and other costs incurred by the Buyer in connection with the purchase, transportation and delivery.

The Seller shall not make any alternations in or with regards to the product, including, but not limited to, any of the following alternations, alone or in combination with each other, without obtaining prior written consent from PCI Private Limited:

6.1 any alteration to the specification or any change in the form, fit, or functionality of the product 6.2 any alteration in the material 6.3 any alternation in the source(s) of the material 6.4 any alteration in the production equipment


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6.5 any alteration to the manufacturing process of the product 6.6 any alteration in the original manufacturing location for the approved samples or prototypes of

the product

7) PACKING, LABELLING, SHIPPING

7.1 All materials shall be suitably packed, labelled, marked and shipped in accordance with the requirements of common carriers and in a manner which will: (a) secure lowest transportation costs; (b) assure arrival in a safe and undamaged condition; (c) permit efficient continuing storage under normal conditions; and (d) comply with any notice of the Buyer’s special storage requirement; and no additional change shall be made to the Buyer therefore or for drayage unless otherwise stated herein or agreed to in writing as specified under clause 8.

7.2 The Seller shall send a notice of shipment to the Buyer at the time the materials and/or equipment are shipped which will state the Purchase Order number, the kind of materials and/or equipment, the Seller’s name and the route by which the shipment will be made. The Seller’s bills of lading will contain materials and/or equipment descriptions, which will incur the lowest lawful freight charges, and the Seller shall reimburse the Buyer for any penalty or additional changes due to the use of improper descriptions.

7.3 Each package/container shall be marked to show purchase order, department, and plant numbers; and each shipment shall be accompanied by an itemized packing list, in the absence of which the Buyer’s count shall be accepted as conclusive.

7.4 PCI must not be declared as the importer of goods not belonging to PCI at the point of import. 7.5 For all non-Singapore suppliers, please indicate Notify Party as “PCI Private Limited” on all

shipping instruction documents. 7.6 Please ship Goods according to the delivery address stated on our purchase orders. Goods

should be packed separately according to PO and location. Failure to do so may result in loss of parts during transit.

7.7 The Buyer reserves the right to cancel the Order for any materials and/or equipment purchased for export if a necessary export permit cannot be obtained or if the materials and/or equipment cannot be delivered owing to other circumstances or events beyond the Buyer’s control. In such event, the Buyer shall have no responsibility for the Seller’s losses as a result of such cancellation.

8) DANGEROUS GOODS

The Seller shall be responsible for identifying any materials and/or equipment, which are by law, classified as dangerous goods and shall ensure adequate safety measures for safe handling, packing, and transportation of such materials and/or equipment. The Seller shall comply with any laws, rules, regulations, orders, and conventions whether inside or outside the country of Origin of the materials and/or equipment to be supplied which will be applicable for the safe handling, transportation, labelling and marking of such materials and/or equipment. The Seller shall indemnify the Buyer for any fine, penalty, cost, expense, damages, loss, injury to or death of persons; or damage to property of the Buyer


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or third parties, any claims, suits or proceedings that may be brought against the Buyer arising out of the noncompliance hereunder.

9) DELIVERY

9.1 Materials and/or equipment ordered shall be delivered to the Buyer on the date required. If these materials and/or equipment are not delivered within such time, the Buyer reserves the right to cancel the Order in respect of such items at no cost to the Buyer.

9.2 If the Seller fails to deliver the materials and/or equipment or any part of the quantity or quality specified within the time and under the specified conditions, the Buyer may at its option cancel this Order and decline to accept and pay for any materials shipped or unshipped. Upon the exercise of such option, the Buyer may buy the materials and/or equipment from other suppliers and the Seller shall pay the Buyer for any loss and additional expenses incurred by the Buyer.

9.3 So long as the Seller effects delivery on the date(s) specified, shipment may be made by express or by freight as may be necessary to meet such delivery dates but if shipment by express is necessary to meet such dates, the Seller shall assume and pay the difference between the cost of shipment by freight and the cost by express. Delivery shall not be deemed complete until the materials and/or equipment have been actually received and accepted by the Buyer.

10) PRICES

10.1 Unless otherwise stated on the face of this Order for purchases made FOB, CIF, C&F, in accordance with current Incoterms published by the international Chamber of Commerce, subject to any amendments contained herein, prices shall include: (a) delivery to the Buyer’s premises as set out in this Purchase Order or to any other location

in Singapore designated by the Buyer; and (b) handling, transportation and packing for delivery to any location in Singapore designated

by the Buyer. 10.2 If the Buyer requests special handling, transportation or packing services resulting in additional

cost for the Seller, such charges shall have the prior approval of the Buyer in writing as specified in Clause 4.

11) PAYMENT

Unless otherwise stated on the face of this Order for purchases made FOB, CIF, C&F, in accordance with current Incoterms published by the international Chamber of Commerce, subject to any amendments contained herein.

11.1 Invoice shall be billed to:- PCI Private Limited 35 Pioneer Road North, Singapore 628475. (Attn: Material Operation Payable) Invoice shall contain the Invoice number, Invoice date, PCI PO number, Part number, Part Quantity, Part Piece Price, and Amount.


