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QMS Operational Procedure	QOP-74-01
Section 7.4	Section Revision: A	Revision Date: 7/12/2010
Supplier Evaluation
Approved By: Todd Gifford		Date: 7/12/2010

I PURPOSE

The purpose of this procedure is to provide for a system and instructions, and to assign responsibilities for evaluation and monitoring of suppliers.

II APPLICATION

This procedure applies to evaluation and monitoring of vendors supplying parts that are resold to customers.  This procedure concerns Purchasing and Quality Assurance.

III PROCEDURE

1. Supplier Evaluation

1.1 Cedar Rapids location Purchasing Manager maintains a record of acceptable vendors for products and services that affect quality, as well as records of any vendors utilized under emergency procedures. Emergency purchases may take place when:

1. Product is not available from approved vendors.
2. Product is identical to that available from approved vendors.
3. Emergency purchase is approved by Purchasing Manager.

1.2 Suppliers utilized under emergency procedures are considered for approved status when the transaction proves to be satisfactory to Dee Electronics and Dee Electronics’ customer, and after the prospective supplier has undergone the vendor approval process.

1.3 Manufacturers or Distributors of parts/components requested by manufacturer part number are approved as acceptable vendors, provided they are approved by President, CEO/Treasurer, or Purchasing Manager to be added as an approved Vendor.  They are subject to monitoring for quality and delivery.

1.4 Vendors providing quality products or services prior to the initiation date of our quality system are grandfathered into the Acceptable Vendor/Supplier List without being subject to the vendor evaluation process. The vendor approval process consists of one or more of the following:

1. Financial and Qualitative Review/approval done by CEO/Treasurer, President, or Purchasing Manager 2. Customer-specified Vendor 3. Evidence of ISO9000 Certification 4. Part Sample or Drawing verification

2. Quality Performance Monitoring

2.1 After approval, an acceptable vendors is continuously monitored for on-time delivery and conforming product. Records are kept electronically, accessible from ECIS (Cedar Rapids) and DBA (Des Moines).

2.2 Product determined to be nonconforming upon receipt is reported to the Quality Control Coordinator via the Corrective Action (CAR/RMA) Form in DBA.  Nonconforming product is dispositioned according to Procedure QOP-83-01, Control of Nonconforming Product. Subcontractor corrective action, if necessary, is documented in the subcontractor’s performance record and followed-up.

3. Approved Vendor List

Purchasing in Cedar Rapids location is responsible for maintaining a list of acceptable suppliers in QF-74-01-01 Form: Vendor Master Listing.  The list is updated and authorized by Purchasing, and the CEO/Treasurer or President. The list is controlled in accordance with Operational Procedure QOP-42-02, Control of Documents.

ASSOCIATED DOCUMENTS

QF-74-01-01 Form: Vendor Master Listing [Cedar Rapids Location]

QF-74-02-01 Form (DBA Form # PO-A): Purchasing Requisition/Purchase Order Form

QOP-74-02 Operational Procedure: Purchasing

QOP-74-03 Operational Procedure: Verification of Purchased Product

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

QOP-85-02 Operational Procedure: Corrective and Preventive Action