Common use of Planning and Control Clause in Contracts

Planning and Control. In order to produce packaging materials and provide services such that they are supplied in the quality and quantity required by the customer, the internal process operations of the supplier must be planned and controlled in an optimum manner. Checking and confirmation of production feasibility The supplier must check, before confirming the order, whether secure production is possible while complying with customer requirements and taking account of his own or any additional external production facilities required. If the supplier finds that he cannot comply with certain requirements, he must agree a further course of action with the relevant technical departments of the customer. Initial production sampling The customer defines internally which products or services require initial production sampling (see Quality Assurance Agreement with Production Material Suppliers / S 296001 Part 2 – Production Process and Product Release Procedure). The requirements associated with initial production sampling are defined in the relevant "submission level" (see S 296001-2). This information is passed on to the supplier in the form of an initial production sample order by the purchasing department at the specific recipient plant of the customer. Initial production sampling serves as proof that the product demands which have been agreed with the customer are met. Depending on the specified “submission level” the customer assesses on the basis of the corresponding documents and records to be included in the delivery as well as on the basis of initial production samples, whether the requirements for volume production release and volume production delivery for products which conform to specifications are met. Inspection planning The supplier must define the required monitoring and inspection activities before the start of production. Measures to be taken by the supplier in response to the occurrence of defects If, at the supplier’s premises, the product or service to be supplied is found to have a defect, the process must be interrupted immediately and corrected. If products are produced in series, those manufactured since the last inspection that gave a positive result (last good part) are to be inspected 100%. If it is found, when the defective quantity is being delimited, that defective products may already have been despatched to the customer, the relevant quality assurance function in the specific recipient plant of the customer must be notified immediately and the further course of action clarified. The defect root cause(s) defined in the 8D method as well as the corrective measures introduced must be notified to the customer in writing in printed or data form. The supplier can use either his own forms or the appropriate template of the customer (see S 296001-4 “Quality Assurance Agreement with Production Material Suppliers / S 296001 Part 4 - Processing of Concerns“, Appendix 1).

Planning and Control. In order to produce packaging materials and provide services tooling or machine parts such that they are supplied in the quality and quantity required by the customer, the internal process operations of the supplier must be planned and controlled in an optimum manner. Checking and confirmation of production feasibility The supplier must check, before confirming the order, whether secure production is possible while complying with customer requirements and taking account of his own or any additional external production facilities required. If the supplier finds that he cannot comply with certain requirements, he must agree a further course of action with the relevant technical departments of the customer. Initial As confirmation of production sampling The customer defines internally which products or services require initial production sampling (see Quality Assurance Agreement with Production Material Suppliers / S 296001 Part 2 – Production Process and Product Release Procedure). The requirements associated with initial production sampling are defined in feasibility, the relevant "submission level" (see S 296001-2). This information is passed on order confirmation must be sent to the supplier in person placing the form of an initial production sample order by the purchasing department at the specific recipient plant of the customercustomer in written or electronic form. Initial production sampling serves as proof that the product demands which have been agreed with the customer are met. Depending on the specified “submission level” the customer assesses on the basis of the corresponding documents and records to Any deviations from this requirement can be included regulated in the delivery as well as on the basis of initial production samples, whether the requirements for volume production release and volume production delivery for products which conform to specifications are metwriting in each individual case. Inspection planning The supplier must define the required monitoring and inspection activities before the start of production. Measures to be taken by the supplier in response to the occurrence of defects If, at the supplier’s premises, If the product or service to be supplied is found to have a defect, the process must be interrupted immediately and corrected. If products In case that several identical tools or machine parts are produced in seriesconsecutively, those the products manufactured since the last inspection that gave a positive result (last good part) are to be inspected 100%. If it is found, when the defective quantity is being delimited, that defective products may already have been despatched to the customer, the relevant quality assurance function in the specific recipient plant of the customer must be notified immediately and the further course of action clarified. The defect root cause(s) defined in the 8D method as well as the corrective measures introduced must be notified to the customer in writing in printed or data form. The supplier can use either his own forms or the appropriate template of the customer (see S 296001-4 “Quality Assurance Agreement with Production Material Suppliers / S 296001 Part 4 - Processing of Concerns“, Appendix 1). Concessions If deviations from the product specification (drawing, technical delivery conditions, material, material characteristics, etc.) are found, the supplier must apply to the customer for a concession before the products are despatched. The written agreement of the customer must be obtained via the contact person indicated on the order or the designer named on the drawing. The customer can grant this concession in free form, for example by a handwritten entry on the drawing and send this to the supplier by e-mail or fax. Alternatively, the customer-specific request form can be used (see Quality Assurance Agreement with Production Material Suppliers / S 296001 Part 3 - Concession Application, Appendix 1) The concession granted by the customer must be included with the delivery documents. Subsequent improvement of products If rework of the products is necessary, the customer reserves the right to carry these out himself in order to prevent disruption to his own manufacturing operations, for example lost production due to machine downtime. If the supplier carries out this rectification himself, he must ensure that this does not have a negative effect on the quality or function of the product supplied by him. Measures to be taken upon detection of defects after delivery If defective products are only detected once they have been supplied to the customer, the supplier must if necessary interrupt his production immediately and check or sort any goods in transit to the customer or already at the customer. All products already supplied will be returned at the supplier’s expense after prior discussion of timings. Depending on the situation, the supplier must promptly supply usable replacements free of charge (possibly through sorting and removing the defective products). Effective preventive measures must be introduced autonomously by the supplier. Any additional outlay at the customer as a result of defective products, such as rework or scrapping, will be invoiced to the supplier. Packaging and identification The supplier is responsible for protecting his products by means of suitable packaging. At delivery, the (external) packaging and the products themselves must be identified in accordance with the agreements made with the customer and the valid packaging specifications of the customer. The delivery note and packaging units (external packaging, individual packaging) must be identified as a minimum by means of: order number quantity and measurement unit customer drawing with revision level Additional information where appropriate may include: customer material number material batch number copy of the concession granted by the customer (in accordance with Section 3.5.1) reference to any partial or remaining deliveries Product inspection In order to monitor, assess and where necessary improve the effectiveness of his quality assurance measures, the supplier must before despatch check and document the compliance of the products to be supplied with the technical documents, drawings, specifications, standards, legal regulations and other specified quality characteristics.