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11.2 If GST is charged, the GST amount chargeable must be stated explicitly in Singapore Dollars. 11.3 Charges for transportation, handling, boxing, insurance and freight approved by the Buyer shall

be substantiated by third party invoices, bill of lading or airway bill. 11.4 Separate invoices shall be required for each shipment and for different PO type. Failure to do so

may result in delay in payment release. 11.5 Invoices will be paid within the same month of the due date provided that the goods has been

received at PCI as per specification and accurate invoices has been submitted and accepted by PCI before the end of the preceding month. Accurate invoices that are received and matched against goods receipt will only be paid in the next payment cycle regardless of invoice due date.

12) TITLE

Unless otherwise stated on the face of this Order for purchases made FOB, CIF, C&F, in accordance with current Incoterms published by the International Chamber of Commerce, subject to any amendments contained herein, title to and risk of loss to materials and/or equipment supplied shall pass to the Buyer when the materials and/or equipment have been received and accepted by the Buyer.

13) WARRANTIES

13.1 The Seller expressly warrants that all materials and/or equipment under this Order shall conform to the specifications, drawings, samples or other description furnished or specified by the Buyer, and shall be merchantable of good material and workmanship and free from defects, and that all materials and/or equipment covered by this Order which is the product of the Seller or which is in accordance with the Seller’s specifications shall be fit and sufficient for the purpose intended. The Seller further agrees that this warranty shall survive acceptance inspection and payment for the materials and/or equipment, that it will run to the Buyer, its successors, assigns, customers and users of its products, and also agrees to save the Buyer harmless from any loss, damage expense whatsoever, including attorney’s fees, that may be suffered as a result of any breach of such warranty. The aforesaid express warranties shall be in addition to any warranties expressed or implied in law and/or any standard warranty or guarantee of the Seller.

13.2 The Seller warrants that the materials and/or equipment are free and clear of all liens and encumbrances whatsoever and that the Seller has a good and marketable title to the same. The Seller agrees to hold the Buyer free and harmless against any all claimants to the said materials and/or equipment.

13.3 The Seller warrants that none of the materials and/or equipment covered by this Order nor their purchase, use, consumption or resale, infringes upon any patent, trademark or copyright and that the Seller shall, at its own expense, hold the Buyer harmless from and defend it against any claim, demand, damages or liability asserted against the Buyer on account of any claimed infringement, together with all costs, including attorney’s fees in connection therewith.

14) TIME OF ESSENCE

Time shall be of the essence of this Order and the Buyer reserves the right to cancel this order in whole or in part if deliveries are not made on the date specified.

15) RIGHT OF INSPECTION AND REJECTION


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All materials and or equipment shall be received subject to the Buyer’s right of inspection and rejection, and Buyer may return rejected merchandise or hold such merchandise at the Seller’s risk and expense and may in either event charge Seller with cost of transportation, shipping, unpacking, examining, repacking, reshipping, insuring or other like expenses. The Buyer reserves the right, in addition to all others allowed by law, to reject merchandise shipped contrary to instructions, than recognized standard containers and if inspection discloses that part of the materials and/or equipment received is not in accordance with the Buyer’s specification, the Buyer shall have the right to cancel any unshipped portion of the Order.

16) END OF LIFE NOTIFICATION

The Seller shall notify the Buyer of any intentions to end the product life of any product that it currently supplies to the Seller. Upon notification, the Seller is obliged to continue to make the product available for purchase for at least another 6 months. The Seller shall also provide the Buyer reasonable time and opportunity to plan and execute a last time buy for the product so as to sustain continuous demand for the product beyond the product life.

17) CONSTRUCTION

If the Buyer does not object to a failure by the Seller to comply with the terms of this Order, this will not affect its right to object to subsequent failures, Likewise, if the Buyer does not exercise a right or remedy it has herein, this will not affect its right to exercise such right or remedy subsequently.

18) RIGHT OF DEDUCTION

Payments to the Seller under this Order shall be subject to deductions of any valid claims of Buyer against Seller arising from this or any other transaction.

19) FORCE MAJEURE

In the event of fire, flood, strikes, lockouts, accidents, war, or any other cause beyond the Buyer’s control interfering with the use, conversion or reshipment by the Buyer of the materials and/or equipment ordered, the Seller agrees to suspend delivery upon receipt of instructions to such effect from the Buyer, and no liability or claim shall result to the Buyer from such suspension.

20) COMPLIANCE WITH LAW

The Seller shall comply with all laws, rules and regulations for the time being in force which are applicable whether inside or outside the country of origin of the materials and/or equipment supplied, and shall indemnify the Buyer from any liability or penalty which may be imposed on the Buyer by reason of any alleged or actual violation of any law by the Seller.

21) ASSIGNMENT

The Buyer may, upon written notice to the Seller but without its consent, assign this Agreement or any part thereof and any duties and/or rights hereunder to any corporation related to it as defined under


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Section 6 of the Companies Act (Cap.50). Otherwise, this Agreement shall not be assigned in whole or in part by either party without the consent of the other.

22) APPLICABLE LAW

This Purchase Order shall be governed and construed according to the laws of the Republic of Singapore and the parties shall submit to the jurisdiction of Singapore.


1) *Shipping Invoice in exchange of Shipping number for Singapore based Suppliers 1 day before

delivery to Toll Logistic (Asia) LTD for clearance.


