… can be seen in our subsequent Suppliers’ Quality Guide. This guide will provide you with a basic orientation on how we at Bizerba manage our co-operation with suppliers. New suppliers in particular must learn the fundamental constituents of our quality policy upon initial contact. The goal is to influence the quality of Bizerba products right from the start of a business relationship.

1. Introduction

1.1 Purpose

With today’s increasingly tough national and international competition, quality is one of the key goals. Bizerba largely uses components produced by suppliers for its product manufacture. Bizerba therefore expects timely supply with high quality, defect-free and environmentally compatible products at competitive prices.

The perfect quality and reliability of components, materials and services, as well as proven process and quality capability, decisively contribute to the achievement of this goal. The quality of our suppliers is thus an integral part of Bizerba product quality. By working together as partners, we must ensure that the occurrence of errors is effectively prevented right from the initial production phase. The goal is: “Error prevention instead of error detection”. This requires process capability and the continuous improvement of all processes and activities in the “Supply Chain”. Controlled and efficient processes are essential to guarantee defect-free products.

Our joint mission is to achieve reliable and robust processes and to prevent the wastage of material, time and other resources. This guide is not a collection of inflexible rules and regulations. It is primarily geared to the industry’s requirements to safeguard quality. The guide describes Bizerba’s requirements on suppliers.

1.2 Field of application

The guide identifies processes and defines the procedure that must be implemented by our suppliers and by Bizerba in order to assure the quality of supplied materials, parts or services. It is based on the series of standards DIN EN 9000ff., accepted industry standards and the pertinent environmental protection standards.

This guide contains conditions, procedures and activities that are supplementary to a master purchase contract and/or to all other contracts (e.g. Quality Assurance Agreements) and applies for all business relations between Bizerba and its suppliers. In the event of discrepancies, the contents of a Quality Assurance Agreement override the regulations of the Master Purchase Agreement and other contracts, unless individual agreements are concerned.

Bizerba expects its suppliers to consistently and rigorously implement all described procedures and methods, and to completely fulfill all specific requirements. Suppliers are jointly responsible for their own and consequently the quality of Bizerba products.

1.3 Agreement on objective

Basically, Bizerba expects adherence to the zero error principle. It is the supplier’s duty to anchor this objective in his Quality Management System and to align all processes with this goal. In order to assist this process, Bizerba will define specific guidelines in individual cases and if necessary check the achievement of objectives through periodic target/actual comparisons. In the case of deviations from objectives, measures must be introduced by the suppliers.

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2. Quality Management System

Quality capability requires each Bizerba supplier to have a modern and effective Quality Management System. Suppliers will maintain at least one of the following certified Quality Management Systems:

ISO 9001:2000 as minimum requirements
ISO/TS 16949 2002
QS 9000; VDA or equivalent as accepted requirements

Suppliers who do not fulfill the minimum requirements from ISO 9001:2000 or are not planning further development for fulfillment of ISO 9001:2000, can be approved as a supplier in accordance with the Bizerba system audit with a degree of performance >90%.

The contractor guarantees that all supplied products will be manufactured and checked according to the regulations and requirements of this Quality Management System. He will immediately ascertain that these requirements are in agreement with his Quality Management System.

The contractor will adhere to the legal regulations and standards as minimum requirement in relation to the environmental compatibility of his products. The introduction of an Environmental Management System in accordance with DIN 14001 is recommended.

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3. Quality Management System for subsuppliers

The supplier will also oblige his subsuppliers to develop and maintain a comparable Quality Management System, to ensure the defect-free quality of his bought-in and/or externally processed parts. Bizerba can request the contractor to provide documented proof that the supplier has satisfied himself of the effectiveness of his subsuppliers’ Quality Management System. If quality problems occur that have been caused by preliminary products or parts, the supplier will provide an opportunity for Bizerba to carry out an audit of his subsuppliers on request.
 

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4. Auditing

4.1 Audit

In the case of certified suppliers, Bizerba will generally not perform a system audit, but will limit itself to a process and/or product audit if required. During the process audit the process chain (planning, development and manufacture) of a product is examined and checked. The result of the audit shows the supplier’s quality capability. If deviations (defects) are detected, the supplier must agree a plan of measures with Bizerba for the elimination of the defects.

