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QMS Operational Procedure	QOP-74-03
Section 7.4	Section Revision: A	Revision Date: 7/11/2017
Release of products and services
Approved By: Todd Gifford		Date: 7/11/2017

I PURPOSE

The purpose of this procedure is to provide for a system and instructions, and to assign responsibilities for verification of purchased product, and for performing receiving inspections of incoming product.

II APPLICATION

This procedure applies to materials and components that are intended for resale to customers.  This procedure concerns Purchasing, Warehouse, and Quality Assurance.

III PROCEDURE

1. Verification methods

1.1 Following methods and approaches are used for verification and acceptance of purchased product:

• Receiving inspection,
• Additional Inspection,
• Source inspection,
• Supplied evidence of product conformity (this may be in the form of inspection, testing, or process control records, or certificates supplied with the product);
• Confidence in supplier’s quality system and product verification program (this may be based on supplier’s quality system certification, supplier audits, and satisfactory quality performance history).

1.2 The President, CEO/Treasurer, Vice President of Operations, and Quality Assurance is responsible for selecting appropriate verification and acceptance methods for specific products. The selection is based on:

Criticality and importance of the product;

Availability of product verification records or certificates from the supplier or an independent third party;

Knowledge of, and/or confidence with the supplier’s quality management system and product verification program.

1.3 Product verification and acceptance methods to be applied are specified in purchasing documents, Additional Inspection Master Database, procedures, or supplier files. This information is communicated to Receiving prior to the arrival of purchased product.

1.4 Receiving inspection is applied to all purchased components.

1.5 Additional Inspection is applied to components with previous corrective action issues deemed significant, critical components, and shipments of a new parts added to our system. When Additional Inspection is required, the 2 X 1 Dee Incoming Product Label will reflect an “X”, as well as this part is noted in our Additional Inspection Required database.

2. Receiving inspection

2.1 Upon unloading of deliveries, receiving clerk counts the number of delivered units, checks marking and identification of packages, and inspects all packages for any signs of tampering or damage. If all these checks and inspections are satisfactory, he or she signs the delivery receipt. If not, any shortages or damages are noted on all copies of the delivery receipts.

2.2 Next, the received packages are moved to the designated receiving area, a copy of the relevant purchase order is retrieved from the pending orders file, and the packing slips (if any) are removed from packages. The goods are counted, their part numbers are verified against the purchase order and the packing slip, and the goods are examined visually for any signs of damage.

2.3 If no other product verification activities are required, the goods are moved to appropriate material putaway staging areas, and then are putaway in designated inventory storage areas.

2.4 If Additional Inspection is required but not done immediately, the goods are segregated in a HOLD Area or on a Cart, requiring additional inspection.

2.5 If a nonconforming product is identified, the receiving person moves the product to a HOLD area, and initiates a nonconformity report in accordance with Procedure QOP-83-01, Control of Nonconforming Product. The product is labeled with a CAR/RMA label, the CAR/RMA number is marked on the sticker.  Quality Control Coordinator is notified.

3. Additional Inspection

3.1 As applicable, receiving additional inspection comprises:

Review of packaging/part markings, material certificates, source inspection records, compliance certificates, or other such documentation delivered with the product;

Visual inspection to detect any damage or other visible problems;

Taking measurements and testing as required; and

3.2 When products pass the inspection, they are moved to appropriate putaway staging areas, and then putaway in a designated storage area.  Quality records established during the receiving inspection are entered.

3.3 If products fail the additional inspection, a nonconformity report in accordance with Procedure QOP-83-01, Control of Nonconforming Product. The product is moved to a designated HOLD area.  Quality Control Coordinator is notified.

4. Source inspection

4.1 Where purchased product verification is to be performed or witnessed at the supplier’s location, this should be specified in purchasing documents. This also applies to cases where source inspections are performed or witnessed by customers.

5.1 Where product is sent to have a process completed, Dee
Electronics marks said part for incoming inspection and places product specific
inspection notes on each product.  The following processes Dee has outsourced on
a part specific basis:
1) Powder coating – visual inspection
2) Printed Circuit Board Assembly – visual inspection
3) Braising / Soldeing – visual inspection
4) Milling – visual inspection
5) Cut conduit – measured inspection

ASSOCIATED DOCUMENTS

QF-74-03-01 Form (DBA Form # PO-C): Receiving Form

QF-74-03-02 Form: Additional Inspection Master Database Form

QOP-74-02 Operational Procedure: Purchasing

QOP-83-01 Operational Procedure: Control of Nonconforming Product