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5.5 Notes

Purchase Order (P/O)

A sample of how a PCI Purchase Order will be as follows:

1) PO number – consists of a 10-digit number, that is unique from all other POs

2) PCI P/N – PCI Part numbers consists of a maximum of a 40-digit alphanumeric code, with the 1st 2

digits stating PCI’s internal reference, and last 2 digits stating the version code

3) Delivery Codes – there will be a “Plant/ Loc” code which represents our factory location which

your goods will be ultimately delivered to. Do indicate clearly the Factory Locations (eg. Muka

Kuning) on your D.O. to PCI. The definitions are as follows:

##,## ##,##


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Plant/ Loc Factory Locations

SGMK/01 Muka Kuning

* The Factory Location (e.g. Muka Kuning) must be clearly indicated on your D.O.

4) Buyer Name – This is the Commodity Engineer who is taking charge of your company account.

You may approach them for any commercial discrepancies you encounter in our order, e.g.

payment term, price, standard pack / minimum order quantity

5) All commitments to the P/O shall be sent to the email: [email protected]

5.6 Guidelines for Making Delivery of Goods

Delivery Destination

PCI has factory in Batam, Indonesia - Muka Kuning (MK) and Kunshan, China. Sometimes PCI require

suppliers to deliver materials to PCI Pte Ltd in Singapore. Suppliers are required to pack the goods

separately in accordance to its ultimate destination. No matter the goods are palletized or in cartons, the

delivery location must be clearly indicated/marked on the carton/pallet. The total number of packages

for each destination must also be marked for example, 1 of 2, & 2 of 2.

Goods meant for different delivery addresses must have different shipping documents to comply with

custom requirement and allow for transportation and delivery to the correct receiving destination.

Strategic Goods1 should also be listed on separate delivery orders, as a different export permit is required.

Suppliers should note that if goods are sent to the wrong destination due to failure of suppliers to correctly

mark the carton/pallet, PCI reserves the right to charge suppliers a fee for movement and re-delivery due

to the additional resources and costs incurred.

1 Items that can be used for the production, development or use in Nuclear, Chemical or Biological

Weapons or Missiles Capable of Delivering these Weapons



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Process Flowchart

A. Overseas Suppliers

1) Incoterm (CFR, C IF, CPT, CIP, DAT, DAP, DDP) DESTINATION

2) Incoterm (EXW, FCA, FAS, FOB) ORIGIN

B. Local (Singapore based) Suppliers and Johor Suppliers delivering to Singapore


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Need to do

6) Confirm PO details within 1 day of receipt of Purchase Order (PO) by PCI.

7) In the presence of discrepancies / inability to commit, inform PCI and arrangement will be made

to adjust PO after discussion. Revised PO will be sent to Supplier for confirmation again.

8) Ship to arrive on agreed delivery date.

Routing Instructions

A. Local (Singapore based) Suppliers and Johor Suppliers delivering to Singapore

From 30th Oct 2017 Deliver to Forwarder: Toll City

Process for Delivery to Toll City

1) Send shipment pre-alert (shipping invoice or delivery order and packing list) to group email

[email protected] minimum one WORK day (and before 1500hrs) in advance prior to

Delivery.

2) No last minute shipment as well as amendment, alternations or additional parts are allowed once

the approval is given. If there are changes, suppliers have to resend new lists/shipping document

for approval.

3) All delivery man must wear proper personal protective equipment (PPE) – a Hi-Vis Vest or Shirt,

enclosed footwear (Visitors) / steel-capped boots for workers and drivers & visitors’ pass.

Information on Toll

Address Contact Name Contact Email Tel Opening hours

Toll City Level 2, 60 Pioneer Road, Singapore 628509. Business Regn No : 199408934C

Operations, Shipping & Customer Service Mohamad Jamil Desmond Choo May Chan Ngesti Leong Yee Sales Ming Li Edward

[email protected] [email protected] [email protected] [email protected] [email protected] mingli.ho@@tollgroup.com [email protected]

+65 8411 5144 +65 9072 0872 +65 8198 6136 +65 9185 8712 +65 8182 6929 +65 9185 8680 +65 9825 0201

Mon to Fri : 0900 to 1700 hrs Sat : 0900 to 1230 hrs Sun and Public Holidays : Closed

Receiving hours

Mon to Fri : 0900 to 1500 hrs Lunch : 1200 to 1300 hrs Sat : No receiving Sun and Public Holidays : Closed

B. Air Shipment Routing Guidelines

For PCI's import shipment, currently they are only 2 consolidation points, namely, Hong Kong and

Taiwan. These console shipments are for shipment of the SAME INCOTERM and CONSIGNEE.

No receiving after 3pm!







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Weekly Air Freight Consolidation Schedules Description EX Shenzhen (Consol) EX Shanghai (Consol)

Booking cut-off time Tuesday & Friday (B4 12:00hr) Tuesday & Friday (B4 12:00hr)

Cargo pick-up / receiving cut-off time (Thursday Consolidation)

Tuesday B4 17:00hr (Pick-up) Wednesday B4 10:00hrs (self

delivery)

Tuesday B4 17:00hr (Pick-up) Wednesday B4 10:00hrs (self

delivery)

Cargo pick-up / receiving cut-off time (Sunday Consolidation)

Thursday B4 17:00hr (Pick-up)

Friday B4 10:00hrs (self delivery)

Thursday B4 17:00hr (Pick-up)

Friday B4 10:00hrs (self delivery)

Estimated time of departure (ETD) Every Thursday & Sunday Every Thursday & Sunday

Transit time 1 Day 1 Day

Weekly LCL Consolidation Schedules Description EX Shenzhen (Consol) EX Shanghai (Consol)