Bizerba can ascertain the implementation of the measures through an audit. Audit results are treated confidentially. The contractor will enable Bizerba and its customers to satisfy themselves of the implementation of the quality assurance measures specified in this agreement at reasonable time intervals. The contractor will to this end allow reasonable access to his operating premises after prior agreement of a date and will make a technically qualified employee available on this occasion. Inspection of confidential production processes and other trade secrets can be refused by the contractor.

4.2 Assessment

Results and findings from the audit are assessed by the Bizerba auditors in accordance with Bizerba requirements and divided into the following classifications:

A (>= 90%)
Supplier is approved without limitation for supplies to Bizerba

AB (>= 80%)
Supplier is approved with limitations. The supplier must deal with the deviations identified in the audit within the specified period

B (>= 60%)
Supplier is only approved for supply in exceptional cases. The supplier must deal with the deviations identified in the audit within the specified period, in order to achieve at least classification AB

C (< 60%)
Supplier is not approved for supplies

 

The supplier approval only authorizes the supplier in respect of his quality capability. Product releases occur within the framework of the Bizerba release and sampling inspection procedure.

5. Quality Assurance Agreement (QAA

In order to orient the co-operation between the supplier and Bizerba towards a long-term, trusting partnership, Bizerba will conclude a Quality Assurance Agreement with selected suppliers. This can refer either to the entire scope of supply or to individual products/product groups (product-specific part).

The QAA regulates the principles of the individual co-operation between the supplier and Bizerba. It supplements the Conditions of Purchase with requirements that are necessary to ensure the required product quality. The Quality Assurance Agreement is agreed with the supplier and signed by both parties before award of contract.

6. Product development

Bizerba’s basic philosophy is to involve its suppliers in the development process as early as possible. This involvement occurs particularly with application-specific components. Through joint development and co-operative teamwork from the initial production phase through to the start of series production, not only are development times reduced, but optimal solutions in respect of quality and cost-efficiency are developed for both partners.

The clear advantages in the development phase are the minimization or avoidance of potential error sources and the early creation of stable and capable processes. The joint goals are:

 

• Reduction of development time and costs
• Realization of cost-effective product solutions
• Reduction of error risks 
• Timely start of series production with technically mature products
• Avoidance of product liability risks 

Both the supplier and Bizerba will exchange all information necessary to realize these goals within the framework of the development partnership. The content of this information is confidential and must not be passed on to third parties

• Specifications,
• Drawings,
• Performance or functional specifications,
• Characteristics for functions

The following contributions can be made by the supplier:

• Suggestions for the avoidance of potential errors, cost reductions and product improvements
• Feasibility studies
• Design inspections, tests, verifications
• FMEAs of all types 
• Process planning
• Process capability and qualifications 
• QM plan
• Inspection equipment and resources planning 

Co-operation in joint product development is performed on the basis of a professional product management system between Bizerba and the supplier.

7. Advance process and quality planning

The supplier must maintain a comprehensive planning and release process, in accordance with VDA 4.3 and/or similar regulations, for the development of parts and processes for Bizerba, and ensure that all necessary activities are completed on time. On the basis of this requirement Bizerba is entitled to inspect the contractor’s planning and release process and the component supplier’s prerequisites.

A feasibility study in conjunction with a general development plan and/or the dispatch of the relevant product/component based on the information provided by Bizerba must be sent by the supplier together with the quotation.

For products and processes that are developed and/or produced for Bizerba, the supplier must use a jointly agreed report form for the planning and release process report. The supplier should nominate a contact for Bizerba projects, who will be available to Bizerba on request, to take part in the general project team.

8. Process and machine capability

8.1 Measuring technology system study

Before the supply of series components, the supplier must prove the capability of the test equipment in a repeatability and reproducibility study (R&P Study) (this can occur, for example, in accordance with the regulations of VDA 5 or comparable methods.)

8.2 Machine capability

All machines and measuring equipment used must be “qualified” for this purpose. All Cmk values applicable for the machines/equipment used must be determined either by the supplier himself or by the machine/equipment manufacturer. For Cmk values below “1.67”, corrective measures must be introduced and documented.