CFS Closing date Tuesday & Friday Monday & Thursday

Estimated time of departure (ETD) Sunday & Wednesday Thursday & Monday

Transit time 4 days +/- 10-12 days +/-

Notes: - Cut-off time for shipper to contact us for booking = 2 days prior to CFS Cut-Off, before 14:00

hrs

- Cut-off time for us to pickup cargo from shipper = 1 day before CFS Cut-Off, at 12:00 hrs,

goods need to enter into consol warehouse before 17:00 hrs

- Cut-off time if shipper self-deliver to our warehouse = 1 day before CFS Cut-Off, before 17:00

hrs (booking confirmation required)

Weekly FCL Schedules Description EX Shekou Ex- Shanghai

Closing/Cut-off date 1 day prior vessel arrival 1 day prior vessel arrival

Estimated time of departure (ETD) Mon, Wed, Thurs, Fri Thurs

Transit time 4-5 days 4-5 days


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Delivery

• Terms and charges

• Erred / Incorrect delivery – Suppliers will be informed immediately by PCI Buyers on the discrepancy upon arrival of goods. A request to rectify/solution on the discrepancy will be required on the spot

• Lead time and reserve stock

• Receiving hours – before 2pm and before 4.30pm

Certificate of Conformance

Suppliers shall provide Certificate of Conformance and outgoing data report to facilitate IQC acceptance.

The parts will be rejected if such documentation is not received.

Invoicing

Please refer to Contact for Payment under section Communication and Contact Points for details.

Suppliers need to send the shipment documents upon dispatch of invoices to PCI Pte Ltd. This is to provide proof of delivery in order for PCI to process payment.

The documents to be attached are:

A. For Sea shipment

B/L (bill of lading) or FCR (forwarder’s cargo receipt) + Commercial invoice + Packing list

“No pro-forma invoice is allowed for Custom clearance in accordance to the import requirement of

Singapore”.

B. For Air & Courier shipment

AWB (airwaybill) + Commercial invoice + Packing list

All information on the shipping documents will be checked against the PO information in our database.

Hence, it is of upmost importance for these documents to be properly done and verified to avoid

payment delays or non-payment of supplier invoices.

In order to comply with PCI corporate finance policies, supplier need to ensure that the stipulated date

on the invoices shall be within a week of the B/L or AWB, without which all the invoices will be rejected.

Please continue to send all relevant documents to [email protected].



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Delivery Performance

All deliveries will be assessed for quality and punctuality. All goods delivered to Bayswater at Jurong Port

must be according to the agreed committed dates. Deliveries made more than 3 days ahead of the

committed dates will be rejected. For more details, please refer to Process Topic: Supplier Performance

Monitoring / Evaluation.

Ship-to Addresses

All deliveries made must be according to the delivery address stated on our PO. Goods for different

delivery location must be packed separately. Shipping documents with wrong delivery address will be

rejected. For more details please refer to section Communication and Contact Points

Supplier Constraints

Any capacity constraints and lead time stretch from Supplier must be communicated to PCI at first notice.

Cancellations

In the unfortunate event where PCI has to cancel a released PO, Suppliers will be contacted by PCI Buyers

to obtain agreement and acceptance before a cancellation is initiated. If there is a disparity on the effects

on cancellation (mid-production and incurred costs), a discussion meeting will have to be held for both

PCI and Supplier to come to a mutual agreement before cancellation is initiated. This cancellation applies

vice versa on circumstances where Suppliers wish to initiate a cancellation.

End of Life (EOL) / Discontinuation of Product – Product Discontinuation

Notice (PDN)

An end-of-life component is an obsolete component that has been set to the end-of-life state. Supplier shall provide a minimum of 6 months notification of any component which will be going End of Life (EOL).

The official EOL notice/Product Discontinuation Notice (PDN) shall include, as a minimum the following information:

• Unique notification number for traceability

• Specific part types and the manufacturer part numbers affected

• PCI part number affected

• Final date of acceptance of an order relating to the discontinued product

• Final delivery date relating to the discontinued product


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• Equivalent alternate product with datasheet (if available) and assurance of supply of proposed parts.

• Supplier point of contact

5.7 Form Reference

1) Purchase Order (PO) (to be hyperlinked)

5.8 Communication and Contact Points

General Company Information

Company Name:

PCI PRIVATE LIMITED Company

Registration No: 198804482N

Company Telephone No:

(65) 6265 – 8181 Company

Facsimile No: (65) 6262 – 6682

Date of Incorporation:

8 DECEMBER 1988 Nature of Business:

INVESTMENT HOLDING & PROVIDING ELETRONICS MANUFACURING SERVICES

Principal Products:

PRINTED CIRCUIT BOARD ASSEMBLY, CUSTOM USER INTERFACE DESIGN & MANUFACTURE AND FULL TURNKEY ELECTRONICS

Payment Details

Attn: MATERIAL OPERATIONS PAYABLE Email: [email protected]

Company Addresses

Singapore Corporate Headquarters North America: U.S.A. and Canada

PCI PRIVATE LIMITED 35 Pioneer Road North, Singapore 628475. Telephone: 65-6265-8181 Fax: 65-6262-6682 [email protected]

PCI PRIVATE LIMITED 2413 Autumn Valley Drive Winston Salem, NC 27103. Telephone: 804-737-7979 Fax: 847-631-0799 [email protected]

China Indonesia PCI KUNSHAN ELECTRONICS COMPANY LIMITED No. 100 Zhang Ji Road, Development Zone, Kunshan, Jiangshu Province, China 215300. Telephone: 86-0521-36916156 [email protected]

PT PCI ELEKTRONIK INTERNASIONAL

Panbil Industrial Estate Factory C 02-03

Jalan Ahmad Yani, Muka Kuning Batam.





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昆山必兴电子有限公司

江苏省昆山市

开发区章基路100号

邮区编号:215300

电话:86-0512-36916156

Telephone: 62-778-37 1530 / 73 1531 / 37 1532

[email protected]



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Main Contact Personnel

Commodities Categories Point of Contact

DID Email

Assistant Vice President, Material Operations

Alvin Seet 66638210 [email protected]

Manager, SBM (Electro-Mecha, Mechanical)

Tham Chee Weng

66638392 [email protected]

Manager, SBM (Electronics) Juliana Lee 66638394 [email protected]

Electronics

Active Cassie Lam 66638359 [email protected]

Active (Diodes, LED, etc) Passive (Resistor,Crystal

etc.) Teng Hwa 66638443 [email protected]

Passive (Capacitor, inductor, etc.)

Ruby Tupas 66638358 [email protected]

Electro-Mechanical

Wire Harness Zoey Lim 66638343 [email protected]

LCD, Touch Panel, PCB, FPC, FFC

Jason Lee 66638427 [email protected]

Mechanical

Plastic/Keypads Ariel Umali 66638391 [email protected]

Metals , other electro-mech

Aileen Chua 66638365 [email protected]

Packaging, Labels, Die-cut,Hardware

Bryan Chook 66638267 [email protected]

RoHS & REACH Compliance

Manager Josielyn

Villafranca 66638312 [email protected]

Suppliers EHS Guidelines

Manager Tham Chee

Weng 66638392 [email protected]

Quality Assurance Lead Manager Philip

Balbuena 66638393 [email protected]

Material Operations General Manager Hanker HAN 66638318 [email protected]

Material Operations Senior Manager Aik Jin YEOH 66638319 [email protected]

Material Operations Manager

Carol Tan 66638259 [email protected]

Hwee Li Tan 66638376 [email protected]

Andy Tan 66638374 [email protected]

Alvin Tan 66638435 [email protected]














tel:+6566638259



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5.9 Organisation Chart and Escalation Chart


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6. Packaging

All materials and parts sent to PCI will have to be packed into a minimum of double-walled carton. For

heavy (e.g. PCB, speaker, etc.) or fragile items (e.g. LCD, etc), a triple-walled carton is required with

cushioning packs to shield the contents.

In general, the selection of the method of packaging 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:

1) Packages, which are to be hand handled, are subject to rougher handling than those handled

mechanically

2) Package size, strength and type shall be selected to provide protection and to fit the mode of

transportation, applicable carrier regulations and distance of transit.

3) Packages for sea shipment should be palletized. Palletization helps to optimize cargo handling ,

improve health and safety to personnel involved in the listing, carrying and unloading of heavy

loads, and promotes product integrity by increasing stability of outer cartons in the container and

preventing movement and shifting during transportation.

PCI Pte Ltd expects that Suppliers inform themselves of all relevant considerations and determine

packaging accordingly. In finalizing the packaging design, the expectation is that the following cost factors

will be considered:

1) Handling Labour

2) Material handling equipment

3) Transportation cost (optimum cube utilization)

4) Floor space availability

5) Direct Labour

6) Recyclability, Disposal or Return

7) Design shall follow “best practice” criteria

Ergonomics of containers

20’ = 8 feet X 20 feet X 8 feet H

40’ = 8 feet X 40 feet X 8 feet H

Weight restrictions

Cartons: Not exceeding 25 kilograms

Pallets: Not exceeding 400 kilograms


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6.1 Requirements for Palletized Cargoes

1) The bottom, sides and top of the pallets must be fully shrink-wrapped with at least 2 layers of

stretch film. All materials must not be exposed and should be protected from getting wet /

damaged. If required, angle boards/bars shall be used.

2) Materials must be properly secured on the pallet.

3) The height of the pallet shall not exceed 183cm (6 feet) for sea freight / land transport and 153cm

(5 feet) for air freight.

4) The strength of the pallet must be able to withstand the weight of the materials.

6.2 ISPM #15 Requirement (International Standard of Phytosanitary Measures

No. 15)

Shipments using WPM or wood packaging materials (e.g. Pallets, crates, cases) are required to comply

with the ISPM #15 requirements.

ISPM #15 requires wood packaging materials to be heat treated or fumigated. They must be affixed with

the ISPM #15 compliant stamp or mark:

The ISPM #15 compliant stamp or mark should be clearly visible and is recommended that they should

appear on opposite sides of the pallets (WPM) being certified.

Products exempted from this requirement are those made from alternative materials like paper, plastic,

or wood panel products (hardboard, plywood, presswood).

Copy of fumigation or heat treatment certificate must be provided to PCI together with shipping

document immediately after shipment.


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7. Labelling

The minimum labelling on cartons and pallets will have to include the following information:

1) Part number

2) PO number

3) Quantity

4) D/O reference

5) Date code / Manufacturing Date

6) Country of Origin

Indication of Country of Origin (only applicable to supplies into China, i.e. PCI Kunshan)

Based on China Customs regulations, there is a need to indicate the Country of Origin outside every carton

box. The whole shipment (i.e. full batch material) will be seized by the customs if there is even one carton

that is without the mark/label of Country of Origin shown prominently outside, or on any shipping

documents. As such, non-compliance to this requirement may eventually lead to additional costs and

penalties, production and shipment delays to end customers.