8.3 Process capability

All components must be manufactured using capable and controlled processes. This must be ensured through careful process planning for the product. Cpk 1.33 applies for all parameters/dimensions. This Cpk value must be proved to Bizerba for selected parameters/dimensions within the framework of the initial sampling.

For parameters/dimensions below the Cpk value of “1.33”, corrective measures or other suitable measures (e.g. 100% outgoing inspection) must be introduced and demonstrated to Bizerba, in order to guarantee the required supply quality. Special attention must be paid to the inspection dimensions marked in the specification.

9. Re-qualification/subsequent sampling

The supplier must perform a re-qualification of the component on request, as a quality safeguard. If the supplier discontinues the supplies for more than one year, the issued approval is considered to have lapsed. The part must then be re-qualified. The supplier must apply for a new approval based on initial sampling.

10. Release procedure

10.1 Initial sampling

The supplier must carry out an initial sampling in due time before series release. The presentation of the initial sample test report must in principle occur in accordance with the Bizerba specifications, which are based on VDA, Bd. 2, unless otherwise agreed. In this report all technical requirements for the supply specifications/drawings must be appropriately documented by the supplier. The initial sample test report contains (depending on the product):

• The completed and signed cover sheet t 
• Copy of Bizerba drawings/delivery specification/performance specification 
• The current drawings with numbering of all characteristics in meaningful order
• Measuring report with all nominal and actual dimensions
• Material report with all material nominal and actual values 
• Functional report (qualification results, final test charts for electrical parameters)
• Process workflow with details of location(s)
• Proof of production reliability (process capability, machine capability)
• QM plan/inspection plan
• Supporting documents in respect of hazardous materials (EC safety data sheet)
• Waiver for deviation in the event of deviating characteristics (to be obtained from Bizerba beforehand)

Unless agreed otherwise, 100 parts must be produced for the statistical assessment of the test and measuring results, of which 25 parts will be used. The test dimensions must be agreed separately. The initial samples must be delivered to Bizerba complete with all agreed documents in their own packaging, marked with a colored adhesive label indicating “Initial sample”.

10.2 Release

Bizerba checks the initial sample test report for completeness and compliance with the requirements. Characteristics are verified if necessary. Incomplete test reports without approved deviations are not further processed and are returned to the supplier.

In the case of subsequent samplings which are the fault of the supplier, the supplier may be charged with the processing costs. Bizerba expects initial samples to meet all requirements. However, if deviations occur during performance of the sampling which cannot be corrected at short notice, a written application must be made for a limited waiver for deviation or drawing/specification change before initial sampling.

The prospect of approval must be clarified by the supplier beforehand. The performance of corrections must be approved through presentation of a new initial sample test report. Agreed correction dates must be adhered to. The component release occurs by signing the cover sheet.

Approved deviations are recorded. The signed cover sheet is returned to the supplier. The supplier may not make any production deliveries to Bizerba without this release.

10.3 Material data sheets/material prohibitions

The supplier is in principle required to supply material data sheets as a constituent of the initial sample test report. Compliance with material prohibitions in accordance with Bizerba’s list of prohibited materials or international and national requirements such as, for example, RoHS and WEEE, is guaranteed by the supplier.

11. Archiving and traceability

11.1 Archiving

The supplier will keep all necessary data, particularly measured values and test results, as well as samples that are required to prove the agreed quality, particularly material manufacturing and inspection data, clearly ordered, for at least 15 years after the end of series production, and make it available to Bizerba on request. The archiving period for components that require further documentation is defined in the component specification/drawing.

11.2 Identification and traceability

The supplier shall identify each part with a tracking code on each basic package on request, or if this is impossible or inexpedient shall take other suitable measures to ensure that all material and process steps can be retraced in the event of an error. The contractor will inform Bizerba of his identification system or other measures, so that Bizerba can carry out its own investigations if required. Traceability documents must be made available to Bizerba a maximum of 3 working days after their request. If defective parts are found amongst the products delivered by the supplier, Bizerba can then reject the entire batch.