In the event that suppliers fail to comply with the regulations, PCI reserves the right to charge relevant

suppliers the relevant cost inclusive of penalty, air freight charges, line stoppages, customer claims, etc.


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8. Traceability

All materials received by PCI Pte Ltd must contain a lot code, and/or serial number, clearly identified on

each label and container, ensuring full traceability of all materials. This identification shall provide

traceability through retained documentation to the specific lot or batch of each raw material used in its

manufacture. Materials must be traceable from the receipt, to each processing stage and through final

assembly and shipping to PCI.

The supplier shall communicate to PCI the traceability method used “(e.g. date and shift of manufacture

along with sequential processing number). In some cases the component may be critical enough so as to

warrant part identification; these instances will be communicated through the appropriate quality and

engineering groups.

Failure to comply with traceability requirements may lead to rejection of material and issuance of Supplier

Reject Note. Traceability Records shall be maintained and accessible for the life of the product, including

Service, and extending a further of 3 years after end of life. Certain traceability record retention deviations

can be obtained only if received in writing from PCI.


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9. Commodity Standard Inspection Criteria

- Suppliers shall provide Statistical Process Control (SPC) Data for Functional Critical Dimensions

(FCD) and Process Control Dimensions (PCD) parts and integrate the information into their manufacturing

operations (Process Control Plan) when such requirement is indicated in the drawing specifications.

9.1 Cosmetic Judgment Criteria

9.2 Plastics

Regrind

- To follow PCI parts specifications’ % of regrind

Processing Aids

- No oil, lubricant, mold release or other contaminants in products shipped to PCI plants, unless

otherwise specified of such presence in engineering material, specifications, etc.

Resins and Other Raw Material

- Supplier shall receive and evaluate raw material certifications showing current test results prior to

use of each batch of material

Part Standard Specification

Inspection Environment ConditionTemperature 25(+/-)5deg

Humidity 50-85%RH

Illumination 700lx

Viewing ConditionViewing angle

Viewing distance

Inspection Interval (function of surface area)

Surface area Top surfaces Others

<= 4 in2 (2"x2") 2 sec 1 sec

4-16 in2 (4"x4") 4 sec 2 sec

16-64 in2 (8"x8") 6 sec 3 sec

64-144 in2 (12"x12") 8 sec 4 sec

>144 in2 (12"x12") 10 sec 5 sec

Inspection criteriaColour

Gloss

Surface finish

Adhesion

1.Top/front surface - 30 deg from the horizontal plane

2.The front edge & sides of a part - 90 deg from the horizontal plane

3.Most often/the back & bottom surface - 90 deg from horizontal plane. Part is 45 deg below the plane of your eyes.

1.Top/front surface - 18 inches

2.The front edge & sides of a part - 24 inches

3.Most often/the back & bottom surface - 30 inches

Compare to limit sample

Compare to limit sample

Compare to limit sampleMust withstand a tape test. There should not be any evidence of finish coat on the tape. Tape test shall

be done by applying a tape across the finished surface and pull the tape rapidly at 90deg angle to the

parts surface


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Surface Identification and Classification of Surface FinishSurface Identification

''A'' surface

"B" surface

"C" surface

"D" surface

Surface Finish

GRADE 1

GRADE 2

GRADE 3

GRADE 4

Cosmetic Quality

Grade 1 - Highly polished, clear transparent, fluid contact

Surface A B C

Weldlines & blush

Sink marks None allowed .003" max .010" max

Specks & bubbles

Accept if- <= .010" No closer than 1 inch <= .010" No closer than 1 inch <= .012" No closer than 1 inch

Allowable range-

.010"-.025"

Allow 1 per 16 inch2 (4"x4")

.010"-.025"


No closer than 2 inches

.012"-.030"



Reject if- >.025" > .025" > .030"

Scratches

Accept if-.100" or less in length


<=.150" in length.


<=.300" in length.


No closer than 1 inchReject if- > .100" >.150" >.300"

Splay None allowed None allowed

Burns None allowed None allowed

Gas marks None allowed None allowed

Marbling None allowed None allowed

Orange peel None allowed None allowed

Non-uniform texture None allowed None allowed

Pitting None allowed None allowed

Cracking None allowed None allowed

Crazling None allowed None allowed

Delamination None allowed None allowed

Cold slugs None allowed None allowed

Haze None allowed None allowed

Stress mark None allowed None allowed

Short molding None allowed None allowed

Discoloration None allowed None allowed

Flow marks None allowed None allowed

Burrs None allowed None allowed

The top or front, most often viewed surface

Generally the front edge and sides of a part. Not viewed as often as an "A" surface but easily seen by

user

Ink stamped, printed, silk screened

Other decorative processes

Most often, the back and bottom surface

Internal surfaces. Normally D surfaces are not inspected for cosmetic attributes. Where necessary, D

surface inspection will be specified as an exception

Highly polished (eg. SPI - B1 or lower)

Clear transparent

Fluid contact - (primarily applies to medical parts)

Low grade polish, non-textured (eg. SPI - B2 or higher)

Textured

Clear translucent

Painted parts

Limits for blush and weldlines are established in agreement with customer and held based upon limit samples

Refer to limit samples or note exceptions in Quality

plan


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Grade 2 - Low grade polish, textured, clear translucent

Surface A B C

Weldlines & blush

Sink mark None allowed .005" max .015" max

Specks & bubbles

Accept if- <= to .010" No closer than 1 inch <=.010" No closer than 1 inch <=.015" No closer than 1 inch

Allowable range-.010"-.030"


.010"-.030"



.015"-.040"


No closer than 1 inchesReject if- >.030" >.030" >.040"

Scratches

Accept if-

<=.150" in length


<=.200" in length.


<=.300" in length


No closer than 1 inchReject if- > .150" >.200" >.300"

Splay None allowed None allowed

Burns None allowed None allowed

Gas marks None allowed None allowed

Marbling None allowed None allowed

Orange peel None allowed None allowed

Non-uniform texture None allowed None allowed

Pitting None allowed None allowed

Cracking None allowed None allowed

Crazling None allowed None allowed

Delamination None allowed None allowed

Cold slugs None allowed None allowed

Haze None allowed None allowed

Stress mark None allowed None allowed

Short molding None allowed None allowed

Discoloration None allowed None allowed

Flow marks None allowed None allowed

Burrs None allowed None allowed

Grade 3 - Painted/Finished part

Surface A B C

Specks, discoloration & glosssiness

Accept if- <=010" , No closer than 1 inch <=.015" , No closer than 1 inch <= .015" , No closer than 1 inch

Allowable range-.010"-.020"


.015"-.040"



.015"-.050"


No closer than 1 inchReject if- >.020" >.030" >.050"Scratches and lint

Accept if-

<=.010"x.030"


No closer than 1 inch

<=.020"x.050"



<=.020"x.500"



Reject if- >.010"x.030" >.020"x.0.50" >.020"x.500"Marks & runs

Accept if- None<=.020"x.050" Allow 4 per 16 inch2 (4"x4") No

closer than 1 inch

<=.020"x.500" Allow 4 per 16 inch2 (4"x4") No

closer than 1 inch

Reject if- Any found >.020"x.0.50" >.020"x.500"

Non-adhesion or non-uniform coverage

Accept if- None<=.125"



<=250"


No closer than 1 inchReject if- Any found > .125" >.250"

Grade 4 - Decorated Parts - stamped, printed, silk screened, in mold,.. Etc)

Surface A B C

Specks, voids & fillings

Accept if-

<= .010"


<=.015"

No closer than 1 inch <=.025"

Allowable range-

.010"-.020"



.015"-.030"



.025"-.050"



Reject if- > .020" >.040" >.050"

Flowmarks & inconsistencies

Accept if- None allowed

.020" or less Allow 2 per surface No closer than 1

inch

.050" or less Allow 4 per surface No closer than 1

inch

Reject if- Any found >.020" >.050"

Smearing, bleeding & haze

Accept if- None allowed <=.020"Allow 1 per surface No closer than 1 inch <=.050" Allow 2 per surface No closer than 1 inch

Reject if- Any found > .020" > .050"

Refer to limit samples or note exceptions in Quality

plan

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9.3 Metals

PackagingImproper packing,

Damaged and/

unsealed carton box Not allowedWrong, Incomplete,

Illegible printing

outside the carton box Not accepted

Scratches and peel off To avoid, pack inside the plastic

Damage due to goods

movement Not allowed

Inspection Environment Condition

Temperature 25(+/-)5deg

Humidity 50-85%RH

Illumination 700lx

Inspection Procedure and Condition

Viewing Duration

Viewing angle

Distance

Surface zone classification Surface Example

'A' Front external

surfaces

'B' Side and rear surface

'C' Inner surface

'D' Inner surface of part

Class 'A' & 'B' - External Appearance Surfaces

Type of Defect Specification

Maximum No. of allowable

defects

Minimum distance between

defects Remarks

Stain or scuff mark Maximum 0.5mm 4 150mm

As per inspection

condition and method

Hairline scratch Maximum 2.0mm x 0.1mm 4 150Plastic flow mark, sink

mark, drag mark, tool

mark, etc NIL NA NA

Weld line-based on

approval of golden

sample

Burr/Flash NIL NA NA

Crack/Broken NIL NA NA

Colour Texture mismatch Follow the colour chit Lower Upper Follow the colour chit

Warpages Per drawing spec NA NAPeeled paint, rusty,

corroded, dented metal

casing/parts NIL NA NA

Sharp edges NIL NA NA

Malting parts NIL NA NA

Shall not be fitted

loose

Missing, loose and tight

screws NIL NA NA

Inspection shall be limited to 5 sec to 10 sec per side

Line of sight 45 degrees to surface

Parts shall be inspected at 30 to 45cm away

Description

All surface that are in direct frontal line of sight when products is in use. This class shall be applied to

the exterior part of the product that is decorative. This surface is also referred as the primary surface

All surfaces not in direct sight, but become visible during normal indirect viewing angles. This surface

is also referred as secondary surface.

Surface visible only during circumstances not relating to normal use. Class C surface is not usually

visible.

Surface visible only during assembly.