12. Changes

The supplier will inform Bizerba in good time before making changes to production processes, production parameters, tools, production equipment, materials or bought-in parts, moving production sites, changing sub-suppliers, procedures or devices for testing products or other quality assurance measures, so that Bizerba can check whether the change could have an adverse effect. The change may not be introduced without Bizerba’s written consent. After approval, the changes must be qualified by the supplier. FMEA, QM plan (inspection plan), part history etc. must be adapted accordingly. Before any change to the abovementioned points, an initial sampling must be performed. The scope of the initial sampling must be agreed with Bizerba. Positive outcome of the initial sampling releases the change and concludes the process. The first delivery of modified parts must be notified in writing. The delivery papers and packaging must clearly indicate that this is the first delivery of modified parts.

13. Continuous improvements

In order to ensure that the supplier’s products and processes are in accordance with the latest state of science and technology, the supplier must implement a continuous improvement process, taking account of relevant feedback reports, etc..

14. Conformity

14.1 Product testing and monitoring

The supplier is required to test the quality of his products before dispatch to Bizerba through appropriate process control and outbound inspection, in order to prevent the dispatch of products that do not comply with the agreed drawing/specification for the respective product. Bizerba’s drawing forms the basis for the characteristics to be tested. Any additional special tests are agreed between Bizerba and the supplier if necessary. In individual cases, conformity certificates (proof of conformity) are agreed for individual deliveries. These can also be proof of conformity in accordance with DIN EN 10204 or manufacturer’s declarations in accordance with applicable EU directives. In addition, each packaging unit is checked for correct labeling before dispatch by the contractor.

14.2 Incoming inspection

Upon receipt of the products, Bizerba checks the Bizerba part numbers, as well as the product type and quantity, and checks the products for transport damages. Bizerba is not responsible for any further inspections in addition to those specified above in relation to the supplier.

15. Defects/Non-conformity

If the supplier discovers that his products present deteriorations in quality he shall inform Bizerba immediately, providing full details, particularly in respect of type, extent and cause, as well as any remedial measures planned. The contractor shall immediately take the special measures defined jointly between the parties for the respective case (e.g. higher inspection coverage).

15.1 Complaints

The supplier shall inform Bizerba immediately in writing of any defects in a delivery as soon as these can be detected during the normal course of business. After the receipt of complaints, the supplier shall provide written confirmation within 2 working days. In the event of complaints by Bizerba, the supplier shall arrange for replacement with defect-free products, so that any interruption in production at Bizerba is always avoided.

15.2 Handling of rejects

Rejects are returned to the supplier’s competent QA representative, together with the relevant information. Bizerba shall arrange for appropriate preselection of the rejects, in order to ensure that only those rejects whose cause of failure can be imputed to the supplier are returned to the supplier. After receipt of the rejects, the supplier shall submit a failure analysis report within 7 working days, which contains the following:

A.    The cause of the defect, as well as the reasons why        the defective product was able to run through the        contractor’s tests and inspections undiscovered;

B.    Optimized schedule for the implementation of
       corrective and preventive measures on the basis
       of a test report or 8-D report;
C.    Date of full introduction of corrective measures and 
       testing of their efficacy.

If desired by Bizerba, the supplier is required to perform a failure analysis in respect of:

A.    Estimated net production failures,
B.    Failures from reliability and load tests,
C.    Failures in the field.

15.3 Corrective measures

Irrespective of the sending of rejects, the supplier shall submit a test report or 8-D report for the entire correction period and for Bizerba’s ongoing information, within 7 working days of receipt of the written complaints. Until the corrective measures take effect, Bizerba can agree special measures (higher inspection coverage etc.) with the supplier for an appropriate period of time. Special measures must be implemented within 2 working days. The resulting additional costs shall be borne by the supplier, unless the defect has been demonstrably caused by Bizerba.

15.4 Special release

If defective products must be delivered by the supplier in order to maintain production continuity at Bizerba, the supplier must apply to Bizerba for a special release before delivery. The special release is subject to Bizerba’s decision.

16. Spare parts

The supplier must guarantee that he can supply Bizerba with products for 10 years after the last delivery within the scope of spare parts supply. The supplier must ensure this by means of suitable tool management and appropriate stockage. Premature discontinuation of products is only possible with Bizerba’s consent.

17. Insurance obligation

The supplier is required to take out appropriate insurance for the liability risk and to present confirmation of this insurance for inspection. The coverage must be adapted to include costs in connection with handling product liability damage, series defects or a product recall in particular.