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Class 'C' - Inner surface of part

Type of Defect Specification

Maximum No. of allowable

defects

Minimum distance between

defects Remarks

Dent, stain of scuff mark NIL NA NA NA

Hairline scratch NIL NA NA

Plastic flow mark, sink

mark, drag mark, tool NIL NA NA NA

Burr/Flash NIL NA NA NA

Crack/Broken NIL NA NA NA

Colour Texture mismatch NIL NA NA NA

Inspection criteriaMetal plates

Printed/painted surface

Defects

Foreign material (hair line)

Black dot/white dot/dents

Paint peel off

Deep scratch

Unpainted surface

Defects

Deep scratch

Dents/pits

Rust/corrosion

Metal bezel

Surface A Surface B Surface C

Bubbles/dents D<=0.5mm max, N=1 D<=1mm max, N=3

Exposed metal D<=0.25mm, N=1 D<=0.5mm, N=2

Rust/corrosion None allowed None allowed None allowed


Damaged and/ unsealed

carton box Not allowedWrong, Incomplete,

Illegible printing outside

the carton box Not accepted


Damage due to goods


None allowed

Acceptence

L<=2mm, N=2

L=0.25, N=2

None allowed

None allowed

Acceptence

None allowed

Shall not be more than 0.5mm in diameter and not exceeding 2

counts per surface and shall not expose the base metal (when


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9.4 Rubber (Keypads)

Inspection environment conditionsTemperature 25(+/-)5deg

Humidity 50-85%RH

Illumination 700lx

Inspection methodViewing angle

Viewing distance

Surface A - always viewed, normally the front surface

Surface B - sometimes viewed, normally the side edges/back edges

Surface C - not visible, not viewed when in use, but can be seen during installation

30cm

Inspection Criteria

Surface A Surface B Surface C

Scratches L<=10mm W<=0.1mm L<=10mm W<=0.1mm L<=10mm W<=0.1mmPit/Specks/

Contamination D<=0.5mm D<=1.0mm D<=2.0mm

Discoloration/ Streaks None allowed None allowed Acceptable

Flow lines None allowed

None allowed at web area, D<=2mm at other

locations Acceptable but not in web area

Surface A

Scratches L<=10mm W<=0.1mm

Pit/Specks/

Contamination D<=0.25mm

Discoloration/ Streaks None allowed

Flow lines None allowed

Unbroken bubbles

D<=0.5mm, provided there is no impact on

lighting/function

Carbon contacts

Shifted carbon contacts 80% of the post diameter is covered

Missing/ misregistered

carbon pill None allowed

Double pill / double

stacked contact None allowed

Other rubber parts

Torn, damaged None allowed

External contamination

which can be dislodge/

affecting function None allowedInternal contamination

not affecting form, fit

and function and will not

be visible upon

assembly Acceptable


Damaged and/

unsealed carton box Not allowedWrong, Incomplete,

Illegible printing outside

the carton box Not accepted


Damage due to goods


Non-coated keypad

Coated rubber keypad


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9.5 Electro-Mechanicals

LCDs

Inspection Environment Condition Temperature 25(+/-)5deg Humidity 50-85%RH Illumination 700lx

Viewing Condition

Viewing distance 20cm

Viewing angle 45deg


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Inspection Standards

Mechanical defects

Defects Illustration Ignored Acceptable Count NG Remarks

Circular shape Extraneous

substances (black or white

spots)

D<0.10mm 0.10mm<=D<=0.2mm N<=2 D>0.25mm

Linear shape Exraneous

substances (Lint)

W<0.05mm L<0.15mm 0.15mm<=L<=1.0mm N<=4 L>1.0mm

Polarizer Dent or Bubble D<0.15mm 0.15mm<=D<=0.3mm D>0.5mm

Scratches S<=0.2mm2

L<=1.0mm

N<=4 S>0.2mm2

L>1.0mm

S= Area

Chipping a<=5mm b<=2mm c<=t

t= thickness of glass.

None of the above figures

may be exceeded. Numbers

of chipped areas does not

need to be considered.

(same as corner)

Functional reject

Defects Condition

Short or open circuit Not allowed

LC leakage Not allowed

Flickering Not allowed

No display Not allowed

Wrong back-light Not allowed

Wrong viewing direction Not allowed

Defects Illustrations Conditions Conditions

Point defect, black spot, dust

(including polarizer) D=(X+Y)/2

Point size

D<=0.10mm

0.10mm<D<=0.20mm

0.20mm<D<=0.25mm

D>0.25mm

Acceptable Qty

Disregard

2

1

0

Dot-matrix pattern

D=(X+Y)/2

C: Shall not touch other dots Size

D<0.1mm

0.10mm<=D<=0.20mm

D>0.20mm

Acceptable Qty

Disregard

1

0

Acceptable criteria Remarks

Protuded

W= Terminal width

Y<=0.4mm

Item Definition Condition

Dot Pixel

Dot

3 sub-pixels (R+G+B)

1 sub-pixel (R/G/B)

Bright dot

(caused by TFT failure)

When the module lights, dot

appear bright in display at black

picture position

Defect distance -

Inspection criteria:

5mm or more

Count Visible through 5% ND filter

Ignored Not visible through 5% ND

filter

Black dot

(caused by TFT failure)

When the module lights, dot

appear black in display at white

picture position

Defect distance -

Inspection criteria:

5mm or more

Scratch on the colour filter Count as bright dot

Ignored

Visible over the half of a dot

Visible under the half of a dot

Scratch on the Cr mask Count as bright dot

Ignored

Visible over D50um

Visible under D50um

Joined dots Bright dots

Black dots

Not allowed

Joined dot is permitted up to

2 connection

PackagingImproper packing, Damaged and/

unsealed carton box Not allowed

Wrong, Incomplete, Illegible

printing outside the carton box Not accepted


Damage due to goods movement Not allowed


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PCBs

- Only 1 Cross board allowed per panel

- Need to be of the same cavity number

- Any other deviations need to be informed in writing


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